S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2566
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Health
 
 AN ACT to amend the public health law, in relation to medical marihuana;
   and to amend chapter 90 of the  laws  of  2014,  amending  the  public
   health  law  and  other  laws relating to medical use of marihuana, in
   relation to the effectiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  intent.  The compassionate care act provides
 patients with necessary access to medical marihuana. While  the  program
 has  provided  relief  to  numerous  patients,  several improvements are
 necessary.  Specifically, the program has suffered from overly  restric-
 tive requirements regarding market participation and product regulation.
 Currently,  the  program restricts access by only permitting one dispen-
 sary for every 500,000 New Yorkers - leaving both urban and rural commu-
 nities drastically underserved.  This  act  will  improve  the  existing
 program  by  providing  opportunities  for  social  equity applicants to
 participate in the marketplace in a manner that more accurately  repres-
 ents  the  demographics  of  the  state.  Social  equity applicants will
 include  applicants  from  communities  disproportionately  impacted  by
 cannabis  law enforcement.   This act will also provide necessary flexi-
 bility for market participants to offer products that are more  accessi-
 ble  and  affordable  to  some  of  New York's most vulnerable citizens.
 Specifically, current restrictions on the sale of whole flower result in
 medical products that are cost-prohibitive to many. Moreover,  this  act
 will  provide  greater access to individuals who are unable to enroll in
 the program including those with Alzheimer's disease and who  have  been
 diagnosed  with  autism  spectrum  disorder.  Much  like the addition of
 chronic pain as a qualifying condition, this will allow medical  practi-
 tioners  to recommend an alternative to addictive opiates. These changes
 will give New Yorkers access to quality care they deserve.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06534-01-3
              

 S. 2566                             2
 
   § 2. Subdivisions 1, 5, 7 and 12 of section 3360 of the public  health
 law,  subdivisions  1, 5, 7 and 12 as added by chapter 90 of the laws of
 2014, paragraph (a) of subdivision 7 as amended by chapter  273  of  the
 laws of 2018, are amended and three new subdivisions 5-a, 5-b and 19 are
 added to read as follows:
   1. "Certified medical use" means the acquisition, possession, use, or,
 transportation  of  medical  marihuana  by  a  certified patient, or the
 acquisition, possession, delivery, transportation or  administration  of
 medical  marihuana  by  a  designated  caregiver, for use as part of the
 treatment of the patient's  [serious]  condition,  as  authorized  in  a
 certification  under this title including enabling the patient to toler-
 ate treatment for the [serious] condition. [A certified medical use does
 not include smoking.]
   5. "Designated caregiver" means the individual OR  CAREGIVER  FACILITY
 designated by a certified patient in a registry application. A certified
 patient  may  designate  up to two designated caregivers, NOT COUNTING A
 DESIGNATED CAREGIVER FACILITY OR DESIGNATED CAREGIVER FACILITY EMPLOYEE.
   5-A. "DESIGNATED CAREGIVER FACILITY" MEANS AN  ENTITY  THAT  REGISTERS
 WITH  THE COMMISSIONER TO ASSIST ONE OR MORE CERTIFIED PATIENTS WITH THE
 ACQUISITION, POSSESSION, DELIVERY, TRANSPORTATION OR  ADMINISTRATION  OF
 MEDICAL  MARIHUANA AND IS: A GENERAL HOSPITAL OR RESIDENTIAL HEALTH CARE
 FACILITY OPERATING UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER; AN  ADULT
 CARE  FACILITY  OPERATING UNDER TITLE TWO OF ARTICLE SEVEN OF THE SOCIAL
 SERVICES LAW; A COMMUNITY  MENTAL  HEALTH  RESIDENCE  ESTABLISHED  UNDER
 SECTION  41.44  OF  THE  MENTAL  HYGIENE LAW; A HOSPITAL OPERATING UNDER
 SECTION 7.17 OF THE MENTAL HYGIENE LAW; A MENTAL HYGIENE FACILITY  OPER-
 ATING  UNDER  ARTICLE THIRTY-ONE OF THE MENTAL HYGIENE LAW; AN INPATIENT
 OR RESIDENTIAL TREATMENT PROGRAM CERTIFIED UNDER ARTICLE  THIRTY-TWO  OF
 THE  MENTAL  HYGIENE LAW; A RESIDENTIAL FACILITY FOR THE CARE AND TREAT-
 MENT OF PERSONS WITH DEVELOPMENTAL DISABILITIES OPERATING UNDER  ARTICLE
 SIXTEEN  OF THE MENTAL HYGIENE LAW; A RESIDENTIAL TREATMENT FACILITY FOR
 CHILDREN AND YOUTH OPERATING UNDER  ARTICLE  THIRTY-ONE  OF  THE  MENTAL
 HYGIENE  LAW;  A  PUBLIC  SCHOOL  OR  PRIVATE SCHOOL OPERATING UNDER THE
 EDUCATION LAW; A RESEARCH INSTITUTION WITH AN INTERNAL REVIEW  BOARD;  A
 MEDICAL  MARIHUANA  RESEARCH PROGRAM LICENSED UNDER SECTION THIRTY-THREE
 HUNDRED SIXTY-FOUR-A OF THIS TITLE; OR ANY OTHER FACILITY AS  DETERMINED
 BY THE COMMISSIONER IN REGULATION.
   5-B.  "DESIGNATED  CAREGIVER FACILITY EMPLOYEE" MEANS AN EMPLOYEE OF A
 DESIGNATED CAREGIVER FACILITY.
   7. (a) ["Serious condition"] "CONDITION" means:
   (i) having one of the following [severe debilitating or life-threaten-
 ing] conditions: cancer,  positive  status  for  human  immunodeficiency
 virus or acquired immune deficiency syndrome, amyotrophic lateral scler-
 osis,  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, neuropa-
 thies, Huntington's disease, post-traumatic stress disorder,  pain  that
 degrades health and functional capability where the use of medical mari-
 huana   is  an  alternative  to  opioid  use,  substance  use  disorder,
 ALZHEIMER'S, MUSCULAR DYSTROPHY, DYSTONIA, RHEUMATOID ARTHRITIS, AUTISM,
 or [as added by the commissioner; and
   (ii) any of the following conditions where it is clinically associated
 with, or a complication of, a condition  under  this  paragraph  or  its
 treatment:  cachexia or wasting syndrome; severe or chronic pain; severe
 nausea; seizures; severe or persistent muscle spasms; or such conditions
 as are added by the commissioner.
 S. 2566                             3

   (b) No later than eighteen months from  the  effective  date  of  this
 section,  the  commissioner shall determine whether to add the following
 serious conditions: Alzheimer's,  muscular  dystrophy,  dystonia,  post-
 traumatic  stress disorder and rheumatoid arthritis] ANY OTHER CONDITION
 CERTIFIED BY THE PRACTITIONER.
   12.  "Practitioner"  means  a  practitioner  who  (i)  [is a physician
 licensed by New York state and practicing within the state,] IS  AUTHOR-
 IZED  TO PRESCRIBE CONTROLLED SUBSTANCES WITHIN THE STATE; (ii) [who] by
 training or experience is qualified to treat a  [serious]  condition  as
 defined in subdivision seven of this section; and (iii) [has completed a
 two  to four hour course as determined by the commissioner in regulation
 and registered with the department;  provided  however,  a  registration
 shall  not  be  denied without cause. Such course may count toward board
 certification requirements. The commissioner shall consider  the  inclu-
 sion  of  nurse practitioners under this title based upon considerations
 including access and availability. After such consideration the  commis-
 sioner  is authorized to deem nurse practitioners as practitioners under
 this title] COMPLETES, AT A MINIMUM, A TWO HOUR COURSE AS DETERMINED  BY
 THE  COMMISSIONER.  A PERSON'S STATUS AS A PRACTITIONER UNDER THIS TITLE
 IS DEEMED TO BE A "LICENSE" FOR PURPOSES OF SECTION THIRTY-THREE HUNDRED
 NINETY OF THIS ARTICLE.
   19. "MEDICAL MARIHUANA RESEARCH PROGRAM"  MEANS  A  MEDICAL  MARIHUANA
 RESEARCH   PROGRAM   LICENSED   UNDER   SECTION   THIRTY-THREE   HUNDRED
 SIXTY-FOUR-A OF THIS TITLE.
   § 3. Subdivisions 1, 2, and 9 of section 3361  of  the  public  health
 law, subdivisions 1 and 2 as added by chapter 90 of the laws of 2014 and
 subdivision  9  as added by chapter 416 of the laws of 2015, are amended
 to read as follows:
   1. A patient certification may only be issued if: (a)  a  practitioner
 has  been  registered  with  the  department to issue a certification as
 determined by the commissioner; (b) the patient has a  [serious]  condi-
 tion,  which shall be specified in the patient's health care record; (c)
 the practitioner by training or experience is  qualified  to  treat  the
 [serious] condition; (d) the patient is under the practitioner's contin-
 uing  care  for  the  [serious] condition; and (e) in the practitioner's
 professional opinion and review of past treatments, the patient is like-
 ly to receive therapeutic or palliative  benefit  from  the  primary  or
 adjunctive  treatment  with  medical  use of marihuana for the [serious]
 condition.
   2. The certification shall include (a) the name,  date  of  birth  and
 address of the patient; (b) a statement that the patient has a [serious]
 condition  and  the  patient  is  under  the practitioner's care for the
 [serious] 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, federal registration  number,  telephone  number,
 and  the  handwritten  signature  of  the  certifying  practitioner. The
 commissioner may require by regulation that the certification  shall  be
 on  a form provided by the department. The practitioner may state in the
 certification that, in  the  practitioner's  professional  opinion,  the
 patient  would  benefit  from  medical  marihuana only until a specified
 date. The practitioner may state in the certification that, in the prac-
 titioner's professional opinion, the patient is terminally ill and  that
 the certification shall not expire until the patient dies.
   9.  (a) A certification may be a special certification if, in addition
 to the other requirements for a certification, the  practitioner  certi-
 fies  in  the  certification  that  the patient's [serious] condition is
 S. 2566                             4
 
 progressive and degenerative or that delay in  the  patient's  certified
 medical  use  of marihuana poses a serious risk to the patient's life or
 health.
   (b)  The  department  shall  create  the form to be used for a special
 certification and shall make that form available to be  downloaded  from
 the department's website.
   § 4. Subdivisions 1 and 2 of section 3362 of the public health law, as
 added  by chapter 90 of the laws of 2014, are amended and a new subdivi-
 sion 3 is added to read as follows:
   1. The possession, acquisition, use, delivery,  transfer,  transporta-
 tion,  or  administration of medical marihuana by a certified patient or
 designated caregiver possessing a valid  registry  identification  card,
 for  certified  medical  use, shall be lawful under this title; provided
 that:
   (a) the marihuana that may be possessed by a certified  patient  shall
 not  exceed  a  [thirty] SIXTY day supply of the dosage as determined by
 the practitioner, consistent with any guidance and regulations issued by
 the commissioner, provided that during the last seven days of any [thir-
 ty] SIXTY day period, the certified patient may also possess up to  such
 amount for the next [thirty] SIXTY day period;
   (b)  the marihuana that may be possessed by designated caregivers does
 not exceed the quantities referred to in paragraph (a) of this  subdivi-
 sion for each certified patient for whom the caregiver possesses a valid
 registry identification card, up to five certified patients;
   (c) THE MARIHUANA THAT MAY BE POSSESSED BY DESIGNATED CAREGIVER FACIL-
 ITIES  DOES  NOT  EXCEED  THE QUANTITIES REFERRED TO IN PARAGRAPH (A) OF
 THIS SUBDIVISION FOR EACH CERTIFIED PATIENT UNDER CARE OR  TREATMENT  OF
 THE FACILITY;
   (D)  the  form  or forms of medical marihuana that may be possessed by
 the certified patient [or], designated caregiver, OR DESIGNATED CAREGIV-
 ER FACILITY pursuant to a certification shall be in compliance with  any
 recommendation or limitation by the practitioner as to the form or forms
 of  medical marihuana or dosage for the certified patient in the certif-
 ication; and
   [(d)] (E) the medical marihuana shall be kept in the original  package
 in  which  it  was dispensed under subdivision twelve of section thirty-
 three hundred sixty-four of this title, except for the  portion  removed
 for  immediate  consumption  for  certified medical use by the certified
 patient.
   2. Notwithstanding subdivision one of this section:
   (a) possession of medical marihuana shall not  be  lawful  under  this
 title  if it is smoked, consumed, vaporized, or grown in a public place,
 regardless of the form of medical  marihuana  stated  in  the  patient's
 certification.
   (b)  a  [person]  CERTIFIED PATIENT OR DESIGNATED CAREGIVER possessing
 medical marihuana under this title shall possess  his  or  her  registry
 identification card at all times when in immediate possession of medical
 marihuana.
   (C) MEDICAL MARIHUANA MAY NOT BE SMOKED IN ANY PLACE WHERE TOBACCO MAY
 NOT  BE  SMOKED  UNDER ARTICLE THIRTEEN-E OF THIS CHAPTER, REGARDLESS OF
 THE FORM OF MEDICAL MARIHUANA STATED IN THE PATIENT'S CERTIFICATION.
   3. THE POSSESSION, ACQUISITION, DELIVERY, TRANSFER, TRANSPORTATION, OR
 ADMINISTRATION OF MEDICAL MARIHUANA BY A DESIGNATED  CAREGIVER  FACILITY
 OR  DESIGNATED  CAREGIVER  FACILITY  EMPLOYEE SHALL BE LAWFUL UNDER THIS
 TITLE PROVIDED THAT:
 S. 2566                             5
 
   (A) THE DESIGNATED CAREGIVER FACILITY REGISTERS WITH THE DEPARTMENT ON
 A FORM PROVIDED BY THE COMMISSIONER;
   (B)  SUCH POSSESSION, ACQUISITION, DELIVERY, TRANSFER, TRANSPORTATION,
 OR ADMINISTRATION IS ON BEHALF  OF  A  CERTIFIED  PATIENT  POSSESSING  A
 REGISTRY IDENTIFICATION CARD;
   (C) THE DESIGNATED CAREGIVER FACILITY MAINTAINS A COPY OF THE REGISTRY
 IDENTIFICATION  CARD  OF  EACH CERTIFIED PATIENT FOR WHICH IT POSSESSES,
 ACQUIRES, DELIVERS, TRANSFERS, TRANSPORTS, OR ADMINISTERS MEDICAL  MARI-
 HUANA; AND
   (D) A DESIGNATED CAREGIVER FACILITY EMPLOYEE SHALL BE IDENTIFIED AS AN
 EMPLOYEE WHEN NECESSARY, AS PROVIDED BY THE COMMISSIONER.
   § 5. Subdivisions 2, 3, 5, and 11 of section 3363 of the public health
 law,  as added by chapter 90 of the laws of 2014, are amended to read as
 follows:
   2. To obtain, amend or renew a registry identification card, a  certi-
 fied  patient  or designated caregiver shall file a registry application
 with the department. 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 marihuana, if the certification states such a date;
   (vi)  the  name,  address,  federal registration number, and telephone
 number of the certifying practitioner;
   (vii) any recommendation or limitation by the practitioner as  to  the
 form  or forms of medical marihuana or dosage for the certified patient;
 and
   (viii)  other  individual  identifying  information  required  by  the
 department;
   (b)  (I) in the case of a certified patient, if the patient designates
 a designated caregiver, the name, address, and  date  of  birth  of  the
 designated  caregiver,  and  other  individual  identifying  information
 required by the department;
   (II) IF THE DESIGNATED  CAREGIVER  IS  A  MEDICAL  MARIHUANA  RESEARCH
 PROGRAM,  THE  NAME  OF  THE  ORGANIZATION  CONDUCTING THE RESEARCH; THE
 ADDRESS, PHONE NUMBER, AND NAME OF THE INDIVIDUAL LEADING  THE  RESEARCH
 OR  APPROPRIATE  DESIGNEE; AND OTHER IDENTIFYING INFORMATION REQUIRED BY
 THE DEPARTMENT;
   (c) 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 depart-
 ment;
   (d) a statement that a false statement  made  in  the  application  is
 punishable under section 210.45 of the penal law;
   (e)  the  date  of  the application and the signature of the certified
 patient or designated caregiver, as the case may be; AND
 S. 2566                             6
 
   (f) [a fifty dollar application fee, provided, that the department may
 waive or reduce the fee in cases of financial hardship; and
   (g)] any other requirements determined by the commissioner.
   3. Where a certified patient is under the age of eighteen:
   (a)  The  application for a registry identification card shall be made
 by an appropriate person over twenty-one years of age.  The  application
 shall state facts demonstrating that the person is appropriate.
   (b)  The  designated caregiver shall be (i) a parent or legal guardian
 of the certified patient, (ii) a person designated by a parent or  legal
 guardian, [or] (iii) IN THE CASE OF SUCH A CERTIFIED PATIENT BEING CARED
 FOR BY A DESIGNATED CAREGIVER FACILITY, THE DESIGNATED CAREGIVER FACILI-
 TY  DESIGNATED  BY  THE PARENT OR LEGAL GUARDIAN; OR (IV) an appropriate
 person approved by the department upon  a  sufficient  showing  that  no
 parent or legal guardian is appropriate or available.
   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 DESIGNATED CAREGIVER
 FACILITY EMPLOYEE.
   11. A certified patient or designated caregiver who has been issued  a
 registry  identification  card shall notify the department of any change
 in his or her name or address or, with respect to the patient, if he  or
 she  ceases  to  have the [serious] condition noted on the certification
 within ten days of such change. The certified  patient's  or  designated
 caregiver's  registry  identification  card  shall be deemed invalid and
 shall be returned promptly to the department.
   § 6. Subdivisions 3 and 5 of section 3364 of the public health law, as
 added by chapter 90 of the laws of 2014, are amended and a new  subdivi-
 sion 14 is added to read as follows:
   3.  Each  registered  organization  shall contract with an independent
 laboratory PERMITTED UNDER SECTION THIRTY-THREE HUNDRED SIXTY-FOUR-C  OF
 THIS  TITLE  to  test  the  medical marihuana produced by the registered
 organization. The commissioner shall approve the laboratory and  require
 that the laboratory report testing results in a manner determined by the
 commissioner. The commissioner is authorized to issue regulation requir-
 ing the laboratory to perform certain tests and services.
   5.  (a)  No  registered  organization may sell, deliver, distribute or
 dispense to any certified patient or designated caregiver a quantity  of
 medical  marihuana  larger  than  that  individual  would  be allowed to
 possess under this title.
   (b) When dispensing medical marihuana to a certified patient or desig-
 nated caregiver, the registered organization (i) shall not  dispense  an
 amount  greater  than a [thirty] 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 consult-
 ing the prescription monitoring program registry under  section  thirty-
 three hundred forty-three-a of this article.
   (c)  Medical  marihuana 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 marihuana or dosage for the certified patient.
   14. 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),  BUT  NOT  INCLUDING  ANY  FUNCTION  OR  ACTIVITY
 S. 2566                             7
 
 DIRECTLY  INVOLVING THE PLANTING, GROWING, TENDING, HARVESTING, PROCESS-
 ING, OR PACKAGING OF PLANTS; OR ANY OTHER  FUNCTION  DIRECTLY  INVOLVING
 MANUFACTURING  OR  RETAILING  OF  MEDICAL  MARIHUANA. ALL LAWS AND REGU-
 LATIONS  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 COMMISSIONER MAY MAKE REGULATIONS
 CONSISTENT  WITH  THIS  TITLE  RELATING  TO  CONTRACTS  AND  PARTIES  TO
 CONTRACTS UNDER THIS SUBDIVISION.
   §  7.  The public health law is amended by adding a new section 3364-a
 to read as follows:
   § 3364-A. MEDICAL MARIHUANA RESEARCH LICENSES.   1.  THE  COMMISSIONER
 SHALL  ESTABLISH  A  MEDICAL  MARIHUANA  RESEARCH LICENSE THAT PERMITS A
 LICENSEE TO PRODUCE, PROCESS,  PURCHASE,  POSSESS,  TRANSFER,  AND  SELL
 MARIHUANA,  SUBJECT  TO THIS SECTION, FOR THE FOLLOWING LIMITED RESEARCH
 PURPOSES:
   (A) TO TEST CHEMICAL POTENCY AND COMPOSITION LEVELS;
   (B) TO CONDUCT CLINICAL INVESTIGATIONS OF MARIHUANA-DERIVED PRODUCTS;
   (C) TO CONDUCT RESEARCH ON THE EFFICACY AND  SAFETY  OF  ADMINISTERING
 MARIHUANA AS PART OF MEDICAL TREATMENT; OR
   (D)  TO  CONDUCT  GENOMIC OR AGRICULTURAL RESEARCH RELATING TO MEDICAL
 MARIHUANA.
   2. AS PART OF THE APPLICATION PROCESS FOR A MEDICAL MARIHUANA RESEARCH
 LICENSE, AN APPLICANT MUST SUBMIT TO THE COMMISSIONER A  DESCRIPTION  OF
 THE  RESEARCH  THAT IS INTENDED TO BE CONDUCTED AS WELL AS THE AMOUNT OF
 MARIHUANA TO BE GROWN OR PURCHASED. THE  COMMISSIONER  SHALL  REVIEW  AN
 APPLICANT'S RESEARCH PROJECT AND DETERMINE WHETHER IT MEETS THE REQUIRE-
 MENTS  OF SUBDIVISION ONE OF THIS SECTION. IN ADDITION, THE COMMISSIONER
 SHALL ASSESS THE APPLICATION 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  (TO  THE EXTENT LEGALLY
 AVAILABLE) APPROVALS RELATING TO HUMAN OR ANIMAL RESEARCH, IN  PLACE  TO
 SUCCESSFULLY CONDUCT THE PROJECT; AND
   (C)  WHETHER  THE  AMOUNT OF MARIHUANA TO BE GROWN OR PURCHASED BY THE
 APPLICANT IS CONSISTENT WITH THE PROJECT'S SCOPE AND GOALS.
   3. IF THE COMMISSIONER DETERMINES THAT THE RESEARCH PROJECT MEETS  THE
 REQUIREMENTS  OF  SUBDIVISION  ONE OF THIS SECTION, THE COMMISSIONER MAY
 APPROVE THE APPLICATION. IF NOT, THE APPLICATION SHALL BE DENIED.
   4. A MEDICAL MARIHUANA RESEARCH LICENSEE MAY  ONLY  SELL  OR  TRANSFER
 MARIHUANA  GROWN OR PRODUCED WITHIN ITS OPERATION TO OTHER MEDICAL MARI-
 HUANA RESEARCH LICENSEES, OR OTHERWISE FOR PURPOSES  OF  THE  LICENSEE'S
 RESEARCH.
   5.  IN  ESTABLISHING A MEDICAL MARIHUANA RESEARCH LICENSE, THE COMMIS-
 SIONER MAY MAKE REGULATIONS ON THE FOLLOWING:
   (A) APPLICATION REQUIREMENTS;
   (B)  LICENSE  RENEWAL  REQUIREMENTS,  INCLUDING   WHETHER   ADDITIONAL
 RESEARCH PROJECTS MAY BE ADDED OR CONSIDERED;
   (C) CONDITIONS FOR LICENSE REVOCATION;
   (D)  SECURITY MEASURES TO ENSURE MARIHUANA IS NOT DIVERTED TO PURPOSES
 OTHER THAN RESEARCH;
   (E) AMOUNT OF PLANTS, USEABLE MARIHUANA,  MARIHUANA  CONCENTRATES,  OR
 MARIHUANA-INFUSED PRODUCTS A LICENSEE MAY HAVE ON ITS PREMISES;
   (F) LICENSEE REPORTING REQUIREMENTS;
 S. 2566                             8

   (G)  CONDITIONS  UNDER WHICH MARIHUANA GROWN BY LICENSED MEDICAL MARI-
 HUANA PRODUCERS AND OTHER PRODUCT TYPES FROM LICENSED MEDICAL  MARIHUANA
 PROCESSORS MAY BE DONATED TO MEDICAL MARIHUANA RESEARCH LICENSEES; AND
   (H) ANY ADDITIONAL REQUIREMENTS DEEMED NECESSARY BY THE COMMISSIONER.
   6.  A  MARIHUANA  RESEARCH  LICENSE ISSUED UNDER THIS SECTION SHALL BE
 ISSUED IN THE NAME OF THE APPLICANT OR APPLICANTS, SPECIFY THE  LOCATION
 AT  WHICH  THE  MARIHUANA  RESEARCHER INTENDS TO OPERATE, WHICH SHALL BE
 WITHIN THE STATE, AND SHALL NOT  ALLOW  ANY  OTHER  PERSON  TO  USE  THE
 LICENSE EXCEPT AS UNDER SUBDIVISION FOUR OF THIS SECTION.
   7.  PARTICIPATION  BY  CERTIFIED  PATIENTS  IN  ANY  MEDICAL MARIHUANA
 RESEARCH PROGRAM SHALL BE VOLUNTARY.
   8. THE APPLICATION FEE FOR A MEDICAL MARIHUANA RESEARCH LICENSE  SHALL
 BE DETERMINED BY THE COMMISSIONER ON AN ANNUAL BASIS.
   9.  EACH  MEDICAL  MARIHUANA  RESEARCH  LICENSEE SHALL ISSUE AN ANNUAL
 REPORT TO THE COMMISSIONER. THE COMMISSIONER SHALL  REVIEW  SUCH  REPORT
 AND MAKE A DETERMINATION AS TO WHETHER THE RESEARCH PROJECT CONTINUES TO
 MEET THE RESEARCH QUALIFICATIONS UNDER THIS SECTION.
   §  8.  The public health law is amended by adding a new section 3364-b
 to read as follows:
   § 3364-B. REGISTRATION OF DESIGNATED  CAREGIVER  FACILITIES.    1.  TO
 OBTAIN,  AMEND OR RENEW A REGISTRATION AS A DESIGNATED CAREGIVER FACILI-
 TY, THE FACILITY SHALL FILE AN APPLICATION WITH  THE  COMMISSIONER.  THE
 APPLICATION SHALL INCLUDE:
   (A) THE FACILITY'S FULL NAME AND ADDRESS;
   (B) OPERATING CERTIFICATE OR LICENSE NUMBER WHERE APPROPRIATE;
   (C)  NAME,  TITLE,  AND  SIGNATURE OF AN AUTHORIZED FACILITY REPRESEN-
 TATIVE;
   (D) A STATEMENT THAT THE FACILITY AGREES TO SECURE AND  ENSURE  PROPER
 HANDLING OF ALL MEDICAL MARIHUANA 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 COMMISSIONER.
   2. PRIOR TO ISSUING OR RENEWING A DESIGNATED CAREGIVER FACILITY REGIS-
 TRATION, THE COMMISSIONER MAY VERIFY THE INFORMATION  SUBMITTED  BY  THE
 APPLICANT.   THE APPLICANT SHALL PROVIDE, AT THE COMMISSIONER'S REQUEST,
 SUCH INFORMATION AND DOCUMENTATION, INCLUDING ANY CONSENTS  OR  AUTHORI-
 ZATIONS, THAT MAY BE NECESSARY FOR THE COMMISSIONER TO VERIFY THE INFOR-
 MATION.
   3.  THE APPLICATION SHALL BE APPROVED, DENIED OR DETERMINED INCOMPLETE
 OR INACCURATE BY THE COMMISSIONER WITHIN THIRTY DAYS OF RECEIPT  OF  THE
 APPLICATION.  IF  THE  APPLICATION  IS  APPROVED, THE COMMISSIONER SHALL
 ISSUE A REGISTRATION AS SOON AS IS REASONABLY PRACTICABLE.
   4. REGISTRATIONS UNDER THIS SECTION SHALL REMAIN VALID FOR  TWO  YEARS
 FROM THE DATE OF ISSUANCE.
   §  9.  The public health law is amended by adding a new section 3364-c
 to read as follows:
   § 3364-C. LABORATORY PERMITS.  1. THE COMMISSIONER SHALL  APPROVE  AND
 PERMIT  ONE  OR MORE INDEPENDENT LABORATORIES TO TEST MEDICAL MARIHUANA.
 TO BE PERMITTED AS AN INDEPENDENT LABORATORY UNDER THIS SECTION, A LABO-
 RATORY MUST APPLY TO THE DEPARTMENT IN A FORM AND MANNER  PRESCRIBED  BY
 THE  COMMISSIONER AND MUST DEMONSTRATE THE FOLLOWING TO THE SATISFACTION
 OF THE COMMISSIONER:
   (A) THE OWNERS AND DIRECTORS OF THE LABORATORY ARE OF GOOD MORAL CHAR-
 ACTER;
 S. 2566                             9
 
   (B) THE LABORATORY AND ITS  STAFF  HAVE  THE  SKILLS,  RESOURCES,  AND
 EXPERTISE  NEEDED  TO  ACCURATELY  AND  CONSISTENTLY PERFORM ALL TESTING
 REQUIRED;
   (C)  THE  LABORATORY HAS IN PLACE AND WILL MAINTAIN ADEQUATE POLICIES,
 PROCEDURES, AND FACILITY SECURITY TO ENSURE PROPER COLLECTION, LABELING,
 ACCESSIONING, PREPARATION, ANALYSIS,  RESULT  REPORTING,  DISPOSAL,  AND
 STORAGE OF MEDICAL MARIHUANA;
   (D) THE LABORATORY IS PHYSICALLY LOCATED IN NEW YORK STATE;
   (E)  THE  LABORATORY HAS A CERTIFICATE OF APPROVAL AS AN ENVIRONMENTAL
 LABORATORY ISSUED BY THE COMMISSIONER UNDER TITLE ONE OF ARTICLE FIVE OF
 THIS CHAPTER; AND
   (F) THE LABORATORY MEETS ALL REQUIREMENTS PRESCRIBED BY  THIS  CHAPTER
 AND THE COMMISSIONER IN REGULATION.
   2. THE OWNER OF AN INDEPENDENT LABORATORY PERMITTED UNDER THIS SECTION
 SHALL NOT HOLD A REGISTRATION AS A REGISTERED ORGANIZATION AND SHALL NOT
 HAVE ANY DIRECT OR INDIRECT OWNERSHIP INTEREST IN SUCH REGISTERED ORGAN-
 IZATION.  NO BOARD MEMBER, MANAGER, OWNER, PARTNER, PRINCIPAL STAKEHOLD-
 ER,  OR  MEMBER OF A REGISTERED ORGANIZATION, OR SUCH PERSON'S IMMEDIATE
 FAMILY, SHALL HAVE AN INTEREST OR VOTING RIGHTS IN ANY INDEPENDENT LABO-
 RATORY PERMITTEE. NO REGISTERED ORGANIZATION SHALL HAVE  ANY  DIRECT  OR
 INDIRECT OWNERSHIP INTEREST IN SUCH LABORATORY.
   3.  AN  INDEPENDENT LABORATORY SHALL NOT BE REQUIRED TO BE LICENSED BY
 THE FEDERAL DRUG ENFORCEMENT ADMINISTRATION.
   § 10. Subdivision 9 of section 3365 of the public health law, as added
 by chapter 90 of the laws of 2014, is amended to read as follows:
   9. [The commissioner shall register no more than  five]  A  registered
 [organizations]  ORGANIZATION  that  [manufacture]  MANUFACTURES medical
 marihuana [with] MAY HAVE no more than  [four]  EIGHT  dispensing  sites
 wholly  owned  and  operated  by  [such]  THE  registered  organization.
 PROVIDED, HOWEVER, THAT ANY DISPENSING  SITE  OPENED  PURSUANT  TO  THIS
 SECTION  BY  A  REGISTERED  ORGANIZATION LICENSED PRIOR TO THE EFFECTIVE
 DATE OF THE CHAPTER OF  THE  LAWS  OF  TWO  THOUSAND  TWENTY-THREE  THAT
 AMENDED  THIS  SUBDIVISION SHALL NOT BE APPROVED BY THE DEPARTMENT UNTIL
 SUCH REGISTERED ORGANIZATIONS ESTABLISHES A SUBSIDY PROGRAM  TO  PROVIDE
 ASSISTANCE  AND  INCREASE  ACCESS  TO  PATIENTS.  The commissioner shall
 ensure that such [registered organizations  and]  dispensing  sites  are
 geographically  distributed across the state. The commission [may] SHALL
 register additional registered organizations REFLECTING THE DEMOGRAPHICS
 OF THE STATE.
   (A) THE DEPARTMENT SHALL IMPLEMENT A SOCIAL AND ECONOMIC  EQUITY  PLAN
 AND  ACTIVELY  PROMOTE  APPLICATIONS FROM COMMUNITIES DISPROPORTIONATELY
 IMPACTED BY CANNABIS PRODUCTION, AND PROMOTE RACIAL, ETHNIC, AND  GENDER
 DIVERSITY  WHEN  ISSUING  THE  ADDITIONAL  FOUR REGISTERED ORGANIZATIONS
 LICENSES, INCLUDING BY PRIORITIZING  CONSIDERATION  OF  APPLICATIONS  BY
 APPLICANTS  WHO  ARE FROM COMMUNITIES DISPROPORTIONATELY IMPACTED BY THE
 ENFORCEMENT OF CANNABIS PROHIBITION OR WHO QUALIFY AS A  MINORITY  OR  A
 WOMEN-OWNED  BUSINESS.  SUCH  QUALIFICATIONS  SHALL BE DETERMINED BY THE
 DEPARTMENT IN REGULATION.
   (B) THE DEPARTMENT SHALL ISSUE FOUR ADDITIONAL REGISTERED ORGANIZATION
 LICENSES AND CREATE A SOCIAL AND ECONOMIC EQUITY PLAN TO PROMOTE  DIVER-
 SITY  IN  OWNERSHIP AND EMPLOYMENT IN THE MEDICAL MARIHUANA INDUSTRY AND
 ENSURE INCLUSION OF:
   (I) INDIVIDUALS FROM COMMUNITIES DISPROPORTIONATELY  IMPACTED  BY  THE
 ENFORCEMENT OF CANNABIS PROHIBITION;
   (II) MINORITY-OWNED BUSINESSES;
   (III) WOMEN-OWNED BUSINESSES;
 S. 2566                            10
 
   (IV)  MINORITY AND WOMEN-OWNED BUSINESSES, AS DEFINED IN PARAGRAPH (D)
 OF THIS SUBDIVISION; AND
   (C)  THE  SOCIAL AND ECONOMIC EQUITY PLAN SHALL REQUIRE AN ANALYSIS OF
 HOW TO PRIORITIZE OPPORTUNITIES FOR APPLICANTS THAT ARE:
   (I) A MEMBER OF A COMMUNITY GROUP  THAT  HAS  BEEN  DISPROPORTIONATELY
 IMPACTED BY THE ENFORCEMENT OF CANNABIS PROHIBITION;
   (II)  WAS  CONVICTED OF A CANNABIS-RELATED OFFENSE PRIOR TO THE EFFEC-
 TIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND  TWENTY-THREE  THAT
 AMENDED  THIS  SUBDIVISION, OR HAD A PARENT, GUARDIAN, CHILD, SPOUSE, OR
 DEPENDENT, OR WAS A DEPENDENT OF AN INDIVIDUAL WHO, PRIOR TO THE  EFFEC-
 TIVE  DATE  OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE THAT
 AMENDED THIS SUBDIVISION, WAS CONVICTED OF A CANNABIS-RELATED OFFENSE.
   (D) FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS  SHALL
 APPLY:
   (I)  "MINORITY-OWNED  BUSINESS"  SHALL  MEAN  A  BUSINESS  ENTERPRISE,
 INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY  COMPANY
 OR CORPORATION THAT IS:
   (1)  AT  LEAST  FIFTY-ONE  PERCENT OWNED BY ONE OR MORE MINORITY GROUP
 MEMBERS;
   (2) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS  REAL,  SUBSTAN-
 TIAL AND CONTINUING;
   (3)  AN  ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS AND EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
   (4) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS  STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED; AND
   (5) AN ENTERPRISE THAT IS A SMALL BUSINESS.
   (II)  "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:
   (1) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
 GROUPS;
   (2)  HISPANIC  PERSONS  OF  MEXICAN,  PUERTO  RICAN, DOMINICAN, CUBAN,
 CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC  ORIGIN,  REGARD-
 LESS OF RACE;
   (3) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY OF
 THE ORIGINAL PEOPLES OF NORTH AMERICA; OR
   (4)  ASIAN  AND  PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
 FAR EAST COUNTRIES, SOUTH EAST ASIA,  THE  INDIAN  SUBCONTINENT  OR  THE
 PACIFIC ISLANDS.
   (III) "WOMEN-OWNED BUSINESS" SHALL MEAN A BUSINESS ENTERPRISE, INCLUD-
 ING  A  SOLE  PROPRIETORSHIP,  PARTNERSHIP, LIMITED LIABILITY COMPANY OR
 CORPORATION THAT IS:
   (1) AT LEAST FIFTY-ONE PERCENT OWNED BY  ONE  OR  MORE  UNITED  STATES
 CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE WOMEN;
   (2)  AN  ENTERPRISE  IN  WHICH THE OWNERSHIP INTEREST OF SUCH WOMEN IS
 REAL, SUBSTANTIAL AND CONTINUING;
   (3) AN ENTERPRISE IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES  THE
 AUTHORITY  TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF
 THE ENTERPRISE;
   (4) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS  STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED; AND
   (5) AN ENTERPRISE THAT IS A SMALL BUSINESS.
   (IV) "A FIRM OWNED BY A MINORITY GROUP MEMBER WHO IS ALSO A WOMAN" MAY
 INCLUDE A MINORITY-OWNED BUSINESS, A WOMEN-OWNED BUSINESS, OR BOTH.
 S. 2566                            11
 
   (V)  "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
 DEPARTMENT  SHALL  ISSUE  GUIDELINES  TO  DETERMINE  HOW TO ASSESS WHICH
 COMMUNITIES HAVE BEEN DISPROPORTIONATELY IMPACTED AND HOW TO  ASSESS  IF
 SOMEONE IS A MEMBER OF A COMMUNITY DISPROPORTIONATELY IMPACTED.
   (E)  THE    DEPARTMENT  SHALL  ACTIVELY PROMOTE APPLICANTS THAT FOSTER
 RACIAL, ETHNIC, AND GENDER DIVERSITY IN THEIR WORKFORCE.
   § 11. Subdivision 1 of section 3365-a of the  public  health  law,  as
 added by chapter 416 of the laws of 2015, is amended to read as follows:
   1.  There is hereby established in the department an emergency medical
 marihuana access program (referred to in this section as the  "program")
 under this section. The purpose of the program is to expedite the avail-
 ability of medical marihuana to avoid suffering and loss of life, during
 the  period  before  full  implementation  of  and production under this
 title, especially in the case of patients whose [serious]  condition  is
 progressive  and  degenerative  or  is  such that delay in the patient's
 medical use of marihuana poses a serious risk to the patient's  life  or
 health. The commissioner shall implement the program as expeditiously as
 practicable, including by emergency regulation.
   § 12. Subdivision 1 of section 3369 of the public health law, as added
 by chapter 90 of the laws of 2014, is amended to read as follows:
   1.  Certified  patients,  designated  caregivers, DESIGNATED CAREGIVER
 FACILITIES, DESIGNATED CAREGIVER FACILITY EMPLOYEES,  MEDICAL  MARIHUANA
 RESEARCH  PROGRAM EMPLOYEES, practitioners, registered organizations and
 the employees of  registered  organizations  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  marihua-
 na, or for any other action or conduct in accordance with this title.
   §  13. Section 3369-d of the public health law, as added by chapter 90
 of the laws of 2014, is amended to read as follows:
   § 3369-d. Pricing. [1. Every sale of medical marihuana shall be at the
 price determined by the commissioner. Every charge made or demanded  for
 medical  marihuana  not  in  accordance with the price determined by the
 commissioner, is prohibited.
   2. The commissioner is hereby authorized to set the per dose price  of
 each  form  of medical marihuana sold by any registered organization. In
 setting the per dose price  of  each  form  of  medical  marihuana,  the
 commissioner  shall  consider  the fixed and variable costs of producing
 the form of marihuana and any other factor the commissioner, in  his  or
 her discretion, deems relevant to determining the per dose price of each
 form  of  medical  marihuana.]  REGISTERED  ORGANIZATIONS  SHALL  SUBMIT
 DOCUMENTATION OF ANY PRICE AND CHANGE IN PRICE PER DOSE FOR ANY  MEDICAL
 MARIHUANA  PRODUCT TO THE COMMISSIONER WITHIN FIFTEEN DAYS OF SETTING OR
 CHANGING THE PRICE. PRIOR APPROVAL BY  THE  COMMISSIONER  SHALL  NOT  BE
 REQUIRED  FOR ANY PRICE OR CHANGE OF PRICE. HOWEVER, THE COMMISSIONER IS
 AUTHORIZED TO MODIFY THE PRICE PER DOSE FOR ANY MEDICAL MARIHUANA  PROD-
 UCT IF NECESSARY TO MAINTAIN PUBLIC ACCESS TO APPROPRIATE MEDICATION.
   §  14.    Section  12  of chapter 90 of the laws of 2014, amending the
 public health law and other laws relating to medical use  of  marihuana,
 S. 2566                            12
 
 as  amended  by  chapter  92  of the laws of 2021, is amended to read as
 follows:
   §  12. This act shall take effect immediately; [provided, however that
 sections one, three, four, five, six,  seven-a,  eight,  nine,  ten  and
 eleven  of  this  act shall expire and be deemed repealed fourteen 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.
   § 15. This act shall take effect immediately.