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This entry was published on 2024-04-26
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Powers and duties of the cannabis control board
§ 10. Powers and duties of the cannabis control board. The cannabis
control board or "board" shall have the following functions, powers and
duties as provided for in this chapter:

1. Discretion to issue or refuse to issue any registration, license or
permit provided for in this chapter, as follows: the chairperson, after
receiving a recommendation and relevant application information from the
office and providing such information to all board members, shall issue
a preliminary determination on whether the license, registration or
permit shall be granted, denied, or held for further action. Within
fourteen days of the chairperson's preliminary determination, any board
member may object to the chairperson's preliminary determination, or
request the matter be brought before the full board for consideration.
Any preliminary determination by the chairperson shall take effect
fourteen days after it has been issued by the chairperson, provided that
no board member objects or requests the matter be considered by the full
board, as adopted by the board through resolution.

2. Sole discretion to limit, or not to limit, the number of
registrations, licenses and permits of each class to be issued within
the state or any political subdivision thereof, in a manner that
prioritizes social and economic equity applicants with the goal of fifty
percent awarded to such applicants, and considers small business
opportunities and concerns, avoids market dominance in sectors of the
industry, and reflects the demographics of the state.

3. To revoke, cancel or suspend, after notice and an opportunity to be
heard, any registration, license, or permit issued under this chapter
for a violation of this chapter or any regulation pursuant thereto.

3-a. To impose or recover a civil penalty, as otherwise authorized
under this chapter, against any person found to have violated any
provision of this chapter, whether or not a registration, license, or
permit has been issued to such person pursuant to this chapter.

4. To fix by rule and regulation the standards and requirements of
cultivation, processing, packaging, marketing, and sale of medical
cannabis, adult-use cannabis and cannabis product, and cannabinoid hemp
and hemp extract, including but not limited to, the ability to regulate
excipients, and the types, forms, and concentration 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, adult-use, cannabinoid hemp and hemp
extract to be sold or consumed in the state and to ensure that products
are not packaged, marketed, or otherwise sold in a way which targets
minors or promotes increased use or cannabis use disorders.

5. To limit or prohibit, at any time of public emergency and without
previous notice or advertisement, the cultivation, processing,
distribution or sale of any or all cannabis products, medical cannabis
or cannabinoid hemp and hemp extract, for and during the period of such

6. 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.

7. To appoint any necessary directors, deputies, counsels, assistants,
investigators, and other employees within the limits provided by
appropriation. Directors, deputies and counsels, including the chief
equity officer, and confidential secretaries to board members 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 and shall be considered for
purposes of article fourteen of the civil service law to be public
employees of the state, and shall be assigned to the appropriate
bargaining unit. Investigators so employed by the office shall be deemed
to be peace officers only for the purposes of enforcing the provisions
of this chapter or judgments or orders obtained for violation thereof,
with all the powers set forth in section 2.20 of the criminal procedure
law. 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 as they would
have been assigned to were such titles created prior to the
establishment of the office of cannabis management. Any action taken
under this subdivision shall be subject to and in accordance with the
civil service law. The executive director shall appoint a deputy
director for health and safety who shall be a licensed health care
practitioner within the state and who shall oversee all clinical aspects
of the office.

8. To conduct regulatory inspections of any place of business,
including a vehicle used for such business, where medical cannabis,
adult-use cannabis, cannabis, cannabis product, cannabinoid hemp, hemp
extract products, or any products marketed or labeled as such, are
cultivated, processed, stored, distributed or sold by any person holding
a registration, license, or permit under this chapter, or by any person
who is engaging in activity for which a license would be required under
this chapter. For the purposes of this subdivision, "place of business"
shall not include a residence or other real property not otherwise held
out as open to the public or otherwise being utilized in a business or
commercial manner or any private vehicle on or about the same such
property, unless probable cause exists to believe that such residence,
real property, or vehicle are being used in such business or commercial
manner for the activity described herein.

9. To prescribe forms of applications for registrations, licenses and
permits under this chapter and of all reports deemed necessary by the

10. To appoint such advisory groups and committees as deemed necessary
to provide assistance to the board to carry out the purposes and
objectives of this chapter.

11. To exercise the powers and perform the duties in relation to the
administration of the board and the office of cannabis management as are
necessary but not specifically vested by this chapter, including but not
limited to budgetary and fiscal matters.

12. To develop and establish minimum criteria for certifying employees
to work in the cannabis industry in positions requiring advanced
training and education.

13. To enter into contracts, memoranda of understanding, and
agreements as deemed appropriate to effectuate the policy and purpose of
this chapter.

14. To advise the office of cannabis management and/or urban
development corporation in making low interest or zero-interest loans to
qualified social and economic equity applicants as provided for in this

15. If public health, safety, or welfare imperatively requires
emergency action, and incorporates a finding 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 board may be directed to
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.

16. To draft and provide for public comment and issue regulations,
declaratory rulings, guidance and industry advisories.

17. To draft and provide an annual report on the effectiveness of this
chapter. The annual report shall be prepared, in consultation with the
division of the budget, the urban development corporation, the
department of taxation and finance, the department of health, department
of agriculture and markets, office of addiction services and supports,
office of mental health, New York state police, department of motor
vehicles and the division of criminal justice services. The report shall
provide, but not be limited to, the following information:

(a) the number of registrations, licenses, and permits applied for by
geographic region of the state; the number of registrations, licenses,
and permits approved or denied by geographic region of the state;

(b) the economic and fiscal impacts associated with this chapter,
including revenue from licensing or other fees, fines and taxation
related to the cultivation, distribution and sale of cannabis for
medical and adult-use and cannabinoid hemp and hemp extract in this

(c) specific programs and progress made by the cannabis control board
and the office of cannabis management in achieving the goals of the
social and economic equity plan, and other social justice goals
including, but not limited to, restorative justice, minority- and
women-owned businesses, distressed farmers and service disabled

(d) demographic data on owners and employees in the medical cannabis,
adult-use cannabis and cannabinoid hemp and hemp extract industry;

(e) impacts to public health and safety, including substance use

(f) impacts associated with public safety, including, but not limited
to, traffic-related issues, law enforcement, under-age prevention in
relation to accessing adult-use cannabis, and efforts to eliminate the
illegal market for cannabis products in New York;

(g) any other information or data deemed significant; and

(h) the board shall make recommendations regarding the appropriate
level of taxation of adult-use cannabis, as well as changes necessary
to: improve registration, licensing and permitting; promoting and
encouraging social and economic equity applicants; improve and protect
the public health and safety of New Yorkers; improve access and
availability for substance abuse treatment programs; and any other
recommendations deemed necessary and appropriate. Such report shall be
published on the office's website and presented to the governor, the
majority leader of the senate and the speaker of the assembly, no later
than January first, two thousand twenty-three and annually thereafter.

18. When an administrative decision is appealed to the board by an
applicant, registered organization, licensee or permittee, issue a final
determination of the office.

19. Approve the opening of new license application periods, and when
new or additional licenses are made available pursuant to this chapter,
provided, however, that the initial adult-use cannabis retail dispensary
license application period shall be opened for all applicants at the
same time.

20. Approve any price quotas or price controls set by the executive
director as provided by this chapter.

21. Approve the office's social and economic equity plan pursuant to
section eighty-four of this chapter.

22. To enter into tribal-state compacts with the New York state Indian
nations and tribes, as defined by section two of the Indian law,
authorizing such Indian nations or tribes to acquire, possess,
manufacture, sell, deliver, transport, distribute or dispense adult-use
cannabis and/or medical cannabis.

23. With the exception of promulgating rules and regulations, the
board shall have the power to delegate any functions, powers and duties
as provided for in this section to the executive director of the office
of cannabis management. Any such delegation shall be through a
resolution voted on and approved by the board members.

24. The board shall, two years after the first retail sale pursuant to
this chapter, review the impact of licenses issued pursuant to article
four of this chapter with substantial market share for any category of
licensure, to determine if such licensees are impairing the achievement
of the goals of inclusion of social equity licensees, fairness for small
businesses and distressed farmers, adequate supplies of cannabis and
prevention of dominant marketplace participation in the cannabis
industry. The board may modify the terms of the licensee's license
consistent with the determination and to better achieve those goals. Any
such modification may be appealed by the licensee for a formal hearing
as provided in section seventeen of this article. For any licensee such
review shall include violations of New York state labor law and labor
peace agreements. Further, an existing collective bargaining agreement
shall not be infringed or voided by any licensee who after such review
suffers from a reduction in market share.