S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7045
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- 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 and the state finance law, in  relation
   to enacting the "cannabis adult-use transition act"

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "cannabis adult-use transition act".
   §  2. Legislative findings and intent. Chapter 92 of the laws of 2021,
 known as the Marijuana Regulation and Taxation Act, legalized and  regu-
 lated cannabis for adult-use; expanded and improved the medical cannabis
 program and the hemp program; established the Cannabis Control Board and
 the  Office  of  Cannabis Management, and codified historical social and
 economic equity policies. Chapter 18 of the laws  of  2022  created  the
 conditional  adult-use  cultivator  and processor licenses to jump start
 New York's adult-use cannabis market with small New York farmers.
   The legislature recognizes that due  to  a  variety  of  circumstances
 beyond  the  control  of  New  York's cannabis licensees and applicants,
 there have been delays and unforeseen challenges with the implementation
 of various components  of  the  state's  cannabis  markets.  Conditional
 cultivators  cannot  afford  to  process  their  cannabis  or sell their
 finished products; conditional processors are  struggling  with  limited
 retail  outlets;  conditional  adult-use retail dispensary licensees and
 applicants do not have access to capital, locations,  or  the  resources
 they  need  to  become  operational;  and the state's medical registered
 organizations and patients are facing  a  diminishing  medical  cannabis
 market.  As  a  result, the state's cannabis industries are losing value
 and jobs, patients are being left behind,  and  the  illicit  market  is
 growing.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11444-02-3
 S. 7045                             2
              

 
   §  3.  Subdivisions  2  and  3  of  section 14 of the cannabis law are
 amended to read as follows:
   2.  The  state  cannabis  advisory  board  shall consist of [thirteen]
 SEVENTEEN voting appointed members, along with a representative from the
 department of environmental conservation, the department of  agriculture
 and  markets, the office of children and family services, the department
 of labor, the department of health, the division of housing and communi-
 ty renewal, the office of  addiction  services  and  supports,  and  the
 department  of  education, serving as non-voting ex-officio members. The
 governor shall have [seven] ELEVEN appointments, the temporary president
 of the senate and the speaker of the  assembly  shall  each  have  three
 appointments to the board.  The members shall be appointed to each serve
 three  year  terms  and  in the event of a vacancy, the vacancy shall be
 filled in the manner of the original appointment for  the  remainder  of
 the  term.  The  appointed  members and representatives 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.
   3. Advisory board members shall have  statewide  geographic  represen-
 tation  that  is  balanced  and  diverse  in  its composition. Appointed
 members shall  have  an  expertise  in  public  and  behavioral  health,
 substance use disorder treatment, effective rehabilitative treatment for
 adults  and  juveniles,  homelessness and housing, economic development,
 environmental  conservation,  job  training  and   placement,   criminal
 justice,  and  drug  policy.  Further,  the advisory board shall include
 residents, ONE RETAILER, ONE CERTIFIED  PATIENT,  ONE  SERVICE  DISABLED
 VETERAN,  AND ONE SUPPLY TIER LICENSEE from communities most impacted by
 cannabis prohibition, people with prior drug convictions,  the  formerly
 incarcerated,  and  representatives  from the farming industry, cannabis
 industry, and organizations serving communities impacted by past federal
 and state drug policies.
   § 4. Paragraph (c) of subdivision 3 of  section  99-ii  of  the  state
 finance  law,  as added by chapter 92 of the laws of 2021, is amended to
 read as follows:
   (c) Actual and necessary costs incurred  by  the  office  of  cannabis
 management  and  the  cannabis  control board, and the urban development
 corporation, related to  the  administration  of  incubators  and  other
 assistance  to qualified social and economic equity applicants including
 the administration, capitalization, and provision of low and zero inter-
 est loans to such applicants [pursuant to],  INCLUDING  THE  CONDITIONAL
 ADULT-USE RETAIL DISPENSARY LICENSEES. THE OFFICE OF CANNABIS MANAGEMENT
 SHALL  ADMINISTER  THESES RESOURCES IN ACCORDANCE WITH THE SOCIAL EQUITY
 AND ECONOMIC PLAN MANDATED PURSUANT TO ARTICLE FOUR OF THE CANNABIS  LAW
 AND  IN  ACCORDANCE  WITH  section  sixteen-ee  of the urban development
 corporation act. Such costs shall be  paid  out  of  revenues  received,
 including, but not limited to, from special one-time fees paid by regis-
 tered organizations pursuant to section sixty-three of the cannabis law.
   § 5. Section 39 of the cannabis law is amended to read as follows:
   § 39. Registered organizations and adult-use cannabis. The board shall
 [have  the authority to] grant [some or all of the] registered organiza-
 tions [registered with the department of health  and]  currently  regis-
 tered  and  in  good  standing  with  the  office, the ability to obtain
 adult-use cannabis licenses pursuant to article four of this chapter AND
 subject to any [fees, rules or conditions] REGULATION prescribed by  the
 board [in regulation].
 S. 7045                             3
 
   §  6.  Subdivision 1-a of section 63 of the cannabis law is amended to
 read as follows:
   1-a.  The  [board shall also have the authority to assess a registered
 organization with a] one-time special licensing  fee  for  a  registered
 organization  adult-use cultivator processor, distributor retail dispen-
 sary [license. Such fee shall be assessed at an  amount  to  adequately]
 LICENSED  PURSUANT  TO  SECTION  SIXTY-EIGHT-A OF THIS ARTICLE, SHALL BE
 TWENTY MILLION DOLLARS, AN AMOUNT TO BE USED EXCLUSIVELY TO fund  social
 and  economic  equity  and incubator assistance pursuant to this article
 and paragraph (c) of subdivision three of section ninety-nine-ii of  the
 state  finance  law.  SUCH  FEE  SHALL BE PAYABLE IN FIVE MILLION DOLLAR
 INSTALLMENTS, THE FIRST OF WHICH UPON LICENSURE, AND  THEREAFTER  WITHIN
 THIRTY  DAYS OF EACH ONE HUNDRED MILLION DOLLARS IN REVENUE GENERATED BY
 SUCH LICENSEE UNTIL PAID IN FULL, OR SUCH OBLIGATION EXPIRES ON DECEMBER
 THIRTY-FIRST, TWO THOUSAND THIRTY,  WHICHEVER  OCCURS  FIRST.  Provided,
 however,  that  the  board  shall  not allow registered organizations to
 dispense adult-use cannabis from more than three of their medical canna-
 bis dispensing locations. [The timing and  manner  in  which  registered
 organizations  may  be granted such authority shall be determined by the
 board in regulation.]  AN  ELIGIBLE  REGISTERED  ORGANIZATION  SHALL  BE
 AUTHORIZED  AS  A REGISTERED ORGANIZATION ADULT-USE CULTIVATOR PROCESSOR
 DISTRIBUTOR RETAIL DISPENSARY PURSUANT TO SECTION SIXTY-EIGHT-A OF  THIS
 ARTICLE  UPON  APPROVAL  OF  AN  APPLICATION  TO THE OFFICE THAT MUST BE
 AVAILABLE TO SUCH REGISTERED ORGANIZATIONS NO LATER THAN  AUGUST  FIRST,
 TWO  THOUSAND  TWENTY-THREE AND REMAIN AVAILABLE THEREAFTER.  THE OFFICE
 MUST APPROVE  OR  DENY  SUCH  APPLICATION  WITHIN  THIRTY  DAYS  OF  ITS
 SUBMISSION  OR  IT  SHALL  BE DEEMED APPROVED. A REGISTERED ORGANIZATION
 ADULT-USE CULTIVATOR PROCESSOR DISTRIBUTOR  RETAIL  DISPENSARY  LICENSEE
 SHALL  BE AUTHORIZED TO CULTIVATE, PROCESS, AND DISTRIBUTE IN THE ADULT-
 USE CANNABIS MARKET, PROVIDED HOWEVER, THAT EACH LICENSEE'S FIRST CO-LO-
 CATED DISPENSARY SHALL NOT OFFER  ADULT-USE  CANNABIS  FOR  RETAIL  SALE
 UNTIL  OR  AFTER  DECEMBER  TWENTY-NINTH, TWO THOUSAND TWENTY-THREE; THE
 SECOND CO-LOCATED DISPENSARY SHALL  NOT  OFFER  ADULT-USE  CANNABIS  FOR
 RETAIL  SALE UNTIL OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR; AND
 THE THIRD CO-LOCATED DISPENSARY SHALL NOT OFFER ADULT-USE  CANNABIS  FOR
 RETAIL  SALE UNTIL OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-FOUR. THESE
 LICENSEES MUST SUBMIT A PLAN TO THE OFFICE DEMONSTRATING  THEIR  COMMIT-
 MENT TO DIVERSIFYING THE CO-LOCATED DISPENSARY SHELF SPACE FOR ADULT-USE
 WITH   CANNABIS  PRODUCTS  FROM  ADULT-USE  CULTIVATORS  AND  PROCESSORS
 LICENSED PURSUANT TO SECTIONS SIXTY-EIGHT, SIXTY-EIGHT-B, SIXTY-EIGHT-C,
 SIXTY-NINE, SIXTY-NINE-A, SEVENTY, AND SEVENTY-THREE OF THIS ARTICLE.
   § 7. Subdivisions 3 and 6 of section 68-c  of  the  cannabis  law,  as
 added  by chapter 18 of the laws of 2022, are amended and two new subdi-
 visions 16 and 17 are added to read as follows:
   3. A conditional adult-use  cultivator  license  shall  authorize  the
 cultivation of cannabis outdoors or in a greenhouse OR AQUAPONICS FACIL-
 ITY  with no more than twenty artificial lights unless otherwise author-
 ized by the office. A  conditional  adult-use  cultivator  licensee  may
 cultivate  up  to forty-three thousand five hundred sixty square feet of
 flowering canopy outdoors or twenty-five thousand square feet of flower-
 ing canopy in a greenhouse OR  AQUAPONICS  FACILITY.  A  cultivator  may
 cultivate  both  outdoors  and  in  a  greenhouse OR AQUAPONICS FACILITY
 provided the flowering canopy in a greenhouse OR AQUAPONICS FACILITY  is
 less  than twenty-thousand square feet and the total flowering canopy is
 equal to or less than thirty-thousand square feet.
 S. 7045                             4
 
   6. A conditional adult-use cultivator licensee shall have  the  tempo-
 rary  authority  to  minimally process and distribute cannabis products,
 provided that such final products shall be in the form of cannabis flow-
 er, without holding an adult-use processor or distributor license estab-
 lished  pursuant to sections sixty-nine and seventy-one of this article;
 provided that the licensee complies with all requirements for the  proc-
 essing  and distribution of cannabis products as set out by the board in
 regulations or in the terms and conditions of the  conditional  license.
 Such  authority  to  minimally  process and distribute cannabis products
 expires on June first, two thousand  [twenty-three]  TWENTY-FOUR.  After
 June  first,  two  thousand  [twenty-three] TWENTY-FOUR, any conditional
 adult-use cultivator seeking to process and distribute cannabis products
 shall be required to apply for and receive a processor  and  distributor
 license to conduct this activity.
   16. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, A CONDITIONAL
 ADULT-USE  CULTIVATOR  OR PROCESSOR LICENSEE SHALL BE AUTHORIZED TO SELL
 TESTED, PACKAGED, AND SEALED CANNABIS PRODUCTS TO  REGISTERED  ORGANIZA-
 TIONS  FOR  RETAIL SALE AT UP TO THREE OF SUCH REGISTERED ORGANIZATIONS'
 EXISTING MEDICAL CANNABIS DISPENSING FACILITIES UNTIL  JUNE  FIRST,  TWO
 THOUSAND  TWENTY-FOUR,  PROVIDED HOWEVER THAT THE CONDITIONAL CULTIVATOR
 OR PROCESSOR  LICENSEES  SHALL  PRIORITIZE  WHOLESALING  TO  CONDITIONAL
 ADULT-USE  RETAIL DISPENSARIES. A REGISTERED ORGANIZATION SELLING CONDI-
 TIONALLY GROWN AND PROCESSED CANNABIS PRODUCTS AT ANY  OF  ITS  CANNABIS
 DISPENSING  FACILITIES SHALL PAY THREE PERCENT OF ANY SUCH SALES THROUGH
 JUNE FIRST, TWO THOUSAND TWENTY-FOUR, TO THE STATE, WITH  TWO-THIRDS  OF
 SUCH  FUNDS USED TOWARD GRANTS AUTHORIZED PURSUANT TO PARAGRAPHS (C) AND
 (D) OF SUBDIVISION THREE OF SECTION NINETY-NINE-II OF THE STATE  FINANCE
 LAW  TO  OFFSET  TAX  OBLIGATIONS  OF  THE  CONDITIONAL ADULT-USE RETAIL
 DISPENSARY LICENSEES AND THE REMAINING ONE-THIRD OF SUCH FUNDS  USED  AT
 THE  DISCRETION OF THE OFFICE IN IMPLEMENTING SOCIAL AND ECONOMIC EQUITY
 PROGRAMS. SUCH PAYMENTS BY THE REGISTERED ORGANIZATIONS SHALL ACCOUNT TO
 THE SPECIAL ONE TIME LICENSING FEE ASSESSED PURSUANT TO  SECTION  SIXTY-
 THREE OF THIS ARTICLE.
   17.  THE OFFICE IS AUTHORIZED TO CREATE A LOAN PROGRAM FOR CONDITIONAL
 ADULT-USE CULTIVATORS FOR THE PURPOSE OF HAVING ANY CANNABIS GROWN UNDER
 A CONDITIONAL ADULT-USE CULTIVATOR LICENSE IN  TWO  THOUSAND  TWENTY-TWO
 PROCESSED  INTO SHELF STABLE FORMATS. THE END-PRODUCT OF SUCH PROCESSING
 SHALL BE RETURNED TO THE LICENSEE FOR FUTURE USE.
   § 8. Subdivision 6 of section 69-a of the cannabis law,  as  added  by
 chapter 18 of the laws of 2022, is amended to read as follows:
   6. A conditional adult-use processor licensee shall have the authority
 to distribute cannabis products without holding an adult-use distributor
 license  established  pursuant  to  section  seventy-one of this article
 until June first, two thousand [twenty-three] TWENTY-FOUR, provided that
 the licensee complies with all  requirements  for  the  distribution  of
 cannabis  products as set out by the office. After June first, two thou-
 sand [twenty-three] TWENTY-FOUR, any conditional  processor  seeking  to
 distribute  cannabis products shall be required to apply for and receive
 a distributor license to conduct this activity.
   § 9. Subdivision 6 of section 72 of the cannabis  law  is  amended  to
 read as follows:
   6.  No  cannabis retail licensee shall locate a storefront within five
 hundred feet of a school grounds as such term is defined in  the  educa-
 tion  law  or  within  two hundred feet of a house of worship. THE BOARD
 AND/OR OFFICE SHALL NOT ESTABLISH ADDITIONAL SETBACK REQUIREMENTS.
 S. 7045                             5
 
   § 10. The cannabis law is amended by adding a new section 72-a to read
 as follows:
   §  72-A.  CONDITIONAL  ADULT-USE  RETAIL  DISPENSARY  LICENSE.  1. THE
 FOLLOWING  MINIMUM REQUIREMENTS MUST BE MET TO BECOME AN ELIGIBLE APPLI-
 CANT FOR THIS LICENSE:
   (A) AN APPLICANT MUST DEMONSTRATE:
   (I) A SIGNIFICANT PRESENCE IN NEW YORK STATE, EITHER  INDIVIDUALLY  OR
 BY HAVING A PRINCIPAL CORPORATE LOCATION IN THE STATE;
   (II)  IT  IS INCORPORATED OR OTHERWISE ORGANIZED UNDER THE LAWS OF NEW
 YORK STATE; OR
   (III) A MAJORITY OF THE OWNERSHIP OF THE APPLICANT  ARE  RESIDENTS  OF
 NEW YORK STATE BY BEING PHYSICALLY PRESENT IN THE STATE NO LESS THAN ONE
 HUNDRED  EIGHTY  CALENDAR  DAYS  DURING THE CURRENT YEAR OR FIVE HUNDRED
 FORTY CALENDAR DAYS OVER THE COURSE OF THREE YEARS;
   (B) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE  OR  MORE
 INDIVIDUALS, AT LEAST ONE INDIVIDUAL MUST:
   (I) BE JUSTICE INVOLVED, WHICH MEANS AN INDIVIDUAL THAT:
   (A)   WAS   CONVICTED OF A MARIHUANA-RELATED OFFENSE IN NEW YORK STATE
 PRIOR TO MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE;
   (B) HAD A PARENT, LEGAL GUARDIAN, CHILD, SPOUSE, OR DEPENDENT WHO  WAS
 CONVICTED  OF A MARIHUANA-RELATED OFFENSE IN NEW  YORK  STATE  PRIOR  TO
 MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE; OR
   (C)  WAS A DEPENDENT OF AN INDIVIDUAL WHO WAS CONVICTED OF  A MARIHUA-
 NA-RELATED  OFFENSE  IN  NEW YORK STATE PRIOR TO MARCH THIRTY-FIRST, TWO
 THOUSAND TWENTY-ONE; AND
   (II) PROVIDE EVIDENCE OF THE PRIMARY RESIDENCE OF THE JUSTICE INVOLVED
 INDIVIDUAL AT THE TIME OF SUCH INDIVIDUAL'S ARREST OR CONVICTION; AND
   (III) HOLD OR HAVE HELD, FOR A MINIMUM OF  TWO  YEARS,  AT  LEAST  TEN
 PERCENT  OWNERSHIP  INTEREST  IN, AND CONTROL OF, A QUALIFYING BUSINESS,
 WHICH MEANS A BUSINESS THAT HAD NET PROFIT FOR AT LEAST TWO OF THE YEARS
 THE BUSINESS WAS IN OPERATION; OR
   (C) IF THE APPLICANT IS A NONPROFIT ORGANIZATION, OR WHOLLY OWNED  AND
 CONTROLLED BY ONE, THE NONPROFIT ORGANIZATION MUST:
   (I) BE RECOGNIZED  AS AN ENTITY PURSUANT TO SECTION 501(C)(3)  OF  THE
 INTERNAL REVENUE CODE;
   (II)  INTENTIONALLY SERVE JUSTICE INVOLVED INDIVIDUALS AND COMMUNITIES
 WITH HISTORICALLY HIGH RATES OF  ARREST,  CONVICTION,  INCARCERATION  OR
 OTHER  INDICATORS  OF  LAW  ENFORCEMENT  ACTIVITY  FOR MARIHUANA-RELATED
 OFFENSES;
   (III)  OPERATE AND MANAGE A SOCIAL ENTERPRISE THAT HAD  AT  LEAST  TWO
 YEARS  OF  POSITIVE  NET  ASSETS OR PROFIT AS EVIDENCED IN THE ORGANIZA-
 TION'S TAX RETURNS;
   (IV) HAVE A HISTORY OF CREATING  VOCATIONAL  OPPORTUNITY  FOR  JUSTICE
 INVOLVED INDIVIDUALS;
   (V)  HAVE A JUSTICE INVOLVED INDIVIDUAL OR INDIVIDUALS ON ITS BOARD OR
 AS OFFICERS; AND
   (VI) HAVE AT LEAST FIVE FULL-TIME EMPLOYEES.
   2. AT LEAST FIFTY-ONE PERCENT OR MORE OF THE APPLICANT SHALL BE OWNED,
 IN THE AGGREGATE, BY:
   (A) AT LEAST ONE INDIVIDUAL THAT SATISFIES  THE  REQUIREMENTS  FOR  AN
 ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION
 ONE OF THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS FOR  AN
 ELIGIBLE  APPLICANT  AS SET FORTH IN  PARAGRAPHS (A) AND (C) OF SUBDIVI-
 SION ONE OF THIS SECTION; AND
   (B)  ANY  OTHER  ADDITIONAL  INDIVIDUALS,  IF  ANY,  WHO  ARE  JUSTICE
 INVOLVED; AND
 S. 7045                             6

   (C)  AT  LEAST  ONE  INDIVIDUAL THAT SATISFIES THE REQUIREMENTS FOR AN
 ELIGIBLE  APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B)  OF  SUBDIVI-
 SION  ONE  OF  THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS
 FOR  AN ELIGIBLE  APPLICANT AS SET FORTH IN  PARAGRAPHS (A) AND  (C)  OF
 SUBDIVISION ONE OF THIS SECTION SHALL OWN AT LEAST THIRTY PERCENT OF THE
 APPLICANT  AND  SUCH INDIVIDUAL OR ENTITY SHALL HAVE SOLE CONTROL OF THE
 APPLICANT OR LICENSEE.
    3.  AN ELIGIBLE APPLICANT SHALL BE EVALUATED  BASED  ON  ANY  OF  THE
 FOLLOWING  CRITERIA  WHICH  SHALL  BE  WEIGHTED AS DETERMINED   BY   THE
 OFFICE:
   (A) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE  OR  MORE
 INDIVIDUALS,  WHETHER  THE  JUSTICE  INVOLVED  INDIVIDUAL WAS THEMSELVES
 CONVICTED  OF A MARIHUANA-RELATED OFFENSE AS SET FORTH IN REGULATION;
   (B) THE JUSTICE INVOLVED INDIVIDUAL'S PRIMARY RESIDENCE AT THE TIME OF
 SUCH INDIVIDUAL'S ARREST OR CONVICTION:
   (I)  RELATIVE  TO  AREAS  WITH  HISTORICALLY  HIGH  RATES  OF  ARREST,
 CONVICTION, OR INCARCERATION FOR MARIHUANA-RELATED OFFENSES;
   (II) RELATIVE TO AREAS WITH HISTORICALLY LOW MEDIAN INCOME; OR
   (III)  WAS PROVIDED BY A PUBLIC HOUSING AUTHORITY IN NEW YORK STATE OR
 NEW YORK CITY; AND
   (C) THE QUALIFYING BUSINESS BASED ON:
   (I) THE NUMBER OF EMPLOYEES EMPLOYED BY THE BUSINESS;
   (II) THE NUMBER OF YEARS THE BUSINESS HAS BEEN IN OPERATION;
   (III) THE PROFITABILITY OF THE BUSINESS;
   (IV) TYPE OF BUSINESS AND WHETHER THE BUSINESS WAS A RETAIL  BUSINESS,
 OR SOLD PRODUCTS OR SERVICES DIRECTLY TO THE END-CONSUMER;
   (V) WHETHER THE BUSINESS HAD A PHYSICAL LOCATION; OR
   (VI)  WHETHER  THE BUSINESS RECEIVED OR RESOLVED ANY VIOLATIONS, FINES
 OR FEES ASSESSED AGAINST THE BUSINESS BY  STATE  OR  FEDERAL  REGULATORY
 AUTHORITIES; AND
   (D) ANY OTHER FACTORS AS DETERMINED BY THE OFFICE.
   4.  THE OFFICE MAY CREATE REGIONAL GEOGRAPHIC ZONES FOR THE SCORING OF
 APPLICANTS.  APPLICANTS  MAY BE ASKED TO RANK A NUMBER OF PREFERENCES OF
 REGIONAL GEOGRAPHIC ZONES TO BE CONSIDERED FOR A LICENSE.  FOR  REGIONAL
 GEOGRAPHICAL  ZONES  WHERE  THERE  ARE  MORE  APPLICANTS  THAN AVAILABLE
 LICENSES, THE OFFICE MAY SELECT FROM ELIGIBLE APPLICANTS  WHO  INDICATED
 FIRST  PREFERENCE  FOR THE GIVEN REGION BASED ON WEIGHTED SCORING OF THE
 EVALUATION CRITERIA SET OUT ABOVE. IN THE EVENT THERE IS A  TIE  BETWEEN
 TWO  OR  MORE  CANDIDATES  OR  THERE  ARE MORE APPLICANTS THAN AVAILABLE
 LICENSES AFTER THE EVALUATION CRITERIA HAS BEEN APPLIED, THE  OFFICE  IS
 AUTHORIZED  TO  USE  A  RANDOM  SELECTION  PROCESS TO IDENTIFY THE FINAL
 APPLICANTS TO RECOMMEND TO THE BOARD FOR LICENSURE.
   5. THE OFFICE SHALL APPROVE, DENY, OR REQUEST  ADDITIONAL  INFORMATION
 IN  REGARDS  TO  A  CONDITIONAL  ADULT-USE  RETAIL DISPENSARY LICENSEE'S
 SUBMISSION FOR LOCATION APPROVALS WITHIN THIRTY DAYS OF RECEIPT  OR  THE
 LOCATION  REQUEST SHALL BE AUTOMATICALLY APPROVED SO LONG AS IT COMPLIES
 WITH THE SETBACK REQUIREMENTS OF THIS CHAPTER.
   6. THE OFFICE AND DORMITORY AUTHORITY SHALL MAKE THE LIST OF ADDRESSES
 FOR ANY EXECUTED LEASE AGREEMENTS ENTERED INTO AND POTENTIALLY AVAILABLE
 TO ELIGIBLE CONDITIONAL ADULT-USE RETAIL DISPENSARY  LICENSEES  PUBLICLY
 AVAILABLE  ON  THEIR  WEBSITES,  AND  UPON REQUEST.   SUCH LIST SHALL BE
 UPDATED EACH WEEK TO MAXIMIZE THE  TRANSPARENCY  FOR  RETAIL  DISPENSARY
 LICENSEES  SECURING  STORE  LOCATIONS AND SHALL NOT INCLUDE OR BLOCK ANY
 LOCATIONS WITHOUT AN EXECUTED LEASE.
 S. 7045                             7

   7. THE OFFICE SHALL PROMULGATE ANY  RULES  AND  REGULATIONS  TO  FULLY
 IMPLEMENT  THIS  SECTION  AND ANY RULES AND REGULATIONS ADOPTED PRIOR TO
 THE ENACTMENT OF THIS SECTION SHALL NOT BE INVALIDATED.
   §  11. This act shall take effect immediately; provided, however, that
 the amendments to section 68-c of the cannabis law made by section seven
 of this act shall not affect the repeal of such  section  and  shall  be
 deemed  repealed  therewith; and provided further that the amendments to
 section 69-a of the cannabis law made by section eight of this act shall
 not affect the repeal of such section and shall be deemed repealed ther-
 ewith.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7045--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2023
                                ___________
 
 Introduced  by  Sens.  COONEY, CLEARE -- read twice and ordered printed,
   and when printed to be committed to the  Committee  on  Investigations
   and  Government  Operations  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the cannabis law and the state finance law, in  relation
   to enacting the "cannabis adult-use transition act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "cannabis adult-use transition act".
   §  2. Legislative findings and intent. Chapter 92 of the laws of 2021,
 known as the Marijuana Regulation and Taxation Act, legalized and  regu-
 lated cannabis for adult-use; expanded and improved the medical cannabis
 program and the hemp program; established the Cannabis Control Board and
 the  Office  of  Cannabis Management, and codified historical social and
 economic equity policies. Chapter 18 of the laws  of  2022  created  the
 conditional  adult-use  cultivator  and processor licenses to jump start
 New York's adult-use cannabis market with small New York farmers.
   The legislature recognizes that due  to  a  variety  of  circumstances
 beyond  the  control  of  New  York's cannabis licensees and applicants,
 there have been delays and unforeseen challenges with the implementation
 of various components  of  the  state's  cannabis  markets.  Conditional
 cultivators  cannot  afford  to  process  their  cannabis  or sell their
 finished products; conditional processors are  struggling  with  limited
 retail  outlets;  conditional  adult-use retail dispensary licensees and
 applicants do not have access to capital, locations,  or  the  resources
 they  need  to  become  operational;  and the state's medical registered
 organizations and patients are facing  a  diminishing  medical  cannabis
 market.  As  a  result, the state's cannabis industries are losing value
 and jobs, patients are being left behind,  and  the  illicit  market  is
 growing.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11444-03-3
              

 S. 7045--A                          2
 
   §  3.  Subdivisions  2  and  3  of  section 14 of the cannabis law are
 amended to read as follows:
   2.  The  state  cannabis  advisory  board  shall consist of [thirteen]
 SEVENTEEN voting appointed members, along with a representative from the
 department of environmental conservation, the department of  agriculture
 and  markets, the office of children and family services, the department
 of labor, the department of health, the division of housing and communi-
 ty renewal, the office of  addiction  services  and  supports,  and  the
 department  of  education, serving as non-voting ex-officio members. The
 governor shall have [seven] ELEVEN appointments, the temporary president
 of the senate and the speaker of the  assembly  shall  each  have  three
 appointments to the board.  The members shall be appointed to each serve
 three  year  terms  and  in the event of a vacancy, the vacancy shall be
 filled in the manner of the original appointment for  the  remainder  of
 the  term.  The  appointed  members and representatives 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.
   3. Advisory board members shall have  statewide  geographic  represen-
 tation  that  is  balanced  and  diverse  in  its composition. Appointed
 members shall  have  an  expertise  in  public  and  behavioral  health,
 substance use disorder treatment, effective rehabilitative treatment for
 adults  and  juveniles,  homelessness and housing, economic development,
 environmental  conservation,  job  training  and   placement,   criminal
 justice,  and  drug  policy.  Further,  the advisory board shall include
 residents, ONE RETAILER, ONE CERTIFIED  PATIENT,  ONE  SERVICE  DISABLED
 VETERAN,  AND ONE SUPPLY TIER LICENSEE from communities most impacted by
 cannabis prohibition, people with prior drug convictions,  the  formerly
 incarcerated,  and  representatives  from the farming industry, cannabis
 industry, and organizations serving communities impacted by past federal
 and state drug policies.
   § 4. Paragraph (c) of subdivision 3 of  section  99-ii  of  the  state
 finance  law,  as added by chapter 92 of the laws of 2021, is amended to
 read as follows:
   (c) Actual and necessary costs incurred  by  the  office  of  cannabis
 management  and  the  cannabis  control board, and the urban development
 corporation, related to  the  administration  of  incubators  and  other
 assistance  to qualified social and economic equity applicants including
 the administration, capitalization, and provision of low and zero inter-
 est loans to such applicants [pursuant to],  INCLUDING  THE  CONDITIONAL
 ADULT-USE RETAIL DISPENSARY LICENSEES. THE OFFICE OF CANNABIS MANAGEMENT
 SHALL  ADMINISTER  THESES RESOURCES IN ACCORDANCE WITH THE SOCIAL EQUITY
 AND ECONOMIC PLAN MANDATED PURSUANT TO ARTICLE FOUR OF THE CANNABIS  LAW
 AND  IN  ACCORDANCE  WITH  section  sixteen-ee  of the urban development
 corporation act. Such costs shall be  paid  out  of  revenues  received,
 including, but not limited to, from special one-time fees paid by regis-
 tered organizations pursuant to section sixty-three of the cannabis law.
   § 5. Section 39 of the cannabis law is amended to read as follows:
   § 39. Registered organizations and adult-use cannabis. The board shall
 [have  the authority to] grant [some or all of the] registered organiza-
 tions [registered with the department of health  and]  currently  regis-
 tered  and  in  good  standing  with  the  office, the ability to obtain
 adult-use cannabis licenses pursuant to article four of this chapter AND
 subject to any [fees, rules or conditions] REGULATION prescribed by  the
 board [in regulation].
 S. 7045--A                          3
 
   §  6.  Subdivision 1-a of section 63 of the cannabis law is amended to
 read as follows:
   1-a.  The  [board shall also have the authority to assess a registered
 organization with a] one-time special licensing  fee  for  a  registered
 organization  adult-use cultivator processor, distributor retail dispen-
 sary [license. Such fee shall be assessed at an  amount  to  adequately]
 LICENSED  PURSUANT  TO  SECTION  SIXTY-EIGHT-A OF THIS ARTICLE, SHALL BE
 TWENTY MILLION DOLLARS, AN AMOUNT TO BE USED EXCLUSIVELY TO fund  social
 and  economic  equity  and incubator assistance pursuant to this article
 and paragraph (c) of subdivision three of section ninety-nine-ii of  the
 state  finance  law.  SUCH  FEE  SHALL BE PAYABLE IN FIVE MILLION DOLLAR
 INSTALLMENTS, THE FIRST OF WHICH UPON LICENSURE, AND  THEREAFTER  WITHIN
 THIRTY  DAYS OF EACH ONE HUNDRED MILLION DOLLARS IN REVENUE GENERATED BY
 SUCH LICENSEE UNTIL PAID IN FULL, OR SUCH OBLIGATION EXPIRES ON DECEMBER
 THIRTY-FIRST, TWO THOUSAND THIRTY, WHICHEVER OCCURS  FIRST.    AT  LEAST
 FIFTY  PERCENT  OF THE TOTAL FEES COLLECTED SHALL BE ADMINISTERED BY THE
 OFFICE AS GRANTS OR ZERO  OR  LOW  INTEREST  LOANS  TO  THE  CONDITIONAL
 ADULT-USE  RETAIL  DISPENSARY  LICENSEES.  CONDITIONAL  ADULT-USE RETAIL
 DISPENSARY LICENSEES WHO ACCEPT ZERO OR  LOW  INTEREST  LOANS  SHALL  BE
 ALLOWED  TO  PREPAY  SUCH LOANS WITHOUT PENALTY. Provided, however, that
 the board shall not allow registered organizations to dispense adult-use
 cannabis from more than  three  of  their  medical  cannabis  dispensing
 locations.  [The timing and manner in which registered organizations may
 be granted such authority shall be determined  by  the  board  in  regu-
 lation.]  AN  ELIGIBLE  REGISTERED ORGANIZATION SHALL BE AUTHORIZED AS A
 REGISTERED  ORGANIZATION  ADULT-USE  CULTIVATOR  PROCESSOR   DISTRIBUTOR
 RETAIL DISPENSARY PURSUANT TO SECTION SIXTY-EIGHT-A OF THIS ARTICLE UPON
 APPROVAL  OF AN APPLICATION TO THE OFFICE THAT MUST BE AVAILABLE TO SUCH
 REGISTERED ORGANIZATIONS NO LATER THAN AUGUST FIRST, TWO THOUSAND  TWEN-
 TY-THREE  AND  REMAIN AVAILABLE THEREAFTER.   THE OFFICE MUST APPROVE OR
 DENY SUCH APPLICATION WITHIN THIRTY DAYS OF ITS SUBMISSION OR  IT  SHALL
 BE  DEEMED  APPROVED.  A  REGISTERED  ORGANIZATION  ADULT-USE CULTIVATOR
 PROCESSOR DISTRIBUTOR RETAIL DISPENSARY LICENSEE SHALL BE AUTHORIZED  TO
 CULTIVATE,  PROCESS,  AND  DISTRIBUTE  IN THE ADULT-USE CANNABIS MARKET,
 PROVIDED HOWEVER, THAT EACH LICENSEE'S FIRST CO-LOCATED DISPENSARY SHALL
 NOT OFFER ADULT-USE CANNABIS FOR RETAIL SALE  UNTIL  OR  AFTER  DECEMBER
 TWENTY-NINTH,  TWO  THOUSAND TWENTY-THREE; THE SECOND CO-LOCATED DISPEN-
 SARY SHALL NOT OFFER ADULT-USE CANNABIS FOR RETAIL SALE UNTIL  OR  AFTER
 JANUARY  FIRST,  TWO  THOUSAND  TWENTY-FOUR;  AND  THE  THIRD CO-LOCATED
 DISPENSARY SHALL NOT OFFER ADULT-USE CANNABIS FOR RETAIL SALE  UNTIL  OR
 AFTER APRIL FIRST, TWO THOUSAND TWENTY-FOUR. THESE LICENSEES MUST SUBMIT
 A  PLAN TO THE OFFICE DEMONSTRATING THEIR COMMITMENT TO DIVERSIFYING THE
 CO-LOCATED DISPENSARY SHELF SPACE FOR ADULT-USE WITH  CANNABIS  PRODUCTS
 FROM  ADULT-USE CULTIVATORS AND PROCESSORS LICENSED PURSUANT TO SECTIONS
 SIXTY-EIGHT,  SIXTY-EIGHT-B,  SIXTY-EIGHT-C,  SIXTY-NINE,  SIXTY-NINE-A,
 SEVENTY, AND SEVENTY-THREE OF THIS ARTICLE.
   §  7.  Subdivision  3 of section 68-c of the cannabis law, as added by
 chapter 18 of the laws of 2022, is amended and two new  subdivisions  16
 and 17 are added to read as follows:
   3.  A  conditional  adult-use  cultivator  license shall authorize the
 cultivation of cannabis outdoors or in a greenhouse OR AQUAPONICS FACIL-
 ITY with no more than twenty artificial lights unless otherwise  author-
 ized  by  the  office.  A  conditional adult-use cultivator licensee may
 cultivate up to forty-three thousand five hundred sixty square  feet  of
 flowering canopy outdoors or twenty-five thousand square feet of flower-
 ing  canopy  in  a  greenhouse  OR AQUAPONICS FACILITY. A cultivator may
 S. 7045--A                          4
 
 cultivate both outdoors and  in  a  greenhouse  OR  AQUAPONICS  FACILITY
 provided  the flowering canopy in a greenhouse OR AQUAPONICS FACILITY is
 less than twenty-thousand square feet and the total flowering canopy  is
 equal to or less than thirty-thousand square feet.
   16. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, A CONDITIONAL
 ADULT-USE  CULTIVATOR  OR PROCESSOR LICENSEE SHALL BE AUTHORIZED TO SELL
 TESTED, PACKAGED, AND SEALED CANNABIS PRODUCTS TO  REGISTERED  ORGANIZA-
 TIONS  FOR  RETAIL SALE AT UP TO THREE OF SUCH REGISTERED ORGANIZATIONS'
 EXISTING MEDICAL CANNABIS DISPENSING FACILITIES UNTIL  JUNE  FIRST,  TWO
 THOUSAND  TWENTY-FOUR,  PROVIDED HOWEVER THAT THE CONDITIONAL CULTIVATOR
 OR PROCESSOR  LICENSEES  SHALL  PRIORITIZE  WHOLESALING  TO  CONDITIONAL
 ADULT-USE  RETAIL DISPENSARIES. A REGISTERED ORGANIZATION SELLING CONDI-
 TIONALLY GROWN AND PROCESSED CANNABIS PRODUCTS AT ANY  OF  ITS  CANNABIS
 DISPENSING  FACILITIES SHALL PAY THREE PERCENT OF ANY SUCH SALES THROUGH
 JUNE FIRST, TWO THOUSAND TWENTY-SIX, TO THE STATE,  WITH  TWO-THIRDS  OF
 SUCH  FUNDS USED TOWARD GRANTS AUTHORIZED PURSUANT TO PARAGRAPHS (C) AND
 (D) OF SUBDIVISION THREE OF SECTION NINETY-NINE-II OF THE STATE  FINANCE
 LAW  TO  OFFSET  TAX  OBLIGATIONS  OF  THE  CONDITIONAL ADULT-USE RETAIL
 DISPENSARY LICENSEES AND THE REMAINING ONE-THIRD OF SUCH FUNDS  USED  AT
 THE  DISCRETION OF THE OFFICE IN IMPLEMENTING SOCIAL AND ECONOMIC EQUITY
 PROGRAMS. SUCH PAYMENTS BY THE REGISTERED ORGANIZATIONS SHALL ACCOUNT TO
 THE SPECIAL ONE TIME LICENSING FEE ASSESSED PURSUANT TO  SECTION  SIXTY-
 THREE OF THIS ARTICLE.
   17.  THE OFFICE IS AUTHORIZED TO CREATE A LOAN PROGRAM FOR CONDITIONAL
 ADULT-USE CULTIVATORS FOR THE PURPOSE OF HAVING ANY CANNABIS GROWN UNDER
 A CONDITIONAL ADULT-USE CULTIVATOR LICENSE IN  TWO  THOUSAND  TWENTY-TWO
 PROCESSED  INTO SHELF STABLE FORMATS. THE END-PRODUCT OF SUCH PROCESSING
 SHALL BE RETURNED TO THE LICENSEE FOR FUTURE USE.
   § 8. Subdivision 6 of section 72 of the cannabis  law  is  amended  to
 read as follows:
   6.  No  cannabis retail licensee shall locate a storefront within five
 hundred feet of a school grounds as such term is defined in  the  educa-
 tion  law  or  within  two hundred feet of a house of worship. THE BOARD
 AND/OR OFFICE SHALL NOT ESTABLISH ADDITIONAL SETBACK REQUIREMENTS.
   § 9. The cannabis law is amended by adding a new section 72-a to  read
 as follows:
   §  72-A.  CONDITIONAL  ADULT-USE  RETAIL  DISPENSARY  LICENSE.  1. THE
 FOLLOWING  MINIMUM REQUIREMENTS MUST BE MET TO BECOME AN ELIGIBLE APPLI-
 CANT FOR THIS LICENSE:
   (A) AN APPLICANT MUST DEMONSTRATE:
   (I) A SIGNIFICANT PRESENCE IN NEW YORK STATE, EITHER  INDIVIDUALLY  OR
 BY HAVING A PRINCIPAL CORPORATE LOCATION IN THE STATE;
   (II)  IT  IS INCORPORATED OR OTHERWISE ORGANIZED UNDER THE LAWS OF NEW
 YORK STATE; OR
   (III) A MAJORITY OF THE OWNERSHIP OF THE APPLICANT  ARE  RESIDENTS  OF
 NEW YORK STATE BY BEING PHYSICALLY PRESENT IN THE STATE NO LESS THAN ONE
 HUNDRED  EIGHTY  CALENDAR  DAYS  DURING THE CURRENT YEAR OR FIVE HUNDRED
 FORTY CALENDAR DAYS OVER THE COURSE OF THREE YEARS;
   (B) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE  OR  MORE
 INDIVIDUALS, AT LEAST ONE INDIVIDUAL MUST:
   (I) BE JUSTICE INVOLVED, WHICH MEANS AN INDIVIDUAL THAT:
   (A)   WAS   CONVICTED OF A MARIHUANA-RELATED OFFENSE IN NEW YORK STATE
 PRIOR TO MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE;
   (B) HAD A PARENT, LEGAL GUARDIAN, CHILD, SPOUSE, OR DEPENDENT WHO  WAS
 CONVICTED  OF A MARIHUANA-RELATED OFFENSE IN NEW  YORK  STATE  PRIOR  TO
 MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE; OR
 S. 7045--A                          5
 
   (C)  WAS A DEPENDENT OF AN INDIVIDUAL WHO WAS CONVICTED OF  A MARIHUA-
 NA-RELATED  OFFENSE  IN  NEW YORK STATE PRIOR TO MARCH THIRTY-FIRST, TWO
 THOUSAND TWENTY-ONE; AND
   (II) PROVIDE EVIDENCE OF THE PRIMARY RESIDENCE OF THE JUSTICE INVOLVED
 INDIVIDUAL AT THE TIME OF SUCH INDIVIDUAL'S ARREST OR CONVICTION; AND
   (III)  HOLD  OR  HAVE  HELD,  FOR A MINIMUM OF TWO YEARS, AT LEAST TEN
 PERCENT OWNERSHIP INTEREST IN, AND CONTROL OF,  A  QUALIFYING  BUSINESS,
 WHICH MEANS A BUSINESS THAT HAD NET PROFIT FOR AT LEAST TWO OF THE YEARS
 THE BUSINESS WAS IN OPERATION; OR
   (C) IF THE APPLICANT IS A NONPROFIT ORGANIZATION, OR WHOLLY OWNED  AND
 CONTROLLED BY ONE, THE NONPROFIT ORGANIZATION MUST:
   (I)  BE RECOGNIZED   AS AN ENTITY PURSUANT TO SECTION 501(C)(3) OF THE
 INTERNAL REVENUE CODE;
   (II) INTENTIONALLY SERVE JUSTICE INVOLVED INDIVIDUALS AND  COMMUNITIES
 WITH  HISTORICALLY  HIGH  RATES  OF ARREST, CONVICTION, INCARCERATION OR
 OTHER INDICATORS  OF  LAW  ENFORCEMENT  ACTIVITY  FOR  MARIHUANA-RELATED
 OFFENSES;
   (III)    OPERATE  AND MANAGE A SOCIAL ENTERPRISE THAT HAD AT LEAST TWO
 YEARS OF POSITIVE NET ASSETS OR PROFIT AS  EVIDENCED  IN  THE  ORGANIZA-
 TION'S TAX RETURNS;
   (IV)  HAVE  A  HISTORY  OF CREATING VOCATIONAL OPPORTUNITY FOR JUSTICE
 INVOLVED INDIVIDUALS;
   (V) HAVE A JUSTICE INVOLVED INDIVIDUAL OR INDIVIDUALS ON ITS BOARD  OR
 AS OFFICERS; AND
   (VI) HAVE AT LEAST FIVE FULL-TIME EMPLOYEES.
   2. AT LEAST FIFTY-ONE PERCENT OR MORE OF THE APPLICANT SHALL BE OWNED,
 IN THE AGGREGATE, BY:
   (A)  AT  LEAST  ONE  INDIVIDUAL THAT SATISFIES THE REQUIREMENTS FOR AN
 ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION
 ONE OF THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS FOR  AN
 ELIGIBLE APPLICANT AS SET FORTH IN  PARAGRAPHS (A) AND (C)  OF  SUBDIVI-
 SION ONE OF THIS SECTION; AND
   (B)  ANY  OTHER  ADDITIONAL  INDIVIDUALS,  IF  ANY,  WHO  ARE  JUSTICE
 INVOLVED; AND
   (C) AT LEAST ONE INDIVIDUAL THAT SATISFIES  THE  REQUIREMENTS  FOR  AN
 ELIGIBLE    APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVI-
 SION ONE OF THIS SECTION OR AN ENTITY THAT  SATISFIES  THE  REQUIREMENTS
 FOR    AN ELIGIBLE  APPLICANT AS SET FORTH IN  PARAGRAPHS (A) AND (C) OF
 SUBDIVISION ONE OF THIS SECTION SHALL OWN AT LEAST THIRTY PERCENT OF THE
 APPLICANT AND SUCH INDIVIDUAL OR ENTITY SHALL HAVE SOLE CONTROL  OF  THE
 APPLICANT OR LICENSEE.
    3.    AN  ELIGIBLE  APPLICANT  SHALL BE EVALUATED BASED ON ANY OF THE
 FOLLOWING CRITERIA WHICH SHALL BE  WEIGHTED  AS  DETERMINED    BY    THE
 OFFICE:
   (A)  IF  THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE OR MORE
 INDIVIDUALS, WHETHER THE  JUSTICE  INVOLVED  INDIVIDUAL  WAS  THEMSELVES
 CONVICTED  OF A MARIHUANA-RELATED OFFENSE AS SET FORTH IN REGULATION;
   (B) THE JUSTICE INVOLVED INDIVIDUAL'S PRIMARY RESIDENCE AT THE TIME OF
 SUCH INDIVIDUAL'S ARREST OR CONVICTION:
   (I)  RELATIVE  TO  AREAS  WITH  HISTORICALLY  HIGH  RATES  OF  ARREST,
 CONVICTION, OR INCARCERATION FOR MARIHUANA-RELATED OFFENSES;
   (II) RELATIVE TO AREAS WITH HISTORICALLY LOW MEDIAN INCOME; OR
   (III) WAS PROVIDED BY A PUBLIC HOUSING AUTHORITY IN NEW YORK STATE  OR
 NEW YORK CITY; AND
   (C) THE QUALIFYING BUSINESS BASED ON:
   (I) THE NUMBER OF EMPLOYEES EMPLOYED BY THE BUSINESS;
 S. 7045--A                          6
 
   (II) THE NUMBER OF YEARS THE BUSINESS HAS BEEN IN OPERATION;
   (III) THE PROFITABILITY OF THE BUSINESS;
   (IV)  TYPE OF BUSINESS AND WHETHER THE BUSINESS WAS A RETAIL BUSINESS,
 OR SOLD PRODUCTS OR SERVICES DIRECTLY TO THE END-CONSUMER;
   (V) WHETHER THE BUSINESS HAD A PHYSICAL LOCATION; OR
   (VI) WHETHER THE BUSINESS RECEIVED OR RESOLVED ANY  VIOLATIONS,  FINES
 OR  FEES  ASSESSED  AGAINST  THE BUSINESS BY STATE OR FEDERAL REGULATORY
 AUTHORITIES; AND
   (D) ANY OTHER FACTORS AS DETERMINED BY THE OFFICE.
   4. THE OFFICE MAY CREATE REGIONAL GEOGRAPHIC ZONES FOR THE SCORING  OF
 APPLICANTS.  APPLICANTS  MAY BE ASKED TO RANK A NUMBER OF PREFERENCES OF
 REGIONAL GEOGRAPHIC ZONES TO BE CONSIDERED FOR A LICENSE.  FOR  REGIONAL
 GEOGRAPHICAL  ZONES  WHERE  THERE  ARE  MORE  APPLICANTS  THAN AVAILABLE
 LICENSES, THE OFFICE MAY SELECT FROM ELIGIBLE APPLICANTS  WHO  INDICATED
 FIRST  PREFERENCE  FOR THE GIVEN REGION BASED ON WEIGHTED SCORING OF THE
 EVALUATION CRITERIA SET OUT ABOVE. IN THE EVENT THERE IS A  TIE  BETWEEN
 TWO  OR  MORE  CANDIDATES  OR  THERE  ARE MORE APPLICANTS THAN AVAILABLE
 LICENSES AFTER THE EVALUATION CRITERIA HAS BEEN APPLIED, THE  OFFICE  IS
 AUTHORIZED  TO  USE  A  RANDOM  SELECTION  PROCESS TO IDENTIFY THE FINAL
 APPLICANTS TO RECOMMEND TO THE BOARD FOR LICENSURE.
   5.  THE  OFFICE SHALL APPROVE, DENY, OR REQUEST ADDITIONAL INFORMATION
 IN REGARDS TO  A  CONDITIONAL  ADULT-USE  RETAIL  DISPENSARY  LICENSEE'S
 SUBMISSION  FOR  LOCATION APPROVALS WITHIN THIRTY DAYS OF RECEIPT OR THE
 LOCATION REQUEST SHALL BE AUTOMATICALLY APPROVED SO LONG AS IT  COMPLIES
 WITH THE SETBACK REQUIREMENTS OF THIS CHAPTER.
   6. THE OFFICE AND DORMITORY AUTHORITY SHALL MAKE THE LIST OF ADDRESSES
 FOR ANY EXECUTED LEASE AGREEMENTS ENTERED INTO AND POTENTIALLY AVAILABLE
 TO  ELIGIBLE  CONDITIONAL ADULT-USE RETAIL DISPENSARY LICENSEES PUBLICLY
 AVAILABLE ON THEIR WEBSITES, AND UPON  REQUEST.    SUCH  LIST  SHALL  BE
 UPDATED  EACH  WEEK  TO  MAXIMIZE THE TRANSPARENCY FOR RETAIL DISPENSARY
 LICENSEES SECURING STORE LOCATIONS AND SHALL NOT INCLUDE  OR  BLOCK  ANY
 LOCATIONS WITHOUT AN EXECUTED LEASE.
   7.  THE  OFFICE  SHALL  PROMULGATE  ANY RULES AND REGULATIONS TO FULLY
 IMPLEMENT THIS SECTION AND ANY RULES AND REGULATIONS  ADOPTED  PRIOR  TO
 THE ENACTMENT OF THIS SECTION SHALL NOT BE INVALIDATED.
   §  10. This act shall take effect immediately; provided, however, that
 the amendments to section 68-c of the cannabis law made by section seven
 of this act shall not affect the repeal of such  section  and  shall  be
 deemed repealed therewith.