Senate Bill S5533

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5533
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 7, 2023
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the cannabis law, in relation  to  appointments  to  the
   cannabis control board, and to oversight of registered cannabis organ-
   izations

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 2 of section 7 of the cannabis  law  are
 amended to read as follows:
   1. The cannabis control board is hereby created and shall consist of a
 chairperson nominated by the governor and with the advice and consent of
 the  senate,  with one vote, and [four] EIGHT other voting board members
 as provided for in subdivision two of this section.
   2. Appointments. In addition to the chairperson,  the  governor  shall
 have two direct appointments to the board, [and] the temporary president
 of  the senate and the speaker of the assembly shall each have [one] TWO
 direct [appointment] APPOINTMENTS to the board, AND THE MINORITY  LEADER
 OF  THE  SENATE  AND THE MINORITY LEADER OF THE ASSEMBLY SHALL EACH HAVE
 ONE DIRECT APPOINTMENT TO THE BOARD.  Appointments shall be for  a  term
 of  three  years  each  and should, to the extent possible, be geograph-
 ically and demographically representative of the state  and  communities
 historically  affected by the war on drugs. Board members shall be citi-
 zens and permanent residents of this  state.  The  chairperson  and  the
 remaining  members  of such board shall continue to serve as chairperson
 and members of the board until the expiration of  the  respective  terms
 for  which  they  were appointed. Upon the expiration of such respective
 terms the successors of such chairperson and members shall be  appointed
 to  serve for a term of three years each and until their successors have
 been appointed and qualified. The members, except for  the  chairperson,
 shall when performing the work of the board, be compensated at a rate of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06570-01-3
              

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 two  hundred  sixty  dollars per day, and together with an allowance for
 actual and necessary expenses incurred in the discharge of their duties.
 The chairperson shall receive an annual salary not to exceed  an  amount
 appropriated  therefor  by  the legislature, and their expenses actually
 and necessarily incurred in the performance of  their  official  duties,
 unless  otherwise  provided  by  the  legislature. No member or member's
 spouse or minor child shall have any interest in an entity regulated  by
 the board.
   § 2. Section 36 of the cannabis law is amended to read as follows:
   §  36.  Reports  of  registered  organizations. 1. The board shall, by
 regulation, require each registered organization to file reports by  the
 registered  organization  during  a  particular  period. The board shall
 determine the information to be reported and the forms, time, and manner
 of the reporting.
   2. The board shall, by regulation, require each  registered  organiza-
 tion  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  registered  organiza-
 tion,  subject  to  regulations of the board.   SUCH SECURITY, TRACKING,
 RECORD KEEPING, RECORD  RETENTION  AND  SURVEILLANCE  SYSTEMS  SHALL  BE
 DESIGNED  TO  ASSIST  STATE AND LOCAL GOVERNMENTS WITH THE COLLECTION OF
 TAXES, ENFORCEMENT OF RELEVANT REGULATIONS, VERIFICATION  THAT  CANNABIS
 PRODUCTS  ARE  NOT  UNLAWFULLY  TAMPERED  WITH OR ALTERED PRIOR TO LEGAL
 SALE, AND PREVENTION OF ILLEGAL CANNABIS SALES AND DISTRIBUTION.
   § 3. Section 78 of the cannabis law is amended to read as follows:
   § 78. Record keeping and tracking. 1. The board 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  acquiring,
 possession,  manufacture,  sale,  delivery,  transporting,  testing   or
 distributing by the licensee, subject to regulations of the board.
   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  board.  Such
 regulations  [may] SHALL require the utilization of an approved seed-to-
 sale tracking system compiling a licensee's cannabis inventory and tran-
 saction data.    SUCH  SEED-TO-SALE  TRACKING  AND  REPORTING  SHALL  BE
 DESIGNED  TO  ASSIST  STATE AND LOCAL GOVERNMENTS WITH THE COLLECTION OF
 TAXES, ENFORCEMENT OF RELEVANT REGULATIONS, VERIFICATION  THAT  CANNABIS
 PRODUCTS  ARE  NOT  UNLAWFULLY  TAMPERED  WITH OR ALTERED PRIOR TO LEGAL
 SALE, AND PREVENTION OF  ILLEGAL  CANNABIS  SALES  AND  DISTRIBUTION.  A
 LICENSEE SHALL RECORD IN THE SEED-TO-SALE TRACKING SYSTEM ALL COMMERCIAL
 CANNABIS  ACTIVITY,  INCLUDING:  PACKAGING  OF  CANNABIS  GOODS, SALE OF
 CANNABIS GOODS, TRANSPORTATION OF CANNABIS GOODS TO A LICENSEE,  RECEIPT
 OF CANNABIS GOODS, RETURN OF CANNABIS GOODS, DESTRUCTION AND DISPOSAL OF
 CANNABIS  GOODS,  LABORATORY TESTING AND RESULTS, AND ANY OTHER ACTIVITY
 AS REQUIRED BY THE BOARD.
   § 4. Section 79 of the cannabis law is amended to read as follows:
   § 79. Inspections and  ongoing  requirements.    1.  All  licensed  or
 permitted  premises, regardless of the type of premises, and all records
 including but not limited to financial statements  and  corporate  docu-
 ments, shall be subject to inspection by the office, by the duly author-
 ized  representatives of the board, by any peace officer acting pursuant
 to his or her special duties, or by a police officer.  The  board  shall
 S. 5533                             3
 
 make  reasonable  accommodations so that ordinary business is not inter-
 rupted and safety and security procedures are  not  compromised  by  the
 inspection.  A  person  who  holds a license or permit [must] SHALL make
 himself  or  herself, or an agent thereof, available and present for any
 inspection required by the board. Such inspection may  include,  but  is
 not  limited  to,  ensuring compliance by the licensee or permittee with
 all of the requirements of this  article,  the  regulations  promulgated
 pursuant  thereto,  and other applicable state and local building codes,
 fire, health, safety, and other applicable regulations.
   2. ALL REQUIRED STATE AND LOCAL INSPECTIONS, INCLUDING BUT NOT LIMITED
 TO, BUILDING, PLUMBING, ELECTRICAL, FIRE CODES AND FOOD SAFETY SHALL  BE
 CONDUCTED  THROUGH  THE  LOCAL  MUNICIPAL  BUILDING DEPARTMENT AND LOCAL
 COUNTY HEALTH  DEPARTMENT.  THE  BOARD  SHALL  DEVELOPMENT  STANDARDIZED
 TRAINING FOR SUCH INSPECTIONS AND PROVIDE SUCH TRAINING TO LOCAL MUNICI-
 PALITIES AND LOCAL COUNTY HEALTH DEPARTMENTS AT NO COST.
   3.  THE  APPLICANT  SHALL  ALLOW  REASONABLE  ACCESS TO THE DEPARTMENT
 AND/OR ITS AUTHORIZED REPRESENTATIVES FOR THE PURPOSE OF  CONDUCTING  AN
 ON-SITE  SURVEY OR INSPECTION OF SUCH APPLICANT'S PROPOSED MANUFACTURING
 AND/OR DISPENSING FACILITIES. ANY COSTS ASSOCIATED WITH SUCH INSPECTIONS
 SHALL BE REIMBURSED TO SUCH MUNICIPALITIES BY  THE  OFFICE  OF  CANNABIS
 MANAGEMENT.
   § 5. This act shall take effect immediately.