§ 35. Registering of registered organizations. 1. (a) An applicant for
registration as a registered organization under section thirty-four of
this article shall include such information prepared in such manner and
detail as the board may require, including but not limited to:

(i) a description of the activities in which it intends to engage as a
registered organization;

(ii) that the applicant:

(A) is of good moral character;

(B) possesses or has the right to use sufficient land, buildings, and
other premises, which shall be specified in the application, and
equipment to properly carry on the activity described in the
application, or in the alternative posts a bond of not less than two
million dollars;

(C) is able to maintain effective security and control to prevent
diversion, abuse, and other illegal conduct relating to the cannabis;
and

(D) is able to comply with all applicable state laws and regulations
relating to the activities in which it intends to engage under the
registration;

(iii) that the applicant has entered into a labor peace agreement with
a bona fide labor organization that is actively engaged in representing
or attempting to represent the applicant's employees and the maintenance
of such a labor peace agreement shall be an ongoing material condition
of certification;

(iv) the applicant's status as a for-profit business entity or
not-for-profit corporation; and

(v) the application shall include the name, residence address and
title of each of the officers and directors and the name and residence
address of any person or entity that is a member of the applicant. Each
such person, if an individual, or lawful representative if a legal
entity, shall submit an affidavit with the application setting forth:

(A) any position of management, interest or ownership during the
preceding ten years of a ten per centum or greater interest in any other
cannabis business, or applicant, located in or outside this state,
manufacturing or distributing drugs including indirect management,
interest, or ownership of parent companies, subsidiaries, or affiliates;

(B) whether such person or any such business has been convicted of a
felony or had a registration or license suspended or revoked in any
administrative or judicial proceeding, and if applicable, the history of
violations or administrative penalties with respect to any license to
cultivate, manufacture, distribute or sell adult-use cannabis or medical
cannabis; and

(C) such other information as the board may reasonably require.

2. The applicant shall be under a continuing duty to report to the
office any change in facts or circumstances reflected in the application
or any newly discovered or occurring fact or circumstance which is
required to be included in the application.

3. (a) The board shall grant a registration or amendment to a
registration under this section if they are satisfied that:

(i) the applicant will be able to maintain effective control against
diversion of cannabis;

(ii) the applicant will be able to comply with all applicable state
laws;

(iii) the applicant and its officers are ready, willing and able to
properly carry on the manufacturing or distributing activity for which a
registration is sought;

(iv) the applicant possesses or has the right to use sufficient land,
buildings and equipment to properly carry on the activity described in
the application;

(v) it is in the public interest that such registration be granted,
including but not limited to:

(A) whether the number of registered organizations in an area will be
adequate or excessive to reasonably serve the area;

(B) whether the registered organization is a minority and/or woman
owned business enterprise, a service-disabled veteran-owned business, or
from communities disproportionally impacted by the enforcement of
cannabis prohibition;

(C) whether the registered organization provides education and
outreach to practitioners;

(D) whether the registered organization promotes the research and
development of medical cannabis and patient outreach;

(E) the affordability of medical cannabis products offered by the
registered organization;

(F) whether the registered organization is culturally, linguistically,
and medically competent to provide services to unserved and underserved
areas; and

(G) whether the registered organization promotes racial, ethnic, and
gender diversity in their workforce;

(vi) the applicant and its managing officers are of good moral
character;

(vii) the applicant has entered into a labor peace agreement with a
bona fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees; and the maintenance
of such a labor peace agreement shall be an ongoing material condition
of registration; and

(viii) the applicant satisfies any other conditions as determined by
the board.

(b) If the board is not satisfied that the applicant should be issued
a registration, he or she shall notify the applicant in writing of those
factors upon which further evidence is required. Within thirty days of
the receipt of such notification, the applicant may submit additional
material to the board or demand a hearing, or both.

(c) The fee for a registration under this section shall be an amount
determined by the board in regulations; provided, however, if the
registration is issued for a period greater than two years the fee shall
be increased, pro rata, for each additional month of validity.

(d) Registrations issued under this section shall be effective only
for the registered organization and shall specify:

(i) the name and address of the registered organization;

(ii) which activities of a registered organization are permitted by
the registration;

(iii) the land, buildings and facilities that may be used for the
permitted activities of the registered organization; and

(iv) such other information as the board shall reasonably provide to
assure compliance with this article.

(e) Upon application of a registered organization, a registration may
be amended to allow the registered organization to relocate within the
state or to add or delete permitted registered organization activities
or facilities. The fee for such amendment shall be determined by the
board in regulation and be based off the administrative burden to
process and review the amendment by the office, provided no fee shall be
greater than two thousand dollars.

4. A registration issued under this section shall be valid for two
years from the date of issue, except that in order to facilitate the
renewals of such registrations, the board may upon the initial
application for a registration, issue some registrations which may
remain valid for a period of time greater than two years but not
exceeding an additional eleven months.

5. (a) An application for the renewal of any registration issued under
this section shall be filed with the board not more than six months nor
less than four months prior to the expiration thereof. A late-filed
application for the renewal of a registration may, in the discretion of
the board, be treated as an application for an initial license.

(b) The application for renewal shall include such information
prepared in the manner and detail as the board may require, including
but not limited to:

(i) any material change in the circumstances or factors listed in
subdivision one of this section; and

(ii) every known charge or investigation, pending or concluded during
the period of the registration, by any governmental or administrative
agency with respect to:

(A) each incident or alleged incident involving the theft, loss, or
possible diversion of medical cannabis manufactured or distributed by
the applicant; and

(B) compliance by the applicant with the laws of the state with
respect to the cultivation, manufacture, distribution, or sale of
medical cannabis or adult-use cannabis, where applicable.

(c) An applicant for renewal shall be under a continuing duty to
report to the board any change in facts or circumstances reflected in
the application or any newly discovered or occurring fact or
circumstance which is required to be included in the application and to
obtain approval prior to any material change in management, interest or
ownership.

(d) If the board is not satisfied that the registered organization
applicant is entitled to a renewal of the registration, the board shall
within a reasonably practicable time as determined by the executive
director, serve upon the registered organization or its attorney of
record in person or by registered or certified mail an order directing
the registered organization to show cause why its application for
renewal should not be denied. The order shall specify in detail the
respects in which the applicant has not satisfied the board that the
registration should be renewed.

(e) Within a reasonably practicable time as determined by the board of
such order, the applicant may submit additional material to the board or
demand a hearing or both; if a hearing is demanded the board shall fix a
date as soon as reasonably practicable.

6. (a) The board shall renew a registration unless he or she
determines and finds that:

(i) the applicant is unlikely to maintain or be able to maintain
effective control against diversion;

(ii) the applicant is unlikely to comply with all state laws
applicable to the activities in which it may engage under the
registration;

(iii) it is not in the public interest to renew the registration
because the number of registered organizations in an area is excessive
to reasonably serve the area;

(iv) the applicant has either violated or terminated its labor peace
agreement; or

(v) the applicant has substantively violated the laws of another
jurisdiction, in which they operate or have operated a cannabis license
or registration, related to the operation of a cannabis business.

(b) For purposes of this section, proof that a registered
organization, during the period of its registration, has failed to
maintain effective control against diversion, violates any provision of
this article, or has knowingly or negligently failed to comply with
applicable state laws relating to the activities in which it engages
under the registration, may constitute grounds for suspension,
termination or limitation of the registered organization's registration
or as determined by the board. The registered organization shall also
be under a continuing duty to report to the office any material change
or fact or circumstance to the information provided in the registered
organization's application.

7. The board may suspend or terminate the registration of a registered
organization, on grounds and using procedures under this article
relating to a license, to the extent consistent with this article. The
board shall suspend or terminate the registration in the event that a
registered organization violates or terminates the applicable labor
peace agreement. Conduct in compliance with this article which may
violate conflicting federal law, shall not be grounds to suspend or
terminate a registration.

8. A registered organization that manufactures medical cannabis may
have no more than four dispensing sites wholly owned and operated by
such registered organization. Such registered organization may have an
additional four dispensing sites; provided, however, that the first two
additional dispensing sites shall be located in underserved or unserved
geographic locations, as determined by the board. The board shall ensure
that such registered organizations and dispensing sites are
geographically distributed across the state and that their ownership
reflects the demographics of the state.

9. In coordination with the chief equity officer the board shall
register additional registered organizations to provide services to
unserved and underserved areas of the state. Pursuant to the social and
economic equity plan established by section eighty-seven of this
chapter, those additional registered organizations shall be reflective
of the demographics of the state, be representative of communities
disproportionately impacted by cannabis prohibition, and be culturally,
linguistically, and medically competent to serve unserved and
underserved areas of the state. The board shall actively promote racial,
ethnic, and gender diversity when registering additional registered
organizations.