S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1617
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2019
                                ___________
 
 Introduced by M. of A. PEOPLES-STOKES, GOTTFRIED, LUPARDO, WEPRIN, HUNT-
   ER,   HYNDMAN,   PICHARDO,   BLAKE,  L. ROSENTHAL,  JAFFEE,  DINOWITZ,
   JEAN-PIERRE,  ABINANTI,  RICHARDSON,  HEVESI,  WALKER,  VANEL,   NIOU,
   WRIGHT,  BICHOTTE,  CAHILL,  LIFTON  -- Multi-Sponsored by -- M. of A.
   EPSTEIN, MOSLEY, SEAWRIGHT, SIMON, STECK,  TAYLOR  --  read  once  and
   referred to the Committee on Codes
 
 AN ACT to amend the public health law, in relation to the description of
   marihuana,  and the growing of and use of marihuana by persons twenty-
   one years of age or older; to amend the civil practice law and  rules,
   in  relation  to  removing certain references to marihuana relating to
   forfeiture actions; to amend the vehicle and traffic law, in  relation
   to  making technical changes regarding the definition of marihuana; to
   amend the penal law, in  relation  to  the  qualification  of  certain
   offenses involving marihuana and to exempt certain persons from prose-
   cution  for  the use, consumption, display, production or distribution
   of marihuana; to amend the public health law in relation to the  defi-
   nition  of  smoking;  to  amend the alcoholic beverage control law, in
   relation to providing for  the  licensure  of  persons  authorized  to
   produce,  process  and sell marihuana; to amend the state finance law,
   in relation to establishing the New York state marihuana revenue fund,
   the New York state drug treatment education  fund  and  the  New  York
   state  community  grants  reinvestment  fund; to amend the tax law, in
   relation to providing for the levying of  an  excise  tax  on  certain
   sales  of  marihuana;  to  amend the criminal procedure law, the civil
   practice law and rules, the general business law,  the  state  finance
   law,  the  executive  law, the penal law, the vehicle and traffic law,
   and the family court act in relation to making conforming changes;  to
   amend  the  alcoholic  beverage control law, in relation to alcohol or
   substance use disorder training awareness programs; to amend the state
   finance law, in relation to a revolving loan fund; to repeal  sections
   221.05,  221.10,  221.15, 221.20, 221.25, 221.30, 221.35 and 221.40 of
   the penal law relating to the criminal possession and sale of marihua-
   na; to repeal paragraph (f) of subdivision 2 of  section  850  of  the
   general business law relating to drug related paraphernalia; to repeal
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07592-01-9

 A. 1617                             2
 
   section  150.75  of  the criminal procedure law relating to appearance
   tickets for certain marihuana offenses; and  making  an  appropriation
   therefor

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "marihuana
 regulation and taxation act".
   §  2.  Legislative  findings  and intent.   The legislature finds that
 existing marihuana laws have not been beneficial to the welfare  of  the
 general public. Existing laws have been ineffective in reducing or curb-
 ing  marihuana  use  and have instead resulted in devastating collateral
 consequences that inhibit an otherwise law-abiding citizen's ability  to
 access  housing,  employment  opportunities,  and  other vital services.
 Existing laws have also created an illicit  market  which  represents  a
 threat  to  public  health and reduces the ability of the legislature to
 deter the accessing of marihuana by minors. Existing marihuana laws have
 also disproportionately impacted African-American  and  Latino  communi-
 ties.
   The intent of this act is to regulate, control, and tax marihuana in a
 manner  similar to alcohol, generate millions of dollars in new revenue,
 prevent access to marihuana by those under the age of twenty-one  years,
 reduce  the illegal drug market and reduce violent crime, reduce partic-
 ipation of otherwise law-abiding citizens in the illicit market, end the
 racially disparate impact of existing  marihuana  laws  and  create  new
 industries and increase employment.
   Nothing in this act is intended to limit the authority of any district
 government  agency  or office or employers to enact and enforce policies
 pertaining to marihuana in the workplace, to  allow  driving  under  the
 influence  of  marihuana, to allow individuals to engage in conduct that
 endangers others, to allow smoking marihuana in any location where smok-
 ing tobacco is prohibited, or to require any individual to engage in any
 conduct that violates federal law or to exempt anyone from any  require-
 ment  of  federal law or pose any obstacle to the federal enforcement of
 federal law.
   Nothing in this act is intended to limit any privileges or rights of a
 medical marihuana patient or medical marihuana caregiver under  the  New
 York Compassionate Care Act.
   It  is  the intent of this act that no child shall be the subject of a
 child neglect or abuse investigation or proceeding  based  solely  on  a
 parent's alleged use of marihuana. A newborn child's positive toxicology
 result  for marihuana, is not sufficient on its own to support a finding
 of child neglect or abuse. Enactment of this act  shall  provide  suffi-
 cient  basis for New York state to favorably resolve open investigations
 and to amend and seal individuals' family court records and  records  of
 indicated  child  abuse  or  neglect  reports currently in the statewide
 central register of child abuse and maltreatment based solely on the use
 of marihuana or where the reporter of suspected abuse or neglect  was  a
 law  enforcement  agency or staff person and the report was based solely
 upon the presence of a child during a marihuana-related arrest.
   § 3. Section 3302 of the public health law, as added by chapter 878 of
 the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
 subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,

 A. 1617                             3

 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
 and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
 subdivision 20, the opening paragraph of subdivision 22 and  subdivision
 29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
 vision 41 as added by section 6 of part A of chapter 447 of the laws  of
 2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
 chapter 60 of the laws of 2014, is amended to read as follows:
   § 3302. Definitions of terms of general use in  this  article.  Except
 where   different   meanings   are  expressly  specified  in  subsequent
 provisions of this article, the following terms have the following mean-
 ings:
   1. "Addict" means a person who habitually uses a controlled  substance
 for  a  non-legitimate or unlawful use, and who by reason of such use is
 dependent thereon.
   2.  "Administer"  means  the  direct  application  of   a   controlled
 substance,  whether  by  injection,  inhalation, ingestion, or any other
 means, to the body of a patient or research subject.
   3. "Agent" means an authorized person who acts on behalf of or at  the
 direction of a manufacturer, distributor, or dispenser. No person may be
 authorized  to  so  act  if  under  title VIII of the education law such
 person would not be permitted to engage in such  conduct.  It  does  not
 include  a  common or contract carrier, public warehouseman, or employee
 of the carrier or warehouseman when  acting  in  the  usual  and  lawful
 course of the carrier's or warehouseman's business.
   4. ["Concentrated Cannabis" means
   (a)  the  separated  resin, whether crude or purified, obtained from a
 plant of the genus Cannabis; or
   (b) a material, preparation,  mixture,  compound  or  other  substance
 which  contains  more than two and one-half percent by weight of delta-9
 tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
 terpene numbering system.
   5.]  "Controlled  substance" means a substance or substances listed in
 section thirty-three hundred six of this [chapter] TITLE.
   [6.] 5. "Commissioner" means commissioner of health of  the  state  of
 New York.
   [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
 attempted transfer from one person to another of a controlled substance,
 whether or not there is an agency relationship.
   [8.] 7. "Department" means the department of health of  the  state  of
 New York.
   [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
 mate user or research subject by lawful means, including by means of the
 internet, and includes the packaging, labeling, or compounding necessary
 to prepare the substance for such delivery.
   [10.] 9. "Distribute" means to deliver a controlled substance, includ-
 ing by means of the internet, other than by administering or dispensing.
   [11.]  10.  "Distributor"  means a person who distributes a controlled
 substance.
   [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
 of  a  controlled  substance by a person or in a manner not specifically
 authorized by law.
   [13.] 12. "Drug" means

 A. 1617                             4
 
   (a) substances recognized as drugs in the official United States Phar-
 macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
 official National Formulary, or any supplement to any of them;
   (b)  substances  intended  for use in the diagnosis, cure, mitigation,
 treatment, or prevention of disease in man or animals; and
   (c) substances (other than food) intended to affect the structure or a
 function of the body of man or animal. It does not  include  devices  or
 their components, parts, or accessories.
   [14.]  13. "Federal agency" means the Drug Enforcement Administration,
 United States Department of Justice, or its successor agency.
   [15.] 14. "Federal controlled substances act" means the  Comprehensive
 Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
 any act or  acts  amendatory  or  supplemental  thereto  or  regulations
 promulgated thereunder.
   [16.]  15. "Federal registration number" means such number assigned by
 the Federal agency to any person authorized to manufacture,  distribute,
 sell, dispense or administer controlled substances.
   [17.]  16.  "Habitual  user"  means any person who is, or by reason of
 repeated use of any controlled substance for non-legitimate or  unlawful
 use is in danger of becoming, dependent upon such substance.
   [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
 hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
 hospital or similar facility approved and certified by the department as
 authorized  to  obtain  controlled  substances  by  distribution  and to
 dispense and administer such substances pursuant to the order of a prac-
 titioner.
   [19.] 18. "License"  means  a  written  authorization  issued  by  the
 department  or  the  New  York  state department of education permitting
 persons to engage in a specified activity  with  respect  to  controlled
 substances.
   [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
 gation,  compounding,  cultivation,  conversion  or  processing   of   a
 controlled  substance,  either  directly  or indirectly or by extraction
 from substances of natural origin, or independently by means of chemical
 synthesis, or by a combination of extraction and chemical synthesis, and
 includes any packaging or repackaging of the substance  or  labeling  or
 relabeling  of its container, except that this term does not include the
 preparation,  compounding,  packaging  or  labeling  of   a   controlled
 substance:
   (a)  by a practitioner as an incident to his administering or dispens-
 ing of a controlled substance in the course of  his  professional  prac-
 tice; or
   (b)  by  a  practitioner,  or by his authorized agent under his super-
 vision, for the purpose of, or as an incident to, research, teaching, or
 chemical analysis and not for sale; or
   (c) by a pharmacist as an incident to his dispensing of  a  controlled
 substance in the course of his professional practice.
   [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
 whether growing or not; the seeds thereof; the resin extracted from  any
 part  of  the  plant; and every compound, manufacture, salt, derivative,
 mixture, or preparation of the plant, its seeds or resin.  It  does  not
 include  the mature stalks of the plant, fiber produced from the stalks,
 oil or cake made from the seeds of the plant, any other compound,  manu-
 facture,  salt, derivative, mixture, or preparation of the mature stalks
 (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
 sterilized seed of the plant which is incapable of germination.

 A. 1617                             5

   22.]  20. "Narcotic drug" means any of the following, whether produced
 directly or  indirectly  by  extraction  from  substances  of  vegetable
 origin,  or independently by means of chemical synthesis, or by a combi-
 nation of extraction and chemical synthesis:
   (a)  opium and opiate, and any salt, compound, derivative, or prepara-
 tion of opium or opiate;
   (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
 which  is  chemically equivalent or identical with any of the substances
 referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
 including the isoquinoline alkaloids of opium;
   (c) opium poppy and poppy straw.
   [23.]  21. "Opiate" means any substance having an addiction-forming or
 addiction-sustaining liability similar to morphine or being  capable  of
 conversion  into a drug having addiction-forming or addiction-sustaining
 liability. It  does  not  include,  unless  specifically  designated  as
 controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
 cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
 its salts (dextromethorphan). It does include its racemic and  levorota-
 tory forms.
   [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
 somniferum L., except its seeds.
   [25.] 23. "Person" means individual, institution, corporation, govern-
 ment or governmental subdivision  or  agency,  business  trust,  estate,
 trust, partnership or association, or any other legal entity.
   [26.]  24. "Pharmacist" means any person licensed by the state depart-
 ment of education to practice pharmacy.
   [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
 York  state  board  of  pharmacy  and registered with the Federal agency
 pursuant to the federal controlled substances act.
   [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
 opium poppy, after mowing.
   [29.] 27. "Practitioner" means:
   A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
 gator, or other person licensed, or  otherwise  permitted  to  dispense,
 administer or conduct research with respect to a controlled substance in
 the  course  of  a  licensed  professional practice or research licensed
 pursuant to this article. Such person shall be deemed  a  "practitioner"
 only  as  to such substances, or conduct relating to such substances, as
 is permitted by his license, permit or otherwise permitted by law.
   [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
 prescription,  permitting an ultimate user lawfully to obtain controlled
 substances  from  any  person  authorized  by  law  to   dispense   such
 substances.
   [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
 prescription, an electronic prescription, an oral prescription[,] OR  an
 out-of-state prescription[, or any one].
   [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
 er, or offer or agree to do the same.
   [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
 possesses a controlled substance for his own use or the use by a  member
 of  his  household  or  for an animal owned by him or in his custody. It
 shall also mean and include a person designated, by a practitioner on  a
 prescription, to obtain such substance on behalf of the patient for whom
 such substance is intended.
   [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
 cations facilities which comprise the worldwide network of networks that

 A. 1617                             6
 
 employ a set of industry standards and protocols, or any predecessor  or
 successor  protocol  to  such  protocol,  to exchange information of all
 kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
 networks,  whether  private  or  public, used to transmit information by
 electronic means.
   [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
 distribution,  or  dispensing  of  a  controlled substance that uses the
 internet, is initiated by use of the internet or causes the internet  to
 be used.
   [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
 in  the  United  States  that sells, delivers or dispenses, or offers to
 sell, deliver, or dispense, a  controlled  substance  by  means  of  the
 internet.
   [37.]  35.  "Electronic prescription" means a prescription issued with
 an electronic signature and transmitted by electronic means  in  accord-
 ance with regulations of the commissioner and the commissioner of educa-
 tion  and consistent with federal requirements. A prescription generated
 on an electronic system that is printed out or transmitted via facsimile
 is not considered  an  electronic  prescription  and  must  be  manually
 signed.
   [38.] 36. "Electronic" means of or relating to technology having elec-
 trical, digital, magnetic, wireless, optical, electromagnetic or similar
 capabilities. "Electronic" shall not include facsimile.
   [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
 created, generated, transmitted, communicated,  received  or  stored  by
 means  of electronic equipment and includes the preservation, retrieval,
 use and disposition in accordance with regulations of  the  commissioner
 and the commissioner of education and in compliance with federal law and
 regulations.
   [40.] 38. "Electronic signature" means an electronic sound, symbol, or
 process,  attached  to or logically associated with an electronic record
 and executed or adopted by a person with the intent to sign the  record,
 in  accordance with regulations of the commissioner and the commissioner
 of education.
   [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
 means  the prescription monitoring program registry established pursuant
 to section thirty-three hundred forty-three-a of this article.
   [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
 ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
 drug substance to create a drug with respect to an outsourcing  facility
 under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
 further defined in this section.
   [43.] 41. "Outsourcing facility" means a facility that:
   (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
 section sixty-eight hundred two of the education law;
   (b)  is  currently  registered  as an outsourcing facility pursuant to
 article one hundred thirty-seven of the education law; and
   (c) complies with all applicable requirements  of  federal  and  state
 law, including the Federal Food, Drug and Cosmetic Act.
   Notwithstanding  any  other  provision of law to the contrary, when an
 outsourcing facility distributes or dispenses any  drug  to  any  person
 pursuant to a prescription, such outsourcing facility shall be deemed to
 be  providing  pharmacy services and shall be subject to all laws, rules
 and regulations governing pharmacies and pharmacy services.
   § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
 26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of

 A. 1617                             7
 
 section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
 18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
 laws of 2006, are amended to read as follows:
   (13) [Marihuana.
   (14)] Mescaline.
   [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
   [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
 fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
 not, the seeds thereof, any extract from any part  of  such  plant,  and
 every  compound, manufacture, salts, derivative, mixture, or preparation
 of such plant, its seeds or extracts.
   [(17)] (16) N-ethyl-3-piperidyl benzilate.
   [(18)] (17) N-methyl-3-piperidyl benzilate.
   [(19)] (18) Psilocybin.
   [(20)] (19) Psilocyn.
   [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
 DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
 contained  in the plant, or in the resinous extractives of cannabis, sp.
 and/or synthetic substances, derivatives, and their isomers with similar
 chemical structure and pharmacological activity such as the following:
   [/\] DELTA 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
 isomers
   [/\]  DELTA  6  cis  or  trans tetrahydrocannabinol, and their optical
 isomers
   [/\] DELTA 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
 isomers  (since  nomenclature of these substances is not internationally
 standardized, compounds of these  structures,  regardless  of  numerical
 designation of atomic positions covered).
   [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
 names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
   [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
   [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
 names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
 phencyclidine, TPCP, TCP.
   [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
   [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
 N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
 MDE, MDEA.
   [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
 N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
 N-hydroxy MDA.
   [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
 names: TCPY.
   [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
 etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
 3- (2-aminobutyl) indole; Alpha-ET or AET.
   [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
 names: DOET.
   [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
 names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
 DOB; 2C-B, Nexus.

 A. 1617                             8
 
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.
   § 5. Section 3382 of the public health law, as added by chapter 878 of
 the laws of 1972, is amended to read as follows:
   §  3382. Growing of the plant known as Cannabis by unlicensed persons.
 A person who, without being licensed so to do under this article,  grows
 the  plant  of  the genus Cannabis or knowingly allows it to grow on his
 land without destroying the same, shall be guilty of a class A misdemea-
 nor, UNLESS THE PERSON GROWS IN  ACCORDANCE  WITH  SECTIONS  221.05  AND
 221.05-A OF THE PENAL LAW.
   §  6.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
 (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
 and  rules,  paragraph  (d)  of subdivision three and subdivision 3-a as
 added by chapter 655 of the laws of 1990 and paragraphs (a) and  (b)  of
 subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
 laws of 2010, are amended to read as follows:
   (d) In a forfeiture action commenced by a claiming authority against a
 defendant, the following rebuttable presumption shall apply: all curren-
 cy  or negotiable instruments payable to the bearer shall be presumed to
 be the proceeds of a pre-conviction forfeiture crime when such  currency
 or  negotiable  instruments  are  (i)  found  in  close  proximity  to a
 controlled substance unlawfully possessed by the defendant in an  amount
 sufficient  to constitute a violation of section 220.18 or 220.21 of the
 penal law, or (ii) found  in  close  proximity  to  any  quantity  of  a
 controlled substance [or marihuana] unlawfully possessed by such defend-
 ant  in  a room, other than a public place, under circumstances evincing
 an intent to unlawfully mix, compound, distribute, package or  otherwise
 prepare for sale such controlled substance [or marihuana].
   3-a.  Conviction  of  a person in a criminal action upon an accusatory
 instrument which includes one or  more  of  the  felonies  specified  in
 subdivision  four-b  of section thirteen hundred ten of this article, of
 any felony other than such felonies, shall not preclude a defendant,  in
 any subsequent proceeding under this article where that conviction is at
 issue, from adducing evidence that the conduct underlying the conviction
 would  not  establish  the  elements of any of the felonies specified in
 such subdivision other than the one to which the criminal defendant pled
 guilty. If the defendant does adduce such evidence, the burden shall  be
 upon  the claiming authority to prove, by clear and convincing evidence,
 that the conduct underlying the criminal conviction would establish  the
 elements  of the felony specified in such subdivision. Nothing contained
 in this subdivision shall affect the validity of  a  settlement  of  any
 forfeiture action negotiated between the claiming authority and a crimi-
 nal defendant contemporaneously with the taking of a plea of guilty in a
 criminal  action to any felony defined in article two hundred twenty [or
 section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
 commit the same.
   (a) Any stipulation or settlement agreement between the parties  to  a
 forfeiture  action  shall  be filed with the clerk of the court in which
 the forfeiture action is pending. No stipulation or settlement agreement
 shall be accepted for filing unless it is accompanied  by  an  affidavit
 from  the  claiming  authority that written notice of the stipulation or
 settlement agreement, including the terms of such, has been given to the
 office of victim  services,  the  state  division  of  criminal  justice
 services[,  and in the case of a forfeiture based on a felony defined in
 article two hundred twenty or section 221.30 or 221.55 of the penal law,
 to the state division of substance abuse services].

 A. 1617                             9
 
   (b) No judgment or order of forfeiture shall be  accepted  for  filing
 unless  it  is  accompanied  by an affidavit from the claiming authority
 that written notice of judgment or order, including the terms  of  such,
 has  been  given to the office of victim services, the state division of
 criminal  justice  services[, and in the case of a forfeiture based on a
 felony defined in article two hundred twenty or section 221.30 or 221.55
 of the penal law, to the state division of substance abuse services].
   § 7. Subdivision 1 of section 3397-b of  the  public  health  law,  as
 added by chapter 810 of the laws of 1980, is amended to read as follows:
   1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in
 [section  thirty-three  hundred  two of this chapter] SUBDIVISION SIX OF
 SECTION 220.00 OF THE PENAL LAW and shall also include  tetrahydrocanna-
 binols or a chemical derivative of tetrahydrocannabinol.
   § 8. Section 114-a of the vehicle and traffic law, as added by chapter
 163 of the laws of 1973, is amended to read as follows:
   § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
 includes any substance listed in section thirty-three hundred six of the
 public health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED  IN
 SECTION 220.00 OF THE PENAL LAW.
   §  9.  Subdivisions  5,  6  and  9 of section 220.00 of the penal law,
 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
 6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
 amended  by  chapter  664  of  the laws of 1985, are amended and two new
 subdivisions 21 and 22 are added to read as follows:
   5. "Controlled substance" means any substance listed  in  schedule  I,
 II,  III,  IV  or  V  of  section thirty-three hundred six of the public
 health law other than marihuana, but including concentrated cannabis  as
 defined  in  [paragraph  (a) of subdivision four of section thirty-three
 hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
   6. "Marihuana" means ["marihuana" or "concentrated cannabis" as  those
 terms  are  defined  in  section  thirty-three hundred two of the public
 health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER  GROW-
 ING  OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF THE
 PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT,  DERIVATIVE,  MIXTURE,  OR
 PREPARATION  OF  THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT INCLUDE THE
 MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR  CAKE
 MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT,
 DERIVATIVE,  MIXTURE,  OR  PREPARATION  OF THE MATURE STALKS (EXCEPT THE
 RESIN EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED  SEED
 OF  THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE ALL
 PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
 MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
   9. "Hallucinogen" means any controlled substance listed  in  [schedule
 I(d)]  PARAGRAPHS  (5),  [(18),  (19),  (20), (21) and (22)] (17), (18),
 (19), (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION  THIRTY-
 THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
   21. "CONCENTRATED CANNABIS" MEANS:
   (A)  THE  SEPARATED  RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A
 PLANT OF THE GENUS CANNABIS; OR
   (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
 WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
 CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
 DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
 NUMBERING SYSTEM.

 A. 1617                            10
 
   22. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED  CANNABIS,  AND
 MARIHUANA-INFUSED PRODUCTS CONTAINING CONCENTRATED MARIHUANA OR CANNABIS
 AND OTHER INGREDIENTS.
   § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   4.  one  or  more  preparations,  compounds,  mixtures  or  substances
 containing concentrated cannabis as defined in [paragraph (a) of  subdi-
 vision  four  of  section  thirty-three hundred two of the public health
 law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
 preparations,  compounds,  mixtures  or  substances  are of an aggregate
 weight of one-fourth ounce or more; or
   § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   10. one  or  more  preparations,  compounds,  mixtures  or  substances
 containing  concentrated cannabis as defined in [paragraph (a) of subdi-
 vision four of section thirty-three hundred two  of  the  public  health
 law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
 preparations, compounds, mixtures or  substances  are  of  an  aggregate
 weight of one ounce or more; or
   §  12. Subdivision 3 of section 220.34 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
 four  of  section  thirty-three  hundred  two  of the public health law]
 SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
   § 13. Section 220.50 of the penal law, as amended by  chapter  627  of
 the laws of 1990, is amended to read as follows:
 § 220.50 Criminally using drug paraphernalia in the second degree.
   A  person  is  guilty  of  criminally  using drug paraphernalia in the
 second degree when he knowingly possesses or sells:
   1. Diluents, dilutants or adulterants, including but not  limited  to,
 any  of the following: quinine hydrochloride, mannitol, mannite, lactose
 or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
 under  circumstances  evincing  an intent to use, or under circumstances
 evincing knowledge that  some  person  intends  to  use,  the  same  for
 purposes  of  unlawfully mixing, compounding, or otherwise preparing any
 narcotic drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED  CANNA-
 BIS; or
   2. Gelatine capsules, glassine envelopes, vials, capsules or any other
 material suitable for the packaging of individual quantities of narcotic
 drugs  or  stimulants  under circumstances evincing an intent to use, or
 under circumstances evincing knowledge that some person intends to  use,
 the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
 dispensing of any narcotic drug or stimulant, OTHER  THAN  MARIHUANA  OR
 CONCENTRATED CANNABIS; or
   3. Scales and balances used or designed for the purpose of weighing or
 measuring  controlled substances, under circumstances evincing an intent
 to use, or under  circumstances  evincing  knowledge  that  some  person
 intends  to use, the same for purpose of unlawfully manufacturing, pack-
 aging or dispensing of any narcotic drug or stimulant, OTHER THAN  MARI-
 HUANA OR CONCENTRATED CANNABIS.
   Criminally  using drug paraphernalia in the second degree is a class A
 misdemeanor.
   § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
 and 221.40 of the penal law are REPEALED.
   § 15. The penal law is amended by adding two new sections  221.05  and
 221.05-a to read as follows:

 A. 1617                            11
 
 § 221.05 PERSONAL USE OF MARIHUANA.
   1.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE FOLLOWING
 ACTS ARE LAWFUL UNDER STATE AND LOCAL LAW FOR PERSONS  TWENTY-ONE  YEARS
 OF AGE AND OLDER:
   (A) POSSESSING, USING, BEING UNDER THE INFLUENCE, DISPLAYING, PURCHAS-
 ING,  OBTAINING,  OR TRANSPORTING UP TO TWO POUNDS OF MARIHUANA AND FOUR
 AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS;
   (B) TRANSFERRING, WITHOUT REMUNERATION, TO A PERSON  TWENTY-ONE  YEARS
 OF  AGE  AND  OLDER  UP TO TWO POUNDS OF MARIHUANA AND FOUR AND ONE-HALF
 OUNCES OF CONCENTRATED CANNABIS;
   (C) POSSESSING, PLANTING, CULTIVATING, HARVESTING, DRYING,  PROCESSING
 OR TRANSPORTING NOT MORE THAN SIX LIVING MARIHUANA PLANTS AND POSSESSING
 THE MARIHUANA AND CONCENTRATED CANNABIS PRODUCED BY THE PLANTS;
   (D) SMOKING, INGESTING OR OTHERWISE CONSUMING MARIHUANA PRODUCTS;
   (E)  POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR-
 ING, TRANSPORTING OR GIVING AWAY TO PERSONS TWENTY-ONE YEARS OF AGE  AND
 OLDER MARIHUANA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
   (F)  ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE AND OLDER
 OR ALLOW PROPERTY TO BE USED IN ANY OF THE ACTS DESCRIBED IN  PARAGRAPHS
 (A) THROUGH (E) OF THIS SUBDIVISION.
   2.  PARAGRAPH  (E)  OF  SUBDIVISION ONE OF THIS SECTION IS INTENDED TO
 MEET THE REQUIREMENTS OF SUBSECTION (F) OF SECTION 863 OF TITLE  TWENTY-
 ONE  OF  THE  UNITED  STATES  CODE (21 U.S.C. § 863 (F)) BY AUTHORIZING,
 UNDER STATE LAW, ANY PERSON IN COMPLIANCE WITH THIS SECTION TO  MANUFAC-
 TURE, POSSESS, OR DISTRIBUTE MARIHUANA PARAPHERNALIA.
   3.  MARIHUANA  PRODUCTS INVOLVED IN ANY WAY WITH CONDUCT DEEMED LAWFUL
 BY THIS SECTION ARE NOT CONTRABAND NOR SUBJECT TO SEIZURE OR  FORFEITURE
 OF  ASSETS  UNDER  ARTICLE  FOUR HUNDRED EIGHTY OF THIS CHAPTER, SECTION
 THIRTEEN HUNDRED ELEVEN OF THE CIVIL PRACTICE LAW AND  RULES,  OR  OTHER
 APPLICABLE  LAW,  AND  NO  CONDUCT  DEEMED  LAWFUL BY THIS SECTION SHALL
 CONSTITUTE THE BASIS  FOR  APPROACH,  SEARCH,  SEIZURE,  ARREST,  AND/OR
 DETENTION.
   4. (A) EXCEPT AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, NONE OF
 THE  FOLLOWING  SHALL,  INDIVIDUALLY  OR IN COMBINATION WITH EACH OTHER,
 CONSTITUTE REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE IN ANY
 CRIMINAL PROCEEDING:
   (1) THE ODOR OF MARIHUANA OR OF BURNT MARIHUANA;
   (2) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  MARIHUANA
 PRODUCTS;
   (3)  THE  POSSESSION  OF  MULTIPLE  CONTAINERS  OF  MARIHUANA  WITHOUT
 EVIDENCE OF MARIHUANA QUANTITY IN EXCESS OF SIXTEEN  OUNCES  OR  CONCEN-
 TRATED CANNABIS QUANTITY IN EXCESS OF FOUR AND ONE-HALF OUNCES; OR
   (4) THE PRESENCE OF CASH OR CURRENCY CANNOT BE USED AS EVIDENCE IN ANY
 CASES INVOLVING UNLICENSED SALE OF MARIHUANA.
   (B)  THE  POSSESSION  OF  NOT MORE THAN TWO POUNDS OF MARIHUANA OR NOT
 MORE THAN FOUR AND ONE-HALF OUNCES OF CONCENTRATED  CANNABIS  CANNOT  BE
 USED AS EVIDENCE IN ANY CASES INVOLVING UNLICENSED SALE OF MARIHUANA.
   5.  SUBDIVISION  FOUR  OF  THIS  SECTION  SHALL  NOT  APPLY WHEN A LAW
 ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON IS OPERATING OR IN
 PHYSICAL CONTROL OF A VEHICLE OR WATERCRAFT WHILE INTOXICATED, UNDER THE
 INFLUENCE OF, OR IMPAIRED BY ALCOHOL OR A DRUG OR ANY COMBINATION THERE-
 OF IN VIOLATION OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE  AND
 TRAFFIC LAW.
   6. POSSESSION OF GREATER THAN TWO POUNDS OF MARIHUANA AND GREATER THAN
 FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS IS A VIOLATION PUNISH-

 A. 1617                            12
 
 ABLE  BY  A  FINE  OF  NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER
 OFFENSE.
 § 221.05-A PERSONAL CULTIVATION OF MARIHUANA.
   1.  PERSONAL  CULTIVATION OF MARIHUANA UNDER PARAGRAPH (C) OF SUBDIVI-
 SION ONE OF SECTION 221.05 OF THIS ARTICLE IS SUBJECT TO  THE  FOLLOWING
 RESTRICTIONS:
   (A)  A  PERSON SHALL PLANT, CULTIVATE, HARVEST, DRY, OR PROCESS PLANTS
 IN ACCORDANCE WITH LOCAL ORDINANCES, IF ANY, ADOPTED IN ACCORDANCE  WITH
 SUBDIVISION TWO OF THIS SECTION;
   (B)  THE  LIVING  PLANTS  AND  ANY MARIHUANA PRODUCED BY THE PLANTS IN
 EXCESS OF TWO POUNDS ARE KEPT WITHIN THE PERSON'S PRIVATE RESIDENCE,  OR
 UPON  THE  GROUNDS OF THAT PRIVATE RESIDENCE (E.G., IN AN OUTDOOR GARDEN
 AREA), ARE IN A LOCKED SPACE, AND ARE  NOT  VISIBLE  BY  NORMAL  UNAIDED
 VISION FROM A PUBLIC PLACE; AND
   (C)  NOT  MORE  THAN  SIX  LIVING  PLANTS  MAY BE PLANTED, CULTIVATED,
 HARVESTED, DRIED, OR PROCESSED WITHIN A  SINGLE  PRIVATE  RESIDENCE,  OR
 UPON THE GROUNDS OF THAT PRIVATE RESIDENCE, AT ONE TIME.
   2.  (A) A TOWN, CITY OR VILLAGE MAY ENACT AND ENFORCE REASONABLE REGU-
 LATIONS TO REASONABLY REGULATE THE ACTIONS AND CONDUCT IN PARAGRAPH  (C)
 OF  SUBDIVISION  ONE  OF SECTION 221.05 OF THIS ARTICLE, PROVIDED THAT A
 VIOLATION OF SUCH A REGULATION IS ONLY  SUBJECT  TO  AN  INFRACTION  AND
 FINE.
   (B)  NOTWITHSTANDING  PARAGRAPH (A) OF THIS SUBDIVISION, NO TOWN, CITY
 OR VILLAGE MAY COMPLETELY PROHIBIT PERSONS ENGAGING IN THE  ACTIONS  AND
 CONDUCT UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS
 ARTICLE.
   3.  A  VIOLATION  OF  SUBDIVISION  ONE  OR  TWO  OF  THIS SECTION IS A
 VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED  TWENTY-FIVE
 DOLLARS PER OFFENSE.
   §  16.  Section  221.45 of the penal law, as amended by chapter 265 of
 the laws of 1979, the opening paragraph as amended by chapter 75 of  the
 laws of 1995, is amended to read as follows:
 § 221.45 [Criminal] UNLICENSED sale of marihuana in the third degree.
   A  person  is guilty of [criminal] UNLICENSED sale of marihuana in the
 third degree when he knowingly and unlawfully sells [one or more  prepa-
 rations,  compounds, mixtures or substances containing marihuana and the
 preparations, compounds, mixtures or  substances  are  of  an  aggregate
 weight  of  more than twenty-five grams] WITH REMUNERATION NOT MORE THAN
 TWO POUNDS OF MARIHUANA OR NOT MORE THAN FOUR  AND  ONE-HALF  OUNCES  OF
 CONCENTRATED  CANNABIS, NOT INCLUDING THE WEIGHT OF ANY OTHER INGREDIENT
 COMBINED WITH MARIHUANA TO  PREPARE  TOPICAL  OR  ORAL  ADMINISTRATIONS,
 FOOD, DRINK, OR OTHER PRODUCT.
   [Criminal]  UNLICENSED  sale  of  marihuana  in the third degree is [a
 class E felony] SUBJECT TO THE FOLLOWING:
   1. A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
 TY-FIVE DOLLARS, FOR A FIRST OFFENSE;
   2. A VIOLATION PUBLISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
 FIFTY DOLLARS FOR A SECOND OFFENSE;
   3.  A  CLASS  B  MISDEMEANOR  AND A FINE OF NOT MORE THAN FIVE HUNDRED
 DOLLARS FOR A THIRD OR SUBSEQUENT OFFENSE.
   § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
 the  laws of 1979, the opening paragraph as amended by chapter 75 of the
 laws of 1995, is amended to read as follows:
 § 221.50 [Criminal] UNLICENSED sale of marihuana in the second degree.
   A person TWENTY-ONE YEARS OF AGE AND OLDER  is  guilty  of  [criminal]
 UNLICENSED  sale of marihuana in the second degree when he knowingly and

 A. 1617                            13
 
 unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
 substances   containing   marihuana  and  the  preparations,  compounds,
 mixtures or substances are of an aggregate  weight  of  more  than  four
 ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
 compounds, mixtures [or substances containing  marihuana]  to  a  person
 less than [eighteen] TWENTY-ONE years of age.
   [Criminal]  UNLICENSED  sale  of  marihuana  in the second degree is a
 class [D] E felony.
   § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
 the  laws of 1979, the opening paragraph as amended by chapter 75 of the
 laws of 1995, is amended to read as follows:
 § 221.55 [Criminal] UNLICENSED sale of marihuana in the first degree.
   A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
 first  degree  when  he  knowingly and unlawfully sells TO A PERSON LESS
 THAN TWENTY-ONE YEARS  OF  AGE  one  or  more  preparations,  compounds,
 mixtures  or  substances  containing  marihuana  and  the  preparations,
 compounds, mixtures or substances are of an  aggregate  weight  of  more
 than sixteen ounces.
   [Criminal] UNLICENSED sale of marihuana in the first degree is a class
 [C] E felony.
   §  19. The penal law is amended by adding a new section 221.60 to read
 as follows:
 § 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION.
   THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO  HUNDRED  TWENTY  OF
 THIS  TITLE  SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL-
 TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING,  MANUFAC-
 TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR
 CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
 ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
   §  20.  Subdivision  8  of section 1399-n of the public health law, as
 amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
 follows:
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter or  substance  which  contains  tobacco  OR  MARIHUANA;
 PROVIDED  THAT  IT  DOES  NOT  INCLUDE  THE USE OF AN ELECTRONIC SMOKING
 DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE  STATUTES
 EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   §  21.  Section 2 of the alcoholic beverage control law, as amended by
 chapter 406 of the laws of 2014, is amended to read as follows:
   § 2. Policy of state and purpose of chapter. It is hereby declared  as
 the policy of the state that it is necessary to regulate and control the
 manufacture,  sale and distribution within the state of alcoholic bever-
 ages AND MARIHUANA PRODUCTS for the purpose of fostering  and  promoting
 temperance  in  their  consumption and respect for and obedience to law;
 for the primary purpose of promoting the health, welfare and  safety  of
 the  people  of  the  state,  promoting temperance in the consumption of
 alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible,
 supporting economic growth, job development, and the  state's  alcoholic
 beverage  production industries, MARIHUANA PRODUCTION INDUSTRIES and its
 tourism and recreation industry; and which promotes the conservation and
 enhancement of state agricultural lands; provided that  such  activities
 do  not conflict with the primary regulatory objectives of this chapter.
 It is hereby declared that such policies will best  be  carried  out  by
 empowering the liquor authority of the state to determine whether public
 convenience  and  advantage will be promoted by the issuance of licenses
 to traffic in alcoholic beverages AND MARIHUANA PRODUCTS,  the  increase

 A. 1617                            14
 
 or  decrease in the number thereof and the location of premises licensed
 thereby, subject only to the right of judicial review  provided  for  in
 this chapter. It is the purpose of this chapter to carry out these poli-
 cies in the public interest.
   §  22.  Subdivisions  20-a,  20-b, 20-c, 20-d, 20-e, 20-f, and 20-g of
 section 3 of the alcoholic beverage control law are renumbered  subdivi-
 sions  20-j, 20-k, 20-l, 20-m, 20-n, 20-o, and 20-p and ten new subdivi-
 sions 7-e, 20-a, 20-b, 20-c, 20-d, 20-e, 20-f, 20-g, 20-h and  20-i  are
 added to read as follows:
   7-E.  "CONCENTRATED  CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
 CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR
   (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
 WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
 CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
 DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
 NUMBERING SYSTEM.
   20-A. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
 INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
 OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
 FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
 (EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
 STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
 NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   20-B. "MARIHUANA CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF  AGE  OR
 OLDER  WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY
 PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
   20-C. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY THE  BUREAU  TO
 PURCHASE  MARIHUANA  AND CONCENTRATED CANNABIS FROM MARIHUANA PRODUCERS,
 TO PROCESS  MARIHUANA,  CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED
 PRODUCTS,  PACKAGE  AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND MARI-
 HUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND  SELL  MARIHUANA,
 CONCENTRATED  CANNABIS  AND  MARIHUANA  INFUSED PRODUCTS AT WHOLESALE TO
 MARIHUANA RETAILERS.
   20-D. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY  THE  BUREAU  TO
 PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE-
 SALE  TO  MARIHUANA  PROCESSORS, MARIHUANA RETAILERS, OR OTHER MARIHUANA
 PRODUCERS, BUT NOT TO CONSUMERS.
   20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS.
   20-F. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT  CONTAIN  MARI-
 HUANA,  OR  CONCENTRATED  CANNABIS  AND  ARE  INTENDED  FOR HUMAN USE OR
 CONSUMPTION, SUCH AS, BUT NOT LIMITED TO,  EDIBLE  PRODUCTS,  OINTMENTS,
 AND TINCTURES.
   20-G.  "MARIHUANA  RETAILER"  MEANS A PERSON LICENSED BY THE BUREAU TO
 PURCHASE  MARIHUANA,  CONCENTRATED   CANNABIS,   AND   MARIHUANA-INFUSED
 PRODUCTS  FROM  MARIHUANA  PRODUCERS  AND  MARIHUANA PROCESSORS AND SELL
 MARIHUANA, MARIHUANA INFUSED PRODUCTS, AND CONCENTRATED  CANNABIS  IN  A
 RETAIL OUTLET.
   20-H.  "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
 LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA INFUSED PRODUCTS FROM MARIHUANA PRODUCERS,  MARIHUANA  RETAIL-

 A. 1617                            15
 
 ERS, AND MARIHUANA PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A CUSTOMER
 TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY.
   20-I.  "UNREASONABLY  IMPRACTICABLE" MEANS THAT THE MEASURES NECESSARY
 TO COMPLY WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT  OF  RISK,
 MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA
 ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT
 BUSINESSPERSON.
   §  23.  Section 65-b of the alcoholic beverage control law, as amended
 by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
 sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
 paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
 2000, is amended to read as follows:
   §  65-b.  Offense for one under age of twenty-one years to purchase or
 attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS  through
 fraudulent  means. 1.  As used in this section: (a) "A device capable of
 deciphering any electronically readable format" or "device"  shall  mean
 any  commercial device or combination of devices used at a point of sale
 or entry that is capable of  reading  the  information  encoded  on  the
 magnetic strip or bar code of a driver's license or non-driver identifi-
 cation card issued by the commissioner of motor vehicles;
   (b)  "Card  holder"  means any person presenting a driver's license or
 non-driver identification card to a licensee, or to the agent or employ-
 ee of such licensee under this chapter; and
   (c) "Transaction scan" means the process involving a device capable of
 deciphering any electronically readable format by which a  licensee,  or
 agent  or  employee  of a licensee under this chapter reviews a driver's
 license or non-driver identification card presented  as  a  precondition
 for  the  purchase  of  an  alcoholic  beverage OR MARIHUANA PRODUCTS as
 required by subdivision two of this section or  as  a  precondition  for
 admission to an establishment licensed for the on-premises sale of alco-
 holic  beverages  OR MARIHUANA PRODUCTS where admission is restricted to
 persons twenty-one years or older.
   2. (a) No person under the age of twenty-one years  shall  present  or
 offer to any licensee under this chapter, or to the agent or employee of
 such licensee, any written evidence of age which is false, fraudulent or
 not actually his OR HER own, for the purpose of purchasing or attempting
 to purchase any alcoholic beverage OR MARIHUANA PRODUCTS.
   (b) No licensee, or agent or employee of such licensee shall accept as
 written evidence of age by any such person for the purchase of any alco-
 holic  beverage OR MARIHUANA PRODUCTS, any documentation other than: (i)
 a valid driver's license or non-driver identification card issued by the
 commissioner of motor  vehicles,  the  federal  government,  any  United
 States  territory, commonwealth or possession, the District of Columbia,
 a state government within the United States or a  provincial  government
 of the dominion of Canada, or (ii) a valid passport issued by the United
 States  government or any other country, or (iii) an identification card
 issued by the armed forces of the United States. Upon  the  presentation
 of  such  driver's license or non-driver identification card issued by a
 governmental entity, such licensee or  agent  or  employee  thereof  may
 perform a transaction scan as a precondition to the sale of any alcohol-
 ic  beverage. Nothing in this section shall prohibit a licensee or agent
 or employee from performing such a transaction scan on any of the  other
 documents  listed  in  this  subdivision if such documents include a bar
 code or magnetic strip that [that] may be scanned by a device capable of
 deciphering any electronically readable format.

 A. 1617                            16
 
   (c) In instances where the information deciphered by  the  transaction
 scan  fails  to match the information printed on the driver's license or
 non-driver identification card presented by the card holder, or  if  the
 transaction  scan indicates that the information is false or fraudulent,
 the  attempted  purchase of the alcoholic beverage OR MARIHUANA PRODUCTS
 shall be denied.
   3. A person violating the provisions of paragraph (a)  of  subdivision
 two  of  this  section  shall  be  guilty  of  a  violation and shall be
 sentenced in accordance with the following:
   (a) For a first violation, the court shall order payment of a fine  of
 not more than one hundred dollars and/or an appropriate amount of commu-
 nity  service  not  to  exceed  thirty hours. In addition, the court may
 order completion of an alcohol awareness program established pursuant to
 section 19.25 of the mental hygiene law  OR  OF  A  MARIHUANA  AWARENESS
 PROGRAM.
   (b) For a second violation, the court shall order payment of a fine of
 not  less  than  fifty dollars nor more than three hundred fifty dollars
 and/or an appropriate amount of community service not  to  exceed  sixty
 hours.  The court also shall order completion of an alcohol OR MARIHUANA
 awareness program as referenced in paragraph (a) of this subdivision  if
 such  program  has not previously been completed by the offender, unless
 the court determines that attendance at such program is not feasible due
 to the lack of availability of such program within  a  reasonably  close
 proximity to the locality in which the offender resides or matriculates,
 as appropriate.
   (c) For third and subsequent violations, the court shall order payment
 of  a  fine  of  not less than fifty dollars nor more than seven hundred
 fifty dollars and/or an appropriate amount of community service  not  to
 exceed  ninety hours. The court also shall order that such person submit
 to an evaluation by an appropriate agency certified or licensed  by  the
 office  of  alcoholism and substance abuse services to determine whether
 the person suffers from [the disease of alcoholism or]  alcohol  [abuse]
 USE  DISORDER OR CANNABIS USE DISORDER, unless the court determines that
 under the circumstances presented such an evaluation is  not  necessary,
 in  which  case  the  court shall state on the record the basis for such
 determination. Payment for such evaluation shall be made by such person.
 If, based on such evaluation, a need for treatment  is  indicated,  such
 person  may  choose  to  participate in a treatment plan developed by an
 agency certified or licensed by the office of alcoholism  and  substance
 abuse  services.  If  such  person  elects to participate in recommended
 treatment, the court shall order that payment of such fine and community
 service be suspended pending the completion of such treatment.
   (d) Evaluation procedures.  For  purposes  of  this  subdivision,  the
 following shall apply:
   (i)  The  contents  of an evaluation pursuant to paragraph (c) of this
 subdivision shall be used for the sole purpose of [determining  if  such
 person  suffers  from the disease of alcoholism or alcohol abuse] DETER-
 MINING IF SUCH PERSON MEETS THE CRITERIA FOR AN ALCOHOL USE DISORDER  OR
 CANNABIS USE DISORDER.
   (ii)  The  agency  designated  by the court to perform such evaluation
 shall conduct the evaluation and return the results to the court  within
 thirty  days,  subject to any state or federal confidentiality law, rule
 or regulation governing the confidentiality  of  alcohol  and  substance
 [abuse] USE DISORDER treatment records.
   (iii) The office of alcoholism and substance abuse services shall make
 available  to  each  supreme  court law library in this state, or, if no

 A. 1617                            17
 
 supreme court law library is available in a certain county, to the coun-
 ty court law library of such county, a list  of  agencies  certified  to
 perform  evaluations  as required by subdivision (f) of section 19.07 of
 the mental hygiene law.
   (iv) All evaluations required under this subdivision shall be in writ-
 ing  and  the  person so evaluated or his or her counsel shall receive a
 copy of such evaluation prior to its use by the court.
   (v) A minor evaluated under this subdivision shall have, and shall  be
 informed by the court of, the right to obtain a second opinion regarding
 his  or  her  need  for  [alcoholism]  treatment  OF AN ALCOHOL OR OTHER
 SUBSTANCE USE DISORDER.
   4. A person violating the provisions of paragraph (b)  of  subdivision
 two  of this section shall be guilty of a violation punishable by a fine
 of not more than one hundred dollars, and/or an  appropriate  amount  of
 community service not to exceed thirty hours. In addition, the court may
 order completion of an alcohol OR SUBSTANCE USE DISORDER training aware-
 ness  program  established  pursuant  to  subdivision  twelve of section
 seventeen of this chapter where such program is located within a reason-
 ably close proximity to the locality in which the offender  is  employed
 or resides.
   5. No determination of guilt pursuant to this section shall operate as
 a  disqualification  of  any  such  person  subsequently  to hold public
 office, public employment, or as a forfeiture of any right or  privilege
 or  to  receive  any  license  granted  by public authority; and no such
 person shall be denominated a criminal by reason of such determination.
   6. In addition to the  penalties  otherwise  provided  in  subdivision
 three of this section, if a determination is made sustaining a charge of
 illegally  purchasing  or  attempting to illegally purchase an alcoholic
 beverage OR MARIHUANA PRODUCTS, the  court  may  suspend  such  person's
 license  to  drive  a  motor  vehicle and the privilege of an unlicensed
 person of obtaining such license, in accordance with the  following  and
 for  the  following  periods, if it is found that a driver's license was
 used for the purpose of such illegal purchase or  attempt  to  illegally
 purchase;  provided,  however, that where a person is sentenced pursuant
 to paragraph (b) or (c) of subdivision three of this section, the  court
 shall  impose  such  license  suspension  if it is found that a driver's
 license was used for the purpose of such illegal purchase or attempt  to
 illegally purchase:
   (a)  For a first violation of paragraph (a) of subdivision two of this
 section, a three month suspension.
   (b) For a second violation of paragraph (a) of subdivision two of this
 section, a six month suspension.
   (c) For a third or subsequent violation of paragraph (a)  of  subdivi-
 sion  two of this section, a suspension for one year or until the holder
 reaches the age of twenty-one, whichever is the greater period of time.
   Such person may thereafter apply for and be issued  a  restricted  use
 license in accordance with the provisions of section five hundred thirty
 of the vehicle and traffic law.
   7.  (a)  In  any  proceeding  pursuant  to  subdivision one of section
 sixty-five of this article, it shall be an affirmative defense that such
 person had produced a driver's license or non-driver identification card
 apparently issued by a governmental entity, successfully  completed  the
 transaction  scan, and that the alcoholic beverage OR MARIHUANA PRODUCTS
 had been sold, delivered or given to such person in reasonable  reliance
 upon  such identification and transaction scan. In evaluating the appli-
 cability of such affirmative defense, the liquor  authority  shall  take

 A. 1617                            18
 
 into  consideration  any  written  policy adopted and implemented by the
 seller to carry out the provisions of this chapter. Use of a transaction
 scan shall not excuse any licensee  under  this  chapter,  or  agent  or
 employee  of  such  licensee,  from the exercise of reasonable diligence
 otherwise  required  by  this   section.   Notwithstanding   the   above
 provisions,  any such affirmative defense shall not be applicable in any
 other civil or criminal proceeding, or in any other forum.
   (b) A licensee or agent or employee of a licensee  may  electronically
 or  mechanically  record and maintain only the information from a trans-
 action scan necessary to effectuate the purposes of this  section.  Such
 information  shall  be  limited to the following: (i) name, (ii) date of
 birth, (iii) driver's license or non-driver identification  number,  and
 (iv) expiration date. The liquor authority and the state commissioner of
 motor  vehicles  shall  jointly  promulgate  any regulation necessary to
 govern the recording and maintenance of  these  records  by  a  licensee
 under  this chapter. The liquor authority and the commissioner of health
 shall jointly promulgate any regulations  necessary  to  ensure  quality
 control in the use of transaction scan devices.
   8. A licensee or agent or employee of such licensee shall only use the
 information  recorded and maintained through the use of such devices for
 the purposes contained in paragraph (a) of  subdivision  seven  of  this
 section,  and  shall only use such devices for the purposes contained in
 subdivision two of this section. No licensee or agent or employee  of  a
 licensee  shall  resell  or  disseminate the information recorded during
 such scan to any third person. Such prohibited resale  or  dissemination
 includes,  but  is  not limited to, any advertising, marketing or promo-
 tional activities. Notwithstanding  the  restrictions  imposed  by  this
 subdivision,  such  records  may be released pursuant to a court ordered
 subpoena or pursuant to any other statute that  specifically  authorizes
 the  release  of  such  information.  Each violation of this subdivision
 shall be punishable by a civil penalty of not  more  than  one  thousand
 dollars.
   §  24. Section 65-c of the alcoholic beverage control law, as added by
 chapter 592 of the laws of 1989,  paragraph  (a)  of  subdivision  2  as
 amended  by chapter 409 of the laws of 2016 and subdivision 3 as amended
 by chapter 137 of the laws of 2001, is amended to read as follows:
   § 65-c. Unlawful possession of  an  alcoholic  beverage  OR  MARIHUANA
 PRODUCT  with  the intent to consume by persons under the age of twenty-
 one years. 1. Except as hereinafter provided, no person under the age of
 twenty-one years shall possess any alcoholic beverage OR MARIHUANA PROD-
 UCT, as defined in this chapter, with the intent to consume such  bever-
 age OR MARIHUANA PRODUCT.
   2. A person under the age of twenty-one years may possess any alcohol-
 ic beverage OR MARIHUANA PRODUCT with intent to consume if the alcoholic
 beverage OR MARIHUANA PRODUCT is given:
   (a)  to  a  person who is a student in a curriculum licensed or regis-
 tered by the state education department and the student is  required  to
 taste  or  imbibe alcoholic beverages OR MARIHUANA PRODUCTS in on-campus
 or off-campus courses which are  a  part  of  the  required  curriculum,
 provided  such  alcoholic  beverages OR MARIHUANA PRODUCTS are used only
 for instructional purposes  during  class  conducted  pursuant  to  such
 curriculum; or
   (b)  to  the  person  under  twenty-one  years of age by that person's
 parent or guardian.
   3. Any person who unlawfully possesses an alcoholic beverage OR  MARI-
 HUANA PRODUCT with intent to consume may be summoned before and examined

 A. 1617                            19
 
 by  a  court having jurisdiction of that charge; provided, however, that
 nothing contained herein shall authorize, or be construed to  authorize,
 a  peace  officer as defined in subdivision thirty-three of section 1.20
 of the criminal procedure law or a police officer as defined in subdivi-
 sion  thirty-four  of  section  1.20  of such law to arrest a person who
 unlawfully possesses an alcoholic beverage  OR  MARIHUANA  PRODUCT  with
 intent to consume. If a determination is made sustaining such charge the
 court may impose a fine not exceeding fifty dollars and/or completion of
 an  alcohol  OR  DRUG  awareness program established pursuant to section
 19.25 of the mental hygiene law and/or an appropriate amount of communi-
 ty service not to exceed thirty hours.
   4. No such determination shall operate as a  disqualification  of  any
 such person subsequently to hold public office, public employment, or as
 a forfeiture of any right or privilege or to receive any license granted
 by  public authority; and no such person shall be denominated a criminal
 by reason of such determination, nor shall such determination be  deemed
 a conviction.
   5.  Whenever a peace officer as defined in subdivision thirty-three of
 section 1.20 of the criminal procedure law or police officer as  defined
 in subdivision thirty-four of section 1.20 of the criminal procedure law
 shall  observe  a  person  under  twenty-one  years  of  age  openly  in
 possession of an alcoholic beverage OR MARIHUANA PRODUCT as  defined  in
 this  chapter,  with  the  intent to consume such beverage OR PRODUCT in
 violation of this section, said officer may seize the beverage OR  PROD-
 UCT, and shall deliver it to the custody of his or her department.
   6.  Any alcoholic beverage OR MARIHUANA PRODUCT seized in violation of
 this section is hereby declared a nuisance. The  official  to  whom  the
 beverage OR PRODUCT has been delivered shall, no earlier than three days
 following the return date for initial appearance on the summons, dispose
 of  or  destroy  the  alcoholic  beverage OR MARIHUANA PRODUCT seized or
 cause it to be disposed of or destroyed.  Any person claiming  ownership
 of  an alcoholic beverage OR MARIHUANA PRODUCT seized under this section
 may, on the initial return date of the summons or earlier on  five  days
 notice  to  the  official or department in possession of the beverage OR
 PRODUCT, apply to the court for an order preventing the  destruction  or
 disposal  of  the  alcoholic  beverage  OR  MARIHUANA PRODUCT seized and
 ordering the return of that beverage OR PRODUCT.   The court  may  order
 the  beverage OR PRODUCT returned if it is determined that return of the
 beverage OR PRODUCT would be in the interest  of  justice  or  that  the
 beverage OR PRODUCT was improperly seized.
   §  25.  The  alcoholic beverage control law is amended by adding a new
 section 65-e to read as follows:
   § 65-E. RESTRICTIONS ON PERSONAL CONSUMPTION OF MARIHUANA. 1.  NOTHING
 IN SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW SHALL BE  CONSTRUED  TO
 PERMIT ANY PERSON TO:
   (A) SMOKE MARIHUANA IN PUBLIC;
   (B)  SMOKE  MARIHUANA  PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS
 PROHIBITED PURSUANT TO SECTION THIRTEEN  HUNDRED  NINETY-NINE-O  OF  THE
 PUBLIC HEALTH LAW;
   (C) POSSESS, SMOKE OR INGEST MARIHUANA PRODUCTS IN OR UPON THE GROUNDS
 OF  ANY  SCHOOL  PROPERTY  USED FOR SCHOOL PURPOSES WHICH IS OWNED BY OR
 LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE CHIL-
 DREN ARE PRESENT; OR
   (D) SMOKE OR INGEST MARIHUANA  PRODUCTS  WHILE  DRIVING,  OPERATING  A
 MOTOR  VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR TRANS-
 PORTATION.

 A. 1617                            20
 
   2. FOR PURPOSES OF THIS SECTION:
   (A)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
 HEATED DEVICE OR PIPE, OR ANY  OTHER  LIGHTED  OR  HEATED  MARIHUANA  OR
 CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
 OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
   (B) "SMOKE" DOES NOT INCLUDE THE USE OF AN ELECTRONIC  SMOKING  DEVICE
 THAT  CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES EXTEND
 PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   3. VIOLATIONS OF THE RESTRICTIONS UNDER THIS SECTION ARE SUBJECT TO  A
 FINE  NOT  EXCEEDING  TWENTY-FIVE  DOLLARS  OR  AN APPROPRIATE AMOUNT OF
 COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
   § 26. Section 140 of the alcoholic beverage control law, as amended by
 chapter 810 of the laws of 1981, is amended to read as follows:
   § 140. Applicability of chapter before local option.  Until such  time
 as  it  shall  become  unlawful to sell alcoholic beverages OR MARIHUANA
 PRODUCTS in any town or city by the vote of the voters in such  town  or
 city  in  the  manner provided in this article, all of the provisions of
 this chapter shall apply throughout the entire state. This article shall
 not apply to the Whiteface mountain ski center, owned by the  state  and
 located in the town of Wilmington, county of Essex.
   § 27. Section 141 of the alcoholic beverage control law, as amended by
 chapter 319 of the laws of 2007, is amended to read as follows:
   §  141.  Local  option for towns. 1. Not less than sixty days nor more
 than seventy-five days before the general election in any town at  which
 the submission of the questions hereinafter stated is authorized by this
 article, a petition signed by electors of the town to a number amounting
 to  twenty-five per centum of the votes cast in the town for governor at
 the then last preceding  gubernatorial  election,  acknowledged  by  the
 signers or authenticated by witnesses as provided in the election law in
 respect  of  a  nominating  petition,  requesting the submission at such
 election to the electors of the town of one or  more  of  the  following
 questions, may be filed with the town clerk:
   Question  1.  Tavern  alcoholic  beverage  license.  Shall a person be
 allowed to obtain a license to operate a tavern with  a  limited-service
 menu (sandwiches, salads, soups, etc.) which permits the tavern operator
 to  sell  alcoholic beverages for a customer to drink while the customer
 is within the tavern. In addition, unopened containers of beer (such  as
 six-packs  and  kegs)  may  be sold "to go" for the customer to open and
 drink at another location (such as, for example, at his home)?
   Question 2. Restaurant alcoholic beverage license. Shall the  operator
 of  a  full-service  restaurant  be  allowed  to  obtain a license which
 permits the restaurant  operator  to  sell  alcoholic  beverages  for  a
 customer  to drink while the customer is within the restaurant. In addi-
 tion, unopened containers of beer (such as six-packs and  kegs)  may  be
 sold  "to  go"  for  the  customer to open and drink at another location
 (such as, for example, at his home)?
   Question 3. Year-round hotel alcoholic  beverage  license.  Shall  the
 operator of a year-round hotel with a full-service restaurant be allowed
 to obtain a license which permits the year-round hotel to sell alcoholic
 beverages  for  a  customer  to  drink  while the customer is within the
 hotel. In addition, unopened containers of beer (such as  six-packs  and
 kegs)  may be sold "to go" for the customer to open and drink at another
 location (such as, for example, at his home)?
   Question 4. Summer hotel alcoholic beverage license. Shall the  opera-
 tor  of a summer hotel with a full-service restaurant, open for business
 only within the period from May first to October  thirty-first  in  each

 A. 1617                            21
 
 year,  be  allowed to obtain a license which permits the summer hotel to
 sell alcoholic beverages for a customer to drink while the  customer  is
 within  the  hotel.  In  addition,  unopened containers of beer (such as
 six-packs  and  kegs)  may  be sold "to go" for the customer to open and
 drink at another location (such as, for example, at his home)?
   Question 5. Retail package liquor  or  wine  store  license.  Shall  a
 person  be  allowed  to  obtain  a  license  to operate a retail package
 liquor-and-wine or wine-without-liquor store, to sell "to  go"  unopened
 bottles  of  liquor or wine to a customer to be taken from the store for
 the customer to open and drink at another location (such as,  for  exam-
 ple, at his home)?
   Question 6. Off-premises beer and wine cooler license. Shall the oper-
 ator  of  a  grocery  store,  drugstore  or supply ship operating in the
 harbors of Lake Erie be allowed to obtain a license  which  permits  the
 operator  to sell "to go" unopened containers of beer (such as six-packs
 and kegs) and wine coolers with not more than 6% alcohol to  a  customer
 to be taken from the store for the customer to open and drink at another
 location (such as, for example, at his home)?
   Question  7.  Baseball  park,  racetrack,  athletic  field  or stadium
 license.  Shall a person be allowed to obtain a  license  which  permits
 the sale of beer for a patron's consumption while the patron is within a
 baseball  park,  racetrack,  or  other  athletic  field or stadium where
 admission fees are charged?
   QUESTION 8. MARIHUANA RETAILER LICENSE. SHALL A PERSON BE  ALLOWED  TO
 OBTAIN  A  LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO SELL UNOPENED
 MARIHUANA PRODUCTS TO A CUSTOMER TO BE TAKEN  FROM  THE  STORE  FOR  THE
 CUSTOMER  TO OPEN AND CONSUME AT ANOTHER LOCATION (SUCH AS, FOR EXAMPLE,
 AT HIS HOME)?
   QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSES. SHALL A PERSON BE
 ALLOWED TO OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE  SERVICE  OF
 FOOD  IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL MARI-
 HUANA PRODUCTS FOR A CUSTOMER TO CONSUME WHILE THE  CUSTOMER  IS  WITHIN
 THE FACILITY?
   2.  Upon  the due filing of such petition complying with the foregoing
 provisions, such questions shall be submitted in accordance therewith.
   3. The town clerk shall, within five days  from  the  filing  of  such
 petition  in  his office, prepare and file in the office of the board of
 elections, as defined by the election law, of the  county,  a  certified
 copy  of such petition. Such questions may be submitted only at the time
 of a general election. At least ten days before such  general  election,
 the  board of elections shall cause to be printed and posted in at least
 four public places in such town, a notice of the fact that  all  of  the
 local  option  questions  will be voted on at such general election; and
 the said notice shall also be published at least five  days  before  the
 vote is to be taken once in a newspaper published in the county in which
 such town is situated, which shall be a newspaper published in the town,
 if  there  be one. Whenever such questions are to be submitted under the
 provisions of this article the board of elections shall cause the proper
 ballot labels to be printed and placed on all voting  machines  used  in
 the  town  in  which  such  questions  are  to be submitted, in the form
 prescribed by the election law in respect of other propositions or ques-
 tions, upon the face of which shall be printed in full  the  said  ques-
 tions.  Any  elector qualified to vote for state officers shall be enti-
 tled to vote upon such local option questions. As soon as  the  election
 shall  be  held, a return of the votes cast and counted shall be made as
 provided by law and the returns canvassed by the inspectors of election.

 A. 1617                            22
 
 If a majority of the votes cast shall be in the negative on all  or  any
 of  the  questions, no person shall, after such election, sell alcoholic
 beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to
 the  provisions  of  this chapter; provided, however, that the result of
 such vote shall not shorten the term for which any license may have been
 lawfully issued under this chapter or affect the rights of the  licensee
 thereunder;  and  no person shall after such vote apply for or receive a
 license to sell alcoholic beverages OR MARIHUANA PRODUCTS at  retail  in
 such  town  contrary  to  such vote, until, by referendum as hereinafter
 provided for, such sale shall again become lawful.
   § 28. Subdivision 3 of section 142 of the alcoholic  beverage  control
 law is amended to read as follows:
   3.  If a majority of the votes cast shall be in the negative on any or
 all of the questions, no person shall, after such election,  sell  alco-
 holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote
 or to the provisions of this chapter; provided, however, that the result
 of  such  vote shall not shorten the term for which any license may have
 been lawfully issued under this chapter or  affect  the  rights  of  the
 licensee  thereunder;  and  no person shall after such vote apply for or
 receive a license to sell alcoholic beverages OR MARIHUANA  PRODUCTS  at
 retail in such city contrary to such vote, until, by referendum as here-
 inafter provided for, such sale shall again become lawful.
   §  29.  Subdivision 2 of section 147 of the alcoholic beverage control
 law is amended to read as follows:
   2. If at the time of any subsequent submission of  such  questions  it
 shall  be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and a
 majority of the votes cast shall be in the negative on  such  questions,
 then  all  of  the  provisions  of this article applicable thereto shall
 become effective.
   § 30. Article 11 and sections 160, 161, 162, 163 and 164 of the  alco-
 holic  beverage  control  law, article 11 and sections 160, 161, 162 and
 163 as renumbered by chapter 725 of the laws  of  1954,  are  renumbered
 article 12 and sections 200, 201, 202, 203, and 204.
   §  31.  The  alcoholic beverage control law is amended by adding a new
 article 11 to read as follows:
                                ARTICLE 11
                     PROVISIONS RELATING TO MARIHUANA
 SECTION 165. DEFINITIONS.
         166. BUREAU OF MARIHUANA POLICY.
         167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY.
         168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS.
         169. LICENSES ISSUED.
         170. LICENSING LIMITS.
         171. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL.
         172. GENERAL PROHIBITIONS AND RESTRICTIONS.
         173. CERTAIN OFFICIALS NOT TO BE INTERESTED IN  THE  MANUFACTURE
                OR SALE OF MARIHUANA.
         174. PROVISIONS GOVERNING INITIAL RULEMAKING.
         175. PROVISIONS GOVERNING MARIHUANA PRODUCERS.
         176. PROVISIONS GOVERNING PROCESSORS.
         177. PROVISIONS GOVERNING MARIHUANA RETAILERS.
         178. PROVISIONS    GOVERNING   MARIHUANA   ON-SITE   CONSUMPTION
                LICENSES.
         179. ADVERTISING AND FORMS FOR THE ISSUANCE OF LICENSES.
         180. PACKAGING OF MARIHUANA PRODUCTS.
         181. LABELING OF MARIHUANA PRODUCTS.

 A. 1617                            23
 
         182. SEED TO SALE TRACKING.
         183. RENEWALS OF LICENSES AND PERMITS.
         184. INFORMATION TO BE PROVIDED BY APPLICANTS.
         185. NOTIFICATION TO TOWNS, CITIES OR VILLAGES.
         186. LICENSES, PUBLICATION, GENERAL PROVISIONS.
         187. REVOCATION OF LICENSES FOR CAUSE.
         188. PROCEDURE FOR REVOCATION OR CANCELLATION.
         189. DECISIONS  OF  THE BUREAU OF MARIHUANA POLICY AND REVIEW BY
                THE COURTS.
         190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM.
         191. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES.
         192. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA.
         193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS.
         194. PROTECTIONS FOR THE USE OF MARIHUANA.
         195. DISCRIMINATION PROTECTIONS FOR  THE  USE  OF  MARIHUANA  OR
                MEDICAL MARIHUANA.
         196. EMPLOYMENT PROTECTIONS.
         197. PROTECTIONS FOR PERSONS UNDER STATE SUPERVISION.
         198. PROFESSIONAL AND MEDICAL RECORD KEEPING.
   §  165. DEFINITIONS. WHENEVER USED IN THIS CHAPTER, UNLESS THE CONTEXT
 REQUIRES OTHERWISE:
   1. "APPLICANT" MEANS AN OWNER APPLYING FOR A LICENSE PURSUANT TO  THIS
 ARTICLE.
   2."BUREAU" MEANS THE BUREAU OF MARIHUANA POLICY WITHIN THE AUTHORITY.
   3.  "COMMERCIAL  MARIHUANA ACTIVITY" MEANS THE PRODUCTION, PROCESSING,
 POSSESSION, STORING, LABORATORY TESTING, PACKAGING, LABELING,  TRANSPOR-
 TATION,  DELIVERY,  OR  SALE  OF  MARIHUANA  AND  MARIHUANA  PRODUCTS AS
 PROVIDED FOR IN THIS ARTICLE.
   4. "CUSTOMER" MEANS A NATURAL PERSON TWENTY-ONE YEARS OF AGE OR OLDER.
   5. "DELIVERY" MEANS A LICENSEE  THAT  DELIVERS  RETAIL  MARIHUANA  AND
 MARIHUANA  PRODUCTS  TO  CUSTOMERS. RETAILER LICENSEES AND MICROBUSINESS
 LICENSEES ARE  PERMITTED  TO  DELIVER  RETAIL  MARIHUANA  AND  MARIHUANA
 PRODUCTS  TO  CUSTOMERS  WITHOUT  OBTAINING  AN  ADDITIONAL  DISTRIBUTOR
 LICENSE.
   6. "DISTRIBUTION" MEANS THE PROCUREMENT, SALE, AND TRANSPORT OF  MARI-
 HUANA  AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS
 ARTICLE.
   7. "DISTRIBUTOR" MEANS A LICENSEE FOR THE  DISTRIBUTION  OF  MARIHUANA
 AND  MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTI-
 CLE.  PRODUCER LICENSEES, PROCESSOR LICENSEES, AND MICROBUSINESS  LICEN-
 SEES  ARE  PERMITTED  TO  DISTRIBUTE  MARIHUANA  AND  MARIHUANA PRODUCTS
 BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTICLE WITHOUT OBTAINING  AN
 ADDITIONAL DISTRIBUTOR LICENSE.
   8.  "LABELING"  MEANS  ANY LABEL OR OTHER WRITTEN, PRINTED, OR GRAPHIC
 MATTER UPON A MARIHUANA PRODUCT, OR UPON ITS CONTAINER  OR  WRAPPER,  OR
 THAT ACCOMPANIES ANY MARIHUANA PRODUCT.
   9.  "LICENSE"  MEANS  A  STATE LICENSE ISSUED UNDER THIS ARTICLE. EACH
 LICENSE ISSUED PURSUANT TO THIS ARTICLE CORRESPONDS TO A SINGLE PLACE OF
 BUSINESS.
   10. "LICENSEE" MEANS ANY PERSON OR ENTITY HOLDING A LICENSE UNDER THIS
 ARTICLE.
   11. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
 INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,

 A. 1617                            24
 
 OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
 FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
 (EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
 STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
 NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA I.,  WHETHER  GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   12.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS.
   13. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN  MARIHUA-
 NA,  OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR CONSUMP-
 TION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINC-
 TURES.
   14. "MICROBUSINESS" MEANS A LICENSEE  THAT  MAY  ACT  AS  A  MARIHUANA
 PRODUCER FOR THE CULTIVATION OF MARIHUANA ON AN AREA LESS THAN TEN THOU-
 SAND  SQUARE FEET, A MARIHUANA PROCESSOR, AND A MARIHUANA RETAILER UNDER
 THIS ARTICLE, PROVIDED SUCH  LICENSEE  COMPLIES  WITH  ALL  REQUIREMENTS
 IMPOSED BY THIS ARTICLE ON LICENSED PRODUCERS, PROCESSORS, AND RETAILERS
 TO THE EXTENT THE LICENSEE ENGAGES IN SUCH ACTIVITIES. A "MICROBUSINESS"
 MAY  DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARI-
 HUANA BUSINESSES AND MAY DELIVER MARIHUANA  AND  MARIHUANA  PRODUCTS  TO
 CUSTOMERS.
   15.  "NURSERY"  MEANS  A  LICENSEE THAT PRODUCES ONLY CLONES, IMMATURE
 PLANTS, SEEDS, AND OTHER AGRICULTURAL PRODUCTS USED SPECIFICALLY FOR THE
 PLANTING, PROPAGATION, AND CULTIVATION OF MARIHUANA.
   16. "ONSITE CONSUMPTION" MEANS A MARIHUANA RETAIL LICENSEE OR A  MARI-
 HUANA  MICROBUSINESS THAT PERMITS THE CONSUMPTION OF MARIHUANA AND MARI-
 HUANA PRODUCTS AT THE LICENSEE'S PLACE OF BUSINESS.
   17. "OWNER" MEANS AN INDIVIDUAL WITH AN AGGREGATE  OWNERSHIP  INTEREST
 OF  TWENTY  PERCENT OR MORE IN A MARIHUANA BUSINESS LICENSED PURSUANT TO
 THIS ARTICLE, UNLESS SUCH INTEREST IS SOLELY A SECURITY, LIEN, OR ENCUM-
 BRANCE, OR AN INDIVIDUAL THAT WILL BE PARTICIPATING  IN  THE  DIRECTION,
 CONTROL, OR MANAGEMENT OF THE LICENSED MARIHUANA BUSINESS.
   18. "PACKAGE" MEANS ANY CONTAINER OR RECEPTACLE USED FOR HOLDING MARI-
 HUANA OR MARIHUANA PRODUCTS.
   19.  "PROCESSOR"  MEANS  A  LICENSEE THAT COMPOUNDS, BLENDS, EXTRACTS,
 INFUSES, OR OTHERWISE MAKES OR PREPARES MARIHUANA PRODUCTS, BUT NOT  THE
 PRODUCTION  OF  THE  MARIHUANA  CONTAINED  IN  THE  MARIHUANA PRODUCT. A
 "PROCESSOR" MAY ALSO DISTRIBUTE  MARIHUANA  AND  MARIHUANA  PRODUCTS  TO
 OTHER LICENSED MARIHUANA BUSINESSES.
   20.  "PRODUCER"  MEANS A LICENSEE THAT PLANTS, GROWS, HARVESTS, DRIES,
 CURES, GRADES, OR TRIMS MARIHUANA.  A  "PRODUCER"  MAY  ALSO  DISTRIBUTE
 MARIHUANA TO OTHER LICENSED MARIHUANA BUSINESSES.
   21.  "RETAILER"  MEANS  A  LICENSEE  THAT SELLS MARIHUANA OR MARIHUANA
 PRODUCTS DIRECTLY TO CUSTOMERS. A "RETAILER" MAY DELIVER  MARIHUANA  AND
 MARIHUANA PRODUCTS TO CUSTOMERS.
   22. "TESTING FACILITY" MEANS A LICENSEE THAT TESTS MARIHUANA AND MARI-
 HUANA PRODUCTS.
   §  166. BUREAU OF MARIHUANA POLICY. THERE IS HEREBY ESTABLISHED IN THE
 AUTHORITY A BUREAU OF MARIHUANA POLICY.  THE  BUREAU  SHALL  CONSIST  OF
 THREE  MEMBERS.  THE  MEMBERS  OF  THE  BUREAU SHALL BE APPOINTED BY THE
 GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. NOT MORE THAN
 TWO MEMBERS OF THE BUREAU SHALL BELONG TO THE SAME POLITICAL PARTY.  THE
 CHAIRMAN  OF  THE  BUREAU  OF  MARIHUANA POLICY HERETOFORE APPOINTED AND
 DESIGNATED BY THE GOVERNOR AND THE REMAINING MEMBERS OF SUCH BOARD HERE-
 TOFORE APPOINTED BY THE GOVERNOR SHALL CONTINUE TO SERVE AS CHAIRMAN AND

 A. 1617                            25
 
 MEMBERS OF THE BUREAU UNTIL THE EXPIRATION OF THE RESPECTIVE  TERMS  FOR
 WHICH  THEY WERE APPOINTED. UPON THE EXPIRATION OF SUCH RESPECTIVE TERMS
 THE SUCCESSORS OF SUCH CHAIRMAN AND MEMBERS SHALL BE APPOINTED TO  SERVE
 FOR  A  TERM  OF  THREE  YEARS EACH AND UNTIL THEIR SUCCESSORS HAVE BEEN
 APPOINTED AND QUALIFIED. THE COMMISSIONERS SHALL,  WHEN  PERFORMING  THE
 WORK  OF  THE  BUREAU,  BE  COMPENSATED  AT  A RATE OF TWO HUNDRED SIXTY
 DOLLARS PER DAY, TOGETHER WITH AN ALLOWANCE  FOR  ACTUAL  AND  NECESSARY
 EXPENSES INCURRED IN THE DISCHARGE OF THEIR DUTIES.
   §  167.  ADMINISTRATION  OF  THE  BUREAU OF MARIHUANA POLICY.   1. THE
 BUREAU ESTABLISHED IN SECTION ONE  HUNDRED  SIXTY-SIX  OF  THIS  ARTICLE
 SHALL  HERETOFORE  HAVE  THE  POWER,  DUTY, PURPOSE, RESPONSIBILITY, AND
 JURISDICTION TO REGULATE COMMERCIAL MARIHUANA ACTIVITY  AS  PROVIDED  IN
 THE MARIHUANA REGULATION AND TAXATION ACT.
   2.  THE  BUREAU  SHALL  HAVE THE EXCLUSIVE AUTHORITY TO CREATE, ISSUE,
 RENEW, DISCIPLINE, SUSPEND, OR REVOKE LICENSES FOR COMMERCIAL  MARIHUANA
 ACTIVITIES IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT.
   (A)  THE  BUREAU  SHALL CONSULT WITH THE DEPARTMENT OF AGRICULTURE AND
 MARKETS REGARDING RULES, REGULATIONS, AND LICENSES FOR  THE  CULTIVATION
 OF MARIHUANA.
   (B)  THE  BUREAU  SHALL  NOTIFY  THE PUBLIC OF ALL LICENSING RULES AND
 REGULATIONS PROMULGATED PURSUANT TO THE MARIHUANA REGULATION  AND  TAXA-
 TION  ACT, WHICH SHALL INCLUDE INSTRUCTIONAL MATERIALS. IN ADDITION, THE
 BUREAU SHALL HOLD PUBLIC FORUMS IN ALL REGIONS OF THE STATE,  AS  DETER-
 MINED  BY  THE  DEPARTMENT  OF  ECONOMIC DEVELOPMENT, TO HELP THE PUBLIC
 UNDERSTAND AND NAVIGATE THE LICENSING PROCESS.
   (C) THE BUREAU SHALL BEGIN ISSUING LICENSES NOT  LATER  THAN  EIGHTEEN
 MONTHS  FOLLOWING  THE  EFFECTIVE  DATE  OF THE MARIHUANA REGULATION AND
 TAXATION ACT.
   (I) THE BUREAU SHALL BEGIN ACCEPTING APPLICATIONS NO MORE THAN FIFTEEN
 MONTHS FOLLOWING THE EFFECTIVE DATE  OF  THE  MARIHUANA  REGULATION  AND
 TAXATION ACT.
   (II)  PURSUANT TO SECTION ONE HUNDRED EIGHTY-FIVE OF THIS ARTICLE, THE
 BUREAU SHALL NOTIFY ANY TOWN, CITY OR VILLAGE OF  ANY  APPLICATIONS  FOR
 LICENSE.
   (III)  THE  BUREAU  SHALL  ISSUE  AN  ANNUAL  LICENSE TO THE APPLICANT
 BETWEEN FORTY-FIVE AND NINETY  DAYS  AFTER  RECEIPT  OF  AN  APPLICATION
 UNLESS  THE  BUREAU  FINDS THE APPLICANT IS NOT IN COMPLIANCE WITH REGU-
 LATIONS ENACTED PURSUANT TO SECTION ONE  HUNDRED  SEVENTY-FOUR  OF  THIS
 ARTICLE  OR  THE  DEPARTMENT  IS  NOTIFIED BY THE RELEVANT TOWN, CITY OR
 VILLAGE THAT THE APPLICANT IS NOT IN COMPLIANCE WITH SUCH REGULATIONS.
   (D) THE BUREAU SHALL HAVE THE AUTHORITY TO COLLECT FEES IN  CONNECTION
 WITH  ACTIVITIES  THEY REGULATE CONCERNING MARIHUANA PURSUANT TO SECTION
 ONE HUNDRED NINETY-ONE OF THIS ARTICLE.
   3. (A) NOT LATER THAN TEN MONTHS FOLLOWING THE ENACTMENT OF THIS ARTI-
 CLE, EACH TOWN, CITY OR VILLAGE MAY ENACT  AN  ORDINANCE  OR  REGULATION
 SPECIFYING THE ENTITY WITHIN THE TOWN, CITY OR VILLAGE THAT IS RESPONSI-
 BLE  FOR  PROCESSING  APPLICATIONS  SUBMITTED FOR A LICENSE TO OPERATE A
 MARIHUANA ESTABLISHMENT WITHIN THE  BOUNDARIES  OF  THE  TOWN,  CITY  OR
 VILLAGE AND FOR THE ISSUANCE OF SUCH LICENSES SHOULD THE ISSUANCE BY THE
 TOWN,  CITY  OR  VILLAGE  BECOME  NECESSARY  BECAUSE OF A FAILURE BY THE
 BUREAU TO ADOPT REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR
 OF THIS ARTICLE OR BECAUSE OF A FAILURE BY THE  BUREAU  TO  PROCESS  AND
 ISSUE LICENSES AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION.
   (B)  A  TOWN, CITY OR VILLAGE MAY ENACT ORDINANCES OR REGULATIONS, NOT
 IN CONFLICT WITH THIS SECTION OR WITH REGULATIONS OR LEGISLATION ENACTED
 PURSUANT TO THIS SECTION, GOVERNING THE TIME, PLACE, MANNER  AND  NUMBER

 A. 1617                            26

 OF  MARIHUANA  ESTABLISHMENT OPERATIONS; ESTABLISHING PROCEDURES FOR THE
 ISSUANCE, SUSPENSION, AND REVOCATION OF A LICENSE ISSUED BY THE  MUNICI-
 PALITY  IN  ACCORDANCE  WITH PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION,
 SUCH  PROCEDURES TO BE SUBJECT TO ALL REQUIREMENTS OF THE STATE ADMINIS-
 TRATIVE PROCEDURE ACT OR ANY SUCCESSOR PROVISION, ESTABLISHING A  SCHED-
 ULE  OF  ANNUAL OPERATING, LICENSING, AND APPLICATION FEES FOR MARIHUANA
 ESTABLISHMENTS, PROVIDED, THE APPLICATION FEE SHALL ONLY BE  DUE  IF  AN
 APPLICATION  IS  SUBMITTED TO A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH
 PARAGRAPH (D) OF THIS SUBDIVISION AND A LICENSING FEE SHALL ONLY BE  DUE
 IF  A  LICENSE  IS ISSUED BY A MUNICIPALITY IN ACCORDANCE WITH PARAGRAPH
 (C) OR (D) OF THIS SUBDIVISION; AND  ESTABLISHING  CIVIL  PENALTIES  FOR
 VIOLATION  OF  AN ORDINANCE OR REGULATION GOVERNING THE TIME, PLACE, AND
 MANNER OF A MARIHUANA ESTABLISHMENT THAT MAY OPERATE  IN  SUCH  A  TOWN,
 CITY  OR  VILLAGE. A TOWN, CITY OR VILLAGE MAY PROHIBIT THE OPERATION OF
 MARIHUANA PRODUCTION FACILITIES, MARIHUANA PROCESSING FACILITIES,  MARI-
 HUANA  RETAIL  STORES,  MARIHUANA  MICROBUSINESSES, OR MARIHUANA TESTING
 FACILITIES THROUGH THE ENACTMENT OF AN ORDINANCE.
   (C) IF THE BUREAU DOES NOT ISSUE A  LICENSE  TO  AN  APPLICANT  WITHIN
 NINETY  DAYS  OF  RECEIPT  OF  THE  APPLICATION FILED IN ACCORDANCE WITH
 SUBDIVISION TWO AND DOES NOT NOTIFY THE APPLICANT OF THE SPECIFIC REASON
 FOR ITS DENIAL, IN WRITING AND WITHIN SUCH TIME PERIOD, OR IF THE BUREAU
 HAS ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR  OF
 THIS  ARTICLE  BUT HAS NOT ISSUED ANY LICENSES WITHIN EIGHTEEN MONTHS OF
 THE EFFECTIVE DATE OF THIS ARTICLE, FOR ANY TOWN, CITY OR VILLAGE ENACT-
 ING AN ORDINANCE PROVIDING FOR LOCAL  PROCESSING  OF  APPLICATIONS,  THE
 APPLICANT  MAY  RESUBMIT  ITS  APPLICATION DIRECTLY TO THE TOWN, CITY OR
 VILLAGE PURSUANT TO PARAGRAPH (A) OF THIS  SUBDIVISION,  AND  THE  TOWN,
 CITY  OR  VILLAGE  MAY ISSUE AN ANNUAL LICENSE TO THE APPLICANT. A TOWN,
 CITY OR VILLAGE ISSUING A LICENSE TO AN APPLICANT  SHALL  DO  SO  WITHIN
 NINETY  DAYS  OF RECEIPT OF THE RESUBMITTED APPLICATION UNLESS THE TOWN,
 CITY OR VILLAGE FINDS AND NOTIFIES THE APPLICANT THAT THE  APPLICANT  IS
 NOT  IN  COMPLIANCE WITH THE ORDINANCES AND REGULATIONS MADE PURSUANT TO
 PARAGRAPH (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME THE  APPLICATION
 IS  RESUBMITTED AND THE TOWN, CITY OR VILLAGE SHALL NOTIFY THE BUREAU IF
 AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. IF AN APPLICATION IS
 SUBMITTED TO A TOWN, CITY OR VILLAGE UNDER THIS  PARAGRAPH,  THE  BUREAU
 SHALL  FORWARD  TO THE TOWN, CITY OR VILLAGE THE APPLICATION FEE PAID BY
 THE APPLICANT TO THE BUREAU UPON REQUEST BY THE TOWN, CITY OR VILLAGE. A
 LICENSE ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH THIS  PARA-
 GRAPH  SHALL  HAVE  THE SAME FORCE AND EFFECT AS A LICENSE ISSUED BY THE
 BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION AND THE HOLDER
 OF SUCH LICENSE SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY THE
 BUREAU DURING THE TERM OF THAT LICENSE. A SUBSEQUENT OR RENEWED  LICENSE
 MAY  BE  ISSUED UNDER THIS PARAGRAPH ON AN ANNUAL BASIS ONLY UPON RESUB-
 MISSION TO THE TOWN, CITY OR VILLAGE OF A NEW APPLICATION  SUBMITTED  TO
 THE BUREAU PURSUANT TO SUBDIVISION TWO OF THIS SECTION.  NOTHING IN THIS
 PARAGRAPH  SHALL  LIMIT  SUCH RELIEF AS MAY BE AVAILABLE TO AN AGGRIEVED
 PARTY UNDER SECTION FOUR HUNDRED ONE OF THE STATE ADMINISTRATIVE  PROCE-
 DURE ACT OR ANY SUCCESSOR PROVISION.
   (D)  IF  THE BUREAU DOES NOT ADOPT REGULATIONS REQUIRED BY SECTION ONE
 HUNDRED SEVENTY-FOUR OF THIS ARTICLE, AN APPLICANT MAY SUBMIT AN  APPLI-
 CATION  DIRECTLY TO A TOWN, CITY OR VILLAGE FIFTEEN MONTHS FOLLOWING THE
 EFFECTIVE DATE OF THIS ARTICLE AND THE TOWN, CITY OR VILLAGE  MAY  ISSUE
 AN  ANNUAL  LICENSE  TO THE APPLICANT. A TOWN, CITY OR VILLAGE ISSUING A
 LICENSE TO AN APPLICANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE
 APPLICATION UNLESS IT FINDS AND NOTIFIES THE APPLICANT THAT  THE  APPLI-

 A. 1617                            27
 
 CANT  IS NOT IN COMPLIANCE WITH ORDINANCES AND REGULATIONS MADE PURSUANT
 TO PARAGRAPH (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME  OF  APPLICA-
 TION AND SHALL NOTIFY THE BUREAU IF AN ANNUAL LICENSE HAS BEEN ISSUED TO
 THE APPLICANT. A LICENSE ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE
 WITH  THIS  PARAGRAPH  SHALL HAVE THE SAME FORCE AND EFFECT AS A LICENSE
 ISSUED BY THE BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS  SECTION
 AND  THE  LICENSEE  SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY
 THE BUREAU DURING THE TERM OF THAT  LICENSE.  A  SUBSEQUENT  OR  RENEWED
 LICENSE  MAY  BE  ISSUED  UNDER THIS PARAGRAPH ON AN ANNUAL BASIS IF THE
 BUREAU HAS NOT ADOPTED  REGULATIONS  REQUIRED  BY  SECTION  ONE  HUNDRED
 SEVENTY-FOUR OF THIS ARTICLE AT LEAST NINETY DAYS PRIOR TO THE DATE UPON
 WHICH  SUCH  SUBSEQUENT  OR RENEWED LICENSE WOULD BE EFFECTIVE OR IF THE
 DEPARTMENT HAS ADOPTED  REGULATIONS  PURSUANT  TO  SECTION  ONE  HUNDRED
 SEVENTY-FOUR OF THIS ARTICLE BUT HAS NOT, AT LEAST NINETY DAYS AFTER THE
 ADOPTION  OF  SUCH  REGULATIONS, ISSUED LICENSES PURSUANT TO SUBDIVISION
 TWO OF THIS SECTION.
   4. THE BUREAU MAY LIMIT THE TOTAL AMOUNT OF MARIHUANA PRODUCED IN  NEW
 YORK  BASED ON THE DEMAND FOR MARIHUANA AND MARIHUANA PRODUCTS AND IN AN
 EFFORT TO REDUCE ILLICIT MARIHUANA MARKETS.
   § 168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. THE BUREAU SHALL
 PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT DEEMS NECESSARY
 TO CARRY OUT THE REQUIREMENTS, PURPOSE AND INTENT OF THIS ARTICLE.
   § 169. LICENSES ISSUED. THE  FOLLOWING  KINDS  OF  LICENSES  SHALL  BE
 ISSUED  BY THE BUREAU FOR THE MANUFACTURE, PRODUCTION, PROCESSING, TEST-
 ING, RETAIL SALE AND DELIVERY OF MARIHUANA:
   1. MARIHUANA NURSERY LICENSE;
   2. MARIHUANA PRODUCER LICENSE;
   3. MARIHUANA PROCESSOR LICENSE;
   4. MARIHUANA DISTRIBUTOR LICENSE;
   5. MARIHUANA RETAILER LICENSE;
   6. MARIHUANA MICROBUSINESS LICENSE;
   7. MARIHUANA ON-SITE CONSUMPTION LICENSE;
   8. MARIHUANA DELIVERY LICENSE;
   9. MARIHUANA TESTING LICENSE; AND
   10. ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
   § 170. LICENSING LIMITS. 1. ALL LICENSES  ISSUED  UNDER  THIS  ARTICLE
 SHALL  BEAR  A  CLEAR  DESIGNATION  INDICATING  THAT  THE LICENSE IS FOR
 COMMERCIAL MARIHUANA ACTIVITY AS DISTINCT FROM MEDICAL  MARIHUANA  MANU-
 FACTURED,  PRODUCED AND SOLD FOR MEDICAL USE PURSUANT TO TITLE FIVE-A OF
 ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   2. AN OWNER OF A MARIHUANA RETAIL STORE SHALL NOT HOLD  A  LICENSE  IN
 ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI-
 CLE,  SHALL  NOT  OWN  OR  HAVE OWNERSHIP INTEREST IN AN ENTITY LICENSED
 PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF  THE  PUBLIC  HEALTH
 LAW, AND SHALL HOLD NOT MORE THAN THREE RETAIL LICENSES.
   3.  AN  OWNER OF A MARIHUANA MICROBUSINESS SHALL NOT HOLD A LICENSE IN
 ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI-
 CLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST  IN  A  FACILITY  LICENSED
 PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH
 LAW, AND SHALL HOLD NOT MORE THAN ONE MICROBUSINESS LICENSE.
   4. AN OWNER OF A MARIHUANA TESTING FACILITY SHALL NOT HOLD  A  LICENSE
 IN  ANOTHER  LICENSE  CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS
 ARTICLE AND SHALL NOT OWN OR  HAVE  OWNERSHIP  INTEREST  IN  A  FACILITY
 LICENSED  PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
 HEALTH LAW.

 A. 1617                            28
 
   5. ONLY A MARIHUANA RETAIL LICENSEE MAY BE ISSUED AN ON-SITE  CONSUMP-
 TION LICENSE.
   6. ONLY A MARIHUANA RETAIL LICENSEE, MARIHUANA MICROBUSINESS LICENSEE,
 OR  MARIHUANA  DELIVERY  LICENSEE  MAY BE PERMITTED TO DELIVER MARIHUANA
 DIRECTLY TO CUSTOMERS.
   7. ONLY A MARIHUANA PRODUCER LICENSEE, MARIHUANA  PROCESSOR  LICENSEE,
 MARIHUANA  MICROBUSINESS LICENSEE, OR MARIHUANA DISTRIBUTOR LICENSEE MAY
 DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED  MARIHUANA
 BUSINESSES.
   8. NO MARIHUANA DELIVERY OWNER MAY HOLD MORE THAN ONE MARIHUANA DELIV-
 ERY LICENSE.
   9.  NO  MARIHUANA  DISTRIBUTOR  OWNER MAY HOLD MORE THAN ONE MARIHUANA
 DISTRIBUTOR LICENSE.
   10. THE BUREAU SHALL ISSUE A SERIES OF PRODUCER LICENSES DISTINGUISHED
 BY CANOPY SIZE AND TYPE OF LIGHTING USED, NATURAL/OUTDOOR LIGHT,  INDOOR
 LIGHT, OR MIXED-LIGHT.
   11.  NO  MARIHUANA  PRODUCER  OWNER  MAY  HOLD MORE THAN ONE MARIHUANA
 PRODUCER AND ONE MARIHUANA PROCESSOR LICENSE.
   12. NO MARIHUANA PROCESSOR OWNER MAY HOLD MORE  THAN  THREE  MARIHUANA
 PROCESSOR LICENSES.
   13.  AN  OWNER OF A MARIHUANA NURSERY MAY HOLD A MARIHUANA PRODUCER OR
 MARIHUANA PROCESSOR LICENSE BUT SHALL NOT HOLD ANOTHER LICENSE  CATEGORY
 OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTICLE, SHALL NOT OWN OR HAVE
 OWNERSHIP  INTEREST  IN  A FACILITY LICENSED PURSUANT TO TITLE FIVE-A OF
 ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW, AND SHALL HOLD  NOT  MORE
 THAN ONE NURSERY LICENSE. LICENSING LIMITS IMPOSED BY SUBDIVISIONS ELEV-
 EN AND TWELVE OF THIS SECTION SHALL APPLY.
   §  171.  ACTIONS  TAKEN  PURSUANT  TO  A  VALID LICENSE ARE LAWFUL. NO
 CONTRACTS RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER  SHALL
 BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT
 TO  THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS ARE
 NOT UNLAWFUL AS PROVIDED UNDER THIS CHAPTER, SHALL  NOT  BE  AN  OFFENSE
 UNDER  ANY  STATE  OR LOCAL LAW, AND SHALL NOT RESULT IN ANY CIVIL FINE,
 SEIZURE, OR FORFEITURE OF ASSETS AGAINST ANY PERSON ACTING IN ACCORDANCE
 WITH THIS CHAPTER:
   1. ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS  PERMITTED
 BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
 PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU.
   2.  ACTIONS  OF THOSE WHO ALLOW PROPERTY TO BE USED BY A LICENSEE, ITS
 EMPLOYEES, AND ITS AGENTS, AS PERMITTED BY THIS CHAPTER  AND  CONSISTENT
 WITH  RULES  AND  REGULATIONS OF THE BUREAU, PURSUANT TO A VALID LICENSE
 ISSUED BY THE BUREAU.
   3. ACTIONS OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR  THEIR  AGENTS
 PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY
 THIS  CHAPTER  AND  CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
 RELATING TO THE FORMATION OF A BUSINESS.
   4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED
 BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
 OBTAINED FROM A VALIDLY LICENSED RETAILER.
   § 172. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS
 MAY BE IMPORTED INTO OR EXPORTED FROM NEW YORK STATE.
   2. NO PERSON MAY BE ISSUED A LICENSE UNDER SECTION ONE HUNDRED  SIXTY-
 NINE  OF  THIS ARTICLE IF THEY HAVE BEEN CONVICTED OF AN OFFENSE RELATED
 TO THE FUNCTIONS, OR DUTIES OF OWNING AND OPERATING  A  BUSINESS  WITHIN
 THREE  YEARS  OF  THE APPLICATION DATE, EXCEPT THAT IF THE BUREAU DETER-
 MINES THAT THE OWNER OR LICENSEE IS OTHERWISE SUITABLE TO  BE  ISSUED  A

 A. 1617                            29
 
 LICENSE,  AND  GRANTING  THE LICENSE WOULD NOT COMPROMISE PUBLIC SAFETY,
 THE BUREAU SHALL CONDUCT A THOROUGH REVIEW OF THE NATURE OF  THE  CRIME,
 CONVICTION,  CIRCUMSTANCES, AND EVIDENCE OF REHABILITATION OF THE OWNER,
 AND SHALL EVALUATE THE SUITABILITY OF THE OWNER OR LICENSEE TO BE ISSUED
 A LICENSE BASED ON THE EVIDENCE FOUND THROUGH THE REVIEW. IN DETERMINING
 WHICH  OFFENSES  ARE SUBSTANTIALLY RELATED TO THE FUNCTIONS OR DUTIES OF
 OWNING AND OPERATING A BUSINESS, THE BUREAU SHALL INCLUDE,  BUT  NOT  BE
 LIMITED TO, THE FOLLOWING:
   (A) A FELONY CONVICTION INVOLVING FRAUD, MONEY LAUNDERING, FORGERY AND
 OTHER UNLAWFUL CONDUCT RELATED TO OWNING AND OPERATING A BUSINESS.
   (B)  A  FELONY  CONVICTION  FOR HIRING, EMPLOYING, OR USING A MINOR IN
 TRANSPORTING, CARRYING, SELLING, GIVING AWAY,  PREPARING  FOR  SALE,  OR
 PEDDLING,  ANY  CONTROLLED SUBSTANCE TO A MINOR; OR SELLING, OFFERING TO
 SELL, FURNISHING, OFFERING TO  FURNISH,  ADMINISTERING,  OR  GIVING  ANY
 CONTROLLED SUBSTANCE TO A MINOR.
   3.  NO  LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE AGE OF
 TWENTY-ONE YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE  OF
 TWENTY-ONE YEARS.
   §  173.  CERTAIN  OFFICIALS NOT TO BE INTERESTED IN THE MANUFACTURE OR
 SALE OF MARIHUANA. 1.  EXCEPT  AS  OTHERWISE  PROVIDED  IN  SECTION  ONE
 HUNDRED  TWENTY-EIGHT-A  OF  THIS  CHAPTER, IT SHALL BE UNLAWFUL FOR ANY
 POLICE COMMISSIONER, POLICE  INSPECTOR,  CAPTAIN,  SERGEANT,  ROUNDSMAN,
 PATROLMAN  OR OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE DEPART-
 MENT IN THE STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE
 MANUFACTURE OR SALE OF MARIHUANA OR TO OFFER FOR SALE, OR  RECOMMEND  TO
 ANY  LICENSEE  ANY  MARIHUANA.  A  PERSON  MAY NOT BE DENIED ANY LICENSE
 GRANTED UNDER THE PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE,  FIFTY-
 NINE,  SIXTY-THREE,  SIXTY-FOUR,  SEVENTY-NINE,  EIGHTY-ONE,  OR ARTICLE
 SEVEN OF THIS CHAPTER SOLELY ON THE GROUNDS OF BEING  THE  SPOUSE  OF  A
 PUBLIC SERVANT DESCRIBED IN THIS SUBDIVISION. THE SOLICITATION OR RECOM-
 MENDATION  MADE TO ANY LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY POLICE
 OFFICIAL OR SUBORDINATE AS  DESCRIBED  IN  THIS  SUBDIVISION,  SHALL  BE
 PRESUMPTIVE  EVIDENCE OF THE INTEREST OF SUCH OFFICIAL OR SUBORDINATE IN
 THE MANUFACTURE OR SALE OF MARIHUANA.
   2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET
 FORTH IN SUBDIVISION ONE OF THIS SECTION UNLESS  SUCH  ELECTIVE  VILLAGE
 OFFICER  SHALL  BE ASSIGNED DUTIES DIRECTLY RELATING TO THE OPERATION OR
 MANAGEMENT OF THE POLICE DEPARTMENT.
   § 174. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO  HUNDRED
 FORTY  DAYS  AFTER  THE EFFECTIVE DATE OF THIS ARTICLE, THE BUREAU SHALL
 PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS
 AND ORDERS AS IT MAY DEEM NECESSARY OR PROPER TO  FULLY  EFFECTUATE  THE
 PROVISIONS OF THIS ARTICLE.
   2. THE BUREAU SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERN-
 ING THE LICENSING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARIHUA-
 NA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON-SITE, INCLUDING:
   (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
 RENEWAL FEES;
   (B) THE QUALIFICATIONS FOR LICENSURE;
   (C)  THE  BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES,
 THE REPORTS TO BE MADE THEREON TO THE  BUREAU,  AND  INSPECTION  OF  THE
 BOOKS AND RECORDS;
   (D)  METHODS  OF PRODUCING, PROCESSING, AND PACKAGING MARIHUANA, MARI-
 HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA-
 TION, AND STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY  OF  MARIHUANA
 PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND

 A. 1617                            30
 
   (E)  SECURITY  REQUIREMENTS FOR MARIHUANA RETAILERS AND PREMISES WHERE
 MARIHUANA PRODUCTS ARE PRODUCED OR PROCESSED, AND SAFETY  PROTOCOLS  FOR
 LICENSEES AND THEIR EMPLOYEES.
   3.  THE  BUREAU SHALL PROMULGATE RULES AND REGULATIONS THAT ARE CALCU-
 LATED TO:
   (A) PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER  TWENTY-ONE
 YEARS OF AGE;
   (B)  PREVENT  THE  REVENUE  FROM  THE  SALE OF MARIHUANA FROM GOING TO
 ORGANIZED CRIMINAL ENTERPRISES AND CARTELS;
   (C) PREVENT THE DIVERSION  OF  MARIHUANA  FROM  THIS  STATE  TO  OTHER
 STATES;
   (D)  PREVENT  MARIHUANA  ACTIVITY  THAT  IS LEGAL UNDER STATE LAW FROM
 BEING USED AS A COVER OR PRETEXT FOR THE TRAFFICKING  OF  OTHER  ILLEGAL
 DRUGS OR OTHER ILLEGAL ACTIVITY;
   (E)  PREVENT  VIOLENCE  AND THE USE OF FIREARMS IN THE CULTIVATION AND
 DISTRIBUTION OF MARIHUANA;
   (F) PREVENT IMPAIRED DRIVING AND THE  EXACERBATION  OF  OTHER  ADVERSE
 PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA;
   (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT
 PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON
 PUBLIC LANDS; AND
   (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY.
   4.  RULES AND REGULATIONS PROMULGATED BY THE BUREAU PURSUANT TO SUBDI-
 VISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION  OF  MARI-
 HUANA  ESTABLISHMENTS  EITHER EXPRESSLY OR THROUGH REGULATIONS THAT MAKE
 THEIR OPERATION UNREASONABLY IMPRACTICABLE.
   5. THE BUREAU, IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE  AND
 MARKETS  AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, SHALL PROMUL-
 GATE NECESSARY RULES AND REGULATIONS GOVERNING THE  SAFE  PRODUCTION  OF
 MARIHUANA, INCLUDING RESTRICTIONS ON THE USE OF PESTICIDES, INSECTICIDES
 AND HERBICIDES.
   §  175. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER SHALL
 SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY  MARIHUANA  PRODUCTS,
 AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
 ACCORDANCE  WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE BUREAU.
 SUCH CONTAINERS SHALL  HAVE  AFFIXED  THERETO  SUCH  LABELS  AS  MAY  BE
 REQUIRED  BY  THE  RULES  OF THE BUREAU, TOGETHER WITH ALL NECESSARY NEW
 YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
   2. NO PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT  IN  VEHI-
 CLES  OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY SUCH
 PRODUCER FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH  THE
 BUREAU,  AND  SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE
 PURCHASER.
   3. EACH PRODUCER SHALL KEEP AND MAINTAIN UPON THE  LICENSED  PREMISES,
 ADEQUATE  BOOKS  AND  RECORDS OF ALL TRANSACTIONS INVOLVING THE PRODUCER
 AND SALE OF HIS OR ITS PRODUCTS, WHICH  SHALL  INCLUDE  ALL  INFORMATION
 REQUIRED BY RULES PROMULGATED BY THE BUREAU. EACH SALE SHALL BE RECORDED
 SEPARATELY  ON  A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED THEREON THE
 NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE LICENSED  PREMISES,
 AND  THE  CURRENT  LICENSE  NUMBER.  SUCH  PRODUCER SHALL DELIVER TO THE
 PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND ADDRESS  OF  THE
 PURCHASER,  THE  QUANTITY  PURCHASED,  DESCRIPTION  AND THE PRICE OF THE
 PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF  THE  TERMS  AND
 CONDITIONS  ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND INVOICES
 SHALL BE KEPT FOR A PERIOD OF TWO  YEARS  AND  SHALL  BE  AVAILABLE  FOR
 INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.

 A. 1617                            31
 
   4. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
 ANY  EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR OTHERWISE,
 EXCEPT AS AUTHORIZED BY THE BUREAU. THE BUREAU MAY MAKE SUCH RULES AS IT
 DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS SUBDIVISION.
   §  176.  PROVISIONS  GOVERNING  PROCESSORS.  1.  NO PROCESSOR SHALL BE
 ENGAGED IN ANY OTHER BUSINESS ON THE PREMISES  TO  BE  LICENSED;  EXCEPT
 THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
 ER  AND  A  MARIHUANA  PROCESSOR FROM OPERATING ON THE SAME PREMISES AND
 FROM A PERSON HOLDING BOTH LICENSES.
   2. NO PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN  THE  STATE
 ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE CONTAINING QUANTITIES
 IN  ACCORDANCE  WITH  SIZE  STANDARDS  PURSUANT  TO RULES ADOPTED BY THE
 BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE
 REQUIRED BY THE RULES OF THE BUREAU, TOGETHER  WITH  ALL  NECESSARY  NEW
 YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
   3.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
 AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
 FROM  A  TRUCKING  OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU,
 AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE  PURCHAS-
 ER.
   4.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
 ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
 TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
 PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE
 NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
 PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
 AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
 NAMES, ADDRESSES, AND LICENSE NUMBERS  OF  SUCH  PURCHASERS.  EACH  SALE
 SHALL  BE  RECORDED  SEPARATELY  ON A NUMBERED INVOICE, WHICH SHALL HAVE
 PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
 LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR  SHALL
 DELIVER  TO  THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND
 ADDRESS OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE  PRICE
 OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
 AND  CONDITIONS  ON  WHICH  SUCH  SALE  IS MADE. SUCH BOOKS, RECORDS AND
 INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
 FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
   §  177. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL LICENSE
 SHALL BE GRANTED FOR ANY PREMISES, UNLESS THE  APPLICANT  SHALL  BE  THE
 OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
 MANAGEMENT  AGREEMENT  OR  OTHER  AGREEMENT GIVING THE APPLICANT CONTROL
 OVER THE PREMISES, IN WRITING, FOR A TERM  NOT  LESS  THAN  THE  LICENSE
 PERIOD.
   2.  NO  PREMISES  SHALL BE LICENSED TO SELL MARIHUANA PRODUCTS, UNLESS
 SAID PREMISES SHALL BE LOCATED IN A STORE,  THE  PRINCIPAL  ENTRANCE  TO
 WHICH  SHALL  BE FROM THE STREET LEVEL AND LOCATED ON A PUBLIC THOROUGH-
 FARE IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR  BUSI-
 NESS,  TRADE  OR  INDUSTRY  OR  ON AN ARCADE OR SUB-SURFACE THOROUGHFARE
 LEADING TO A RAILROAD TERMINAL. THERE MAY BE NOT  MORE  THAN  ONE  ADDI-
 TIONAL  ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON AND
 GIVING ACCESS TO AND FROM A PUBLIC OR PRIVATE  PARKING  LOT  OR  PARKING
 AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
   3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
 A  LICENSE  WOULD  NOT  BE  ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF
 ALCOHOL OFF THE PREMISES BASED ON ITS PROXIMITY TO A  BUILDING  OCCUPIED

 A. 1617                            32
 
 EXCLUSIVELY  AS  A  SCHOOL,  CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP
 PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   4.  NO  MARIHUANA  RETAIL  LICENSEE SHALL OFFER FOR SALE ANY MARIHUANA
 PRODUCTS IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED  PACKAGE,
 AS RECEIVED FROM THE PRODUCER, DISTRIBUTOR OR PROCESSOR. SUCH CONTAINERS
 SHALL  HAVE  AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY THE RULES
 OF THE BUREAU, TOGETHER WITH ALL NEW YORK STATE EXCISE  TAX  STAMPS,  AS
 REQUIRED  BY  LAW.  SUCH CONTAINERS SHALL NOT BE OPENED NOR ITS CONTENTS
 CONSUMED ON THE PREMISES WHERE SOLD.
   5. NO MARIHUANA RETAIL  LICENSEE  SHALL  SELL  OR  TRANSFER  MARIHUANA
 PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
   6.  NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON THE
 SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
   7. NO SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC,  ADVERTISING  ANY
 BRAND  SHALL  BE PERMITTED ON THE EXTERIOR OR INTERIOR OF SUCH PREMISES,
 EXCEPT BY PERMISSION OF THE BUREAU.
   8. NO RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS  EXCEPT  IN
 VEHICLES  OWNED  AND OPERATED BY SUCH LICENSEE, OR HIRED AND OPERATED BY
 SUCH LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH
 THE  BUREAU,  AND SHALL ONLY MAKE SUCH DELIVERIES AT THE PREMISES OF THE
 PURCHASER.
   9. NO RETAIL LICENSEE SHALL  KEEP  OR  PERMIT  TO  BE  KEPT  UPON  THE
 LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
   10. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
 REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
 WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
 ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   11.  EACH  MARIHUANA  RETAIL LICENSEE SHALL KEEP AND MAINTAIN UPON THE
 LICENSED PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL  TRANSACTIONS
 INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
 AMOUNT  OF  MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE TOGETHER WITH
 THE NAMES, LICENSE NUMBERS AND PLACES OF BUSINESS OF  THE  PERSONS  FROM
 WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
 AS  WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE, AND
 THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
 ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
   12. ALL PREMISES LICENSED UNDER  THIS  SECTION  SHALL  BE  SUBJECT  TO
 INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
 2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
 DUTIES,  OR  POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE OF THE
 BUREAU, DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE  TRANS-
 ACTION OF BUSINESS.
   § 178. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 1.
 NO  MARIHUANA  RETAILER  OR  MICROBUSINESS  SHALL BE GRANTED A MARIHUANA
 ON-SITE CONSUMPTION LICENSE FOR A PREMISES LOCATED IN WHOLE OR  IN  PART
 INSIDE  THE  BOUNDARIES  OF  ANY CITY, VILLAGE OR TOWN, UNLESS THE LOCAL
 LEGISLATIVE BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY
 AUTHORIZES THE LICENSING OF SUCH FACILITIES IN  SUCH  CITY,  VILLAGE  OR
 TOWN.  THE  LOCAL  LEGISLATIVE  BODY  MAY DIRECT AN APPROPRIATE OFFICER,
 BOARD OR BODY OF SUCH CITY, VILLAGE  OR  TOWN  AS  THE  LOCAL  LICENSING
 AUTHORITY  TO  AUTHORIZE  INDIVIDUAL MARIHUANA FACILITY LICENSE APPLICA-
 TIONS. IN CITIES OF ONE MILLION OR  MORE  RESIDENTS,  SHOULD  THE  LOCAL
 LEGISLATIVE  BODY  AUTHORIZE SUCH LICENSE, NO MARIHUANA RETAILER LICENSE
 FOR CONSUMPTION ON-SITE SHALL BE  GRANTED  UNLESS  THE  COMMUNITY  BOARD
 ESTABLISHED  PURSUANT  TO  SECTION  TWENTY-EIGHT HUNDRED OF THE NEW YORK

 A. 1617                            33
 
 CITY CHARTER WITH JURISDICTION OVER THE AREA IN WHICH THE PREMISES  WILL
 BE LOCATED SHALL ALSO AUTHORIZE SUCH LICENSE.
   2. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
 ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES, UNLESS THE APPLICANT SHALL
 BE THE OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A
 LEASE,  IN  WRITING, FOR A TERM NOT LESS THAN THE LICENSE PERIOD EXCEPT,
 HOWEVER, THAT  SUCH  LICENSE  MAY  THEREAFTER  BE  RENEWED  WITHOUT  THE
 REQUIREMENT  OF  A  LEASE AS HEREIN PROVIDED. THIS SUBDIVISION SHALL NOT
 APPLY TO PREMISES LEASED FROM  GOVERNMENT  AGENCIES,  AS  DEFINED  UNDER
 SUBDIVISION  TWELVE-C OF SECTION THREE OF THIS CHAPTER; PROVIDED, HOWEV-
 ER,  THAT  THE  APPROPRIATE  ADMINISTRATOR  OF  SUCH  GOVERNMENT  AGENCY
 PROVIDES SOME FORM OF WRITTEN DOCUMENTATION REGARDING THE TERMS OF OCCU-
 PANCY  UNDER  WHICH  THE  APPLICANT  IS  LEASING  SAID PREMISES FROM THE
 GOVERNMENT AGENCY FOR PRESENTATION TO THE BUREAU  AT  THE  TIME  OF  THE
 LICENSE APPLICATION. SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCU-
 PANCY  BETWEEN  THE  APPLICANT AND THE GOVERNMENT AGENCY, INCLUDING, BUT
 NOT LIMITED TO, ANY SHORT-TERM LEASING AGREEMENTS OR  WRITTEN  OCCUPANCY
 AGREEMENTS.
   3. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
 ON-SITE  CONSUMPTION  LICENSE FOR ANY PREMISES WHERE A LICENSE WOULD NOT
 BE ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF ALCOHOL ON THE  PREMISES
 BASED  ON  ITS PROXIMITY TO A BUILDING OCCUPIED EXCLUSIVELY AS A SCHOOL,
 CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP PURSUANT TO  THE  PROVISIONS
 OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   4.  THE BUREAU MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN DETERMINING
 WHETHER PUBLIC CONVENIENCE AND ADVANTAGE AND THE PUBLIC INTEREST WILL BE
 PROMOTED BY THE GRANTING OF LICENSES AND PERMITS FOR A MARIHUANA ON-SITE
 CONSUMPTION LICENSE AT A PARTICULAR UNLICENSED LOCATION:
   (A) THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO  THE
 LOCATION  AND  IN  THE  PARTICULAR  TOWN, CITY OR VILLAGE OR SUBDIVISION
 THEREOF.
   (B) EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE  BEEN
 OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
   (C)  EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND PARK-
 ING IN PROXIMITY TO THE LOCATION.
   (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
 LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
   (E) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
 TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
 THE COMMUNITY.
   5. IF THE BUREAU SHALL DISAPPROVE AN  APPLICATION  FOR  A  LICENSE  OR
 PERMIT,  IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR AND
 SHALL NOTIFY THE APPLICANT THEREOF. SUCH APPLICANT MAY  THEREUPON  APPLY
 TO  THE  BUREAU FOR A REVIEW OF SUCH ACTION IN A MANNER TO BE PRESCRIBED
 BY THE RULES OF THE BUREAU. A HEARING UPON NOTICE TO THE APPLICANT SHALL
 THEREUPON BE HELD BY THE BUREAU OR BY ONE OF ITS MEMBERS AT  ITS  OFFICE
 MOST  CONVENIENTLY  SITUATED TO THE OFFICE OF ITS DULY AUTHORIZED REPRE-
 SENTATIVE IN A MANNER TO BE PRESCRIBED IN ITS RULES; AND ON SUCH HEARING
 PROOF MAY BE TAKEN BY ORAL TESTIMONY OR BY AFFIDAVIT  RELATIVE  THERETO.
 AFTER  SUCH  HEARING,  IF THE BUREAU CONFIRMS SUCH DISAPPROVAL, IT SHALL
 ENDORSE SUCH APPLICATION ACCORDINGLY AND SHALL SEND NOTICE TO THE APPLI-
 CANT OF ITS ACTION IN SUCH FORM AS THE  BUREAU  MAY  PRESCRIBE.  IF  THE
 BUREAU  DOES NOT CONFIRM THE DISAPPROVAL ACTION IT MAY GRANT SUCH APPLI-
 CATION AND ISSUE SUCH LICENSE.
   6. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE, EXCEPT PERSONS OR CORPO-
 RATIONS OPERATING A HOTEL, AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION

 A. 1617                            34
 
 THREE OF THIS CHAPTER, FOR EXCLUSIVE  USE  IN  THE  FURNISHING  OF  ROOM
 SERVICE  IN  THE  MANNER PRESCRIBED BY RULE OR REGULATION OF THE BUREAU,
 SHALL KEEP UPON THE LICENSED PREMISES  ANY  MARIHUANA  PRODUCTS,  EXCEPT
 THOSE  PURCHASED FROM A LICENSED PRODUCER, AND IN CONTAINERS APPROVED BY
 THE BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO  SUCH  LABELS  AS
 MAY  BE REQUIRED BY THE RULES OF THE BUREAU, TOGETHER WITH ALL NECESSARY
 EXCISE STAMPS AS REQUIRED BY  LAW.  NO  MARIHUANA  RETAIL  LICENSEE  FOR
 ON-SITE CONSUMPTION SHALL REUSE, REFILL, TAMPER WITH, ADULTERATE, DILUTE
 OR  FORTIFY  THE  CONTENTS  OF  ANY  CONTAINER  OF MARIHUANA PRODUCTS AS
 RECEIVED FROM THE MANUFACTURER OR WHOLESALER.
   7. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL  SELL,  DELIVER  OR
 GIVE  AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD, DELIVERED OR GIVEN
 AWAY ANY MARIHUANA FOR CONSUMPTION ON  THE  PREMISES  WHERE  SOLD  IN  A
 CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF MARIHUANA.
   8.  EXCEPT  WHERE  A  PERMIT  TO DO SO IS OBTAINED PURSUANT TO SECTION
 405.10 OF THE PENAL LAW, NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL
 SUFFER, PERMIT, OR PROMOTE AN EVENT ON ITS PREMISES WHEREIN  ANY  PERSON
 SHALL  USE,  EXPLODE,  OR CAUSE TO EXPLODE, ANY FIREWORKS OR OTHER PYRO-
 TECHNICS IN A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION  ONE  OF
 SECTION  405.10  OF  THE  PENAL  LAW, THAT IS COVERED BY SUCH LICENSE OR
 POSSESS SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION  TO
 ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
 CONSTITUTE  AN  ADEQUATE GROUND FOR INSTITUTING A PROCEEDING TO SUSPEND,
 CANCEL, OR REVOKE THE LICENSE OF THE VIOLATOR  IN  ACCORDANCE  WITH  THE
 APPLICABLE  PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF THIS
 CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
 A SINGLE EVENT, UPON APPROVAL BY THE  BUREAU,  ONLY  ONE  LICENSEE  MUST
 OBTAIN SUCH PERMIT.
   9.  NO  RESTAURANT AND NO PREMISES LICENSED TO SELL MARIHUANA PRODUCTS
 FOR ON-SITE CONSUMPTION  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION  SIX  OF
 SECTION  SIXTY-FOUR-A  OF  THIS  CHAPTER  SHALL BE PERMITTED TO HAVE ANY
 OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
 THE LICENSED PREMISES AND ANY  OTHER  ROOM  OR  PLACE  IN  THE  BUILDING
 CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
 UNLESS  INGRESS  AND  EGRESS  IS RESTRICTED BY AN EMPLOYEE, AGENT OF THE
 LICENSEE, OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE  FACILI-
 TY,  OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH ACCESS
 FOR PATRONS AND GUESTS FROM ANY PART OF SUCH BUILDING  OR  ADJOINING  OR
 ABUTTING  PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE AND
 SUITABLE MANNER; OR UNLESS SUCH LICENSED  PREMISES  ARE  IN  A  BUILDING
 OWNED  OR  OPERATED  BY  ANY  TOWN, CITY, VILLAGE OR PUBLIC AUTHORITY OR
 AGENCY, IN A PARK OR OTHER SIMILAR PLACE OF  PUBLIC  ACCOMMODATION.  ALL
 GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
 SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.
   10.  A VESSEL LICENSED TO SELL MARIHUANA PRODUCTS FOR ON-SITE CONSUMP-
 TION SHALL NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS,  WHILE  SAID
 VESSEL  IS  MOORED  TO  A  PIER  OR DOCK, EXCEPT THAT VESSELS SAILING ON
 ESTABLISHED SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS  FOR
 A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
   11.  EACH  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL KEEP AND MAIN-
 TAIN UPON THE LICENSED PREMISES, ADEQUATE RECORDS  OF  ALL  TRANSACTIONS
 INVOLVING  THE BUSINESS TRANSACTED BY SUCH LICENSEE WHICH SHALL SHOW THE
 AMOUNT OF MARIHUANA  PRODUCTS,  IN  AN  APPLICABLE  METRIC  MEASUREMENT,
 PURCHASED  BY SUCH LICENSEE TOGETHER WITH THE NAMES, LICENSE NUMBERS AND
 PLACES OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE PURCHASED, THE
 AMOUNT INVOLVED IN SUCH PURCHASES, AS WELL AS  THE  SALES  OF  MARIHUANA

 A. 1617                            35
 
 PRODUCTS  MADE  BY  SUCH  LICENSEE.  THE  BUREAU IS HEREBY AUTHORIZED TO
 PROMULGATE RULES AND REGULATIONS PERMITTING AN ON-SITE LICENSEE  OPERAT-
 ING  TWO OR MORE PREMISES SEPARATELY LICENSED TO SELL MARIHUANA PRODUCTS
 FOR ON-SITE CONSUMPTION TO INAUGURATE OR RETAIN IN THIS STATE METHODS OR
 PRACTICES  OF  CENTRALIZED  ACCOUNTING,  BOOKKEEPING,  CONTROL  RECORDS,
 REPORTING, BILLING, INVOICING OR PAYMENT RESPECTING PURCHASES, SALES  OR
 DELIVERIES  OF  MARIHUANA PRODUCTS, OR METHODS AND PRACTICES OF CENTRAL-
 IZED RECEIPT OR STORAGE OF MARIHUANA PRODUCTS WITHIN THIS STATE  WITHOUT
 SEGREGATION  OR  EARMARKING  FOR  ANY SUCH SEPARATELY LICENSED PREMISES,
 WHEREVER SUCH METHODS AND PRACTICES ASSURE  THE  AVAILABILITY,  AT  SUCH
 LICENSEE'S  CENTRAL  OR  MAIN  OFFICE  IN THIS STATE, OF DATA REASONABLY
 NEEDED FOR THE ENFORCEMENT OF THIS CHAPTER. SUCH RECORDS SHALL BE AVAIL-
 ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
   12. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
 PEACE OFFICER, ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES,  OR  POLICE
 OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE BUREAU, DURING
 THE  HOURS  WHEN THE SAID PREMISES ARE OPEN FOR THE TRANSACTION OF BUSI-
 NESS.
   13. A MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL NOT  PROVIDE  MARI-
 HUANA PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE.
   §  179.  ADVERTISING  AND  FORMS  FOR THE ISSUANCE OF LICENSES. 1. THE
 BUREAU IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGULATIONS  GOVERN-
 ING  THE ADVERTISING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARI-
 HUANA RETAILERS, AND ANY MARIHUANA RELATED PRODUCTS OR SERVICES.
   2. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING  ADVERTISING
 THAT:
   (A) IS FALSE, DECEPTIVE, OR MISLEADING;
   (B) PROMOTES OVERCONSUMPTION;
   (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;
   (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
   (E) IS WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A PLAYGROUND, CHILD
 CARE CENTER, PUBLIC PARK, LIBRARY OR SCHOOL GROUNDS;
   (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
   (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
   (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
   3.  THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING ALL MARKET-
 ING STRATEGIES AND IMPLEMENTATION INCLUDING, BUT NOT LIMITED TO,  BRAND-
 ING,  PACKAGING, LABELING, LOCATION OF MARIHUANA RETAILERS AND MARIHUANA
 MICROBUSINESSES, AND ADVERTISEMENTS THAT ARE DESIGNED TO:
   (A) APPEAL TO PERSONS LESS THEN TWENTY-ONE YEARS OF AGE; OR
   (B) DISSEMINATE FALSE OR MISLEADING INFORMATION TO CUSTOMERS.
   4. THE BUREAU SHALL PROMULGATE EXPLICIT RULES REQUIRING THAT:
   (A) ALL ADVERTISEMENTS AND MARKETING ACCURATELY AND  LEGIBLY  IDENTIFY
 THE LICENSEE RESPONSIBLE FOR ITS CONTENT; AND
   (B)  ANY  BROADCAST,  CABLE,  RADIO,  PRINT AND DIGITAL COMMUNICATIONS
 ADVERTISEMENTS ONLY BE PLACED WHERE THE AUDIENCE IS REASONABLY  EXPECTED
 TO  BE  TWENTY-ONE  YEARS  OF  AGE  OR OLDER, AS DETERMINED BY RELIABLE,
 UP-TO-DATE AUDIENCE COMPOSITION DATA.
   § 180. PACKAGING OF  MARIHUANA  PRODUCTS.  1.  THE  BUREAU  IS  HEREBY
 AUTHORIZED  TO  PROMULGATE RULES AND REGULATIONS GOVERNING THE PACKAGING
 OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.
   2. SUCH REGULATIONS SHALL INCLUDE REQUIRING THAT:
   (A) PACKAGING  MEETS  REQUIREMENTS  SIMILAR  TO  THE  FEDERAL  "POISON
 PREVENTION PACKAGING ACT OF 1970," 15 U.S.C. SEC 1471 ET SEQ.;
   (B) ALL MARIHUANA-INFUSED PRODUCTS SHALL HAVE A SEPARATE PACKAGING FOR
 EACH SERVING;

 A. 1617                            36
 
   (C)  PRIOR  TO DELIVERY OR SALE AT A RETAILER, MARIHUANA AND MARIHUANA
 PRODUCTS SHALL BE LABELED AND PLACED IN  A  RESEALABLE,  CHILD-RESISTANT
 PACKAGE; AND
   (D)  PACKAGES  AND  LABELS SHALL NOT BE MADE TO BE ATTRACTIVE TO CHIL-
 DREN.
   § 181. LABELING OF MARIHUANA PRODUCTS. 1. THE BUREAU IS HEREBY AUTHOR-
 IZED TO PROMULGATE RULES AND  REGULATIONS  GOVERNING  THE  LABELING  AND
 OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
   2.  SUCH  RULES  AND  REGULATIONS SHALL BE CALCULATED TO: (A) PROHIBIT
 DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
 AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
 BUSINESS.
   3. THE BUREAU MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF HEALTH WHEN
 NECESSARY BEFORE PROMULGATING RULES AND REGULATIONS UNDER THIS SECTION.
   4. SUCH REGULATIONS SHALL INCLUDE REQUIRING LABELS  WARNING  CONSUMERS
 OF  ANY  POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM THE CONSUMPTION
 OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
 IF SUCH LABELS ARE DEEMED WARRANTED BY  THE  BUREAU  AFTER  CONSULTATION
 WITH THE DEPARTMENT OF HEALTH.
   5.  ALL  MARIHUANA  AND  MARIHUANA  PRODUCT  LABELS  AND INSERTS SHALL
 INCLUDE THE FOLLOWING INFORMATION PROMINENTLY DISPLAYED IN A  CLEAR  AND
 LEGIBLE  FASHION  IN  ACCORDANCE  WITH  THE REQUIREMENTS, INCLUDING FONT
 SIZE, PRESCRIBED BY THE BUREAU OR THE DEPARTMENT  OF  HEALTH:  NOT  LESS
 THAN 8 POINT FONT:
   (A) MANUFACTURE DATE AND SOURCE;
   (B) FOR PACKAGES CONTAINING ONLY DRIED FLOWER, THE NET WEIGHT OF MARI-
 HUANA IN THE PACKAGE;
   (C)  IDENTIFICATION OF THE SOURCE AND DATE OF CULTIVATION, THE TYPE OF
 MARIHUANA OR MARIHUANA PRODUCT AND THE DATE OF MANUFACTURING AND PACKAG-
 ING;
   (D) LIST OF PHARMACOLOGICALLY ACTIVE INGREDIENTS, INCLUDING,  BUT  NOT
 LIMITED  TO,  TETRAHYDROCANNABINOL  (THC),  CANNABIDIOL (CBD), AND OTHER
 CANNABINOID CONTENT, THE THC AND OTHER CANNABINOID AMOUNT IN  MILLIGRAMS
 PER  SERVING,  SERVINGS  PER  PACKAGE, AND THE THC AND OTHER CANNABINOID
 AMOUNT IN MILLIGRAMS FOR THE PACKAGE TOTAL, AND THE POTENCY OF THE MARI-
 HUANA OR MARIHUANA PRODUCT BY REFERENCE TO THE AMOUNT OF  TETRAHYDROCAN-
 NABINOL AND CANNABIDIOL IN EACH SERVING;
   (E)  FOR  MARIHUANA PRODUCTS, A LIST OF ALL INGREDIENTS AND DISCLOSURE
 OF NUTRITIONAL INFORMATION IN THE SAME MANNER AS THE FEDERAL NUTRITIONAL
 LABELING REQUIREMENTS IN 21 C.F.R. SECTION 101.9;
   (F) A LIST OF ANY SOLVENTS,  NONORGANIC  PESTICIDES,  HERBICIDES,  AND
 FERTILIZERS  THAT WERE USED IN THE CULTIVATION, PRODUCTION, AND MANUFAC-
 TURE OF SUCH MARIHUANA OR MARIHUANA PRODUCT;
   (G) A WARNING IF NUTS OR OTHER KNOWN ALLERGENS ARE USED;
   (H) INFORMATION ASSOCIATED WITH THE UNIQUE IDENTIFIER  ISSUED  BY  THE
 BUREAU OF MARIHUANA POLICY; AND
   (I) ANY OTHER REQUIREMENTS SET BY THE BUREAU OF MARIHUANA POLICY.
   6.  ONLY GENERIC FOOD NAMES MAY BE USED TO DESCRIBE THE INGREDIENTS IN
 EDIBLE MARIHUANA PRODUCTS.
   7. SUCH RULES AND REGULATIONS SHALL ESTABLISH METHODS  AND  PROCEDURES
 FOR  DETERMINING  SERVING  SIZES  FOR MARIHUANA-INFUSED PRODUCTS, ACTIVE
 CANNABIS CONCENTRATION PER SERVING SIZE,  AND  NUMBER  OF  SERVINGS  PER
 CONTAINER.  SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT PANEL
 THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.

 A. 1617                            37
 
   8. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
 LICENSE NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES  WHERE
 THE MARIHUANA WAS GROWN AND PROCESSED.
   9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
 PRODUCT  NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND REGULATIONS
 PROMULGATED IN ACCORDANCE WITH THIS SECTION SHALL  BE  GROUNDS  FOR  THE
 IMPOSITION  OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR CANCELLATION
 OF THE LICENSE.
   § 182. SEED TO SALE TRACKING. 1. NO LATER THAN FIFTEEN MONTHS  FOLLOW-
 ING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT, THE
 BUREAU SHALL ESTABLISH A SEED TO SALE TRACKING PROGRAM FOR REPORTING THE
 MOVEMENT OF MARIHUANA AND MARIHUANA PRODUCTS THROUGHOUT THE DISTRIBUTION
 CHAIN  THAT  UTILIZES  A  UNIQUE  IDENTIFIER AND SECURE PACKAGING AND IS
 CAPABLE OF PROVIDING INFORMATION THAT CAPTURES, AT A MINIMUM, ALL OF THE
 FOLLOWING:
   (A) THE LICENSEE RECEIVING THE PRODUCT;
   (B) THE TRANSACTION DATE; AND
   (C) THE PRODUCER FROM WHICH  THE  PRODUCT  ORIGINATES,  INCLUDING  THE
 ASSOCIATED UNIQUE IDENTIFIER.
   2.  (A)  THE BUREAU SHALL CREATE AN ELECTRONIC DATABASE CONTAINING THE
 ELECTRONIC SHIPPING MANIFESTS TO FACILITATE THE  ADMINISTRATION  OF  THE
 SEED  TO  SALE PROGRAM TRACKING, WHICH SHALL INCLUDE, BUT NOT BE LIMITED
 TO, THE FOLLOWING INFORMATION:
   (B) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS SHIPPED;
   (C) THE ESTIMATED TIMES OF DEPARTURE AND ARRIVAL;
   (D) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS RECEIVED;
   (E) THE ACTUAL TIME OF DEPARTURE AND ARRIVAL;
   (F) A CATEGORIZATION OF THE PRODUCT; AND
   (G) THE LICENSE NUMBER AND UNIQUE IDENTIFIER ISSUED BY THE BUREAU  FOR
 ALL  LICENSEES  INVOLVED  IN  THE  SHIPPING  PROCESS, INCLUDING, BUT NOT
 LIMITED TO, PRODUCER, PROCESSOR, RETAILER, AND DELIVERY LICENSEES.
   3. THE DATABASE SHALL BE  DESIGNED  TO  FLAG  IRREGULARITIES  FOR  THE
 BUREAU TO INVESTIGATE.
   §  183.  RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE AND PERMIT,
 ISSUED PURSUANT TO THIS ARTICLE MAY BE RENEWED UPON APPLICATION THEREFOR
 BY THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR  SUCH
 LICENSE OR PERMIT AS PRESCRIBED BY THIS ARTICLE. IN THE CASE OF APPLICA-
 TIONS  FOR  RENEWALS,  THE  BUREAU MAY DISPENSE WITH THE REQUIREMENTS OF
 SUCH STATEMENTS AS IT DEEMS UNNECESSARY IN VIEW OF  THOSE  CONTAINED  IN
 THE  APPLICATION  MADE  FOR  THE  ORIGINAL LICENSE OR PERMIT, BUT IN ANY
 EVENT THE SUBMISSION OF PHOTOGRAPHS OF THE LICENSED  PREMISES  SHALL  BE
 DISPENSED  WITH,  PROVIDED  THE  APPLICANT FOR SUCH RENEWAL SHALL FILE A
 STATEMENT WITH SUCH BUREAU TO THE EFFECT THAT THERE HAS BEEN  NO  ALTER-
 ATION  OF  SUCH  PREMISES  SINCE  THE ORIGINAL LICENSE WAS ISSUED.   THE
 BUREAU MAY MAKE SUCH RULES AS MAY BE  NECESSARY  NOT  INCONSISTENT  WITH
 THIS CHAPTER REGARDING APPLICATIONS FOR RENEWALS OF LICENSES AND PERMITS
 AND  THE  TIME  FOR MAKING THE SAME.   EACH APPLICANT MUST SUBMIT TO THE
 BUREAU DOCUMENTATION OF THE RACIAL, ETHNIC, AND GENDER DIVERSITY OF  THE
 APPLICANT'S  EMPLOYEES  AND  OWNERS  PRIOR  TO A LICENSE OR PERMIT BEING
 RENEWED.
   2. THE BUREAU SHALL PROVIDE AN APPLICATION FOR RENEWAL  OF  A  LICENSE
 ISSUED  UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE EXPIRA-
 TION OF THE CURRENT LICENSE.
   § 184. INFORMATION TO BE PROVIDED BY APPLICANTS.    1.  THE  FOLLOWING
 SHALL  BE  THE  INFORMATION  REQUIRED ON AN APPLICATION FOR A LICENSE OR
 PERMIT:

 A. 1617                            38
 
   (A) A STATEMENT OF IDENTITY AS FOLLOWS:
   (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
 OF  BIRTH,  CITIZENSHIP,  PERMANENT  HOME  ADDRESS, TELEPHONE NUMBER AND
 SOCIAL SECURITY NUMBER, AS WELL AS ANY OTHER NAMES BY WHICH  HE  OR  SHE
 HAS CONDUCTED A BUSINESS AT ANY TIME.
   (II)  IF  THE APPLICANT IS A CORPORATION OR A LIMITED LIABILITY CORPO-
 RATION, THE CORPORATE NAME OF THE APPLICANT, ITS PLACE OF INCORPORATION,
 ITS MAIN BUSINESS ADDRESS (AND IF SUCH  MAIN  BUSINESS  ADDRESS  IS  NOT
 WITHIN  THE  STATE, THE ADDRESS OF ITS MAIN PLACE OF BUSINESS WITHIN THE
 STATE), OTHER NAMES BY WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS
 AT ANY TIME, ITS TELEPHONE NUMBER, ITS FEDERAL  EMPLOYER  IDENTIFICATION
 NUMBER,  AND  THE NAMES, AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES
 OF ITS DIRECTORS, OFFICERS AND ITS SHAREHOLDERS (EXCEPT THAT IF THERE BE
 MORE THAN TEN SHAREHOLDERS THEN THOSE SHAREHOLDERS HOLDING  TEN  PERCENT
 OR MORE OF ANY CLASS OF ITS SHARES).
   (III)  IF  THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS MAIN BUSINESS
 ADDRESS (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE,  THE
 ADDRESS  OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES BY
 WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
 PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
 AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
   (B) A STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE  PREMISES  TO
 BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
 DESCRIPTION AS WILL REASONABLY INDICATE THE TOWN, CITY OR VILLAGE THERE-
 OF;  PHOTOGRAPHS,  DRAWINGS  OR OTHER ITEMS RELATED TO THE APPEARANCE OF
 THE INTERIOR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTE-
 RIOR, SHALL BE REQUIRED. THE APPLICANT SHALL ALSO STATE  THE  NATURE  OF
 HIS  OR  HER  INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON
 INTERESTED AS A PARTNER, JOINT VENTURER, INVESTOR  OR  LENDER  WITH  THE
 APPLICANT EITHER IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.
   (C)  A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER THIS
 ARTICLE, WITHIN THE PAST TEN YEARS, THE APPLICANT (INCLUDING  ANY  OFFI-
 CERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS LISTED IN THE STATEMENT OF
 IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE  SPOUSE  OF  ANY
 SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
   (D)  A  DESCRIPTION  OF THE APPLICANT'S PLAN TO ENSURE DIVERSITY AMONG
 THE APPLICANT'S EMPLOYEES, INCLUDING STRATEGIES FOR ENSURING:
   (I) GENDER DIVERSITY;
   (II) RACIAL AND ETHNIC DIVERSITY THAT REFLECTS THE DEMOGRAPHICS WITHIN
 THE TOWN, CITY OR VILLAGE IN WHICH  THE  APPLICANT'S  PROPOSED  BUSINESS
 WILL BE LOCATED; AND
   (III) THAT PERSONS WITH PRIOR CRIMINAL CONVICTIONS ARE NOT BARRED FROM
 EMPLOYMENT.
   (E) FOR AN APPLICANT WITH MORE THAN TWENTY-FIVE EMPLOYEES, A STATEMENT
 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.  THE  MAINTENANCE  OF
 SUCH  A  LABOR PEACE AGREEMENT SHALL BE AN ONGOING MATERIAL CONDITION OF
 CERTIFICATION.
   (F) A STATEMENT THAT THE LOCATION AND LAYOUT OF  THE  PREMISES  TO  BE
 LICENSED  DOES  NOT  VIOLATE ANY REQUIREMENT OF THIS CHAPTER RELATING TO
 LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
 OF OCCUPANCY FOR THE PREMISES.
   (G) A STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES  TO  BE
 LICENSED  BY  OWNERSHIP OF A FEE INTEREST OR VIA A LEASEHOLD, MANAGEMENT
 AGREEMENT, OR OTHER AGREEMENT GIVING  THE  APPLICANT  CONTROL  OVER  THE

 A. 1617                            39
 
 PREMISES,  WITH  A  TERM  AT  LEAST AS LONG AS THE LICENSE FOR WHICH THE
 APPLICATION IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE  SAME
 AND  A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION FOR
 THE  LESSOR  OF  ANY  LEASEHOLD, MANAGER OF ANY MANAGEMENT AGREEMENT, OR
 OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE PREMISES,  WITH  A
 COPY  OF  THE  LEASE, CONTRACT, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
 GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
 OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
   (H) A FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS  WHO,  DIRECTLY
 OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
 TION  OF  THE  BUSINESS  FOR  WHICH THE LICENSE OR PERMIT APPLICATION IS
 BEING MADE, TO IDENTIFY THE SOURCES OF  FUNDS  TO  BE  APPLIED  IN  SUCH
 ESTABLISHMENT  OR  ACQUISITION, AND TO DESCRIBE THE TERMS AND CONDITIONS
 GOVERNING SUCH ESTABLISHMENT WITH COPIES OF SUCH FINANCIAL DOCUMENTS  AS
 THE BUREAU MAY REASONABLY REQUIRE.
   (I)  THE FINGERPRINTS OF THE APPLICANTS. FINGERPRINTS SUBMITTED BY THE
 APPLICANTS SHALL BE TRANSMITTED TO  THE  DIVISION  OF  CRIMINAL  JUSTICE
 SERVICES AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR
 STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS.
   2. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE SIGNED BY THE APPLICANT
 (IF AN INDIVIDUAL), BY A MANAGING PARTNER (IF A LIMITED LIABILITY CORPO-
 RATION),  BY  AN  OFFICER  (IF  A CORPORATION), OR BY ALL PARTNERS (IF A
 PARTNERSHIP). EACH PERSON SIGNING SUCH APPLICATION SHALL  VERIFY  IT  OR
 AFFIRM IT AS TRUE UNDER THE PENALTIES OF PERJURY.
   3. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
 DRAFT  OR  OTHER FORMS OF PAYMENT AS THE BUREAU MAY REQUIRE OR AUTHORIZE
 IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
   4. IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR  THE
 GRANTING  OF  A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET FORTH IN
 SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
 COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
 FILED WITH THE BUREAU WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE  TO  DO
 SO  SHALL,  IF  WILLFUL  AND  DELIBERATE, BE CAUSE FOR REVOCATION OF THE
 LICENSE.
   5. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
 SEE OF A LICENSED PREMISES, THE BUREAU MAY  RELY  UPON  THE  INFORMATION
 FURNISHED   IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL  STATEMENT
 CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
 AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
 ALL INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR  SUPPLE-
 MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
 RY,  ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN THE
 BUREAU'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
   6. THE BUREAU MAY IN ITS DISCRETION WAIVE THE SUBMISSION OF ANY  CATE-
 GORY  OF  INFORMATION  DESCRIBED  IN  THIS  SECTION  FOR ANY CATEGORY OF
 LICENSE OR PERMIT, PROVIDED THAT IT SHALL NOT BE, EXCEPT FOR  PARAGRAPHS
 (A)  AND  (D) OF SUBDIVISION ONE OF THIS SECTION, PERMITTED TO WAIVE THE
 REQUIREMENT FOR SUBMISSION OF ANY SUCH CATEGORY  OF  INFORMATION  SOLELY
 FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
   §  185.  NOTIFICATION  TO  TOWNS, CITIES OR VILLAGES. 1. NOT LESS THAN
 THIRTY DAYS BEFORE FILING ANY OF THE FOLLOWING APPLICATIONS,  AN  APPLI-
 CANT  SHALL  NOTIFY  THE  TOWN, CITY OR VILLAGE IN WHICH THE PREMISES IS
 LOCATED OF SUCH APPLICANT'S INTENT TO FILE SUCH AN APPLICATION FOR A:
   (A) MARIHUANA PRODUCER LICENSE;
   (B) MARIHUANA PROCESSOR LICENSE;
   (C) MARIHUANA MICROBUSINESS LICENSE;

 A. 1617                            40
 
   (D) MARIHUANA RETAILER LICENSE;
   (E) MARIHUANA RETAILER LICENSE FOR ON-SITE CONSUMPTION;
   (F) MARIHUANA DELIVERY LICENSE;
   (G) MARIHUANA TESTING LICENSE; AND/OR
   (H) ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
   2.  SUCH  NOTIFICATION SHALL BE MADE TO THE CLERK OF THE VILLAGE, TOWN
 OR CITY, AS THE CASE MAY  BE,  WHEREIN  THE  PREMISES  IS  LOCATED.  FOR
 PURPOSES OF THIS SECTION:
   (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE
 PREMISES  IS LOCATED WITHIN THE BOUNDARIES OF THE TOWN, CITY OR VILLAGE;
 AND
   (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED  PURSUANT
 TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS-
 DICTION  OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID-
 ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN.
   3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
 MEAN:
   (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
 CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
 OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
 OR MORE OF THE STOCK OF SUCH CORPORATION;
   (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
 MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
 PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
 MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
 INTEREST IN SAID COMPANY; AND
   (C) FOR A PARTNERSHIP, A CHANGE OF EIGHTY PERCENT OR MORE OF THE PART-
 NERS,  OR  A TRANSFER OF EIGHTY PERCENT OR MORE OF OWNERSHIP INTEREST IN
 SAID PARTNERSHIP, OR AN  EXISTING  PARTNER  OBTAINING  A  CUMULATIVE  OF
 EIGHTY PERCENT OR MORE OF THE OWNERSHIP INTEREST IN SAID COMPANY.
   4. SUCH NOTIFICATION SHALL BE MADE IN SUCH FORM AS SHALL BE PRESCRIBED
 BY THE RULES OF THE BUREAU.
   5.  A  TOWN, CITY OR VILLAGE MAY EXPRESS AN OPINION FOR OR AGAINST THE
 GRANTING OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED  PART  OF
 THE  RECORD  UPON  WHICH  THE BUREAU MAKES ITS DETERMINATION TO GRANT OR
 DENY THE APPLICATION.
   6. SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN  RECEIPT
 REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL
 SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD.
   7.  THE BUREAU SHALL REQUIRE SUCH NOTIFICATION TO BE ON A STANDARDIZED
 FORM THAT CAN BE OBTAINED ON THE INTERNET OR FROM THE  BUREAU  AND  SUCH
 NOTIFICATION TO INCLUDE:
   (A)  THE TRADE NAME OR "DOING BUSINESS AS" NAME, IF ANY, OF THE ESTAB-
 LISHMENT;
   (B) THE FULL NAME OF THE APPLICANT;
   (C) THE STREET ADDRESS  OF  THE  ESTABLISHMENT,  INCLUDING  THE  FLOOR
 LOCATION OR ROOM NUMBER, IF APPLICABLE;
   (D)  THE  MAILING  ADDRESS OF THE ESTABLISHMENT, IF DIFFERENT THAN THE
 STREET ADDRESS;
   (E) THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE ATTORNEY  OR  REPRE-
 SENTATIVE OF THE APPLICANT, IF ANY;
   (F) A STATEMENT INDICATING WHETHER THE APPLICATION IS FOR:
   (I) A NEW ESTABLISHMENT;
   (II) A TRANSFER OF AN EXISTING LICENSED BUSINESS;
   (III) A RENEWAL OF AN EXISTING LICENSE; OR
   (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES;

 A. 1617                            41
 
   (G)  IF  THE  ESTABLISHMENT IS A TRANSFER OR PREVIOUSLY LICENSED PREM-
 ISES, THE NAME OF THE OLD ESTABLISHMENT AND SUCH ESTABLISHMENT'S LICENSE
 SERIAL NUMBER;
   (H)  IN  THE  CASE OF A RENEWAL OR ALTERATION APPLICATION, THE LICENSE
 SERIAL NUMBER OF THE APPLICANT; AND
   (I) THE TYPE OF LICENSE.
   § 186. LICENSES, PUBLICATION, GENERAL PROVISIONS. 1. THE VARIOUS TYPES
 OF LICENSES ISSUED PURSUANT TO THIS  ARTICLE  SHALL  BE  DISTINCTIVE  IN
 COLOR AND DESIGN SO AS TO BE READILY DISTINGUISHABLE FROM EACH OTHER.
   2. NO LICENSE SHALL BE TRANSFERABLE OR ASSIGNABLE EXCEPT THAT NOTWITH-
 STANDING  ANY  OTHER  PROVISION OF LAW, THE LICENSE OF A SOLE PROPRIETOR
 CONVERTING TO CORPORATE FORM, WHERE SUCH  PROPRIETOR  BECOMES  THE  SOLE
 STOCKHOLDER  AND  ONLY OFFICER AND DIRECTOR OF SUCH NEW CORPORATION, MAY
 BE TRANSFERRED TO THE SUBJECT CORPORATION IF ALL  REQUIREMENTS  OF  THIS
 CHAPTER REMAIN THE SAME WITH RESPECT TO SUCH LICENSE AS TRANSFERRED AND,
 FURTHER,  THE  LICENSEE SHALL TRANSMIT TO THE BUREAU, WITHIN TEN DAYS OF
 THE TRANSFER OF LICENSE ALLOWABLE UNDER  THIS  SUBDIVISION,  ON  A  FORM
 PRESCRIBED BY THE BUREAU, NOTIFICATION OF THE TRANSFER OF SUCH LICENSE.
   3. NO LICENSE SHALL BE PLEDGED OR DEPOSITED AS COLLATERAL SECURITY FOR
 ANY  LOAN  OR  UPON ANY OTHER CONDITION; AND ANY SUCH PLEDGE OR DEPOSIT,
 AND ANY CONTRACT PROVIDING THEREFOR, SHALL BE VOID.
   4. LICENSES ISSUED UNDER THIS ARTICLE SHALL CONTAIN,  IN  ADDITION  TO
 ANY FURTHER INFORMATION OR MATERIAL TO BE PRESCRIBED BY THE RULES OF THE
 BUREAU, THE FOLLOWING INFORMATION: (A) NAME OF PERSON TO WHOM LICENSE IS
 ISSUED;  (B)  KIND  OF  LICENSE AND WHAT KIND OF TRAFFIC IN MARIHUANA IS
 THEREBY PERMITTED; (C) DESCRIPTION BY STREET AND NUMBER,  OR  OTHERWISE,
 OF LICENSED PREMISES; AND (D) A STATEMENT IN SUBSTANCE THAT SUCH LICENSE
 SHALL  NOT  BE  DEEMED  A  PROPERTY  OR VESTED RIGHT, AND THAT IT MAY BE
 REVOKED AT ANY TIME PURSUANT TO LAW.
   5. THERE SHALL BE PRINTED AND FURNISHED BY THE BUREAU TO EACH LICENSEE
 A STATEMENT OF THE CAUSES FOR WHICH LICENSES MAY BE REVOKED. SUCH STATE-
 MENT SHALL BE PREPARED BY THE BUREAU AND DELIVERED TO THE LICENSEE  WITH
 HIS  OR  HER  LICENSE  OR  AS SOON THEREAFTER AS MAY BE PRACTICABLE. ANY
 AMENDMENTS THERETO SHALL ALSO BE SENT BY THE BUREAU TO ALL LICENSEES  AS
 SOON  AS  MAY BE PRACTICABLE AFTER SUCH AMENDMENTS. FAILURE TO SEND SUCH
 STATEMENTS OR CHANGES THEREIN, OR FAILURE TO RECEIVE THE  SAME,  OR  ANY
 MISSTATEMENT  OR ERROR CONTAINED IN SUCH STATEMENTS OR AMENDMENTS SHALL,
 HOWEVER, NOT BE AN EXCUSE OR JUSTIFICATION FOR ANY VIOLATION OF LAW,  OR
 PREVENT, OR REMIT, OR DECREASE ANY PENALTY OR FORFEITURE THEREFOR.
   6.  BEFORE  COMMENCING  OR DOING ANY BUSINESS FOR THE TIME FOR WHICH A
 LICENSE HAS BEEN ISSUED SAID LICENSE SHALL BE  ENCLOSED  IN  A  SUITABLE
 WOOD OR METAL FRAME HAVING A CLEAR GLASS SPACE AND A SUBSTANTIAL WOOD OR
 METAL  BACK  SO  THAT THE WHOLE OF SAID LICENSE MAY BE SEEN THEREIN, AND
 SHALL BE POSTED UP AND AT ALL TIMES DISPLAYED IN A CONSPICUOUS PLACE  IN
 THE ROOM WHERE SUCH BUSINESS IS CARRIED ON, SO THAT ALL PERSONS VISITING
 SUCH PLACE MAY READILY SEE THE SAME. IT SHALL BE UNLAWFUL FOR ANY PERSON
 HOLDING  A  LICENSE TO POST SUCH LICENSE OR TO PERMIT SUCH LICENSE TO BE
 POSTED UPON PREMISES OTHER THAN THE PREMISES LICENSED, OR UPON  PREMISES
 WHERE  TRAFFIC IN MARIHUANA IS BEING CARRIED ON BY ANY PERSON OTHER THAN
 THE LICENSEE, OR KNOWINGLY TO DEFACE, DESTROY OR ALTER ANY SUCH  LICENSE
 IN  ANY  RESPECT.  WHENEVER A LICENSE SHALL BE LOST OR DESTROYED WITHOUT
 FAULT ON THE PART OF THE LICENSEE OR HIS OR HER AGENTS OR  EMPLOYEES,  A
 DUPLICATE  LICENSE  IN  LIEU  THEREOF MAY BE ISSUED BY THE BUREAU IN ITS
 DISCRETION AND IN ACCORDANCE WITH SUCH RULES  AND  REGULATIONS  AND  THE
 PAYMENT OF SUCH FEES, NOT EXCEEDING FIVE DOLLARS, AS IT MAY PRESCRIBE.

 A. 1617                            42
 
   §  187.  REVOCATION  OF  LICENSES  FOR CAUSE. 1. ANY LICENSE OR PERMIT
 ISSUED PURSUANT TO THIS ARTICLE MAY  BE  REVOKED,  CANCELLED,  SUSPENDED
 AND/OR  SUBJECTED  TO  THE  IMPOSITION OF A CIVIL PENALTY FOR CAUSE, AND
 MUST BE REVOKED FOR THE FOLLOWING CAUSES:
   (A)  CONVICTION  OF  THE  LICENSEE,  PERMITTEE  OR HIS OR HER AGENT OR
 EMPLOYEE FOR SELLING ANY ILLEGAL MARIHUANA OR MARIHUANA PRODUCTS ON  THE
 PREMISES LICENSED.
   (B) FOR TRANSFERRING, ASSIGNING OR HYPOTHECATING A LICENSE OR PERMIT.
   2.  NOTWITHSTANDING  THE  ISSUANCE  OF  A  LICENSE OR PERMIT BY WAY OF
 RENEWAL, THE BUREAU MAY REVOKE, CANCEL OR SUSPEND SUCH LICENSE OR PERMIT
 AND/OR MAY IMPOSE A CIVIL PENALTY AGAINST ANY HOLDER OF SUCH LICENSE  OR
 PERMIT,  AS  PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED NINETEEN
 OF THIS CHAPTER, FOR CAUSES OR VIOLATIONS OCCURRING DURING  THE  LICENSE
 PERIOD IMMEDIATELY PRECEDING THE ISSUANCE OF SUCH LICENSE OR PERMIT, AND
 MAY  RECOVER, AS PROVIDED IN SECTION ONE HUNDRED TWELVE OF THIS CHAPTER,
 THE PENAL SUM OF THE BOND ON FILE DURING SAID PERIOD.
   3. AS USED IN THIS SECTION, THE TERM "FOR CAUSE"  SHALL  ALSO  INCLUDE
 THE  EXISTENCE  OF A SUSTAINED AND CONTINUING PATTERN OF NOISE, DISTURB-
 ANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES, RELATED
 TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF  ITS  PATRONS,  WHICH
 ADVERSELY  AFFECTS  THE  HEALTH, WELFARE OR SAFETY OF THE INHABITANTS OF
 THE AREA IN WHICH SUCH LICENSED PREMISES ARE LOCATED.
   4. THE EXISTENCE OF A  SUSTAINED  AND  CONTINUING  PATTERN  OF  NOISE,
 DISTURBANCE,  MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES,
 RELATED TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF ITS  PATRONS,
 WILL BE PRESUMED UPON THE SIXTH INCIDENT REPORTED TO THE BUREAU BY A LAW
 ENFORCEMENT  AGENCY OF NOISE OR DISTURBANCE OR MISCONDUCT OR DISORDER ON
 OR ABOUT THE LICENSED PREMISES OR RELATED TO THE OPERATION OF THE  PREM-
 ISES  OR  THE  CONDUCT  OF  ITS PATRONS, IN ANY SIXTY DAY PERIOD, ABSENT
 CLEAR AND CONVINCING EVIDENCE OF EITHER FRAUDULENT INTENT ON THE PART OF
 ANY COMPLAINANT OR A FACTUAL ERROR WITH RESPECT TO THE  CONTENT  OF  ANY
 REPORT CONCERNING SUCH COMPLAINT RELIED UPON BY THE BUREAU.
   §  188.  PROCEDURE  FOR  REVOCATION OR CANCELLATION. 1. ANY LICENSE OR
 PERMIT ISSUED BY THE BUREAU PURSUANT TO THIS  ARTICLE  MAY  BE  REVOKED,
 CANCELLED  OR SUSPENDED AND/OR BE SUBJECTED TO THE IMPOSITION OF A MONE-
 TARY PENALTY IN THE MANNER PRESCRIBED BY THIS SECTION.
   2. THE BUREAU MAY ON ITS OWN INITIATIVE OR ON COMPLAINT OF ANY  PERSON
 INSTITUTE  PROCEEDINGS  TO  REVOKE, CANCEL OR SUSPEND ANY RETAIL LICENSE
 AND MAY IMPOSE A CIVIL PENALTY AGAINST THE LICENSEE AFTER A  HEARING  AT
 WHICH THE LICENSEE SHALL BE GIVEN AN OPPORTUNITY TO BE HEARD. SUCH HEAR-
 ING  SHALL  BE  HELD  IN  SUCH  MANNER  AND  UPON  SUCH NOTICE AS MAY BE
 PRESCRIBED BY THE RULES OF THE BUREAU.
   § 189. DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND REVIEW  BY  THE
 COURTS.   PROVISIONS OF SECTIONS ONE HUNDRED TWENTY, ONE HUNDRED TWENTY-
 ONE AND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER SHALL APPLY TO MARIHUANA
 LICENSES ISSUED UNDER THIS ARTICLE.
   § 190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM.  THE
 BUREAU SHALL:
   1. IMPLEMENT A SOCIAL EQUITY PLAN AND ACTIVELY PROMOTE RACIAL, ETHNIC,
 AND  GENDER DIVERSITY WHEN ISSUING LICENSES FOR MARIHUANA RELATED ACTIV-
 ITIES, INCLUDING BY PRIORITIZING CONSIDERATION OF APPLICATIONS BY APPLI-
 CANTS WHO QUALIFY AS A MINORITY AND WOMEN-OWNED  BUSINESS.  SUCH  QUALI-
 FICATIONS SHALL BE DETERMINED BY THE BUREAU.
   2.  THE  BUREAU SHALL CREATE A SOCIAL EQUITY PLAN TO PROMOTE DIVERSITY
 IN OWNERSHIP AND EMPLOYMENT IN THE MARIHUANA INDUSTRY AND ENSURE  INCLU-
 SION  OF: (A) MINORITY-OWNED BUSINESSES; (B) WOMEN-OWNED BUSINESSES; AND

 A. 1617                            43
 
 (C) MINORITY AND WOMEN-OWNED BUSINESSES, AS DEFINED IN SUBDIVISION  FIVE
 OF THIS SECTION.
   3.  THE  SOCIAL  EQUITY PLAN SHALL CONSIDER ADDITIONAL CRITERIA IN ITS
 LICENSING DETERMINATIONS. UNDER THE SOCIAL  EQUITY  PLAN,  EXTRA  WEIGHT
 SHALL BE GIVEN TO APPLICATIONS THAT DEMONSTRATE THAT AN APPLICANT:
   (A)  IS A MEMBER OF A COMMUNITY GROUP THAT HAS BEEN DISPROPORTIONATELY
 IMPACTED BY THE ENFORCEMENT OF MARIHUANA PROHIBITION;
   (B) HAS AN INCOME LOWER THAN EIGHTY PERCENT OF THE  MEDIAN  INCOME  OF
 THE COUNTY IN WHICH THE APPLICANT RESIDES; AND
   (C)  WAS  CONVICTED OF A MARIHUANA-RELATED OFFENSE PRIOR TO THE EFFEC-
 TIVE DATE OF THIS BILL.
   4. THE BUREAU SHALL ALSO CREATE AN INCUBATOR PROGRAM TO PROVIDE DIRECT
 SUPPORT TO  SOCIAL  EQUITY  APPLICANTS  AFTER  THEY  HAVE  BEEN  GRANTED
 LICENSES.  THE PROGRAM SHALL PROVIDE DIRECT SUPPORT IN THE FORM OF COUN-
 SELING SERVICES, EDUCATION,  SMALL  BUSINESS  COACHING,  AND  COMPLIANCE
 ASSISTANCE.
   5.  FOR  THE PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (A)  "MINORITY-OWNED  BUSINESS"  SHALL  MEAN  A  BUSINESS  ENTERPRISE,
 INCLUDING  A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY
 OR CORPORATION THAT IS:
   (I) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE  OR  MORE  MINORITY  GROUP
 MEMBERS;
   (II)  AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS REAL, SUBSTAN-
 TIAL AND CONTINUING;
   (III) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS AND EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
   (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED;
   (V) AN ENTERPRISE THAT IS A SMALL BUSINESS.
   (B)  "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:
   (I) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
 GROUPS;
   (II)  HISPANIC  PERSONS  OF  MEXICAN,  PUERTO RICAN, DOMINICAN, CUBAN,
 CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC  ORIGIN,  REGARD-
 LESS OF RACE;
   (III)  NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY
 OF THE ORIGINAL PEOPLES OF NORTH AMERICA;
   (IV) ASIAN AND PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY  OF  THE
 FAR  EAST  COUNTRIES,  SOUTH  EAST  ASIA, THE INDIAN SUBCONTINENT OR THE
 PACIFIC ISLANDS.
   (C) "WOMEN-OWNED BUSINESS" SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING
 A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY OR  CORPO-
 RATION THAT IS:
   (I)  AT  LEAST  FIFTY-ONE  PERCENT  OWNED BY ONE OR MORE UNITED STATES
 CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE WOMEN;
   (II) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST OF  SUCH  WOMEN  IS
 REAL, SUBSTANTIAL AND CONTINUING;
   (III)  AN  ENTERPRISE  IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
   (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED;

 A. 1617                            44
 
   (V)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
 TWENTY OF THIS SECTION.
   (D) A FIRM OWNED BY A MINORITY GROUP MEMBER WHO IS ALSO A WOMAN MAY BE
 DEFINED AS A MINORITY-OWNED BUSINESS, A WOMEN-OWNED BUSINESS, OR BOTH.
   6.  THE  BUREAU  SHALL ACTIVELY PROMOTE APPLICANTS THAT FOSTER RACIAL,
 ETHNIC, AND GENDER DIVERSITY IN THEIR WORKFORCE.
   7. LICENSES ISSUED TO MINORITY AND WOMEN-OWNED BUSINESSES OR UNDER THE
 SOCIAL EQUITY PLAN SHALL NOT BE TRANSFERABLE EXCEPT TO QUALIFIED MINORI-
 TY AND WOMEN-OWNED BUSINESSES OR SOCIAL EQUITY APPLICANTS.
   8. THE BUREAU SHALL COLLECT DEMOGRAPHIC DATA ON OWNERS  AND  EMPLOYEES
 IN THE MARIHUANA INDUSTRY AND SHALL ANNUALLY PUBLISH SUCH DATA.
   §  191.  DISPOSITION  OF  MONEYS RECEIVED FOR LICENSE FEES. THE BUREAU
 SHALL ESTABLISH A SCALE OF APPLICATION,  LICENSING,  AND  RENEWAL  FEES,
 BASED  UPON THE COST OF ENFORCING THIS ARTICLE AND THE SIZE OF THE MARI-
 HUANA BUSINESS BEING LICENSED, AS FOLLOWS:
   1. EACH LICENSING AUTHORITY SHALL CHARGE EACH LICENSEE A LICENSURE AND
 RENEWAL FEE, AS APPLICABLE. THE  LICENSURE  AND  RENEWAL  FEE  SHALL  BE
 CALCULATED  TO COVER THE COSTS OF ADMINISTERING THIS ARTICLE. THE LICEN-
 SURE FEE MAY VARY DEPENDING  UPON  THE  VARYING  COSTS  ASSOCIATED  WITH
 ADMINISTERING  THE  VARIOUS  REGULATORY  REQUIREMENTS OF THIS ARTICLE AS
 THEY RELATE TO THE NATURE AND SCOPE OF THE  DIFFERENT  LICENSURE  ACTIV-
 ITIES,  BUT  SHALL  NOT  EXCEED  THE  REASONABLE REGULATORY COSTS TO THE
 LICENSING AUTHORITY.
   2. THE TOTAL FEES ASSESSED PURSUANT TO THIS ARTICLE SHALL BE SET AT AN
 AMOUNT THAT WILL FAIRLY AND PROPORTIONATELY  GENERATE  SUFFICIENT  TOTAL
 REVENUE TO FULLY COVER THE TOTAL COSTS OF ADMINISTERING THIS ARTICLE.
   3.  ALL  LICENSE  FEES  SHALL  BE SET ON A SCALED BASIS BY THE BUREAU,
 DEPENDENT ON THE SIZE OF THE BUSINESS.
   4. THE BUREAU SHALL DEPOSIT ALL FEES COLLECTED IN THE NEW  YORK  STATE
 MARIHUANA REVENUE FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-FF OF
 THE STATE FINANCE LAW.
   §  192.  PERSONS  FORBIDDEN  TO TRAFFIC IN MARIHUANA. 1. THE FOLLOWING
 PERSONS ARE FORBIDDEN TO TRAFFIC IN MARIHUANA:
   (A) A PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
   (B) A PERSON WHO IS NOT A CITIZEN OF THE UNITED  STATES  OR  AN  ALIEN
 LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED STATES.
   (C) A CO-PARTNERSHIP OR A CORPORATION, UNLESS EACH MEMBER OF THE PART-
 NERSHIP,  OR  EACH OF THE PRINCIPAL OFFICERS AND DIRECTORS OF THE CORPO-
 RATION, IS A CITIZEN OF THE UNITED STATES OR AN ALIEN LAWFULLY  ADMITTED
 FOR  PERMANENT  RESIDENCE IN THE UNITED STATES, NOT LESS THAN TWENTY-ONE
 YEARS OF AGE.
   (D) (I) A PERSON WHO SHALL HAVE HAD  ANY  LICENSE  ISSUED  UNDER  THIS
 CHAPTER  REVOKED  FOR  CAUSE, UNTIL THE EXPIRATION OF TWO YEARS FROM THE
 DATE OF SUCH REVOCATION.
   (II) A PERSON NOT LICENSED UNDER THE PROVISIONS OF THIS  CHAPTER,  WHO
 HAS  BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, UNTIL THE EXPIRATION
 OF TWO YEARS FROM THE DATE OF SUCH CONVICTION.
   (E) A CORPORATION OR CO-PARTNERSHIP, IF ANY OFFICER  AND  DIRECTOR  OR
 ANY  PARTNER,  WHILE  NOT LICENSED UNDER THE PROVISIONS OF THIS CHAPTER,
 HAS BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, OR HAS HAD A  LICENSE
 ISSUED UNDER THIS CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO
 YEARS FROM THE DATE OF SUCH CONVICTION OR REVOCATION.
   2. AN APPLICANT SHALL NOT BE DENIED A LICENSE UNDER THIS ARTICLE BASED
 SOLELY  ON A CONVICTION FOR A VIOLATION OF ARTICLE TWO HUNDRED TWENTY OR
 SECTION 240.36 OF THE PENAL LAW, PRIOR TO THE DATE ARTICLE  TWO  HUNDRED
 TWENTY-ONE OF THE PENAL LAW TOOK EFFECT, OR A CONVICTION FOR A VIOLATION

 A. 1617                            45
 
 OF  ARTICLE  TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AFTER THE EFFECTIVE
 DATE OF THIS ARTICLE.
   §  193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. WITHIN THREE
 DAYS AFTER A LICENSE SHALL HAVE BEEN REVOKED PURSUANT TO  THIS  ARTICLE,
 NOTICE  THEREOF  SHALL  BE  GIVEN TO THE LICENSEE BY MAILING SUCH NOTICE
 ADDRESSED TO HIM AT THE PREMISES LICENSED. NOTICE SHALL ALSO  BE  MAILED
 TO  THE OWNER OF THE PREMISES LICENSED. THE HOLDER OF SUCH LICENSE SHALL
 THEREUPON SURRENDER SAME TO THE  BUREAU.  THE  MAILING  THEREOF  BY  THE
 LICENSEE  TO  THE BUREAU BY REGISTERED MAIL OR INSURED PARCEL POST SHALL
 BE DEEMED SUFFICIENT COMPLIANCE WITH THIS  SECTION.  THE  BUREAU,  IMME-
 DIATELY  UPON  GIVING NOTICE OF REVOCATION, SHALL SERVE A WRITTEN NOTICE
 THEREOF UPON THE COMMISSIONER OF POLICE, CHIEF OF POLICE OR CHIEF POLICE
 OFFICER OF THE CITY OR VILLAGE IN  WHICH  THE  PREMISES  FOR  WHICH  THE
 REVOKED LICENSE WAS ISSUED IS SITUATED, OR UPON THE SHERIFF OF THE COUN-
 TY  OR  A CONSTABLE OF THE TOWN IN CASE THE LICENSE WAS ISSUED FOR PREM-
 ISES SITUATED IN A TOWN AND NOT WITHIN ANY CITY OR VILLAGE.  SUCH NOTICE
 SHALL INCLUDE A STATEMENT OF THE NUMBER OF SUCH LICENSE,  THE  NAME  AND
 PLACE  OF  RESIDENCE OF THE HOLDER THEREOF, THE LOCATION OF THE LICENSED
 PREMISES, AND THE DATE WHEN SUCH  LICENSE  WAS  REVOKED.  IN  CASE  SUCH
 LICENSE  BE  NOT FORTHWITH SURRENDERED, THE BUREAU SHALL ISSUE A WRITTEN
 DEMAND FOR THE SURRENDER OF SUCH LICENSE AND DELIVER SAID DEMAND TO  THE
 SHERIFF  OF THE COUNTY IN WHICH THE LICENSED PREMISES ARE LOCATED, OR TO
 ANY REPRESENTATIVE OF THE BUREAU, AND  SAID  SHERIFF  OR  REPRESENTATIVE
 SHALL IMMEDIATELY TAKE POSSESSION OF SUCH LICENSE AND RETURN THE SAME TO
 THE BUREAU.
   §  194. PROTECTIONS FOR THE USE OF MARIHUANA. INDIVIDUALS AND LICENSED
 ENTITIES SHALL NOT BE SUBJECT TO ARREST, PROSECUTION, OR PENALTY IN  ANY
 MANNER,  OR  DENIED ANY RIGHT OR PRIVILEGE, INCLUDING BUT NOT LIMITED TO
 CIVIL LIABILITY OR DISCIPLINARY ACTION BY A BUSINESS OR OCCUPATIONAL  OR
 PROFESSIONAL  LICENSING  BOARD  OR  BUREAU, SOLELY FOR CONDUCT PERMITTED
 UNDER THIS ARTICLE. FOR THE AVOIDANCE OF DOUBT, THE  APPELLATE  DIVISION
 OF  THE  SUPREME COURT OF THE STATE OF NEW YORK, AND ANY DISCIPLINARY OR
 CHARACTER AND FITNESS COMMITTEES ESTABLISHED BY  THEM  ARE  OCCUPATIONAL
 AND  PROFESSIONAL  LICENSING  BOARDS WITHIN THE MEANING OF THIS SECTION.
 STATE OR LOCAL LAW ENFORCEMENT AGENCIES  SHALL  NOT  COOPERATE  WITH  OR
 PROVIDE  ASSISTANCE TO THE GOVERNMENT OF THE UNITED STATES OR ANY AGENCY
 THEREOF IN ENFORCING THE FEDERAL CONTROLLED SUBSTANCES ACT,  21,  U.S.C.
 ET  SEQ.,  SOLELY  FOR  ACTIONS  CONSISTENT WITH THIS CHAPTER, EXCEPT AS
 PURSUANT TO A VALID COURT ORDER.
   § 195. DISCRIMINATION PROTECTIONS FOR THE USE OF MARIHUANA OR  MEDICAL
 MARIHUANA. 1. NO SCHOOL OR LANDLORD MAY REFUSE TO ENROLL OR LEASE TO AND
 MAY  NOT  OTHERWISE  PENALIZE  A PERSON SOLELY FOR CONDUCT ALLOWED UNDER
 SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW OR TITLE FIVE-A OF ARTICLE
 THIRTY-THREE OF THE PUBLIC HEALTH LAW, EXCEPT AS EXEMPTED:
   (A) IF FAILING TO DO SO WOULD CAUSE THE SCHOOL OR LANDLORD TO  LOSE  A
 MONETARY OR LICENSING RELATED BENEFIT UNDER FEDERAL LAW OR REGULATIONS;
   (B) IF THE INSTITUTION HAS ADOPTED A CODE OF CONDUCT PROHIBITING MARI-
 HUANA USE ON THE BASIS OF RELIGIOUS BELIEF;
   (C)  IF  A PROPERTY IS REGISTERED WITH THE NEW YORK SMOKE-FREE HOUSING
 REGISTRY, IT IS NOT REQUIRED TO PERMIT THE SMOKING OF MARIHUANA PRODUCTS
 ON ITS PREMISES.
   2. FOR THE PURPOSES OF MEDICAL CARE, INCLUDING  ORGAN  TRANSPLANTS,  A
 REGISTERED QUALIFYING PATIENT'S AUTHORIZED USE OF MEDICAL MARIHUANA MUST
 BE  CONSIDERED  THE  EQUIVALENT OF THE USE OF ANY OTHER MEDICATION UNDER
 THE DIRECTION OF A PRACTITIONER AND DOES NOT CONSTITUTE THE  USE  OF  AN

 A. 1617                            46
 
 ILLICIT  SUBSTANCE  OR  OTHERWISE  DISQUALIFY  A  REGISTERED  QUALIFYING
 PATIENT FROM MEDICAL CARE.
   3.  NO PERSON MAY BE DENIED CUSTODY OF OR VISITATION OR PARENTING TIME
 WITH A MINOR, AND THERE IS NO PRESUMPTION OF NEGLECT OR CHILD  ENDANGER-
 MENT FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
 LAW,  UNLESS THE PERSON'S BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE
 SAFETY OF THE MINOR AS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE. FOR
 THE PURPOSES OF THIS SECTION,  AN  "UNREASONABLE  DANGER"  DETERMINATION
 CANNOT  BE  BASED  SOLELY  ON WHETHER, WHEN, AND HOW OFTEN A PERSON USES
 MARIHUANA WITHOUT SEPARATE EVIDENCE OF HARM.
   § 196. EMPLOYMENT PROTECTIONS. 1.  UNLESS AN EMPLOYER ESTABLISHES BY A
 PREPONDERANCE OF THE EVIDENCE THAT  THE  LAWFUL  USE  OF  MARIHUANA  HAS
 IMPAIRED  THE EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSI-
 BILITIES, IT SHALL BE UNLAWFUL TO TAKE  ANY  ADVERSE  EMPLOYMENT  ACTION
 AGAINST AN EMPLOYEE BASED ON EITHER:
   (A)  CONDUCT  ALLOWED  UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
 LAW; OR
   (B) THE EMPLOYEE'S POSITIVE DRUG  TEST  FOR  MARIHUANA  COMPONENTS  OR
 METABOLITES.
   2.  FOR  THE  PURPOSES  OF  THIS  SECTION, AN EMPLOYER MAY CONSIDER AN
 EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSIBILITIES TO  BE
 IMPAIRED WHEN THE EMPLOYEE MANIFESTS SPECIFIC ARTICULABLE SYMPTOMS WHILE
 WORKING THAT DECREASE OR LESSEN THE EMPLOYEE'S PERFORMANCE OF THE DUTIES
 OR TASKS OF THE EMPLOYEE'S JOB POSITION.
   3.  NOTHING  IN  THIS  SECTION SHALL RESTRICT AN EMPLOYER'S ABILITY TO
 PROHIBIT OR TAKE ADVERSE EMPLOYMENT ACTION FOR THE POSSESSION OR USE  OF
 INTOXICATING  SUBSTANCES  DURING  WORK  HOURS, OR REQUIRE AN EMPLOYER TO
 COMMIT ANY ACT THAT WOULD CAUSE THE  EMPLOYER  TO  BE  IN  VIOLATION  OF
 FEDERAL  LAW,  OR THAT WOULD RESULT IN THE LOSS OF A FEDERAL CONTRACT OR
 FEDERAL FUNDING.
   4. AS USED IN THIS SECTION, "ADVERSE EMPLOYMENT ACTION" MEANS REFUSING
 TO HIRE OR EMPLOY, BARRING OR DISCHARGING FROM EMPLOYMENT,  REQUIRING  A
 PERSON  TO  RETIRE FROM EMPLOYMENT, OR DISCRIMINATING AGAINST IN COMPEN-
 SATION OR IN TERMS, CONDITIONS, OR PRIVILEGES OF EMPLOYMENT.
   § 197. PROTECTIONS FOR  PERSONS  UNDER  STATE  SUPERVISION.  A  PERSON
 CURRENTLY  UNDER  PAROLE,  PROBATION  OR  OTHER  STATE  SUPERVISION,  OR
 RELEASED ON BAIL AWAITING TRIAL MAY NOT BE PUNISHED OR OTHERWISE  PENAL-
 IZED FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
 LAW.
   §  198.  PROFESSIONAL  AND  MEDICAL  RECORD  KEEPING. ANY PROFESSIONAL
 PROVIDING SERVICES IN CONNECTION WITH A LICENSED OR POTENTIALLY LICENSED
 BUSINESS UNDER THIS CHAPTER, OR IN CONNECTION WITH OTHER CONDUCT PERMIT-
 TED UNDER THIS CHAPTER, AND ANY MEDICAL PROFESSIONAL  PROVIDING  MEDICAL
 CARE TO A PATIENT, MAY AGREE WITH THEIR CLIENT OR PATIENT TO MAINTAIN NO
 RECORD,  OR  ANY  REDUCED  LEVEL OF RECORD KEEPING THAT PROFESSIONAL AND
 CLIENT OR PATIENT MAY AGREE. IN CASE  OF  SUCH  AGREEMENT,  THE  PROFES-
 SIONAL'S ONLY OBLIGATION SHALL BE TO KEEP SUCH RECORDS AS AGREED, AND TO
 KEEP  A RECORD OF THE AGREEMENT.  SUCH REDUCED RECORD KEEPING IS CONDUCT
 PERMITTED UNDER THIS CHAPTER,  AND  SHALL  ATTRACT  THE  PROTECTIONS  OF
 SECTION ONE HUNDRED NINETY-FOUR OF THIS ARTICLE.
   §  32.  The  state finance law is amended by adding three new sections
 99-ff, 99-gg and 99-hh to read as follows:
   § 99-FF. NEW YORK STATE MARIHUANA REVENUE FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "NEW YORK STATE MARIHUANA REVENUE FUND".

 A. 1617                            47
 
   2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
 OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  ARTICLE  EIGH-
 TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
 OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
 PURPOSES:
   (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
 PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
 REVENUES RECEIVED.
   (B) REASONABLE COSTS INCURRED BY THE BUREAU OF  MARIHUANA  POLICY  FOR
 IMPLEMENTING,  ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION AND
 TAXATION ACT TO THE EXTENT THOSE COSTS ARE NOT  REIMBURSED  PURSUANT  TO
 SECTIONS ONE HUNDRED EIGHTY-NINE AND ONE HUNDRED NINETY OF ARTICLE ELEV-
 EN  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW. THIS PARAGRAPH SHALL REMAIN
 OPERATIVE THROUGH THE TWO THOUSAND TWENTY-FOUR -- TWO  THOUSAND  TWENTY-
 FIVE FISCAL YEAR.
   (C)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOUSAND TWEN-
 TY-TWO FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND  TWENTY-THREE
 --  TWO  THOUSAND  TWENTY-FOUR FISCAL YEAR, THE COMMISSIONER OF TAXATION
 AND FINANCE SHALL ANNUALLY DISBURSE ONE MILLION DOLLARS TO THE MARIHUANA
 MICROBUSINESS AND MARIHUANA  LICENSE  REVOLVING  LOAN  FUND  ESTABLISHED
 PURSUANT TO SECTION NINETY-NINE-II OF THE STATE FINANCE LAW.
   (D)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOUSAND TWEN-
 TY-TWO FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND THIRTY -- TWO
 THOUSAND THIRTY-ONE  FISCAL  YEAR,  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE  SHALL  ANNUALLY DISBURSE THE FOLLOWING SUMS FOR THE PURPOSES OF
 DATA COLLECTION AND REPORTING:
   (1) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE  BUREAU  OF  MARIHUANA
 POLICY  TO  TRACK  AND REPORT DATA RELATED TO THE LICENSING OF MARIHUANA
 BUSINESSES, INCLUDING THE GEOGRAPHIC LOCATION, STRUCTURE,  AND  FUNCTION
 OF  LICENSED MARIHUANA BUSINESSES, AND DEMOGRAPHIC DATA, INCLUDING RACE,
 ETHNICITY, AND GENDER, OF LICENSE HOLDERS. THE BUREAU OF MARIHUANA POLI-
 CY SHALL PUBLISH REPORTS ON ITS FINDINGS ANNUALLY  AND  SHALL  MAKE  THE
 REPORTS AVAILABLE TO THE PUBLIC.
   (2) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMINAL
 JUSTICE  SERVICES  TO  TRACK AND REPORT DATA RELATED TO ANY INFRACTIONS,
 VIOLATIONS, OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE  REMAIN-
 ING  MARIHUANA  STATUTES.    THE DEPARTMENT OF CRIMINAL JUSTICE SERVICES
 SHALL PUBLISH REPORTS ON  ITS  FINDINGS  ANNUALLY  AND  SHALL  MAKE  THE
 REPORTS AVAILABLE TO THE PUBLIC.
   (3)  ONE  MILLION  DOLLARS  TO  THE  STATE  UNIVERSITY  OF NEW YORK TO
 RESEARCH AND EVALUATE THE IMPLEMENTATION AND  EFFECT  OF  THE  MARIHUANA
 REGULATION  AND TAXATION ACT.  NO MORE THAN FOUR PERCENT OF THESE MONIES
 MAY BE USED FOR EXPENSES RELATED TO ADMINISTRATIVE COSTS  OF  CONDUCTING
 SUCH  RESEARCH,  AND  TO,  IF  APPROPRIATE,  MAKE RECOMMENDATIONS TO THE
 LEGISLATURE AND GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE  MARIHUANA
 REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS SHALL PUBLISH
 REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS AND SHALL MAKE
 THE  REPORTS  AVAILABLE  TO  THE PUBLIC. THE RESEARCH FUNDED PURSUANT TO
 THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:

 A. 1617                            48
 
   (A) THE IMPACTS ON PUBLIC HEALTH, INCLUDING  HEALTH  COSTS  ASSOCIATED
 WITH  MARIHUANA USE, AS WELL AS WHETHER MARIHUANA USE IS ASSOCIATED WITH
 AN INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
   (B)  THE  IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND THE EFFEC-
 TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
   (C) PUBLIC SAFETY ISSUES RELATED TO MARIHUANA USE, INCLUDING  STUDYING
 THE  EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND ADVER-
 TISING AND MARKETING RESTRICTIONS CONTAINED IN  THE  ACT  AT  PREVENTING
 UNDERAGE  ACCESS  TO  AND  USE  OF MARIHUANA AND MARIHUANA PRODUCTS, AND
 STUDYING THE HEALTH-RELATED  EFFECTS  AMONG  USERS  OF  VARYING  POTENCY
 LEVELS OF MARIHUANA AND MARIHUANA PRODUCTS;
   (D)  MARIHUANA  USE RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
 AND DIAGNOSIS RATES OF MARIHUANA-RELATED SUBSTANCE USE DISORDERS;
   (E) MARIHUANA MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES AND
 RATES, INCLUDING AN EVALUATION OF HOW TO BEST  TAX  MARIHUANA  BASED  ON
 POTENCY,  AND  THE  STRUCTURE  AND  FUNCTION OF LICENSED MARIHUANA BUSI-
 NESSES;
   (F) WHETHER ADDITIONAL PROTECTIONS  ARE  NEEDED  TO  PREVENT  UNLAWFUL
 MONOPOLIES OR ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE NONMEDICAL
 MARIHUANA  INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST EFFECTIVE
 MEASURES FOR PREVENTING SUCH BEHAVIOR;
   (G) THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS,  INCLUDING
 BUT  NOT  NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE SAFETY, REVEN-
 UES, TAXES GENERATED FOR STATE AND LOCAL BUDGETS, AND  CRIMINAL  JUSTICE
 IMPACTS,  INCLUDING,  BUT  NOT  NECESSARILY  LIMITED  TO, IMPACTS ON LAW
 ENFORCEMENT AND PUBLIC RESOURCES, SHORT AND LONG  TERM  CONSEQUENCES  OF
 INVOLVEMENT  IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL GOVERN-
 MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
   (H) WHETHER THE  REGULATORY  AGENCIES  TASKED  WITH  IMPLEMENTING  AND
 ENFORCING  THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING SO
 CONSISTENT WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT  AGENCIES
 MIGHT DO SO MORE EFFECTIVELY; AND
   (I)  ANY  ENVIRONMENTAL ISSUES RELATED TO MARIHUANA PRODUCTION AND THE
 CRIMINAL PROHIBITION OF MARIHUANA PRODUCTION.
   4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
 SECTION, THE REMAINING MONEYS IN THE FUND  DEPOSITED  DURING  THE  PRIOR
 FISCAL YEAR SHALL BE DISBURSED INTO THE STATE LOTTERY FUND AND TWO ADDI-
 TIONAL  SUB-FUNDS CREATED WITHIN THE MARIHUANA REVENUE FUND KNOWN AS THE
 DRUG TREATMENT AND PUBLIC EDUCATION FUND AND THE COMMUNITY GRANTS  REIN-
 VESTMENT FUND, AS FOLLOWS:
   (A)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
 ESTABLISHED BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT  SUCH
 MONEYS SHALL BE DISTRIBUTED TO THE DEPARTMENT OF EDUCATION IN ACCORDANCE
 WITH  SUBDIVISIONS  TWO AND FOUR OF SECTION NINETY-TWO-C OF THIS ARTICLE
 AND SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF  SUCH
 SECTION.  MONIES  ALLOCATED  BY  THIS ARTICLE MAY ENHANCE, BUT SHALL NOT
 SUPPLANT, EXISTING DEDICATED FUNDS TO THE DEPARTMENT OF EDUCATION;
   (B) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE DRUG  TREATMENT  AND
 PUBLIC  EDUCATION  FUND  ESTABLISHED  BY  SECTION NINETY-NINE-GG OF THIS
 ARTICLE; AND
   (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
 MENT FUND ESTABLISHED BY SECTION NINETY-NINE-HH OF THIS ARTICLE.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF  TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY
 PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR  OF  THE  SENATE
 FINANCE  COMMITTEE,  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE

 A. 1617                            49
 
 STATE COMPTROLLER AND THE PUBLIC.  SUCH  REPORT  SHALL  DETAIL  HOW  THE
 MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
 SHALL INCLUDE:
   (I)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (II) RECIPIENTS OF AWARDS FROM THE FUND;
   (III) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (IV) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (V) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
 YEAR.
   6. MONEYS SHALL BE PAYABLE DIRECTLY FROM THE MARIHUANA REVENUE FUND TO
 THE DEPARTMENT.
   §  99-GG.  NEW  YORK  STATE  DRUG  TREATMENT PUBLIC EDUCATION FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
 TROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO
 BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
   2. SUCH FUND SHALL  CONSIST  OF  REVENUES  RECEIVED  PURSUANT  TO  THE
 PROVISIONS  OF  SECTION  NINETY-NINE-FF  OF  THIS  ARTICLE AND ALL OTHER
 MONEYS APPROPRIATED THERETO FROM ANY OTHER FUND OR  SOURCE  PURSUANT  TO
 LAW.  NOTHING  CONTAINED  IN  THIS  SECTION SHALL PREVENT THE STATE FROM
 RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE  PURPOSES  OF  THE  FUND  AS
 DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
 LAW.
   3. THE MONEYS IN SUCH FUND SHALL BE EXPENDED TO  THE  COMMISSIONER  OF
 THE  OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE AND DISBURSED IN CONSULTA-
 TION WITH THE COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
   (A) TO DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC  HEALTH  EDUCATION
 AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
 VENTION,  AND  HEALTH  CARE  SERVICES AND PROGRAMS TO REDUCE THE RISK OF
 MARIHUANA AND OTHER SUBSTANCE USE BY SCHOOL-AGED CHILDREN;
   (B) TO DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC  HEALTH  CAMPAIGN
 FOCUSED  ON  THE HEALTH EFFECTS OF MARIHUANA AND LEGAL USE, INCLUDING AN
 ONGOING EDUCATION AND PREVENTION  CAMPAIGN  THAT  EDUCATES  THE  GENERAL
 PUBLIC,  INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE OF
 MARIHUANA, THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE IMPORTANCE  OF
 SAFE  STORAGE AND PREVENTING SECONDHAND MARIHUANA SMOKE EXPOSURE, INFOR-
 MATION FOR PREGNANT OR BREASTFEEDING WOMEN, AND THE  OVERCONSUMPTION  OF
 EDIBLES;
   (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
 ADULTS,  WITH  AN  EMPHASIS  ON  PROGRAMS THAT ARE CULTURALLY AND GENDER
 COMPETENT, TRAUMA-INFORMED, EVIDENCE-BASED AND PROVIDE  A  CONTINUUM  OF
 CARE  THAT  INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE DISORDER AS
 WELL AS MENTAL HEALTH), EARLY  INTERVENTION,  ACTIVE  TREATMENT,  FAMILY
 INVOLVEMENT,  CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF COMMU-
 NICABLE DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT  FOR
 SUBSTANCE  USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS, VOCA-
 TIONAL SERVICES, LITERACY SERVICES, PARENTING  CLASSES,  FAMILY  THERAPY
 AND  COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS, PSYCHIATRIC
 MEDICATION AND PSYCHOTHERAPY; AND
   (D) TO EVALUATE THE PROGRAMS BEING FUNDED TO  DETERMINE  THEIR  EFFEC-
 TIVENESS.
   4.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
 WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE

 A. 1617                            50
 
 ASSEMBLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY
 WAYS AND MEANS COMMITTEE, CHAIR OF THE SENATE  COMMITTEE  ON  ALCOHOLISM
 AND  DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE COMMIT-
 TEE,  THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL HOW
 THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
 AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF EDUCATION.
   § 99-HH. NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND.  1.  THERE
 IS  HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND
 THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE  KNOWN  AS
 THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
   2.  SUCH  FUND  SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO THE
 PROVISIONS OF SECTION NINETY-NINE-FF  OF  THIS  ARTICLE  AND  ALL  OTHER
 MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
 LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
 RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
 DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
 LAW.
   3.  THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE STEER-
 ING COMMITTEE OF THIRTEEN MEMBERS ESTABLISHED BY THE OFFICE OF  CHILDREN
 AND  FAMILY  SERVICES  AND INCLUDING ADDITIONAL REPRESENTATIVES FROM THE
 LABOR DEPARTMENT, AND THE HEALTH DEPARTMENT APPOINTED  BY  THE  GOVERNOR
 AND  A REPRESENTATIVE OF THE EDUCATION DEPARTMENT APPOINTED BY THE BOARD
 OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS OF THE SENATE
 AND ASSEMBLY SHALL EACH APPOINT ONE MEMBER TO  THE  STEERING  COMMITTEE,
 THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL MEMBERS, AND THE ATTORNEY
 GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL GOVERN-
 MENT  ENTITIES AND COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHOULD BE
 MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH SHALL HAVE EXPER-
 TISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAVIORAL  HEALTH  AND
 SUBSTANCE USE DISORDER TREATMENT, AND EFFECTIVE REHABILITATIVE TREATMENT
 FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZA-
 TIONS  SERVING COMMUNITIES IMPACTED BY PAST FEDERAL AND STATE DRUG POLI-
 CIES.
   4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
 COMMITTEE TO QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS  FOR  THE
 PURPOSE  OF  REINVESTING  IN  COMMUNITIES DISPROPORTIONATELY AFFECTED BY
 PAST FEDERAL AND STATE DRUG POLICIES. THE GRANTS FROM THIS PROGRAM SHALL
 BE USED TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT  EDUCATION,
 MENTAL  HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, SYSTEM NAVI-
 GATION SERVICES, LEGAL SERVICES TO  ADDRESS  BARRIERS  TO  REENTRY,  AND
 LINKAGES  TO  MEDICAL CARE, WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-
 BASED SUPPORTIVE SERVICES.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF  THE  OFFICE  OF CHILDREN AND FAMILY SERVICES SHALL PROVIDE A WRITTEN

 A. 1617                            51
 
 REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
 BLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS
 AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
 LIES,  CHAIR  OF  THE ASSEMBLY CHILDREN AND FAMILIES COMMITTEE, CHAIR OF
 THE SENATE COMMITTEE ON LABOR, CHAIR OF THE  ASSEMBLY  LABOR  COMMITTEE,
 CHAIR  OF  THE  SENATE COMMITTEE ON HEALTH, CHAIR OF THE ASSEMBLY HEALTH
 COMMITTEE, CHAIR OF THE SENATE COMMITTEE  ON  EDUCATION,  CHAIR  OF  THE
 ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
 REPORT  SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE
 PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   6. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF EDUCATION.
   § 33. The tax law is amended by adding a new article 18-A to  read  as
 follows:
                               ARTICLE 18-A
                     PROVISIONS RELATING TO MARIHUANA
 SECTION 446.   DEFINITIONS.
         447.   TAXES IMPOSED.
         447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN.
         447-B. ORDINARY  AND  NECESSARY  EXPENSES  DEDUCTIBLE  FROM  NET
                  INCOME.
         448.   SURETY BOND.
         449.   COLLECTION OF TAX.
   § 446. DEFINITIONS. AS USED IN THIS ARTICLE:
   1.  "COMMERCIAL MARKET ACTIVITY" INCLUDES THE CULTIVATION, POSSESSION,
 MANUFACTURE,  DISTRIBUTION,  PROCESSING,  STORING,  LABORATORY  TESTING,
 LABELING,  TRANSPORTATION,  DELIVERY  OR SALE OF MARIHUANA AND MARIHUANA
 PRODUCTS, AS PROVIDED FOR IN ARTICLE ELEVEN OF  THE  ALCOHOLIC  BEVERAGE
 CONTROL LAW, BUT SHALL NOT INCLUDE MEDICAL MARIHUANA ACTIVITIES PROVIDED
 FOR IN TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   2.    "CONCENTRATED  CANNABIS"  MEANS (A) THE SEPARATED RESIN, WHETHER
 CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
 MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
 CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
 NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
 SYSTEM.
   3.  "MARIHUANA"  MEANS  ALL  PARTS OF THE PLANT OF THE GENUS CANNABIS,
 WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
 PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
 MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
 INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
 OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
 FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
 (EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
 STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES

 A. 1617                            52
 
 NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   4.  "MARIHUANA  CONSUMER"  MEANS  A  PERSON TWENTY-ONE YEARS OF AGE OR
 OLDER WHO PURCHASED MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE  BY
 PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
   5.  "MARIHUANA  FLOWERS" SHALL MEAN THE DRIED FLOWERS OF THE MARIHUANA
 PLANT.
   6. "MARIHUANA LEAVES" SHALL MEAN ALL  PARTS  OF  THE  MARIHUANA  PLANT
 OTHER THAN MARIHUANA FLOWERS THAT ARE SOLD OR CONSUMED.
   7.  "MARIHUANA  PROCESSOR"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
 MARIHUANA POLICY TO PURCHASE MARIHUANA AND  CONCENTRATED  CANNABIS  FROM
 MARIHUANA  PRODUCERS,  TO  PROCESS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS, PACKAGE AND  LABEL  MARIHUANA,  CONCENTRATED
 CANNABIS  AND MARIHUANA-INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND
 SELL MARIHUANA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS  AT
 WHOLESALE TO MARIHUANA RETAILERS.
   8. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE BUREAU OF MARI-
 HUANA  POLICY  TO  PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED
 CANNABIS AT WHOLESALE TO MARIHUANA PROCESSORS, MARIHUANA  RETAILERS,  OR
 OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS.
   9.  "MARIHUANA  PRODUCTS"  MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS.
   10. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARIHUANA
 OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR  CONSUMPTION,
 SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINCTURES.
   11. "IMMATURE MARIHUANA PLANT" MEANS A MARIHUANA PLANT WITH NO OBSERV-
 ABLE FLOWERS OR BUDS.
   12.  "MARIHUANA  RETAILER"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
 MARIHUANA POLICY TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARI-
 HUANA-INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA PROCESSORS
 AND SELL MARIHUANA, MARIHUANA-INFUSED PRODUCTS, AND CONCENTRATED  CANNA-
 BIS IN A RETAIL OUTLET.
   13.  "MARIHUANA  RETAILER  FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
 LICENSED BY THE  BUREAU  OF  MARIHUANA  POLICY  TO  PURCHASE  MARIHUANA,
 CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED PRODUCTS FROM MARIHUANA
 PRODUCERS, MARIHUANA RETAILERS AND MARIHUANA PROCESSORS AND  SELL  MARI-
 HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
 THE FACILITY.
   § 447. TAXES IMPOSED.  1. (A) THERE IS HEREBY  LEVIED  AND  IMPOSED  A
 CULTIVATION  TAX UPON ALL HARVESTED MARIHUANA THAT ENTERS THE COMMERCIAL
 MARKET UPON ALL PERSONS REQUIRED TO BE LICENSED TO  CULTIVATE  MARIHUANA
 PURSUANT  TO  ARTICLE  ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW. THE
 TAX SHALL BE DUE AFTER THE MARIHUANA IS HARVESTED.
   (I) MARIHUANA FLOWERS SHALL BE TAXED AT A RATE OF SIXTY-TWO CENTS  PER
 DRY-WEIGHT GRAM.
   (II)  MARIHUANA  LEAVES SHALL BE TAXED AT A RATE OF TEN CENTS PER DRY-
 WEIGHT GRAM.
   (B) THERE IS HEREBY LEVIED AND IMPOSED A NURSERY TAX UPON ALL IMMATURE
 PLANTS THAT ENTER THE COMMERCIAL MARKET UPON ALL PERSONS REQUIRED TO  BE
 LICENSED  TO  PRODUCE  IMMATURE PLANTS PURSUANT TO ARTICLE ELEVEN OF THE
 ALCOHOLIC BEVERAGE CONTROL LAW. IMMATURE PLANTS SHALL BE TAXED AT A RATE
 OF ONE DOLLAR AND THIRTY-FIVE CENTS EACH.
   (C) THERE IS HEREBY LEVIED AND IMPOSED A TAX UPON  MARIHUANA  SOLD  OR
 OTHERWISE  TRANSFERRED  BY A MARIHUANA PRODUCER TO A MARIHUANA PROCESSOR

 A. 1617                            53
 
 OR MARIHUANA RETAILER AT A RATE EQUIVALENT TO THE RATE ESTABLISHED UNDER
 ARTICLE TWENTY-EIGHT OF THIS CHAPTER.
   (D) A MARIHUANA EXCISE TAX IS HEREBY LEVIED AND IMPOSED UPON CUSTOMERS
 OF  NONMEDICAL  MARIHUANA  OR NONMEDICAL MARIHUANA PRODUCTS SOLD IN THIS
 STATE AT THE RATE FIFTEEN PERCENT OF ANY SALE BY A RETAILER,  MICROBUSI-
 NESS, OR OTHER PERSON REQUIRED TO BE LICENSED PURSUANT TO ARTICLE ELEVEN
 OF  THE  ALCOHOLIC  BEVERAGE CONTROL LAW TO SELL MARIHUANA AND MARIHUANA
 PRODUCTS DIRECTLY TO A CUSTOMER.
   (E) THE DEPARTMENT SHALL ESTABLISH PROCEDURES FOR  THE  COLLECTION  OF
 ALL TAXES LEVIED.
   (F)  NO  TAX  ESTABLISHED BY THIS SECTION SHALL BE LEVIED UPON MEDICAL
 MARIHUANA INTENDED FOR SALE TO A CERTIFIED PATIENT OR  DESIGNATED  CARE-
 GIVER  PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
 HEALTH LAW.
   2. FOR REPORTING PERIODS BEGINNING LATER THAN ONE YEAR  FOLLOWING  THE
 EFFECTIVE  DATE  OF THIS ARTICLE, THE RATES OF TAX UNDER SUBDIVISION ONE
 OF THIS SECTION SHALL BE ADJUSTED FOR EACH  BIENNIUM  ACCORDING  TO  THE
 COST-OF-LIVING ADJUSTMENT FOR THE CALENDAR YEAR.
   3.  THE  DEPARTMENT  SHALL REGULARLY REVIEW THE RATES OF THE TAX UNDER
 SUBDIVISION ONE OF THIS SECTION AND MAKE RECOMMENDATIONS TO THE LEGISLA-
 TURE REGARDING APPROPRIATE ADJUSTMENTS TO THE RATES  THAT  WILL  FURTHER
 THE PURPOSES OF:
   (A) MAXIMIZING NET REVENUE;
   (B) MINIMIZING THE ILLEGAL MARIHUANA INDUSTRY; AND
   (C) DISCOURAGING THE USE OF MARIHUANA BY MINORS UNDER TWENTY-ONE YEARS
 OF AGE.
   §  447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN. ANY CITY OR TOWN
 IN THIS STATE, ACTING THROUGH ITS  LOCAL  LEGISLATIVE  BODY,  IS  HEREBY
 AUTHORIZED  AND  EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY
 SUCH CITY OR TOWN A SALES TAX ON MARIHUANA RETAILERS AT  A  RATE  OF  NO
 MORE  THAN TWO PERCENT OF THE SALE PRICE OF MARIHUANA PRODUCTS SOLD TO A
 MARIHUANA CONSUMER. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY OF  THIS
 SECTION  SHALL  BE  ADMINISTERED  AND COLLECTED BY THE DEPARTMENT IN THE
 SAME MANNER AS THE TAXES IMPOSED UNDER SECTION FOUR  HUNDRED  FORTY-NINE
 OF  THIS  ARTICLE.  THE  COMMISSIONER  IS  HEREBY EMPOWERED TO MAKE SUCH
 PROVISIONS AS IT  DEEMS  NECESSARY  FOR  THE  JOINT  ADMINISTRATION  AND
 COLLECTION  OF  THE STATE AND LOCAL TAXES IMPOSED AND AUTHORIZED BY THIS
 ARTICLE.
   § 447-B. ORDINARY AND NECESSARY EXPENSES DEDUCTIBLE FROM  NET  INCOME.
 NOTWITHSTANDING  ANY  FEDERAL  TAX LAW TO THE CONTRARY, IN COMPUTING NET
 INCOME FOR BUSINESSES EXEMPTED FROM CRIMINAL  PENALTIES  UNDER  ARTICLES
 TWO HUNDRED TWENTY AND TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AND ARTI-
 CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW, THERE SHALL BE ALLOWED
 AS  A DEDUCTION FROM STATE TAXES ALL THE ORDINARY AND NECESSARY EXPENSES
 PAID OR INCURRED DURING THE TAXABLE YEAR IN CARRYING  ON  ANY  TRADE  OR
 BUSINESS,  INCLUDING  BUT NOT LIMITED TO, REASONABLE ALLOWANCE FOR SALA-
 RIES OR OTHER COMPENSATION FOR PERSONAL SERVICES ACTUALLY RENDERED.
   § 448. SURETY BOND. MARIHUANA  RETAILER  APPLICANTS  ARE  REQUIRED  TO
 SUBMIT  A  SURETY  BOND  WITH  THE DEPARTMENT EQUAL TO TWO MONTHS OF THE
 CULTIVATION FACILITY'S ANTICIPATED  RETAIL  MARIHUANA  EXCISE  TAX.  THE
 SURETY BOND MUST BE ISSUED BY A COMPANY AUTHORIZED TO DO BUSINESS IN THE
 STATE.  PROOF  OF  SURETY  BOND  IS REQUIRED FOR APPROVAL OF APPLICANT'S
 RETAIL LICENSE.
   § 449. COLLECTION OF TAX. THIS TAX SHALL BE COLLECTED BY  THE  COMMIS-
 SIONER WHO SHALL ESTABLISH A PROCEDURE FOR THE COLLECTION OF THIS TAX.

 A. 1617                            54
 
   §  34.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
 of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
 ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
 the  laws  of 1977 and as relettered by chapter 192 of the laws of 1980,
 are amended to read as follows:
   (i)  prior to the filing of an accusatory instrument in a local crimi-
 nal court against such person, the prosecutor elects  not  to  prosecute
 such  person.  In such event, the prosecutor shall serve a certification
 of such disposition upon the division of criminal justice  services  and
 upon  the appropriate police department or law enforcement agency which,
 upon receipt thereof, shall comply with  the  provisions  of  paragraphs
 (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
 manner as is required thereunder with respect to an  order  of  a  court
 entered pursuant to said subdivision one[.]; OR
   (j)  following the arrest of such person, the arresting police agency,
 prior to the filing of an accusatory  instrument  in  a  local  criminal
 court  but subsequent to the forwarding of a copy of the fingerprints of
 such person to the division of criminal justice services, elects not  to
 proceed  further. In such event, the head of the arresting police agency
 shall serve a certification of such disposition  upon  the  division  of
 criminal justice services which, upon receipt thereof, shall comply with
 the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
 this  section  in the same manner as is required thereunder with respect
 to an order of a court entered pursuant to said subdivision one[.]; OR
   (k) (i) The accusatory instrument alleged a violation of  article  two
 hundred  twenty  or section 240.36 of the penal law, prior to the taking
 effect of article two hundred twenty-one of the penal  law,  or  BY  THE
 CONVICTION  OF  SUCH PERSON OF a violation of [article two hundred twen-
 ty-one] SECTION 221.45 of the penal law ON OR AFTER THE  EFFECTIVE  DATE
 OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
 SUBDIVISION OR A VIOLATION OF SECTION 221.05,  221.10,  221.15,  221.20,
 221.25, 221.30, 221.35 OR 221.40 OF THE PENAL LAW PRIOR TO THE EFFECTIVE
 DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
 THIS SUBDIVISION; AND (ii) the sole  controlled  substance  involved  is
 [marijuana; (iii) the conviction was only for a violation or violations;
 and  (iv)  at  least three years have passed since the offense occurred]
 MARIHUANA.  NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO WAIVE  ELIGI-
 BILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUIL-
 TY, SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR A VIOLATION OF
 SECTION  221.45  OF  THE PENAL LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID
 AND WHOLLY UNENFORCEABLE.
   § 35. Subdivision 4 of section 160.50 of the criminal  procedure  law,
 as  amended by chapter 905 of the laws of 1977 and renumbered by chapter
 142 of the laws of 1991, is amended to read as follows:
   4. A person in whose favor a criminal action or proceeding was  termi-
 nated,  as defined in [paragraph] PARAGRAPHS (a) through (h), (K) OR (L)
 of subdivision [two] THREE of this section, prior to the effective  date
 of  [this  section,  may  upon  motion  apply to the court in which such
 termination occurred, upon not less  than  twenty  days  notice  to  the
 district  attorney,  for an order granting to such person the relief set
 forth in subdivision one of this section, and such order shall be grant-
 ed unless the district attorney demonstrates to the satisfaction of  the
 court that the interests of justice require otherwise. A person in whose
 favor  a  criminal  action  or  proceeding was terminated, as defined in
 paragraph (i) or (j) of subdivision two of this section,  prior  to  the
 effective  date of this section, may apply to the appropriate prosecutor

 A. 1617                            55

 or police agency for a certification as described in said paragraph  (i)
 or  (j)  granting  to such person the relief set forth therein, and such
 certification shall be granted by such prosecutor or police agency.] THE
 CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS SUBDIVI-
 SION, AND WHOSE RECORDS HAVE NOT BEEN SEALED PURSUANT TO SUBDIVISION ONE
 OF THIS SECTION, MAY APPLY TO HAVE THE RECORDS OF SUCH  CRIMINAL  ACTION
 OR  PROCEEDING  SEALED  AT THE CLERK'S OFFICE FOR THE COURT IN WHICH THE
 CRIMINAL ACTION OR PROCEEDING WAS TERMINATED. APPLICATION MAY BE MADE BY
 THE PERSON OR HIS OR HER ATTORNEY. UPON A  DETERMINATION  BY  THE  CLERK
 THAT  THE  ACTION  OR PROCEEDING WAS TERMINATED IN THE PERSON'S FAVOR AS
 DEFINED IN SUBDIVISION THREE OF THIS SECTION, THE  CLERK  OF  THE  COURT
 SHALL  IMMEDIATELY  NOTIFY  THE COMMISSIONER OF THE DIVISION OF CRIMINAL
 JUSTICE SERVICES AND THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND
 OTHER LAW ENFORCEMENT AGENCIES THAT THE ACTION HAS  BEEN  TERMINATED  IN
 FAVOR  OF  THE ACCUSED AND THAT THE RECORD OF SUCH ACTION OR PROCEEDINGS
 SHALL BE SEALED. UPON RECEIPT OF NOTIFICATION OF  SUCH  TERMINATION  AND
 SEALING, ALL RECORDS RELATING TO THE CRIMINAL ACTION SHALL BE SEALED, AS
 REQUIRED UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, AND ALL
 PHOTOGRAPHS,  PHOTOGRAPHIC PLATES OR PROOFS, PALMPRINTS AND FINGERPRINTS
 SHALL BE DESTROYED OR RETURNED AS SPECIFIED IN PARAGRAPHS (A) AND (B) OF
 SUBDIVISION ONE OF THIS SECTION. THIS PARAGRAPH SHALL NOT APPLY TO CASES
 IN WHICH THE COURT DECLINED TO SEAL FOR REASONS STATED  ON  THE  RECORD,
 PURSUANT  TO  SUBDIVISION  ONE  OF THIS SECTION. WHEN AN APPLICANT UNDER
 THIS SUBDIVISION PRESENTS TO THE COURT CLERK  FINGERPRINT  RECORDS  FROM
 NEW YORK STATE DIVISION OF CRIMINAL JUSTICE SERVICES OR A COURT DISPOSI-
 TION  WHICH  INDICATE  THAT  A CRIMINAL ACTION OR PROCEEDING AGAINST THE
 APPLICANT WAS DISMISSED BUT  THE  SUPPORTING  COURT  RECORDS  CANNOT  BE
 LOCATED,  HAVE  BEEN DESTROYED, OR DO NOT INDICATE WHETHER THE DISMISSAL
 WAS A "TERMINATION IN FAVOR OF" THE ACCUSED AS THAT TERM IS  DEFINED  IN
 SUBDIVISION  THREE  OF THIS SECTION, THE CLERK OF THE COURT WHEREIN SUCH
 CRIMINAL ACTION OR PROCEEDING WAS TERMINATED SHALL  PROCEED  AS  IF  THE
 MATTER HAD BEEN SO TERMINATED.
   § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
 law,  subdivision  1  as  amended by chapter 360 of the laws of 1977 and
 subdivision 2 as added by chapter 1042 of the laws of 1971, are  amended
 to read as follows:
   1.  Upon or after arraignment in a local criminal court upon an infor-
 mation, a prosecutor's information or a misdemeanor complaint, where the
 sole  remaining  count  or  counts  charge  a violation or violations of
 section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
 law,  OR  UPON SUMMONS FOR A NUISANCE OFFENSE UNDER SECTION SIXTY-FIVE-C
 OF THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea  of
 guilty  thereto  or  commencement  of   a trial thereof, the court, upon
 motion of a defendant, may order that all proceedings be  suspended  and
 the  action  adjourned  in contemplation of dismissal, or upon a finding
 that adjournment would not be necessary or appropriate and  the  setting
 forth  in  the  record  of the reasons for such findings, may dismiss in
 furtherance of justice the  accusatory  instrument;  provided,  however,
 that  the  court  may  not  order  such  adjournment in contemplation of
 dismissal or dismiss the accusatory instrument if: (a) the defendant has
 previously been granted such adjournment in contemplation of  dismissal,
 or  (b) the defendant has previously been granted a dismissal under this
 section, or (c) the defendant  has  previously  been  convicted  of  any
 offense involving controlled substances, or (d) the defendant has previ-
 ously  been  convicted  of  a  crime  and the district attorney does not
 consent or (e) the defendant has previously been adjudicated a  youthful

 A. 1617                            56
 
 offender on the basis of any act or acts involving controlled substances
 and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
 TIONS  SET  FORTH  IN  THIS  SUBDIVISION,  THE  COURT MAY ORDER THAT ALL
 PROCEEDINGS  BE  SUSPENDED  AND THE ACTION ADJOURNED IN CONTEMPLATION OF
 DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
 PURPOSES  OF  THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES EXIST WHEN,
 REGARDLESS OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A  PLEA
 OF GUILTY IS LIKELY TO RESULT IN SEVERE COLLATERAL CONSEQUENCES, INCLUD-
 ING,  BUT NOT LIMITED TO, THOSE THAT COULD LEAVE A NONCITIZEN INADMISSI-
 BLE OR REMOVABLE FROM THE UNITED STATES.
   2.  Upon ordering the action adjourned in contemplation of  dismissal,
 the  court  must  set and specify such conditions for the adjournment as
 may be appropriate, and such conditions may include placing the  defend-
 ant  under the supervision of any public or private agency.  At any time
 prior to dismissal the court may modify  the  conditions  or  extend  or
 reduce  the  term  of  the  adjournment, except that the total period of
 adjournment shall not exceed [twelve] SIX months.  Upon violation of any
 condition fixed by the court, the court may revoke its order and restore
 the case to the calendar and the prosecution thereupon must proceed.  If
 the case is not so restored to the calendar during the period  fixed  by
 the court, the accusatory instrument is, at the expiration of such peri-
 od, deemed to have been dismissed in the furtherance of justice.
   §  37.  Section  210.46  of  the criminal procedure law, as amended by
 chapter 360 of the laws of 1977, is amended to read as follows:
 § 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
         in a superior court.
   Upon or after arraignment in a superior court upon an indictment where
 the  sole  remaining count or counts charge a violation or violations of
 section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
 law  and before the entry of a plea of guilty thereto or commencement of
 a  trial  thereof, the court, upon motion of a defendant, may order that
 all proceedings be suspended and the action adjourned  in  contemplation
 of dismissal or may dismiss the indictment in furtherance of justice, in
 accordance with the provisions of section 170.56 of this chapter.
   § 38. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdivi-
 sion 1 of section 440.10 of the criminal procedure law, paragraph (h) as
 amended  by  chapter  332  of  the laws of 2010 and subparagraph (ii) of
 paragraph (i) as amended by chapter 368 of the laws of 2015, are amended
 and a new paragraph (j) is added to read as follows:
   (h) The judgment was obtained in violation of a right of the defendant
 under the constitution of this state or of the United States; [or]
   (ii) official documentation of the defendant's status as a  victim  of
 trafficking,  compelling  prostitution  or trafficking in persons at the
 time of the offense from a federal, state  or  local  government  agency
 shall  create  a  presumption  that the defendant's participation in the
 offense was a result of having been a victim of sex trafficking, compel-
 ling prostitution or trafficking in persons, but shall not  be  required
 for granting a motion under this paragraph[.]; OR
   (J)  THE  JUDGMENT  OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
 GRAPH AND IS A CONVICTION FOR:
   (I) AN OFFENSE AS DEFINED BY SECTION 221.05 OR 221.10 OF THE PENAL LAW
 (CRIMINAL POSSESSION OF MARIHUANA IN THE FIFTH  DEGREE),  AS  IN  EFFECT
 PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSA-
 TORY  INSTRUMENT THAT UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN ALLEGA-
 TION THAT THE DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS  OF  MARI-
 HUANA; OR

 A. 1617                            57
 
   (II)  AN  OFFENSE AS DEFINED BY FORMER SECTION 221.35 OF THE PENAL LAW
 (CRIMINAL SALE OF MARIHUANA IN THE FIFTH DEGREE).
   §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
 as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
 follows:
   6.  If  the court grants a motion under paragraph (i) OR PARAGRAPH (J)
 of subdivision one of this section, it  must  vacate  the  judgment  and
 dismiss  the  accusatory instrument, and may take such additional action
 as is appropriate in the circumstances.
   § 40. The criminal procedure law is amended by adding  a  new  section
 440.46-a to read as follows:
 § 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
              OFFENSES.
   1.  A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
 TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN  GUILTY  OF
 AN  OFFENSE  OR  WHO  WOULD  HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
 AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
 AT THE TIME OF HIS OR HER  CONVICTION  MAY  PETITION  FOR  A  RECALL  OR
 DISMISSAL  OF  SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT
 OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
 ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
   2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS  SECTION  THE
 COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
 OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
 CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
 THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE  OF  THIS  SECTION,
 THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
 BECAUSE  IT  IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT
 MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:
   (A) THE MOVANT'S CRIMINAL CONVICTION HISTORY, INCLUDING  THE  TYPE  OF
 CRIMES  COMMITTED,  THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR
 PRISON COMMITMENTS, AND THE REMOTENESS OF THE CRIMES.
   (B) THE MOVANT'S DISCIPLINARY  RECORD  AND  RECORD  OF  REHABILITATION
 WHILE INCARCERATED.
   3.  A  PERSON  WHO  IS  SERVING A SENTENCE AND RESENTENCED PURSUANT TO
 SUBDIVISION TWO OF THIS SECTION SHALL  BE  GIVEN  CREDIT  FOR  ANY  TIME
 ALREADY  SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW-
 ING COMPLETION OF HIS OR HER TIME IN CUSTODY  OR  SHALL  BE  SUBJECT  TO
 WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
 AFTER   RELEASE,   WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,  IN  ITS
 DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON  FROM
 SUPERVISION.  SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION
 60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER  SECTION  70.45
 OF  THE  PENAL  LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE
 COURT IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR  IN
 WHICH  AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE
 OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
   4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS  SECTION  RESULT
 IN  THE  IMPOSITION  OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
 REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREE-
 MENT.
   5.  A  PERSON  WHO  HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
 UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
 ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE  BEEN  GUILTY
 OF  AN  OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
 AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT

 A. 1617                            58
 
 AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
 TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR  HER  CASE
 TO  HAVE  THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-
 ONE OF THE PENAL LAW:
   (A)  DISMISSED BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID AND
 SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER;
   (B) REDESIGNATED (OR "RECLASSIFIED") AS  A  VIOLATION  AND  SEALED  IN
 ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER; OR
   (C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR.
   6.  THE  COURT  SHALL PRESUME THE PETITIONER SATISFIES THE CRITERIA IN
 SUBDIVISION FIVE UNLESS THE PARTY OPPOSING  THE  APPLICATION  PROVES  BY
 CLEAR  AND  CONVINCING EVIDENCE THAT THE PETITIONER DOES NOT SATISFY THE
 CRITERIA IN SUBDIVISION FIVE. ONCE THE APPLICANT SATISFIES THE  CRITERIA
 IN  SUBDIVISION  FIVE, THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE
 CONVICTION AS A MISDEMEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION  AS
 A  VIOLATION AND SEAL THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION
 AS LEGALLY INVALID UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT
 THE TIME OF HIS OR HER CONVICTION.
   7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
 OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
   8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER  SUBDI-
 VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
 SIX  OF  THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR VIOLATION FOR
 ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
 UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER
 SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR  ALL
 PURPOSES.
   9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
 THE  PRESIDING  JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE PETI-
 TION OR APPLICATION.
   10. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH  OR  ABROGATE  ANY
 RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
   11.  NOTHING  IN  THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR
 ABROGATE THE FINALITY OF JUDGEMENTS IN ANY CASE NOT FALLING  WITHIN  THE
 PURVIEW OF THIS SECTION.
   12.  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY EQUALLY TO JUVENILE
 DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER  SECTION  FIVE  HUNDRED
 ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
 AN  OFFENSE  OR  WOULD  HAVE  BEEN GUILTY OF A LESSER OFFENSE UNDER THIS
 SECTION HAD THIS SECTION BEEN IN EFFECT  AT  THE  TIME  OF  HIS  OR  HER
 CONVICTION.
   13.  THE  OFFICE  OF  COURT  ADMINISTRATION  SHALL PROMULGATE AND MAKE
 AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS  AND
 APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
 THE EFFECTIVE DATE OF THIS SECTION.
   § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
 procedure  law, as amended by chapter 37 of the laws of 2014, is amended
 to read as follows:
   (c) Criminal possession of  a  controlled  substance  in  the  seventh
 degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
 possession of a controlled substance in the fifth degree as  defined  in
 section  220.06  of  the  penal law, criminal possession of a controlled
 substance in the fourth degree as defined in section 220.09 of the penal
 law, criminal possession of a controlled substance in the  third  degree
 as  defined in section 220.16 of the penal law, criminal possession of a
 controlled substance in the second degree as defined in  section  220.18

 A. 1617                            59

 of  the  penal law, criminal possession of a controlled substance in the
 first degree as defined in section 220.21 of  the  penal  law,  criminal
 sale of a controlled substance in the fifth degree as defined in section
 220.31  of the penal law, criminal sale of a controlled substance in the
 fourth degree as defined in section 220.34 of the  penal  law,  criminal
 sale of a controlled substance in the third degree as defined in section
 220.39  of the penal law, criminal sale of a controlled substance in the
 second degree as defined in section 220.41 of the  penal  law,  criminal
 sale of a controlled substance in the first degree as defined in section
 220.43  of  the penal law, criminally possessing a hypodermic instrument
 as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
 prescription  for  a controlled substance or a controlled substance by a
 practitioner or pharmacist as defined in section  220.65  of  the  penal
 law,  criminal  possession  of methamphetamine manufacturing material in
 the second degree as defined in section 220.70 of the penal law,  crimi-
 nal  possession  of  methamphetamine manufacturing material in the first
 degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
 possession of precursors of methamphetamine as defined in section 220.72
 of  the  penal law, unlawful manufacture of methamphetamine in the third
 degree as defined in section 220.73 of the penal law, unlawful  manufac-
 ture  of  methamphetamine  in  the  second  degree as defined in section
 220.74 of the penal law, unlawful manufacture of methamphetamine in  the
 first  degree  as  defined  in section 220.75 of the penal law, unlawful
 disposal of methamphetamine laboratory material as  defined  in  section
 220.76  of  the penal law, operating as a major trafficker as defined in
 section 220.77 of the penal law, [criminal possession  of  marihuana  in
 the first degree as defined in section 221.30 of the penal law, criminal
 sale  of  marihuana  in the first degree as defined in section 221.55 of
 the penal law,] promoting gambling in the second degree  as  defined  in
 section  225.05 of the penal law, promoting gambling in the first degree
 as defined in section 225.10 of the penal law,  possession  of  gambling
 records  in  the second degree as defined in section 225.15 of the penal
 law, possession of gambling records in the first degree  as  defined  in
 section  225.20 of the penal law, and possession of a gambling device as
 defined in section 225.30 of the penal law;
   § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
 9 of section 1310 of the civil practice law and  rules,  paragraphs  (b)
 and  (c)  of subdivision 4-b as added by chapter 655 of the laws of 1990
 and subdivisions 6 and 9 as added by chapter 669 of the  laws  of  1984,
 are amended to read as follows:
   (b)  on  three  or  more occasions, engaging in conduct constituting a
 violation of any of the felonies  defined  in  section  220.09,  220.16,
 220.18,  220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or 221.55]
 of the penal law, which violations do not constitute a  single  criminal
 offense  as  defined in subdivision one of section 40.10 of the criminal
 procedure law, or a single criminal transaction, as defined in paragraph
 (a) of subdivision two of section 40.10 of the criminal  procedure  law,
 and  at  least one of which resulted in a conviction of such offense, or
 where the accusatory instrument charges one or more  of  such  felonies,
 conviction  upon  a  plea  of  guilty to a felony for which such plea is
 otherwise authorized by law; or
   (c) a conviction of a  person  for  a  violation  of  section  220.09,
 220.16,  220.34 or 220.39 of the penal law, [or a conviction of a crimi-
 nal defendant for a violation of section 221.30 of the  penal  law,]  or
 where the accusatory instrument charges any such felony, conviction upon
 a  plea of guilty to a felony for which the plea is otherwise authorized

 A. 1617                            60
 
 by law, together with evidence which: (i) provides  substantial  indicia
 that  the  defendant  used  the  real property to engage in a continual,
 ongoing course of conduct involving the  unlawful  mixing,  compounding,
 manufacturing,  warehousing,  or  packaging of controlled substances [or
 where the conviction is for a violation of section 221.30 of  the  penal
 law,  marijuana,]  as part of an illegal trade or business for gain; and
 (ii) establishes, where the conviction is for possession of a controlled
 substance [or where the conviction is for a violation of section  221.30
 of  the  penal law, marijuana], that such possession was with the intent
 to sell it.
   [6. "Pre-conviction forfeiture crime" means only a felony  defined  in
 article  two  hundred  twenty  or  section 221.30 or 221.55 of the penal
 law.]
   9. "Criminal defendant" means a person who has criminal liability  for
 a  crime  defined in [subdivisions] SUBDIVISION five [and six hereof] OF
 THIS SECTION. For purposes  of  this  article,  a  person  has  criminal
 liability  when [(a)] he has been convicted of a post-conviction forfei-
 ture crime[, or (b) the claiming authority proves by clear and  convinc-
 ing evidence that such person has committed an act in violation of arti-
 cle two hundred twenty or section 221.30 or 221.55 of the penal law].
   §  43.  Subdivision 13 of section 89-f of the general business law, as
 added by chapter 336 of the laws of 1992, is amended to read as follows:
   13. "Serious offense" shall mean any  felony  involving  the  offenses
 enumerated  in  the  closing  paragraph  of this subdivision; a criminal
 solicitation of or a conspiracy to commit or an attempt to commit  or  a
 criminal  facilitation  of a felony involving the offenses enumerated in
 the closing paragraph of this subdivision, which criminal  solicitation,
 conspiracy, attempt or criminal facilitation itself constitutes a felony
 or  any  offense  in  any  other jurisdiction which if committed in this
 state would constitute a felony; any offense in any  other  jurisdiction
 which if committed in this state would constitute a felony provided that
 for the purposes of this article, none of the following shall be consid-
 ered  criminal  convictions  or  reported  as such: (i) a conviction for
 which an executive pardon has been issued pursuant to the executive law;
 (ii) a conviction which has been vacated  and  replaced  by  a  youthful
 offender  finding pursuant to article seven hundred twenty of the crimi-
 nal procedure law, or the applicable provisions  of  law  of  any  other
 jurisdiction;  or  (iii)  a  conviction  the  records of which have been
 sealed pursuant to the applicable provisions of the laws of  this  state
 or  of  any  other  jurisdiction;  and (iv) a conviction for which other
 evidence of successful rehabilitation to remove the disability has  been
 issued.
   Felonies involving: assault, aggravated assault and reckless endanger-
 ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
 manslaughter and murder pursuant to article one hundred twenty-five; sex
 offenses pursuant to article one hundred thirty; unlawful  imprisonment,
 kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
 criminal trespass and burglary pursuant to article  one  hundred  forty;
 criminal  mischief,  criminal  tampering  and  tampering with a consumer
 product pursuant to article one hundred forty-five;  arson  pursuant  to
 article one hundred fifty; larceny and offenses involving theft pursuant
 to article one hundred fifty-five; offenses involving computers pursuant
 to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
 hundred sixty; criminal possession of stolen property pursuant to  arti-
 cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
 article one hundred seventy; involving false written statements pursuant

 A. 1617                            61
 
 to article one hundred seventy-five; commercial bribing  and  commercial
 bribe  receiving pursuant to article one hundred eighty; criminal imper-
 sonation and scheme to defraud pursuant to article one  hundred  ninety;
 bribery involving public servants and related offenses pursuant to arti-
 cle  two  hundred;  perjury and related offenses pursuant to article two
 hundred ten; tampering with a witness, intimidating a victim or  witness
 and  tampering  with  physical  evidence pursuant to article two hundred
 fifteen; criminal possession  of  a  controlled  substance  pursuant  to
 sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
 controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
 220.41,  220.43  and  220.44;  [criminal] UNLICENSED sale of [marijuana]
 MARIHUANA IN THE FIRST DEGREE pursuant to  [sections]  SECTION  221.45[,
 221.50  and  221.55]; riot in the first degree, aggravated harassment in
 the first degree, criminal nuisance in  the  first  degree  and  falsely
 reporting  an incident in the second or first degree pursuant to article
 two hundred forty; and crimes against public safety pursuant to  article
 two hundred sixty-five of the penal law.
   §  44.  Paragraph  (f)  of subdivision 2 of section 850 of the general
 business law is REPEALED.
   § 45. Paragraph (h) of subdivision 2 of section  850  of  the  general
 business  law, as amended by chapter 812 of the laws of 1980, is amended
 to read as follows:
   (h) Objects, used or designed for the purpose of ingesting,  inhaling,
 or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
 into the human body.
   §  46.  Paragraph  a  of  subdivision  4-a of section 165 of the state
 finance law, as added by chapter 95 of the laws of 2000, is  amended  to
 read as follows:
   a.  In  order  to  advance  specific  economic  goals,  New York state
 labelled wines, as defined in subdivision [twenty-a] TWENTY-J of section
 three of the alcoholic beverage control law, shall have  favored  source
 status for the purposes of procurement in accordance with the provisions
 of this subdivision.  Procurement of these New York state labelled wines
 shall  be  exempt from the competitive procurement provisions of section
 one hundred sixty-three of this article and other  competitive  procure-
 ment  statutes.    Such exemption shall apply to New York state labelled
 wines as defined in subdivision [twenty-a] TWENTY-J of section three  of
 the  alcoholic  beverage  control  law  produced by a licensed winery as
 defined in section seventy-six of the alcoholic beverage control law.
   § 47. Subdivision 7 of section 995 of the executive law, as amended by
 chapter 19 of the laws of 2012, is amended to read as follows:
   7. "Designated offender"  means  a  person  convicted  of  any  felony
 defined  in  any  chapter  of  the  laws of the state or any misdemeanor
 defined in the penal law [except that  where  the  person  is  convicted
 under  section  221.10  of  the penal law, only a person convicted under
 subdivision two of such section, or a person convicted under subdivision
 one of such section who stands previously  convicted  of  any  crime  as
 defined in subdivision six of section 10.00 of the penal law].
   § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
 penal law, paragraph (b) as amended by section 31 of part AAA of chapter
 56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
 laws of 1990, are amended to read as follows:
   (b) three or more violations of any of the felonies defined in section
 220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
 220.43[,]  OR  220.77[,  or 221.55] of this chapter, which violations do
 not constitute a single criminal offense as defined in  subdivision  one

 A. 1617                            62
 
 of  section  40.10  of  the criminal procedure law, or a single criminal
 transaction, as defined in paragraph (a) of subdivision two  of  section
 40.10  of the criminal procedure law, and at least one of which resulted
 in  a  conviction  of  such  offense, or where the accusatory instrument
 charges one or more of such felonies, conviction upon a plea  of  guilty
 to a felony for which such plea is otherwise authorized by law; or
   (c)  a  conviction  of  a  person  for  a violation of section 220.09,
 220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
 accusatory instrument charges any such felony, conviction upon a plea of
 guilty  to  a  felony for which the plea is otherwise authorized by law,
 together with evidence which: (i) provides substantial indicia that  the
 defendant  used  the  real  property  to  engage in a continual, ongoing
 course of conduct involving the unlawful mixing,  compounding,  manufac-
 turing, warehousing, or packaging of controlled substances [or where the
 conviction  is  for a violation of section 221.30 of this chapter, mari-
 juana] as part of an illegal trade or business for gain; and (ii) estab-
 lishes, where the conviction is for possession of a controlled substance
 [or where the conviction is for a violation of section  221.30  of  this
 chapter,  marijuana],  that  such possession was with the intent to sell
 it.
   § 49. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
 and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
 amended to read as follows:
   (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
 subdivision one and subparagraph (i) of paragraph (c) of subdivision two
 of  this  section  that  result in disqualification for a period of five
 years shall include a conviction under sections 100.10, 105.13,  115.05,
 120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
 125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
 140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
 220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
 230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
 235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
 section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
 265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
 the  aforesaid  offenses  under  section 110.00 of the penal law, or any
 similar offenses committed under a former section of the penal  law,  or
 any  offenses  committed  under  a former section of the penal law which
 would constitute violations of the aforesaid sections of the penal  law,
 or  any  offenses  committed  outside  this state which would constitute
 violations of the aforesaid sections of the penal law.
   § 50. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
 section  1194  of the vehicle and traffic law, as amended by chapter 196
 of the laws of 1996, is amended to read as follows:
   When authorized. Any person who operates a motor vehicle in this state
 shall be deemed to have given consent to a chemical test of one or  more
 of  the  following:  breath, blood, urine, or saliva, for the purpose of
 determining the alcoholic and/or  drug  content,  OTHER  THAN  MARIHUANA
 CONTENT  INCLUDING  BUT  NOT LIMITED TO TETRAHYDROCANNABINOL CONTENT, of
 the blood provided that such test is administered by or at the direction
 of a police officer with respect to a chemical test of breath, urine  or
 saliva or, with respect to a chemical test of blood, at the direction of
 a police officer:
   §  51.  Section 17 of the alcoholic beverage control law is amended by
 adding a new subdivision 12 to read as follows:

 A. 1617                            63
 
   12. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
 USE DISORDER TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINIS-
 TERED BY SCHOOLS; OTHER  ENTITIES  INCLUDING  TRADE  ASSOCIATIONS  WHOSE
 MEMBERS  ARE  ENGAGED  IN  OR  INVOLVED  IN THE RETAIL SALE OF ALCOHOLIC
 BEVERAGES;  NATIONAL  AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST
 FIVE FRANCHISES IN THE STATE WHICH ARE LICENSED TO SELL BEER  AT  RETAIL
 FOR  OFF-PREMISES  CONSUMPTION;  LICENSEES  AUTHORIZED TO SELL ALCOHOLIC
 BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR  MORE
 LICENSED  PREMISES;  AND  PERSONS  INTERESTED,  WHETHER AS AN INDIVIDUAL
 PROPRIETOR OR PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPA-
 NY, IN FIVE OR MORE LICENSEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
 RETAIL FOR OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR THE
 ISSUANCE  OF  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  ALCOHOL OR
 SUBSTANCE USE DISORDER  TRAINING  AWARENESS  PROGRAMS.  CERTIFICATES  OF
 APPROVAL  MAY  BE  REVOKED BY THE AUTHORITY FOR FAILURE TO ADHERE TO THE
 AUTHORITY'S RULES AND REGULATIONS.  SUCH  RULES  AND  REGULATIONS  SHALL
 AFFORD  THOSE WHO HAVE BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTU-
 NITY FOR A HEARING PRIOR TO ANY DETERMINATION OF  WHETHER  SUCH  CERTIF-
 ICATE SHOULD BE REVOKED.
   NO  LICENSEE  SHALL  BE  REQUIRED TO APPLY FOR ANY SUCH CERTIFICATE OR
 RENEWAL CERTIFICATE AND THE LICENSEE MAY VOLUNTARILY  SURRENDER  SUCH  A
 CERTIFICATE  OR  RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE AMOUNT OF
 NINE HUNDRED DOLLARS SHALL BE PAID TO THE AUTHORITY WITH  EACH  APPLICA-
 TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE.  THE AUTHORI-
 TY  SHALL PROMPTLY REFUND SUCH FEE TO AN APPLICANT WHOSE APPLICATION WAS
 DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
 FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
 VISION, THE AUTHORITY IS EMPOWERED TO  REQUIRE  IN  CONNECTION  WITH  AN
 APPLICATION  THE  SUBMISSION  OF  SUCH  INFORMATION AS THE AUTHORITY MAY
 DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS  WHICH  IT
 DEEMS  NECESSARY  TO  BE MADE BY ANY APPLICANT OR CERTIFICATE HOLDER; TO
 CONDUCT INVESTIGATIONS; TO REQUIRE THE MAINTENANCE  OF  SUCH  BOOKS  AND
 RECORDS  AS  THE AUTHORITY MAY DIRECT; AND TO REVOKE, CANCEL, OR SUSPEND
 FOR CAUSE ANY CERTIFICATE PROVIDED FOR IN THIS SUBDIVISION. EACH  ENTITY
 AUTHORIZED  TO  GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER
 TRAINING AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO ALL
 LICENSEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCO-
 HOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS  PROGRAM.  SUCH  ENTITY
 SHALL REGULARLY TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES
 OF  ATTENDANCE  OF  ALL  THE  LICENSEES  AND  EMPLOYEES OF LICENSEES WHO
 SUCCESSFULLY COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  USE  DISORDER
 TRAINING  AWARENESS  PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND
 MANNER PRESCRIBED BY THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES  AND
 REGULATIONS  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING
 THE MINIMUM REQUIREMENTS  FOR  THE  CURRICULUM  OF  EACH  SUCH  TRAINING
 PROGRAM  AND  THE  REGULAR ONGOING TRAINING OF EMPLOYEES HOLDING CERTIF-
 ICATES OF COMPLETION OR RENEWAL CERTIFICATES.    SUCH  RULES  AND  REGU-
 LATIONS SHALL INCLUDE THE MINIMUM REQUIREMENTS FOR A SEPARATE CURRICULUM
 FOR LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES
 AT RETAIL FOR OFF-PREMISES CONSUMPTION, MINIMUM REQUIREMENTS FOR A SEPA-
 RATE  CURRICULUM  FOR  LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL
 ALCOHOLIC BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION, AND THE  FORM
 OF  A  CERTIFICATE  OF  COMPLETION  OR  RENEWAL  THEREOF TO BE ISSUED IN
 RESPECT TO EACH SUCH TYPE OF PROGRAM. A  CERTIFICATE  OF  COMPLETION  OR
 RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN
 ALCOHOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS PROGRAM PURSUANT TO

 A. 1617                            64
 
 THIS  SUBDIVISION  TO  LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL
 ALCOHOLIC BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION SHALL NOT  BE
 INVALIDATED  BY  A  CHANGE  OF  EMPLOYMENT  TO  ANOTHER SUCH LICENSEE. A
 CERTIFICATE OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHOR-
 IZED  TO GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER TRAIN-
 ING AWARENESS PROGRAM PURSUANT TO  THIS  SUBDIVISION  TO  LICENSEES  AND
 THEIR  EMPLOYEES  AUTHORIZED  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
 ON-PREMISES CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF  EMPLOY-
 MENT  TO  ANOTHER  SUCH  LICENSEE.  ATTENDANCE AT ANY COURSE ESTABLISHED
 PURSUANT TO THIS SECTION SHALL BE IN PERSON, THROUGH  DISTANCE  LEARNING
 METHODS, OR THROUGH AN INTERNET BASED ONLINE PROGRAM.
   §  52.  Subdivision 12 of section 17 of the alcoholic beverage control
 law, as amended by chapter 549 of the laws of 2001,  the  closing  para-
 graph  as amended by chapter 435 of the laws of 2010, is amended to read
 as follows:
   12. To develop and establish minimum criteria for alcohol OR SUBSTANCE
 USE DISORDER training awareness programs which may be given and adminis-
 tered by schools; other  entities  including  trade  associations  whose
 members  are  engaged  in  or  involved  in the retail sale of alcoholic
 beverages; national and regional franchisors who have granted  at  least
 five  franchises  in the state which are licensed to sell beer at retail
 for off-premises consumption; licensees  authorized  to  sell  alcoholic
 beverages  at retail for off-premises consumption operating five or more
 licensed premises; and persons  interested,  whether  as  an  individual
 proprietor or partner or officer or member of a limited liability compa-
 ny,  in five or more licensees authorized to sell alcoholic beverages at
 retail for off-premises consumption. The authority shall provide for the
 issuance of  certificates  of  approval  to  all  certified  alcohol  OR
 SUBSTANCE  USE  DISORDER  training  awareness  programs. Certificates of
 approval may be revoked by the authority for failure to  adhere  to  the
 authority's  rules  and  regulations.  Such  rules and regulations shall
 afford those who have been issued a certificate of approval an  opportu-
 nity  for  a  hearing prior to any determination of whether such certif-
 icate should be revoked.
   No licensee shall be required to apply for  any  such  certificate  or
 renewal  certificate  and  the licensee may voluntarily surrender such a
 certificate or renewal certificate at any time. A fee in the  amount  of
 nine  hundred  dollars shall be paid to the authority with each applica-
 tion for a certificate of approval or renewal certificate. The authority
 shall promptly refund such fee to an  applicant  whose  application  was
 denied. Each certificate of approval and renewal thereof shall be issued
 for a period of three years. To effectuate the provisions of this subdi-
 vision,  the  authority  is  empowered  to require in connection with an
 application the submission of such  information  as  the  authority  may
 direct;  to  prescribe forms of applications and of all reports which it
 deems necessary to be made by any applicant or  certificate  holder;  to
 conduct  investigations;  to  require  the maintenance of such books and
 records as the authority may direct; to revoke, cancel, or  suspend  for
 cause  any  certificate  provided  for  in this subdivision. Each entity
 authorized to give and administer an alcohol OR SUBSTANCE  USE  DISORDER
 training awareness program shall issue certificates of completion to all
 licensees and employees who successfully complete such an approved alco-
 hol  OR  SUBSTANCE  USE DISORDER training awareness program. Such entity
 shall regularly transmit to the authority the names, addresses and dates
 of attendance of all  the  licensees  and  employees  of  licensees  who
 successfully  complete  an  approved  alcohol  OR SUBSTANCE USE DISORDER

 A. 1617                            65
 
 training awareness program.  Such transmittal shall be  in  a  form  and
 manner  prescribed by the authority. The authority shall adopt rules and
 regulations to effectuate the provisions of this subdivision,  including
 the  minimum  requirements  for  the  curriculum  of  each such training
 program and the regular ongoing training of  employees  holding  certif-
 icates of completion or renewal certificates. Such rules and regulations
 shall  include  the  minimum  requirements for a separate curriculum for
 licensees and their employees authorized to sell alcoholic beverages  at
 retail for off-premises consumption, minimum requirements for a separate
 curriculum for licensees and their employees authorized to sell alcohol-
 ic  beverages  at  retail for on-premises consumption, and the form of a
 certificate of completion or renewal thereof to be issued in respect  to
 each such type of program. A certificate of completion or renewal there-
 of  issued  by an entity authorized to give and administer an alcohol OR
 SUBSTANCE USE DISORDER  training  awareness  program  pursuant  to  this
 subdivision to licensees and their employees authorized to sell alcohol-
 ic beverages at retail for off-premises consumption shall not be invali-
 dated  by a change of employment to another such licensee. A certificate
 of completion or renewal thereof issued by an entity authorized to  give
 and  administer  an alcohol OR SUBSTANCE USE DISORDER training awareness
 program pursuant to this subdivision to licensees  and  their  employees
 authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
 consumption shall not be invalidated by a change of employment to anoth-
 er such licensee. Attendance at any course established pursuant to  this
 section  shall  be  in  person,  through  distance  learning methods, or
 through an internet based online program.
   § 53. Subdivision 10 of section 18 of the alcoholic  beverage  control
 law,  as  amended by chapter 118 of the laws of 2012, is amended to read
 as follows:
   10. To develop and establish minimum criteria for alcohol OR SUBSTANCE
 USE DISORDER training awareness programs which may be given and adminis-
 tered by schools; other  entities  including  trade  associations  whose
 members  are  engaged  in  or  involved  in the retail sale of alcoholic
 beverages; national and regional franchisors who have granted  at  least
 five  franchises  in the state which are licensed to sell beer at retail
 for off-premises consumption; licensees  authorized  to  sell  alcoholic
 beverages  at retail for off-premises consumption operating five or more
 licensed premises; and persons  interested,  whether  as  an  individual
 proprietor or partner or officer or member of a limited liability compa-
 ny,  in five or more licensees authorized to sell alcoholic beverages at
 retail for off-premises consumption. The authority shall provide for the
 issuance of  certificates  of  approval  to  all  certified  alcohol  OR
 SUBSTANCE  USE  DISORDER  training  awareness  programs. Certificates of
 approval may be revoked by the authority for failure to  adhere  to  the
 authority's  rules  and  regulations.  Such  rules and regulations shall
 afford those who have been issued a certificate of approval an  opportu-
 nity  for  a  hearing prior to any determination of whether such certif-
 icate should be revoked.
   No licensee shall be required to apply for  any  such  certificate  or
 renewal  certificate  and  the licensee may voluntarily surrender such a
 certificate or renewal certificate at any time. A fee in the  amount  of
 nine  hundred  dollars shall be paid to the authority with each applica-
 tion for a certificate of approval or renewal certificate. The authority
 shall promptly refund such fee to an  applicant  whose  application  was
 denied. Each certificate of approval and renewal thereof shall be issued
 for a period of three years. To effectuate the provisions of this subdi-

 A. 1617                            66
 
 vision,  the  authority  is  empowered  to require in connection with an
 application the submission of such  information  as  the  authority  may
 direct;  to  prescribe forms of applications and of all reports which it
 deems  necessary  to  be made by any applicant or certificate holder; to
 conduct investigations; to require the maintenance  of  such  books  and
 records  as  the authority may direct; to revoke, cancel, or suspend for
 cause any certificate provided for  in  this  subdivision.  Each  entity
 authorized  to  give and administer an alcohol OR SUBSTANCE USE DISORDER
 training awareness program shall issue certificates of completion to all
 licensees and employees who successfully complete such an approved alco-
 hol OR SUBSTANCE USE DISORDER training awareness  program.  Such  entity
 shall regularly transmit to the authority the names, addresses and dates
 of  attendance  of  all  the  licensees  and  employees of licensees who
 successfully complete an approved  alcohol  OR  SUBSTANCE  USE  DISORDER
 training  awareness  program.    Such transmittal shall be in a form and
 manner prescribed by the authority. The authority shall adopt rules  and
 regulations  to effectuate the provisions of this subdivision, including
 the minimum requirements  for  the  curriculum  of  each  such  training
 program  and  the  regular ongoing training of employees holding certif-
 icates of completion or renewal certificates. Such rules and regulations
 shall include the minimum requirements for  a  separate  curriculum  for
 licensees  and their employees authorized to sell alcoholic beverages at
 retail for off-premises consumption, minimum requirements for a separate
 curriculum for licensees and their employees authorized to sell alcohol-
 ic beverages at retail for on-premises consumption, and the  form  of  a
 certificate  of completion or renewal thereof to be issued in respect to
 each such type of program. A certificate of completion or renewal there-
 of issued by an entity authorized to give and administer an  alcohol  OR
 SUBSTANCE  USE  DISORDER  training  awareness  program  pursuant to this
 subdivision to licensees and their employees authorized to sell alcohol-
 ic beverages at retail for off-premises consumption shall not be invali-
 dated by a change of employment to another such licensee. A  certificate
 of  completion or renewal thereof issued by an entity authorized to give
 and administer an alcohol OR SUBSTANCE USE DISORDER  training  awareness
 program  pursuant  to  this subdivision to licensees and their employees
 authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
 consumption shall not be invalidated by a change of employment to anoth-
 er  such licensee. Attendance at any course established pursuant to this
 section shall be  in  person,  through  distance  learning  methods,  or
 through an internet based online program.
   §  54.  Section  18 of the alcoholic beverage control law, as added by
 chapter 83 of the laws of 1995, is amended by adding a  new  subdivision
 10 to read as follows:
   10. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
 USE DISORDER TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINIS-
 TERED  BY  SCHOOLS;  OTHER  ENTITIES  INCLUDING TRADE ASSOCIATIONS WHOSE
 MEMBERS ARE ENGAGED IN OR INVOLVED  IN  THE  RETAIL  SALE  OF  ALCOHOLIC
 BEVERAGES;  NATIONAL  AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST
 FIVE FRANCHISES IN THE STATE WHICH ARE LICENSED TO SELL BEER  AT  RETAIL
 FOR  OFF-PREMISES  CONSUMPTION;  LICENSEES  AUTHORIZED TO SELL ALCOHOLIC
 BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR  MORE
 LICENSED  PREMISES;  AND  PERSONS  INTERESTED,  WHETHER AS AN INDIVIDUAL
 PROPRIETOR OR PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPA-
 NY, IN FIVE OR MORE LICENSEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
 RETAIL FOR OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR THE
 ISSUANCE  OF  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  ALCOHOL OR

 A. 1617                            67
 
 SUBSTANCE USE DISORDER  TRAINING  AWARENESS  PROGRAMS.  CERTIFICATES  OF
 APPROVAL  MAY  BE  REVOKED BY THE AUTHORITY FOR FAILURE TO ADHERE TO THE
 AUTHORITY'S RULES AND REGULATIONS.  SUCH  RULES  AND  REGULATIONS  SHALL
 AFFORD  THOSE WHO HAVE BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTU-
 NITY FOR A HEARING PRIOR TO ANY DETERMINATION OF  WHETHER  SUCH  CERTIF-
 ICATE SHOULD BE REVOKED.
   NO  LICENSEE  SHALL  BE  REQUIRED TO APPLY FOR ANY SUCH CERTIFICATE OR
 RENEWAL CERTIFICATE AND THE LICENSEE MAY VOLUNTARILY  SURRENDER  SUCH  A
 CERTIFICATE  OR  RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE AMOUNT OF
 NINE HUNDRED DOLLARS SHALL BE PAID TO THE AUTHORITY WITH  EACH  APPLICA-
 TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE. THE AUTHORITY
 SHALL  PROMPTLY  REFUND  SUCH  FEE TO AN APPLICANT WHOSE APPLICATION WAS
 DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
 FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
 VISION, THE AUTHORITY IS EMPOWERED TO  REQUIRE  IN  CONNECTION  WITH  AN
 APPLICATION  THE  SUBMISSION  OF  SUCH  INFORMATION AS THE AUTHORITY MAY
 DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS  WHICH  IT
 DEEMS  NECESSARY  TO  BE MADE BY ANY APPLICANT OR CERTIFICATE HOLDER; TO
 CONDUCT INVESTIGATIONS; TO REQUIRE THE MAINTENANCE  OF  SUCH  BOOKS  AND
 RECORDS  AS  THE AUTHORITY MAY DIRECT; TO REVOKE, CANCEL, OR SUSPEND FOR
 CAUSE ANY CERTIFICATE PROVIDED FOR  IN  THIS  SUBDIVISION.  EACH  ENTITY
 AUTHORIZED  TO  GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER
 TRAINING AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO ALL
 LICENSEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCO-
 HOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS  PROGRAM.  SUCH  ENTITY
 SHALL REGULARLY TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES
 OF  ATTENDANCE  OF  ALL  THE  LICENSEES  AND  EMPLOYEES OF LICENSEES WHO
 SUCCESSFULLY COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  USE  DISORDER
 TRAINING  AWARENESS  PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND
 MANNER PRESCRIBED BY THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES  AND
 REGULATIONS  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING
 THE MINIMUM REQUIREMENTS  FOR  THE  CURRICULUM  OF  EACH  SUCH  TRAINING
 PROGRAM  AND  THE  REGULAR ONGOING TRAINING OF EMPLOYEES HOLDING CERTIF-
 ICATES OF COMPLETION OR RENEWAL CERTIFICATES. SUCH RULES AND REGULATIONS
 SHALL INCLUDE THE MINIMUM REQUIREMENTS FOR  A  SEPARATE  CURRICULUM  FOR
 LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES AT
 RETAIL FOR OFF-PREMISES CONSUMPTION, MINIMUM REQUIREMENTS FOR A SEPARATE
 CURRICULUM FOR LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOL-
 IC BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION, AND THE  FORM  OF  A
 CERTIFICATE  OF COMPLETION OR RENEWAL THEREOF TO BE ISSUED IN RESPECT TO
 EACH SUCH TYPE OF PROGRAM. A CERTIFICATE OF COMPLETION OR RENEWAL THERE-
 OF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN  ALCOHOL  OR
 SUBSTANCE  USE  DISORDER  TRAINING  AWARENESS  PROGRAM  PURSUANT TO THIS
 SUBDIVISION TO LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOL-
 IC BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION SHALL NOT BE INVALI-
 DATED BY A CHANGE OF EMPLOYMENT TO ANOTHER SUCH LICENSEE.  A CERTIFICATE
 OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO  GIVE
 AND  ADMINISTER  AN ALCOHOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS
 PROGRAM PURSUANT TO THIS SUBDIVISION TO LICENSEES  AND  THEIR  EMPLOYEES
 AUTHORIZED  TO  SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR  ON-PREMISES
 CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF EMPLOYMENT TO ANOTH-
 ER SUCH LICENSEE.  ATTENDANCE AT ANY COURSE ESTABLISHED PURSUANT TO THIS
 SECTION SHALL BE  IN  PERSON,  THROUGH  DISTANCE  LEARNING  METHODS,  OR
 THROUGH AN INTERNET BASED ONLINE PROGRAM.
   § 55. Section 150.75 of the criminal procedure law is REPEALED.

 A. 1617                            68

   §  56.  Subdivision  (a)  of  section  712 of the family court act, as
 amended by section 7 of part G of chapter 58 of the  laws  of  2010,  is
 amended to read as follows:
   (a) "Person in need of supervision". A person less than eighteen years
 of  age  who does not attend school in accordance with the provisions of
 part one of article sixty-five of the education law or who is incorrigi-
 ble, ungovernable  or  habitually  disobedient  and  beyond  the  lawful
 control of a parent or other person legally responsible for such child's
 care,  or  other  lawful  authority,  or  who violates the provisions of
 section [221.05 or] 230.00 of the penal law, or  who  appears  to  be  a
 sexually  exploited  child  as  defined  in paragraph (a), (c) or (d) of
 subdivision one of section four  hundred  forty-seven-a  of  the  social
 services law, but only if the child consents to the filing of a petition
 under this article.
   §  57.  The state finance law is amended by adding a new section 99-ii
 to read as follows:
   § 99-II. MARIHUANA MICROBUSINESS AND MARIHUANA LICENSE REVOLVING  LOAN
 FUND.  1.  THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMP-
 TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE  KNOWN
 AS  THE  MARIHUANA  MICROBUSINESS  AND  MARIHUANA LICENSE REVOLVING LOAN
 FUND.
   2. THE FUND SHALL CONSIST OF ALL MONIES APPROPRIATED FOR ITS  PURPOSE,
 ALL  MONIES  TRANSFERRED  TO  SUCH  FUND  PURSUANT TO LAW AND ALL MONIES
 REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW TO  BE  PAID
 INTO OR CREDITED TO THIS FUND, INCLUDING ALL MONIES RECEIVED BY THE FUND
 OR  DONATED  TO  IT. MONIES IN THE FUND SHALL BE KEPT SEPARATE AND SHALL
 NOT BE COMMINGLED  WITH  ANY  OTHER  MONIES  OTHERWISE  APPROPRIATED  OR
 RECEIVED EXCEPT AS HEREBY PROVIDED.
   3.  MONIES  OF  THE  FUND,  WHEN  ALLOCATED, SHALL BE AVAILABLE TO THE
 BUREAU OF MARIHUANA POLICY FOR THE PURPOSE  OF  PROVIDING  LOW  INTEREST
 LOANS  TO  INDIVIDUALS AND BUSINESSES INTERESTED IN ESTABLISHING A MARI-
 HUANA MICROBUSINESS OR OTHERWISE OBTAINING A LICENSE AVAILABLE FROM  THE
 BUREAU OF MARIHUANA POLICY AND PARTICIPATING IN THE MARIHUANA INDUSTRY.
   4.  THE  BUREAU  OF MARIHUANA POLICY SHALL ESTABLISH THROUGH RULES AND
 REGULATIONS GUIDELINES NECESSARY  TO  ADMINISTER  THE  FUND.  GUIDELINES
 SHALL  INCLUDE, BUT NOT BE LIMITED TO: QUALIFICATIONS AND CONDITIONS FOR
 ASSISTANCE; TERMS OF LOAN OR INSTALLMENT PAYMENTS AND FINANCE CHARGES ON
 INSTALLMENT PAYMENTS AT RATES OF  INTEREST  WHICH,  NOTWITHSTANDING  ANY
 OTHER  PROVISION OF LAW, ARE OF THE LOWEST RATE POSSIBLE TO MAINTAIN THE
 FUND; PRIORITIZE LOANS TO PROMOTE RACIAL, ETHNIC, AND  GENDER  DIVERSITY
 IN  LICENSES  FOR  MARIHUANA RELATED ACTIVITIES; AND ANY OTHER TERMS AND
 CONDITIONS THE BUREAU MAY REQUIRE AS NECESSARY  TO  PROPERLY  EFFECTUATE
 THE PROVISIONS OF THIS SECTION.
   5. THE BUREAU OF MARIHUANA POLICY SHALL MAKE PUBLIC BY SEPTEMBER FIRST
 OF  EACH YEAR A REPORT INCLUDING, BUT NOT LIMITED TO: THE CURRENT GUIDE-
 LINES OF THE FUND; A COMPLETE FINANCIAL  STATEMENT  INCLUDING,  BUT  NOT
 LIMITED  TO,  MONIES ALLOCATED, COLLECTED, TRANSFERRED OR OTHERWISE PAID
 OR CREDITED TO THE FUND; A PROJECTED SCHEDULE OF DISBURSEMENTS, RECEIPTS
 AND NEEDS OF THE FUND FOR THE NEXT FISCAL YEAR; AND THE NAMES AND  BUSI-
 NESS ADDRESSES OF EACH CURRENT LOAN RECIPIENT.
   6.  NO MONIES SHALL BE PAYABLE FROM THIS FUND, EXCEPT ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER ON VOUCHERS CERTIFIED AND  SUBMITTED  BY  THE
 BUREAU OF MARIHUANA POLICY.
   §  58. Appropriation.  The sum of five million dollars ($5,000,000) is
 hereby appropriated to the New York State Liquor Authority  out  of  any
 moneys  in  the  state treasury in the general fund to the credit of the

 A. 1617                            69
 
 state purposes account, not otherwise appropriated, and made immediately
 available, for the purpose of carrying out the provisions of  this  act.
 Such moneys shall be payable on the audit and warrant of the comptroller
 on  vouchers certified or approved by the superintendent or the chairman
 of the New York State Liquor Authority in the manner prescribed by law.
   § 59. Severability. If any provision or term of this act  is  for  any
 reason  declared unconstitutional or invalid or ineffective by any court
 of competent jurisdiction, such decision shall not affect  the  validity
 of  the  effectiveness of the remaining portions of this act or any part
 thereof.
   § 60. This act shall take effect immediately; provided, however,  that
 the  amendments to section 17 of the alcoholic beverage control law made
 by section fifty-one of this act shall not  affect  the  expiration  and
 reversion of such section and shall expire and be deemed repealed there-
 with,  when  upon  such date the provisions of section fifty-two of this
 act shall take effect; provided further, however, that the amendments to
 section 18 of the alcoholic beverage control law made by section  fifty-
 three  of this act shall not affect the expiration and reversion of such
 section and shall expire and be deemed  repealed  therewith,  when  upon
 such  date  the  provisions of section fifty-four of this act shall take
 effect.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1617--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2019
                                ___________
 
 Introduced  by  M.  of  A.  PEOPLES-STOKES,  GOTTFRIED, LUPARDO, WRIGHT,
   WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE, L. ROSENTHAL, JAFFEE, DINOW-
   ITZ, JEAN-PIERRE, ABINANTI, RICHARDSON, HEVESI, WALKER,  VANEL,  NIOU,
   BICHOTTE, CAHILL, LIFTON, EPSTEIN, QUART, ORTIZ, REYES, DICKENS, FRON-
   TUS,  CRUZ,  SOLAGES,  RAYNOR,  RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
   DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS -- Multi-Sponsored
   by -- M. of A.  MOSLEY, SEAWRIGHT, SIMON, STECK, TAYLOR --  read  once
   and  referred  to the Committee on Codes -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN ACT in relation to constituting chapter 7-A of the consolidated laws,
   in relation to the creation of a new office of cannabis management, as
   an  independent  entity  within  the  division  of  alcoholic beverage
   control, providing for the licensure of persons authorized  to  culti-
   vate, process, distribute and sell cannabis and the use of cannabis by
   persons  aged  twenty-one or older; to amend the public health law, in
   relation to the description of cannabis; to amend the  penal  law,  in
   relation  to  the  growing  and  use of cannabis by persons twenty-one
   years of age or older; to amend the tax law, in relation to  providing
   for  the levying of taxes on cannabis; to amend the criminal procedure
   law, the civil practice law and rules, the general business  law,  the
   state  finance  law,  the  executive law, the penal law, the alcoholic
   beverage control law, the general obligations law, the social services
   law, the agriculture and markets law and the vehicle and traffic  law,
   in  relation  to making conforming changes; to amend the public health
   law, in relation to the definition of  smoking;  to  amend  the  state
   finance  law,  in relation to establishing the New York state cannabis
   revenue fund, the New York state drug treatment and  public  education
   fund  and  the  New  York state community grants reinvestment fund; to
   amend chapter 90 of the laws of 2014 amending the public  health  law,
   the  tax  law,  the  state  finance law, the general business law, the
   penal law and the criminal procedure law relating to  medical  use  of
   marihuana, in relation to the effectiveness thereof; to repeal certain
   provisions  of  the  public health law relating to growing of cannabis
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07592-05-9

 A. 1617--A                          2
 
   and medical use of marihuana; to repeal article 221 of the  penal  law
   relating  to  offenses involving marihuana; to repeal paragraph (f) of
   subdivision 2 of section 850 of the general business law  relating  to
   drug related paraphernalia; to repeal certain provisions of the crimi-
   nal  procedure law relating to certain criminal actions; and to repeal
   certain provisions of the agriculture  and  markets  law  relating  to
   industrial hemp
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "marihuana
 regulation and taxation act".
   §  2.  Chapter  7-A  of  the  consolidated laws is enacted, to read as
 follows:
 
                   CHAPTER 7-A OF THE CONSOLIDATED LAWS
                               CANNABIS LAW
                                 ARTICLE 1
               SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
                                DEFINITIONS
 
 Section 1. Short title.
         2. Legislative findings and intent
         3. Definitions.

   Section 1. Short title.  This chapter shall be known and may be  cited
 and referred to as the "cannabis law".
   §  2.  Legislative  findings  and intent.   The legislature finds that
 existing marihuana laws have not been beneficial to the welfare  of  the
 general public. Existing laws have been ineffective in reducing or curb-
 ing  marihuana  use  and have instead resulted in devastating collateral
 consequences that inhibit an otherwise law-abiding citizen's ability  to
 access  housing,  employment  opportunities,  and  other vital services.
 Existing laws have also created an illicit  market  which  represents  a
 threat  to  public  health and reduces the ability of the legislature to
 deter the accessing of marihuana by minors. Existing marihuana laws have
 also disproportionately impacted African-American  and  Latino  communi-
 ties.
   The intent of this act is to regulate, control, and tax marihuana in a
 manner  similar to alcohol, generate millions of dollars in new revenue,
 prevent access to marihuana by those under the age of twenty-one  years,
 reduce  the illegal drug market and reduce violent crime, reduce partic-
 ipation of otherwise law-abiding citizens in the illicit market, end the
 racially disparate impact of existing  marihuana  laws  and  create  new
 industries and increase employment.
   Nothing in this act is intended to limit the authority of any district
 government  agency  or office or employers to enact and enforce policies
 pertaining to marihuana in the workplace, to  allow  driving  under  the
 influence  of  marihuana, to allow individuals to engage in conduct that
 endangers others, to allow smoking marihuana in any location where smok-
 ing tobacco is prohibited, or to require any individual to engage in any
 conduct that violates federal law or to exempt anyone from any  require-
 ment  of  federal law or pose any obstacle to the federal enforcement of
 federal law.

 A. 1617--A                          3
 
   It is the intent of this act that no child shall be the subject  of  a
 child  neglect  or  abuse  investigation or proceeding based solely on a
 parent's alleged marihuana use, or activity made lawful by this act.   A
 newborn  child's positive toxicology result for marihuana, is not suffi-
 cient  on its own to support a finding of child neglect or abuse. Enact-
 ment of this act shall provide sufficient basis for New  York  state  to
 favorably resolve open investigations and to amend and seal individuals'
 family  court  records  and  records of indicated child abuse or neglect
 reports currently in the statewide central register of child  abuse  and
 maltreatment  based solely on the use of marihuana or where the reporter
 of suspected abuse or neglect was a  law  enforcement  agency  or  staff
 person  and  the  report  was  based solely upon the presence of a child
 during a marihuana-related arrest.
   § 3. Definitions. Whenever used  in  this  chapter,  unless  otherwise
 expressly  stated  or  unless  the  context or subject matter requires a
 different meaning, the following terms  shall  have  the  representative
 meanings hereinafter set forth or indicated:
   1.  "Applicant"  means  a  resident  of New York state aged twenty-one
 years or older applying for any cannabis or hemp license or special  use
 permit issued by the office of cannabis management.
   2.  "Cannabinoid  extractor"  means a person licensed by the office to
 acquire, possess, extract and manufacture hemp  cannabis  from  licensed
 cannabinoid  growers  for  the  manufacture  and  sale  of hemp cannabis
 products marketed for cannabinoid content and used or intended for human
 or animal consumption or use.
   3. "Cannabinoid grower" means a person licensed by the office, and  in
 compliance  with article twenty-nine of the agriculture and markets law,
 to acquire, possess, cultivate, and sell hemp cannabis for its  cannabi-
 noid content.
   4.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
 whether growing or not; the seeds thereof; the resin extracted from  any
 part  of  the  plant; and every compound, manufacture, salt, derivative,
 mixture, or preparation of the plant, its seeds or resin.   It does  not
 include  the mature stalks of the plant, fiber produced from the stalks,
 oil or cake made from the seeds of the plant, any other compound,  manu-
 facture,  salt, derivative, mixture, or preparation of the mature stalks
 (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
 sterilized seed of the plant which is incapable of germination.  It does
 not include hemp cannabis as defined by this section.
   5. "Cannabis consumer" means a person twenty-one years of age or older
 acting in accordance with any provision of this chapter.
   6. "Cannabis flower" means the flower of a plant of the genus Cannabis
 that  has  been harvested, dried, and cured, and prior to any processing
 whereby the plant material is transformed into a concentrate, including,
 but not limited to, concentrated cannabis, or an edible or topical prod-
 uct containing cannabis or concentrated cannabis and other  ingredients.
 Cannabis flower excludes leaves and stem.
   7.  "Cannabis product" or "adult-use cannabis" means cannabis, concen-
 trated cannabis, and cannabis-infused products for  use  by  a  cannabis
 consumer.
   8.  "Cannabis-infused products" means products that have been manufac-
 tured and contain either cannabis or  concentrated  cannabis  and  other
 ingredients that are intended for use or consumption.
   9.  "Cannabis trim" means all parts of the plant of the genus Cannabis
 other than cannabis flower that have been harvested, dried,  and  cured,
 but prior to any further processing.

 A. 1617--A                          4
 
   10.  "Caring for" means treating a patient, in the course of which the
 practitioner has completed a full assessment of  the  patient's  medical
 history and current medical condition.
   11. "Certification" means a certification made under this chapter.
   12.  "Certified medical use" includes the acquisition, administration,
 cultivation, manufacture, delivery,  harvest,  possession,  preparation,
 transfer,  transportation,  or use of cannabis or paraphernalia relating
 to the administration of cannabis to  treat  or  alleviate  a  certified
 patient's  medical  condition  or symptoms associated with the patient's
 medical condition.
   13. "Certified patient" means a patient who is a resident of New  York
 state or receiving care and treatment in New York state as determined by
 the  executive director in regulation, and is certified under this chap-
 ter.
   14. "Commercial cannabis activity" means the production,  cultivation,
 manufacturing,  processing,  possession,  storing,  laboratory  testing,
 packaging, labeling, transportation, delivery, or sale of  cannabis  and
 cannabis products as provided for in this chapter.
   15.  "Concentrated  cannabis"  means: (a) the separated resin, whether
 crude or purified, obtained from a plant of the genus Cannabis; or (b) a
 material,  preparation,  mixture,  compound  or  other  substance  which
 contains more than three percent by weight of delta-9 tetrahydrocannabi-
 nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
 tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
 system.
   16.  "Condition" means having one of the following conditions: cancer,
 positive status for human  immunodeficiency  virus  or  acquired  immune
 deficiency syndrome, amyotrophic lateral sclerosis, 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, neuropathies,  Huntington's  disease,  post-
 traumatic  stress  disorder,  pain  that  degrades health and functional
 capability where the use of medical cannabis is an alternative to opioid
 use, substance use disorder, Alzheimer's, muscular dystrophy,  dystonia,
 rheumatoid  arthritis,  autism  or  any other condition certified by the
 practitioner.
   17. "Cultivation" means growing, cloning, harvesting, drying,  curing,
 grading, and trimming of cannabis plants for sale to certain other cate-
 gories of cannabis license- and permit-holders.
   18.  "Delivery"  means  the  direct delivery of cannabis products by a
 retail licensee, microbusiness licensee, or delivery permit holder to  a
 cannabis consumer.
   19.  "Designated caregiver facility" means a general hospital or resi-
 dential health care facility operating pursuant to article  twenty-eight
 of  the  public health law; an adult care facility operating pursuant to
 title two of article seven of  the  social  services  law;  a  community
 mental  health  residence  established  pursuant to section 41.44 of the
 mental hygiene law; a hospital operating pursuant to section 7.17 of the
 mental hygiene law; a mental  hygiene  facility  operating  pursuant  to
 article  thirty-one  of the mental hygiene law; an inpatient or residen-
 tial treatment program certified pursuant to article thirty-two  of  the
 mental hygiene law; a residential facility for the care and treatment of
 persons  with  developmental  disabilities operating pursuant to article
 sixteen of the mental hygiene law; a residential treatment facility  for
 children  and  youth  operating  pursuant  to  article thirty-one of the
 mental hygiene law; a private or  public  school;  research  institution

 A. 1617--A                          5

 with  an  internal  review board; or any other facility as determined by
 the executive director in regulation; that registers with the office  to
 assist  one or more certified patients with the acquisition, possession,
 delivery, transportation or administration of medical cannabis.
   20.  "Designated caregiver" means an individual designated by a certi-
 fied patient in a registry application. A certified patient  may  desig-
 nate  up  to five designated caregivers.  The five designated caregivers
 need not include  the  employees  of  a  designated  caregiver  facility
 already authorized to assist certified patients.
   21. "Distributor" means any person who sells at wholesale any cannabis
 product,  except  medical  cannabis,  for the sale of which a license is
 required under the provisions of this chapter.
   22. "Executive director" means the executive director of the office of
 cannabis management.
   23. "Form of medical cannabis" means characteristics  of  the  medical
 cannabis  recommended  or  limited  for  a particular certified patient,
 including the method of consumption and any particular strain,  variety,
 and quantity or percentage of cannabis or particular active ingredient.
   24. "Hemp cannabis" means the plant Cannabis sativa L. and any part of
 such  plant,  including the seeds thereof and all derivatives, extracts,
 cannabinoids, isomers, acids, salts, and salts of isomers, whether grow-
 ing or not, with a delta-9  tetrahydrocannabinol  concentration  of  not
 more  than  an  amount  determined  by the office in regulation, used or
 intended for human or animal consumption  or  use  for  its  cannabinoid
 content,  as  determined  by  the executive director in regulation. Hemp
 cannabis excludes industrial hemp used or intended  exclusively  for  an
 industrial purpose.
   25.  "Industrial hemp" means the plant Cannabis sativa L. and any part
 of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
 extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
 whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
 tration  of  not  more  than three-tenths of one percent on a dry weight
 basis, used or intended for an industrial purpose.
   26. "Labor peace agreement" means an agreement between an entity and a
 labor organization that, at a minimum, protects the state's  proprietary
 interests  by  prohibiting labor organizations and members from engaging
 in picketing, work stoppages, boycotts, and any other economic interfer-
 ence with the registered organization's business.
   27. "Laboratory testing facility"  means  any  independent  laboratory
 capable  of  testing  cannabis  and  cannabis products for adult-use and
 medical-use; hemp cannabis; or for all categories of cannabis and canna-
 bis products as per regulations set forth by the office.
   28. "License" means a written authorization issued by  the  office  of
 cannabis management permitting persons to engage in a specified activity
 with respect to controlled substances.
   29.  "Medical  cannabis"  means  cannabis  as defined in this section,
 intended for a certified medical use, as  determined  by  the  executive
 director in consultation with the commissioner of health.
   30.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
 producer for the cultivation of cannabis, a cannabis  processor,  and  a
 cannabis  retailer  under  this article; provided such licensee complies
 with all requirements imposed by this  article  on  licensed  producers,
 processors,  and  retailers  to  the extent the licensee engages in such
 activities. A "microbusiness" may distribute its cannabis  and  cannabis
 products  to other licensed cannabis businesses and may deliver cannabis
 and cannabis products to customers.

 A. 1617--A                          6
 
   31. "Nursery" means a licensee that  produces  only  clones,  immature
 plants, seeds, and other agricultural products used specifically for the
 planting, propagation, and cultivation of cannabis.
   32.  "Office"  or  "office  of cannabis management" means the New York
 state office of cannabis management.
   33. "On-site consumption" means the consumption of cannabis in an area
 licensed for such activity by the office.
   34. "Owner" means an individual with an aggregate  ownership  interest
 of  twenty  percent  or more in a cannabis business licensed pursuant to
 this chapter, unless such interest is solely a security, lien, or encum-
 brance, or an individual that will be participating  in  the  direction,
 control, or management of the licensed cannabis business.
   35.  "Package"  means  any  container  or  receptacle used for holding
 cannabis or cannabis products.
   36. "Permit" means a permit issued pursuant to this chapter.
   37. "Permittee" means any person to whom  a  permit  has  been  issued
 pursuant to this chapter.
   38.  "Practitioner"  means  a  practitioner  who: (i) is authorized to
 prescribe controlled substances within the state, (ii)  by  training  or
 experience  is  qualified  to  treat patients; and (iii) completes, at a
 minimum, a two-hour course as determined by the  executive  director  in
 regulation.    A person's status as a practitioner under this chapter is
 deemed to be a "license" for purposes of  section  thirty-three  hundred
 ninety of the public health law and shall be subject to the same revoca-
 tion process.
   39.  "Processor"  means  a  licensee that compounds, blends, extracts,
 infuses, or otherwise manufactures  concentrated  cannabis  or  cannabis
 products,  but  not  the  cultivation  of  the cannabis contained in the
 cannabis product.
   40. "Registered organization" means an organization  registered  under
 article four of this chapter.
   41. "Registry application" means an application properly completed and
 filed  with  the  office  of  cannabis management by a certified patient
 under article three of this chapter.
   42. "Registry identification card" means a document that identifies  a
 certified  patient or designated caregiver, as provided under this chap-
 ter.
   43. "Retail sale" means to solicit or receive an order for, to keep or
 expose for sale, and to keep with intent to sell, made  by  any  person,
 whether  principal,  proprietor,  agent,  or  employee, of any cannabis,
 cannabis product, or hemp cannabis product to a  cannabis  consumer  for
 any purpose other than resale.
   44. "Retailer" means any person who sells at retail any cannabis prod-
 uct,  the  sale  of  which a license is required under the provisions of
 this chapter.
   45. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other  matter  or  substance  which  contains  tobacco  or  cannabis
 provided  that  it  does  not  include  the use of an electronic smoking
 device that creates an aerosol or vapor, unless local or state  statutes
 extend prohibitions on smoking to electronic smoking devices.
   46.  "Warehouse" means and includes a place in which cannabis products
 are housed or stored.
   47. "Wholesale" means to solicit or receive an order for, to  keep  or
 expose  for  sale,  and to keep with intent to sell, made by any person,
 whether principal, proprietor, agent,  or  employee  of  any  adult-use,
 medical-use, or hemp cannabis product for purposes of resale.

 A. 1617--A                          7
 
                                 ARTICLE 2
               NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
 
 Section 9. Establishment of an office of cannabis management.
         10. Executive director.
         11. Functions,  powers  and  duties  of the office and executive
               director.
         12. Rulemaking authority.
         13. State cannabis advisory board.
         14. Disposition of moneys received for license fees.
         15. Legal presumptions.
         16. Violations of cannabis laws or  regulations;  penalties  and
               injunctions.
         17. Formal hearings; notice and procedure.
         18. Ethics, transparency and accountability.
   § 9. Establishment of an office of cannabis management. There is here-
 by  established,  within  the division of alcoholic beverage control, an
 independent office of cannabis management, which  shall  have  exclusive
 jurisdiction to exercise the powers and duties provided by this chapter.
 The  office  shall  exercise  its  authority by and through an executive
 director.
   § 10. Executive director.  The executive director shall  be  appointed
 by  the  governor and confirmed by the senate. The executive director of
 the state office of cannabis management shall receive an  annual  salary
 not to exceed an amount appropriated therefor by the legislature and his
 or  her expenses actually and necessarily incurred in the performance of
 official duties, unless otherwise provided by the legislature.
   § 11. Functions, powers and duties of the office and executive  direc-
 tor.    The  office of cannabis management, by and through its executive
 director, shall have the following powers and duties:
   1. To issue or refuse to issue any  registration,  license  or  permit
 provided for in this chapter.
   2. To issue temporary or provisional licenses.
   3.  To limit, or not to limit, in the executive director's discretion,
 the number of registrations, licenses and permits of each  class  to  be
 issued  within  the  state  or any political subdivision thereof, and in
 connection therewith to prohibit the acceptance of applications for such
 classes which have been so limited.   Such  limitations  shall  consider
 consumer access, market demand, and geographic diversity.
   4.  To  develop  testing standards and certify testing laboratories in
 the state.
   5. To regulate advertising, marketing, branding, packaging, and label-
 ing, including regulating the accuracy of information about cannabis and
 cannabis products and restricting marketing and advertising to youth.
   6. To revoke, cancel or suspend for cause any  registration,  license,
 or permit issued under this chapter and/or to impose a civil penalty for
 cause  against  any  holder of a registration, license, or permit issued
 pursuant to this chapter.
   7. To fix by rule the  standards  of  cultivation  and  processing  of
 medical  cannabis,  adult  use cannabis and hemp cannabis, including but
 not limited to, the  ability  to  regulate  potency  and  the  types  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 cannabis, adult use canna-
 bis, and hemp cannabis to be sold or consumed in the state.

 A. 1617--A                          8
 
   8.  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.
   9. To appoint any necessary directors, deputies, counsels, assistants,
 investigators,  and other employees within the limits provided by appro-
 priation.  Investigators so employed by the office shall be deemed to be
 peace officers for the purpose of enforcing the provisions of the canna-
 bis control law or judgements or orders obtained for violation  thereof,
 with  all the powers set forth in section 2.20 of the criminal procedure
 law.
   10. To remove any employee of the office for cause, after giving  such
 employee  a  copy  of  the charges against him or her in writing, and an
 opportunity to be heard thereon. Any action taken under this subdivision
 shall be subject to and in accordance with the civil service law.
   11. To inspect or provide for the inspection at any time of any  prem-
 ises  where  medical  cannabis,  adult use cannabis, or hemp cannabis is
 cultivated, processed, stored, distributed or sold.
   12. To prescribe forms of applications for registrations, licenses and
 permits under this chapter and of all reports deemed  necessary  by  the
 office.
   13.  To  delegate  the  powers  provided in this section to such other
 officers or employees or other state agencies as may be deemed appropri-
 ate by the executive director.
   14. To appoint such advisory groups and committees  as  the  executive
 director  deems  necessary  to provide assistance to the office to carry
 out the purposes and objectives of this chapter.
   15. To exercise the powers and perform the duties in relation  to  the
 administration of the office as are necessary but not specifically vest-
 ed  by  this  chapter, including but not limited to budgetary and fiscal
 matters.
   16. To develop and establish minimum criteria for certifying employees
 to work in the cannabis  industry,  including  the  establishment  of  a
 cannabis workers certification program.
   17.  To  enter  into contracts, memoranda of understanding, and agree-
 ments as deemed appropriate by the executive director to effectuate  the
 policy and purpose of this chapter.
   18.  To  issue  and  administer low interest or zero-interest loans to
 qualified social equity applicants.
   19. If the executive director finds that  public  health,  safety,  or
 welfare imperatively requires emergency action, and incorporates a find-
 ing  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 executive director may 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.
   20.  To  issue regulations, declaratory rulings, guidance and industry
 advisories.
   § 12. Rulemaking authority.  1. The office shall  perform  such  acts,
 prescribe  such  forms and propose such rules, regulations and orders as
 it may deem necessary or proper to fully effectuate  the  provisions  of
 this chapter.

 A. 1617--A                          9
 
   2. The office shall have the power to promulgate any and all necessary
 rules  and  regulations governing the cultivation, manufacture, process-
 ing,  transportation,  distribution,  testing,  delivery,  and  sale  of
 medical  cannabis,  adult use cannabis, and hemp cannabis, including but
 not  limited  to the registration of organizations authorized to traffic
 in medical cannabis, the licensing and/or permitting of adult-use canna-
 bis cultivators, processors, cooperatives,  distributors,  laboratories,
 and retailers, and the licensing of hemp cannabis producers and process-
 ors, including, but not limited to:
   (a) prescribing forms and establishing application, reinstatement, and
 renewal fees;
   (b)  the  qualifications  and  selection  criteria  for  registration,
 licensing, or permitting;
   (c) the books and records to be created and maintained  by  registered
 organizations,  licensees,  and  permittees, including the reports to be
 made thereon to the office, and inspection of  any  and  all  books  and
 records maintained by any registered organization, licensee, or permitee
 and  on the premise of any registered organization, licensee, or permit-
 tee;
   (d) methods of producing, processing, and packaging cannabis,  medical
 cannabis,  cannabis-infused  products,  concentrated  cannabis, and hemp
 cannabis; conditions of sanitation, and standards of ingredients, quali-
 ty, and identity of cannabis products cultivated,  processed,  packaged,
 or sold by registered organizations and licensees;
   (e)  security  requirements for adult-use cannabis retail dispensaries
 and premises where cannabis products, medical cannabis, and hemp  canna-
 bis,  are  cultivated, produced, processed, or stored, and safety proto-
 cols for registered organizations, licensees and their employees; and
   (f) hearing procedures and additional causes for cancellation, revoca-
 tion, and/or civil penalties against any person registered, licensed, or
 permitted by the authority.
   3. The office shall promulgate rules and regulations that are designed
 to:
   (a) prevent the distribution of adult-use cannabis  to  persons  under
 twenty-one years of age;
   (b) prevent the revenue from the sale of cannabis from going to crimi-
 nal enterprises, gangs, and cartels;
   (c) prevent the diversion of cannabis from this state to other states;
   (d) prevent cannabis activity that is legal under state law from being
 used as a cover or pretext for the trafficking of other illegal drugs or
 other illegal activity;
   (e)  prevent  drugged  driving  and  the exacerbation of other adverse
 public health consequences associated with the use of cannabis;
   (f) prevent the growing of cannabis on public lands; and
   (g) prevent the possession and use of cannabis on federal property.
   4. The office, in consultation with the department of agriculture  and
 markets  and the department of environmental conservation, shall promul-
 gate necessary rules and regulations governing the  safe  production  of
 cannabis,  including environmental and energy standards and restrictions
 on the use of pesticides.
   § 13. State cannabis advisory board.  1. The executive director  shall
 establish  within  the  office  a state cannabis advisory board prior to
 engaging in rulemaking, which may consider all matters submitted  to  it
 by  the executive director, and advise the office and the legislature on
 cannabis cultivation, processing, distribution, transport, equity in the

 A. 1617--A                         10
 
 cannabis industry, public health concerns related to  cannabis,  and  on
 the testing and sale of cannabis and cannabis products.
   2. The executive director of the office shall serve as the chairperson
 of  the  board.  The  vice  chairperson  shall be elected from among the
 members of the board by the members of such board, and  shall  represent
 the  board in the absence of the chairperson at all official board func-
 tions.
   3. The members of the board shall be appointed by the temporary presi-
 dent of the senate and the speaker of the assembly and 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.
   4.  The  executive  director shall promulgate regulations establishing
 the number of members on the board, the term of the  board  members  and
 any  other  terms  or  conditions  regarding the state cannabis advisory
 board.
   5. Every effort shall be made to ensure a balanced and diverse  board,
 which  shall  have  expertise in public and behavioral health, substance
 use disorder treatment, effective rehabilitative  treatment  for  adults
 and  juveniles,  economic  development,  environmental conservation, job
 training and placement, criminal justice, and drug policy. Further,  the
 board shall include residents from communities most impacted by cannabis
 prohibition,  people with prior drug convictions, the formerly incarcer-
 ated, and representatives of organizations serving communities  impacted
 by past federal and state drug policies.
   §  14.  Disposition  of  moneys received for license fees.  The office
 shall establish a scale of application,  licensing,  and  renewal  fees,
 based upon the cost of enforcing this chapter and the size of the canna-
 bis business being licensed, as follows:
   1.  The office shall charge each registered organization, licensee and
 permittee a registration, licensure or permit fee, and renewal  fee,  as
 applicable.    The  fees may vary depending upon the nature and scope of
 the different registration, licensure and permit activities.
   2. The total fees assessed pursuant to this chapter shall be set at an
 amount that will generate sufficient total revenue  to,  at  a  minimum,
 fully cover the total costs of administering this chapter.
   3.  All registration and licensure fees shall be set on a scaled basis
 by the office, dependent on the size and capacity of the business.
   4. The office shall deposit all fees collected in the New  York  state
 cannabis  revenue fund established pursuant to section ninety-nine-hh of
 the state finance law.
   § 15. Legal presumptions.   The action,  proceedings,  authority,  and
 orders of the office in enforcing the provisions of the cannabis law and
 applying  them  to  specific  cases shall at all times be regarded as in
 their nature judicial, and shall be treated  as  prima  facie  just  and
 legal.
   §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
 injunctions.  1. A person who willfully violates any provision  of  this
 chapter,  or  any  regulation lawfully made or established by any public
 officer under authority of this chapter, the  punishment  for  violating
 which  is  not otherwise prescribed by this chapter or any other law, is
 punishable by imprisonment not exceeding one year,  or  by  a  fine  not
 exceeding five thousand dollars or by both.
   2.  Any  person  who  violates,  disobeys  or  disregards  any term or
 provision of this chapter or of any lawful notice, order  or  regulation
 pursuant  thereto  for  which a civil penalty is not otherwise expressly

 A. 1617--A                         11
 
 prescribed by law, shall be liable to the people  of  the  state  for  a
 civil  penalty  of  not  to  exceed five thousand dollars for every such
 violation.
   3.  The penalty provided for in subdivision one of this section may be
 recovered by an action brought by the executive director in any court of
 competent jurisdiction.
   4. Such civil penalty may be released or compromised by the  executive
 director  before  the  matter has been referred to the attorney general,
 and where such matter has been referred to  the  attorney  general,  any
 such  penalty may be released or compromised and any action commenced to
 recover the same may be settled and discontinued by the attorney general
 with the consent of the executive director.
   5. It shall be the duty of the attorney general upon  the  request  of
 the  executive director to bring an action for an injunction against any
 person who violates, disobeys or disregards any  term  or  provision  of
 this chapter or of any lawful notice, order or regulation pursuant ther-
 eto;  provided,  however,  that the executive director shall furnish the
 attorney general with such material, evidentiary matter or proof as  may
 be  requested  by  the  attorney  general for the prosecution of such an
 action.
   6. It is the purpose of this section to provide additional and cumula-
 tive remedies, and nothing  herein  contained  shall  abridge  or  alter
 rights  of  action  or remedies now or hereafter existing, nor shall any
 provision of this section,  nor  any  action  done  by  virtue  of  this
 section,  be construed as estopping the state, persons or municipalities
 in the exercising of their respective rights.
   § 17. Formal hearings; notice and procedure.  1. The executive  direc-
 tor,  or any person designated by him or her for this purpose, may issue
 subpoenas and administer oaths in connection with any hearing or  inves-
 tigation  under or pursuant to this chapter, and it shall be the duty of
 the executive director and any persons designated by him or her for such
 purpose to issue subpoenas at the request of  and  upon  behalf  of  the
 respondent.
   2. The executive director and those designated by him or her shall not
 be  bound by the laws of evidence in the conduct of hearing proceedings,
 but the determination shall  be  founded  upon  sufficient  evidence  to
 sustain it.
   3.  Notice  of  hearing shall be served at least fifteen days prior to
 the date of the hearing, provided that, whenever because  of  danger  to
 the  public  health,  safety  or  welfare  it appears prejudicial to the
 interests of the people of the state to delay action for  fifteen  days,
 the  executive director may serve the respondent with an order requiring
 certain action or the cessation of  certain  activities  immediately  or
 within a specified period of less than fifteen days.
   4.  Service  of  notice  of hearing or order shall be made by personal
 service or by registered or certified mail. Where  service,  whether  by
 personal  service  or  by  registered or certified mail, is made upon an
 incompetent, partnership, or corporation, it  shall  be  made  upon  the
 person  or  persons  designated  to  receive personal service by article
 three of the civil practice law and rules.
   5. At a hearing, the respondent may appear personally, shall have  the
 right of counsel, and may cross-examine witnesses against him or her and
 produce evidence and witnesses in his or her behalf.
   6.  Following  a  hearing, the executive director may make appropriate
 determinations and issue a final order in accordance therewith.

 A. 1617--A                         12
 
   7. The executive director may adopt, amend and  repeal  administrative
 rules  and  regulations  governing  the  procedures  to be followed with
 respect to hearings, such rules to be consistent  with  the  policy  and
 purpose  of  this  chapter and the effective and fair enforcement of its
 provisions.
   8.  The provisions of this section shall be applicable to all hearings
 held pursuant to this chapter, except where  other  provisions  of  this
 chapter  applicable  thereto  are inconsistent therewith, in which event
 such other provisions shall apply.
   § 18. Ethics, transparency and  accountability.    No  member  of  the
 office  or any officer, deputy, assistant, inspector or employee thereof
 shall have any interest, direct or indirect, either  proprietary  or  by
 means  of  any  loan, mortgage or lien, or in any other manner, in or on
 any premises where adult use cannabis, medical cannabis or hemp cannabis
 is cultivated, processed, distributed or sold; nor shall he or she  have
 any  interest,  direct  or indirect, in any business wholly or partially
 devoted to the cultivation, processing, distribution, sale,  transporta-
 tion  or  storage of adult use cannabis, medical cannabis or hemp canna-
 bis, or own any stock in any corporation which has any interest, propri-
 etary or otherwise, direct or indirect, in any premises where adult  use
 cannabis,  medical  cannabis  or hemp cannabis is cultivated, processed,
 distributed or sold, or in any business wholly or partially  devoted  to
 the cultivation, processing, distribution, sale, transportation or stor-
 age of adult use cannabis, medical cannabis or hemp cannabis, or receive
 any commission or profit whatsoever, direct or indirect, from any person
 applying  for  or  receiving  any license or permit provided for in this
 chapter, or hold any other elected or appointed  public  office  in  the
 state  or  in  any political subdivision. Anyone who violates any of the
 provisions of this section shall be removed and shall divulge themselves
 of such direct or indirect interests, in addition to any  other  penalty
 provided by law.
 
                                 ARTICLE 3
                             MEDICAL CANNABIS
 
 Section 30. Certification of patients.
         31. Lawful medical use.
         32. Registry identification cards.
         33. Registration as a designated caregiver facility.
         34. Registered organizations.
         35. Registering of registered organizations.
         36. Intentionally omitted.
         37. Reports of registered organizations.
         38. Evaluation; research programs; report by office.
         39. Cannabis research license.
         40. Registered organizations and adult-use cannabis.
         41. Relation to other laws.
         42. Protections for the medical use of cannabis.
         43. Regulations.
         44. Suspend; terminate.
         45. Pricing.
   §  30. Certification of patients.  1. A patient certification may only
 be issued if:
   (a) the patient has a condition,  which  shall  be  specified  in  the
 patient's health care record;

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   (b)  the  practitioner by training or experience is qualified to treat
 the condition;
   (c)  the  patient  is under the practitioner's continuing care for the
 condition; and
   (d) in the practitioner's professional  opinion  and  review  of  past
 treatments,  the  patient is likely to receive therapeutic or palliative
 benefit from the primary or adjunctive treatment  with  medical  use  of
 cannabis for the 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 condition
 and the patient is under the practitioner's care for the 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,
 telephone  number, and the signature of the certifying practitioner. The
 executive director may require  by  regulation  that  the  certification
 shall be on a form provided by the office. The practitioner may state in
 the  certification that, in the practitioner's professional opinion, the
 patient would benefit from medical cannabis only until a specified date.
 The practitioner may state in the certification that, in the practition-
 er's professional opinion, the patient is terminally ill  and  that  the
 certification shall not expire until the patient dies.
   3.  In  making a certification, the practitioner may consider the form
 of medical cannabis the patient should consume, including the method  of
 consumption and any particular strain, variety, and quantity or percent-
 age of cannabis or particular active ingredient, and appropriate dosage.
 The  practitioner  may  state in the certification any recommendation or
 limitation the practitioner makes, in his or her  professional  opinion,
 concerning the appropriate form or forms of medical cannabis and dosage.
   4.  Every  practitioner  shall  consult  the  prescription  monitoring
 program registry prior to making or issuing  a  certification,  for  the
 purpose  of  reviewing  a  patient's  controlled  substance history. For
 purposes of this section, a practitioner may  authorize  a  designee  to
 consult  the  prescription  monitoring  program  registry  on his or her
 behalf, provided that such designation is  in  accordance  with  section
 thirty-three hundred forty-three-a of the public health law.
   5.  The  practitioner  shall  give  the certification to the certified
 patient, and place a copy in the patient's health care record.
   6. No practitioner shall issue a certification under this section  for
 themselves.
   7.  A  registry  identification  card  based  on a certification shall
 expire one year after the date the certification is signed by the  prac-
 titioner.
   8.  (a)  If  the practitioner states in the certification that, in the
 practitioner's professional opinion,  the  patient  would  benefit  from
 medical  cannabis only until a specified earlier date, then the registry
 identification card shall expire on that date; (b) if  the  practitioner
 states  in  the  certification  that  in the practitioner's professional
 opinion the patient is terminally ill and that the  certification  shall
 not expire until the patient dies, then the registry identification card
 shall state that the patient is terminally ill and that the registration
 card  shall  not  expire until the patient dies; (c) if the practitioner
 re-issues the certification to terminate the certification on an earlier
 date, then the registry identification card shall expire  on  that  date
 and  shall  be  promptly  destroyed by the certified patient; (d) if the
 certification so provides, the registry identification card shall  state
 any  recommendation  or limitation by the practitioner as to the form or

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 forms of medical cannabis or dosage for the certified patient;  and  (e)
 the executive director shall make regulations to implement this subdivi-
 sion.
   §  31. Lawful medical use. The possession, acquisition, use, delivery,
 transfer, transportation, or administration of  medical  cannabis  by  a
 certified patient, designated caregiver or the employees of a designated
 caregiver  facility,  for  certified  medical use, shall be lawful under
 this article provided that:
   1. the cannabis that may be possessed by a certified patient shall not
 exceed a sixty-day supply of the dosage if determined by the practition-
 er, consistent with any guidance and regulations issued by the executive
 director, provided that during the last  seven  days  of  any  sixty-day
 period, the certified patient may also possess up to such amount for the
 next sixty-day period;
   2.  the  cannabis  that may be possessed by designated caregivers does
 not exceed the quantities referred to in subdivision one of this section
 for each certified patient for whom  the  caregiver  possesses  a  valid
 registry identification card, up to five certified patients;
   3.  the cannabis that may be possessed by designated caregiver facili-
 ties does not exceed the quantities referred to in  subdivision  one  of
 this  section  for each certified patient under the care or treatment of
 the facility;
   4. the form or forms of medical cannabis that may be possessed by  the
 certified patient, designated caregiver or designated caregiver facility
 pursuant  to a certification shall be in compliance with any recommenda-
 tion or limitation by the practitioner  as  to  the  form  or  forms  of
 medical  cannabis  or  dosage  for  the certified patient in the certif-
 ication;
   5. the medical cannabis shall be kept in the original package in which
 it was dispensed under this article, except for the portion removed  for
 immediate  consumption  for  certified  medical  use  by  the  certified
 patient; and
   6. in the case  of  a  designated  caregiver  facility,  the  employee
 assisting  the  patient  has  been  designated as such by the designated
 caregiver facility.
   § 32. Registry identification cards.  1. Upon approval of the  certif-
 ication, the office shall issue registry identification cards for certi-
 fied  patients and designated caregivers. A registry identification card
 shall expire as provided in this article or  as  otherwise  provided  in
 this  section.    The office shall begin issuing registry identification
 cards as soon as practicable after the certifications required  by  this
 chapter are granted. The office may specify a form for a registry appli-
 cation,  in  which  case  the  office shall provide the form on request,
 reproductions of the form may be used, and the form shall  be  available
 for downloading from the office's website.
   2.  To obtain, amend or renew a registry identification card, a certi-
 fied patient or designated caregiver shall file a  registry  application
 with  the office, unless otherwise exempted by the executive director in
 regulation.  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;

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   (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 cannabis, if the certification states such a date;
   (vi) the name, address, and telephone number of the certifying practi-
 tioner;
   (vii) any recommendation or limitation by the practitioner as  to  the
 form or forms of medical cannabis or dosage for the certified patient;
   (viii) if the certified patient designates a designated caregiver, the
 name,  address, and date of birth of the designated caregiver, and other
 individual identifying information required by the office;
   (ix) if the designated caregiver is a cannabis research license holder
 under  this  chapter,  the  name  of  the  organization  conducting  the
 research,  the address, phone number, name of the individual leading the
 research or appropriate  designee,  and  other  identifying  information
 required by the executive director; and
   (x) other individual identifying information required by the office;
   (b) 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 office;
   (c)  a  statement  that  a  false statement made in the application is
 punishable under section 210.45 of the penal law;
   (d) the date of the application and the  signature  of  the  certified
 patient or designated caregiver, as the case may be;
   (e) any other requirements determined by the executive director.
   3. Where a certified patient is under the age of eighteen or otherwise
 incapable of consent:
   (a)  The  application for a registry identification card shall be made
 by the person responsible for  making  health  care  decisions  for  the
 patient.
   (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;  (iii) an employee of a designated caregiver facility, includ-
 ing a cannabis research license holder; or (iv)  an  appropriate  person
 approved by the office upon a sufficient showing that no parent or legal
 guardian is appropriate or available.
   4.  No  person  may  be  a designated caregiver if the person is under
 twenty-one years of age unless a  sufficient  showing  is  made  to  the
 office  that  the  person  should  be permitted to serve as a designated
 caregiver. The requirements for such a showing shall  be  determined  by
 the executive director.
   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  cannabis  research
 license holder as defined by this chapter.
   6.  If  a  certified  patient wishes to change or terminate his or her
 designated caregiver, for whatever reason, the certified  patient  shall
 notify  the  office  as  soon  as  practicable. The office shall issue a
 notification to the designated caregiver that their registration card is
 invalid and must be promptly destroyed. The newly  designated  caregiver
 must comply with all requirements set forth in this section.

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   7.  If the certification so provides, the registry identification card
 shall contain any recommendation or limitation by the practitioner as to
 the form or forms of  medical  cannabis  or  dosage  for  the  certified
 patient.
   8.  The  office shall issue separate registry identification cards for
 certified patients and designated caregivers as soon as reasonably prac-
 ticable after receiving  a  complete  application  under  this  section,
 unless  it  determines  that  the application is incomplete or factually
 inaccurate, in which case it shall promptly notify the applicant.
   9. If the application of a certified patient designates an  individual
 as a designated caregiver who is not authorized to be a designated care-
 giver, that portion of the application shall be denied by the office but
 that shall not affect the approval of the balance of the application.
   10. A registry identification card shall:
   (a)  contain the name of the certified patient or the designated care-
 giver as the case may be;
   (b) contain the date of issuance and expiration date of  the  registry
 identification card;
   (c) contain a registry identification number for the certified patient
 or  designated  caregiver, as the case may be and a registry identifica-
 tion number;
   (d) contain a photograph of the individual to whom the registry  iden-
 tification  card  is being issued, which shall be obtained by the office
 in  a  manner  specified  by  the  executive  director  in  regulations;
 provided,  however,  that  if  the office requires certified patients to
 submit photographs for this purpose, there shall be a reasonable  accom-
 modation  of  certified  patients who are confined to their homes due to
 their medical conditions and may  therefore  have  difficulty  procuring
 photographs;
   (e) be a secure document as determined by the office;
   (f) plainly state any recommendation or limitation by the practitioner
 as  to the form or forms of medical cannabis or dosage for the certified
 patient; and
   (g) any other requirements determined by the executive director.
   11. A certified patient or designated caregiver who has been issued  a
 registry  identification  card  shall notify the office of any change in
 his or her name or address or, with respect to the patient, if he or she
 ceases to have the condition noted on the certification within ten  days
 of such change. The certified patient's or designated caregiver's regis-
 try  identification  card  shall be deemed invalid and shall be promptly
 destroyed.
   12. If a certified patient or designated caregiver loses  his  or  her
 registry  identification  card, he or she shall notify the office within
 ten days of losing the card. The office shall issue a new registry iden-
 tification card as soon as practicable, which may contain a new registry
 identification number, to the certified patient or designated caregiver,
 as the case may be.
   13. The office shall maintain a confidential list of  the  persons  to
 whom it has issued registry identification cards. Individual identifying
 information obtained by the office under this article shall be confiden-
 tial and exempt from disclosure under article six of the public officers
 law.  Notwithstanding this subdivision, the office may notify any appro-
 priate  law  enforcement agency of information relating to any violation
 or suspected violation of this article.
   14. The office shall verify to law enforcement personnel in an  appro-
 priate case whether a registry identification card is valid.

 A. 1617--A                         17
 
   15.  If a certified patient or designated caregiver willfully violates
 any provision of this article as determined by the  executive  director,
 his  or  her  certification  and  registry  identification  card  may be
 suspended or revoked. This is in addition to any other penalty that  may
 apply.
   §  33. Registration as a designated caregiver facility.  1. To obtain,
 amend or renew a registration as a designated  caregiver  facility,  the
 facility shall file a registry application with the office. The registry
 application or renewal application shall include:
   (a) the facility's full name and address;
   (b) operating certificate or license number where appropriate;
   (c)  printed  name,  title,  and  signature  of an authorized facility
 representative;
   (d) a statement that the facility agrees to secure and  ensure  proper
 handling of all medical cannabis 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 executive direc-
 tor.
   2. Prior to issuing or renewing a designated caregiver facility regis-
 tration, the office may verify the information submitted by  the  appli-
 cant.  The applicant shall provide, at the office's request, such infor-
 mation and documentation, including any consents or authorizations  that
 may be necessary for the office to verify the information.
   3.  The  office shall approve, deny or determine incomplete or inaccu-
 rate an initial or renewal application within thirty days of receipt  of
 the  application.  If  the application is approved within the thirty-day
 period, the office shall issue a registration as soon as  is  reasonably
 practicable.
   4. An applicant shall have thirty days from the date of a notification
 of an incomplete or factually inaccurate application to submit the mate-
 rials  required  to  complete, revise or substantiate information in the
 application. If the applicant fails to  submit  the  required  materials
 within  such  thirty-day time period, the application shall be denied by
 the office.
   5. Registrations issued under this section shall remain valid for  two
 years from the date of issuance.
   § 34. Registered organizations.  1. A registered organization shall be
 a for-profit business entity or not-for-profit corporation organized for
 the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
 ing, transporting, distributing or  dispensing  cannabis  for  certified
 medical use.
   2.  The acquiring, possession, manufacture, sale, delivery, transport-
 ing, distributing or dispensing of  medical  cannabis  by  a  registered
 organization  under  this  article  in  accordance with its registration
 under this article or a renewal thereof shall be lawful under this chap-
 ter.
   3. Each registered organization shall  contract  with  an  independent
 laboratory permitted by the office to test the medical cannabis produced
 by the registered organization. The executive director shall approve the
 laboratory  used by the registered organization and may require that the
 registered organization use a particular testing laboratory.  The execu-
 tive director is authorized to issue regulations requiring the laborato-
 ry to perform certain tests and services.
   4. (a) A registered organization may lawfully, in  good  faith,  sell,
 deliver,  distribute or dispense medical cannabis to a certified patient

 A. 1617--A                         18
 
 or designated caregiver upon presentation to the registered organization
 of a valid registry identification card for that  certified  patient  or
 designated  caregiver.   When presented with the registry identification
 card, the registered organization shall provide to the certified patient
 or designated caregiver a receipt, which shall state: the name, address,
 and  registry  identification number of the registered organization; the
 name and registry identification number of the certified patient and the
 designated caregiver, if any; the date the cannabis was sold; any recom-
 mendation or limitation by the practitioner as to the form or  forms  of
 medical  cannabis  or dosage for the certified patient; and the form and
 the quantity of medical cannabis sold. The registered organization shall
 retain a copy of the registry identification card and  the  receipt  for
 six years.
   (b) The proprietor of a registered organization shall file or cause to
 be  filed  any  receipt and certification information with the office by
 electronic means on a real-time basis as the  executive  director  shall
 require by regulation. When filing receipt and certification information
 electronically  pursuant to this paragraph, the proprietor of the regis-
 tered  organization  shall  dispose  of  any   electronically   recorded
 prescription  information in such manner as the executive director shall
 by regulation require.
   5. (a) No registered organization may  sell,  deliver,  distribute  or
 dispense  to any certified patient or designated caregiver a quantity of
 medical cannabis larger than that individual would be allowed to possess
 under this chapter.
   (b) When dispensing medical cannabis to a certified patient or  desig-
 nated caregiver, the registered organization:  (i) shall not dispense an
 amount  greater than a 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 consulting the
 prescription monitoring program registry under this article.
   (c) Medical cannabis 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 cannabis or dosage for the certified patient.
   6.  When  a  registered  organization  sells, delivers, distributes or
 dispenses medical cannabis to a certified patient or designated caregiv-
 er, it shall provide to that individual a safety insert, which  will  be
 developed  by  the registered organization and approved by the executive
 director and include, but not be limited to, information on:
   (a) methods for administering medical cannabis,
   (b) any potential dangers stemming from the use of medical cannabis,
   (c) how to recognize what may be problematic usage of medical cannabis
 and obtain appropriate services or treatment for problematic usage, and
   (d) other information as determined by the executive director.
   7.  Registered organizations shall not be managed by or employ  anyone
 who  has  been  convicted within three years of the date of hire, of any
 felony related to the functions  or  duties  of  operating  a  business,
 except  that  if  the  executive director determines that the manager or
 employee is otherwise suitable to be hired, and hiring  the  manager  or
 employee  would  not  compromise  public  safety, the executive director
 shall conduct a thorough review of the nature of the crime,  conviction,
 circumstances,  and evidence of rehabilitation of the manager or employ-
 ee, and shall evaluate the suitability of the manager or employee  based
 on  the evidence found through the review. In determining which offenses

 A. 1617--A                         19
 
 are substantially related to the functions  or  duties  of  operating  a
 business,  the  executive director shall include, but not be limited to,
 the following:
   (a) a felony conviction involving fraud, money laundering, forgery and
 other unlawful conduct related to owning and operating a business; and
   (b)  a  felony  conviction  for  hiring, employing or using a minor in
 transporting, carrying, selling, giving away,  preparing  for  sale,  or
 peddling,  any  controlled  substance,  or  selling,  offering  to sell,
 furnishing, offering to furnish, administering, or giving any controlled
 substance to a minor.
   A felony conviction for the sale or possession of drugs, narcotics, or
 controlled substances is not  substantially  related.  This  subdivision
 shall  only apply to managers or employees who come into contact with or
 handle medical cannabis.
   8. Manufacturing of medical  cannabis  by  a  registered  organization
 shall  only  be  done in an indoor, enclosed, secure facility located in
 New York state, which may include a greenhouse. The  executive  director
 shall  promulgate regulations establishing requirements for such facili-
 ties.
   9. Dispensing of medical cannabis by a registered  organization  shall
 only be done in an indoor, enclosed, secure facility located in New York
 state,  which  may  include  a  greenhouse. The executive director shall
 promulgate regulations establishing requirements for such facilities.
   10. 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. All laws and regulations applicable to such facil-
 ities, equipment, or services shall apply to the  contract.  The  regis-
 tered  organization  and  other  parties  to  the contract shall each be
 responsible for compliance with such  laws  and  regulations  under  the
 contract.  The  executive  director  may  make  regulations  relating to
 contracts and parties to contracts under this chapter.
   11. A registered organization shall, based on the findings of an inde-
 pendent laboratory, provide documentation of  the  quality,  safety  and
 clinical  strength  of the medical cannabis manufactured or dispensed by
 the registered organization to the office and to any person or entity to
 which the medical cannabis is sold or dispensed.
   12. A registered organization shall be deemed to  be  a  "health  care
 provider"  for  the purposes of title two-D of article two of the public
 health law.
   13. Medical cannabis shall be dispensed  to  a  certified  patient  or
 designated  caregiver  in  a  sealed  and  properly labeled package. The
 labeling shall contain: (a) the information required to be  included  in
 the receipt provided to the certified patient or designated caregiver by
 the  registered organization; (b) the packaging date; (c) any applicable
 date by which the medical cannabis should be used; (d) a  warning  stat-
 ing,  "This  product is for medicinal use only. Women should not consume
 during pregnancy or while breastfeeding except  on  the  advice  of  the
 certifying  health  care  practitioner, and in the case of breastfeeding
 mothers, including the infant's pediatrician. This product might  impair
 the ability to drive. Keep out of reach of children."; (e) the amount of
 individual  doses  contained  within; and (f) a warning that the medical
 cannabis must be  kept  in  the  original  container  in  which  it  was
 dispensed.

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   14. The executive director is authorized to make rules and regulations
 restricting the advertising and marketing of medical cannabis.
   §  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 executive director  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  equip-
 ment  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 enti-
 ty, shall submit an affidavit with the application setting forth:
   (A) any position of management or ownership during the  preceding  ten
 years  of a twenty per centum or greater interest in any other business,
 located in or outside this state, manufacturing or distributing drugs;
   (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
   (C) such other information as the executive  director  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 executive director shall grant a registration or amendment
 to a registration under this section if he or she is 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;

 A. 1617--A                         21
 
   (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 or a service-disabled veteran-owned business;
   (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; and
   (E) the affordability of medical  cannabis  products  offered  by  the
 registered organization;
   (vi) the applicant and its managing officers are of good moral charac-
 ter;
   (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 executive director.
   (b)  If  the  executive  director  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 the denial is based.  Within  thirty
 days  of  the  receipt  of such notification, the applicant may submit a
 written request to the executive director to appeal the decision.
   (c) The fee for a registration under this section shall be  an  amount
 determined  by  the  office  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 executive director 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  two  hundred  fifty
 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  executive director 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 office not more than six
 months nor less than four months prior  to  the  expiration  thereof.  A

 A. 1617--A                         22

 late-filed  application  for  the  renewal of a registration may, in the
 discretion of the executive director, 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 executive director 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 any substance listed in section thirty-three hundred  six  of
 the public health law.
   (c)  An  applicant  for  renewal  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 circum-
 stance which is required to be included in the application.
   (d) If the executive director is not  satisfied  that  the  registered
 organization  applicant is entitled to a renewal of the registration, he
 or she shall within a reasonably practicable time as determined  by  the
 executive director, serve upon the registered organization or its attor-
 ney  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 executive director
 that the registration should be renewed.
   6. (a) The executive director 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  applica-
 ble 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; or
   (iv)  the  applicant has either violated or terminated its labor peace
 agreement.
   (b) For purposes of this section, proof that  a  registered  organiza-
 tion,  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 applica-
 ble state laws relating to the activities in which it engages under  the
 registration,  shall  constitute  grounds for suspension, termination or
 limitation of the registered organization's registration  or  as  deter-
 mined  by the executive director. The registered organization shall also
 be under a continuing duty to  report  to  the  authority  any  material
 change or fact or circumstance to the information provided in the regis-
 tered organization's application.
   7.  The  office  may suspend or terminate the registration of a regis-
 tered organization, on grounds and using procedures under  this  article
 relating  to a license, to the extent consistent with this article.  The
 authority shall suspend or terminate the registration in the event  that

 A. 1617--A                         23
 
 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.  The  executive  director  shall  register  at least ten registered
 organizations that manufacture medical cannabis with no more  than  four
 dispensing  sites wholly owned and operated by such registered organiza-
 tion. The executive director shall ensure that such registered organiza-
 tions and dispensing sites are  geographically  distributed  across  the
 state  and  that their ownership reflects the demographics of the state.
 The executive director may register additional registered organizations,
 as needed.
   § 36. Intentionally omitted.
   § 37. Reports of registered organizations.  1. The executive  director
 shall,  by  regulation,  require  each  registered  organization to file
 reports by the registered organization during a particular  period.  The
 executive  director  shall  determine the information to be reported and
 the forms, time, and manner of the reporting.
   2. The executive director shall, by regulation,  require  each  regis-
 tered  organization  to  adopt  and  maintain security, tracking, record
 keeping, record retention and  surveillance  systems,  relating  to  all
 medical  cannabis  at every stage of acquiring, possession, manufacture,
 sale, delivery, transporting, distributing, or dispensing by the  regis-
 tered organization, subject to regulations of the executive director.
   §  38. Evaluation; research programs; report by office.  1. The execu-
 tive director may provide for the analysis and evaluation of the  opera-
 tion  of this article.  The executive director may enter into agreements
 with one or more persons, not-for-profit corporations or other organiza-
 tions, for the performance of an evaluation of  the  implementation  and
 effectiveness of this article.
   2.  The  office  may develop, seek any necessary federal approval for,
 and carry out research programs relating to  medical  use  of  cannabis.
 Participation  in  any  such  research program shall be voluntary on the
 part of practitioners, patients, and designated caregivers.
   3. The office shall report every two years, beginning two years  after
 the  effective date of this chapter, to the governor and the legislature
 on the medical use of cannabis under this article and  make  appropriate
 recommendations.
   §  39.  Cannabis  research  license.   1. The executive director shall
 establish a  cannabis  research  license  that  permits  a  licensee  to
 produce, process, purchase and possess cannabis for the following limit-
 ed research purposes:
   (a) to test chemical potency and composition levels;
   (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
 products;
   (c) to conduct research on the efficacy and  safety  of  administering
 cannabis as part of medical treatment; and
   (d) to conduct genomic or agricultural research.
   2. As part of the application process for a cannabis research license,
 an  applicant  must  submit  to the office a description of the research
 that is intended to be conducted as well as the amount of cannabis to be
 grown or purchased. The office  shall  review  an  applicant's  research
 project  and  determine whether it meets the requirements of subdivision
 one of this section. In addition, the office shall assess  the  applica-
 tion based on the following criteria:
   (a) project quality, study design, value, and impact;

 A. 1617--A                         24
 
   (b)  whether  the  applicant has the appropriate personnel, expertise,
 facilities and infrastructure, funding,  and  human,  animal,  or  other
 approvals in place to successfully conduct the project; and
   (c)  whether  the  amount  of cannabis to be grown or purchased by the
 applicant is consistent with the  project's  scope  and  goals.  If  the
 office  determines  that the research project does not meet the require-
 ments of subdivision one  of  this  section,  the  application  must  be
 denied.
   3. A cannabis research licensee may only sell cannabis grown or within
 its  operation  to  other  cannabis  research  licensees. The office may
 revoke a cannabis research license for violations of this subsection.
   4. A cannabis research licensee may contract with the higher education
 institutions to perform research in conjunction with the university. All
 research projects, entered into under this section must be  approved  by
 the office and meet the requirements of subdivision one of this section.
   5. In establishing a cannabis research license, the executive director
 may adopt regulations on the following:
   (a) application requirements;
   (b)  cannabis research license renewal requirements, including whether
 additional research projects may be added or considered;
   (c) conditions for license revocation;
   (d) security measures to ensure cannabis is not diverted  to  purposes
 other than research;
   (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
 cannabis-infused products a licensee may have on its premises;
   (f) licensee reporting requirements;
   (g) conditions under which cannabis grown by licensed cannabis produc-
 ers and other product types from licensed  cannabis  processors  may  be
 donated to cannabis research licensees; and
   (h) any additional requirements deemed necessary by the office.
   6. A cannabis research license issued pursuant to this section must be
 issued  in  the  name of the applicant and specify the location at which
 the cannabis researcher intends to operate, which  must  be  within  the
 state of New York.
   7. The application fee for a cannabis research license shall be deter-
 mined by the executive director on an annual basis.
   8. Each cannabis research licensee shall issue an annual report to the
 office.  The office shall review such report and make a determination as
 to whether the research project continues to meet  the  research  quali-
 fications under this section.
   §  40. Registered organizations and adult-use cannabis.  1. The execu-
 tive director shall have the authority to  grant  some  or  all  of  the
 registered  organizations  registered  with the department of health and
 currently registered and in good standing with the office,  the  ability
 to  be  licensed  to  cultivate,  process,  distribute or sell adult-use
 cannabis and cannabis products, pursuant to any fees,  rules  or  condi-
 tions  prescribed by the executive director in regulation and subject to
 the restrictions on  licensed  adult-use  cultivators,  processors,  and
 distributors  on  having  any ownership interest in a licensed adult-use
 retail dispensary pursuant to this chapter.
   2. However, the office shall have the authority to assess  the  regis-
 tered  organization  with  a one-time special licensing fee so that they
 may become authorized to bypass the restrictions on having any ownership
 interest in a licensed adult-use retail dispensary,  provided  that  the
 fees  generated from such assessment shall be used to administer incuba-
 tors and low or zero-interest loans to qualified  social  equity  appli-

 A. 1617--A                         25
 
 cants.  The  timing  and manner in which registered organizations may be
 granted such authority shall be determined by the executive director  in
 regulation.
   § 41. Relation to other laws.  1. The provisions of this article shall
 apply,  except  that  where  a  provision of this article conflicts with
 another provision of this chapter, this article shall apply.
   2. Medical cannabis shall not be deemed to be a "drug" for purposes of
 article one hundred thirty-seven of the education law.
   § 42. Protections for the medical  use  of  cannabis.    1.  Certified
 patients,  designated caregivers, designated caregiver facilities, prac-
 titioners, registered organizations  and  the  employees  of  registered
 organizations,  and cannabis researchers 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 cannabis, or  for
 any other action or conduct in accordance with this article.
   2. Being a certified patient shall be deemed to be having a "disabili-
 ty"  under  article fifteen of the executive law, section forty-c of the
 civil rights law, sections 240.00, 485.00, and 485.05 of the penal  law,
 and section 200.50 of the criminal procedure law. This subdivision shall
 not  bar  the  enforcement  of  a  policy  prohibiting  an employee from
 performing his or her employment duties while impaired by  a  controlled
 substance. This subdivision shall not require any person or entity to do
 any  act  that  would  put  the  person or entity in direct violation of
 federal law or cause it to lose a federal contract or funding.
   3. The fact that a person is a  certified  patient  and/or  acting  in
 accordance with this article, shall not be a consideration in a proceed-
 ing  pursuant  to applicable sections of the domestic relations law, the
 social services law and the family court act.
   4. (a) Certification applications, certification forms, any  certified
 patient  information contained within a database, and copies of registry
 identification cards shall be deemed exempt from public disclosure under
 sections eighty-seven and eighty-nine of the public officers law.
   (b) The name, contact information, and other information  relating  to
 practitioners  registered  with  the  office under this article shall be
 public information and shall be maintained by the executive director  on
 the office's website accessible to the public in searchable form. Howev-
 er, if a practitioner notifies the office in writing that he or she does
 not  want  his or her name and other information disclosed, that practi-
 tioner's name and other  information  shall  thereafter  not  be  public
 information  or  maintained  on the office's website, unless the practi-
 tioner cancels the request.
   § 43. Regulations.  The executive director shall make  regulations  to
 implement this article.
   § 44. Suspend; terminate.  Based upon the recommendation of the execu-
 tive  director and/or the superintendent of state police that there is a
 risk to the public health or safety, the governor may immediately termi-
 nate all licenses issued to registered organizations.
   § 45. Pricing.  Registered organizations shall submit documentation to
 the executive director of any change in pricing per dose for any medical
 cannabis product within fifteen days of such change. Prior  approval  by
 the  executive  director  shall  not  be  required  for any such change;
 provided however that the executive director is authorized to modify the
 price per dose for any medical cannabis product if necessary to maintain
 public access to appropriate medication.

 A. 1617--A                         26
 
                                 ARTICLE 4
                            ADULT-USE CANNABIS
 
 Section 60. Licenses issued.
         61. License application.
         62. Information to be requested in applications for licenses.
         63. Fees.
         64. Selection criteria.
         65. Limitations of licensure; duration.
         66. License renewal.
         67. Amendments;  changes  in ownership and organizational struc-
               ture.
         68. Adult-use cultivator license.
         69. Adult-use processor license.
         70. Adult-use cooperative license.
         71. Adult-use distributor license.
         72. Adult-use retail dispensary license.
         73. Micro business license.
         74. Notification to municipalities of adult-use  retail  dispen-
               sary.
         75. On-site  consumption  license;  provisions governing on-site
               consumption licenses.
         76. Record keeping and tracking.
         77. Inspections and ongoing requirements.
         78. Adult-use cultivators, processors or distributors not to  be
               interested in retail dispensaries.
         79. Packaging and labeling of adult-use cannabis products.
         80. Laboratory testing.
         81. Provisions  governing  the  cultivation  and  processing  of
               adult-use cannabis.
         82. Provisions governing the distribution of adult-use cannabis.
         83. Provisions governing adult-use cannabis retail dispensaries.
         84. Adult-use cannabis advertising.
         85. Minority, women-owned businesses and disadvantaged  farmers;
               incubator program.
         86. Regulations.
   §  60.  Licenses  issued.    The  following kinds of licenses shall be
 issued by  the  executive  director  for  the  cultivation,  processing,
 distribution  and sale of cannabis, cannabis producers, and concentrated
 cannabis to cannabis consumers:
   1. Adult-use cultivator license;
   2. Adult-use processor license;
   3. Adult-use cooperative license;
   4. Adult-use distributor license;
   5. Adult-use retail dispensary license;
   6. On-site consumption license;
   7. Microbusiness license;
   8. Delivery license;
   9. Nursery license; and
   10. Any other type of license as prescribed by the executive  director
 in regulation.
   §  61. License Application.  1. Any person may apply to the office for
 a license to cultivate, process, distribute or dispense cannabis  within
 this  state  for sale. Such application shall be in writing and verified
 and shall contain such information as the  office  shall  require.  Such
 application  shall  be  accompanied  by  a check or draft for the amount

 A. 1617--A                         27
 
 required by this article for such license. If the office  shall  approve
 the  application,  it  shall  issue  a  license in such form as shall be
 determined by its rules. Such license shall contain a description of the
 licensed premises and in form and in substance shall be a license to the
 person therein specifically designated to cultivate, process, distribute
 or dispense cannabis in the premises therein specifically licensed.
   2.  Except  as  otherwise provided in this article, a separate license
 shall be required for each facility at  which  cultivation,  processing,
 distribution or retail dispensing is conducted.
   3. An applicant shall not be denied a license under this article based
 solely  on a conviction for a violation of article two hundred twenty or
 section 240.36 of the penal law, prior to the date article  two  hundred
 twenty-one of the penal law took effect, or a conviction for a violation
 of  article  two hundred twenty-one of the penal law after the effective
 date of this chapter.
   § 62. Information to be requested in applications for  licenses.    1.
 The  office shall have the authority to prescribe the manner and form in
 which an application must be submitted to the office for licensure under
 this article.
   2. The executive director is authorized to adopt regulations,  includ-
 ing  by  emergency rule, establishing information which must be included
 on an application for licensure under this article. Such information may
 include, but is not limited to:  information about the applicant's iden-
 tity, including racial and ethnic diversity;  ownership  and  investment
 information,  including  the corporate structure; evidence of good moral
 character, including the submission of fingerprints by the applicant  to
 the  division  of criminal justice services; information about the prem-
 ises to be licensed; financial statements;  and  any  other  information
 prescribed by regulation.
   3.  All  license  applications shall be signed by the applicant (if an
 individual), by a managing member (if a limited liability  corporation),
 by an officer (if a corporation), or by all partners (if a partnership).
 Each  person  signing  such  application shall verify it or affirm it as
 true under the penalties of perjury.
   4. All license or permit applications shall be accompanied by a check,
 draft or other forms of payment as the office may require  or  authorize
 in the amount required by this article for such license or permit.
   5.  If there be any change, after the filing of the application or the
 granting of a license, in any of the facts required to be set  forth  in
 such application, a supplemental statement giving notice of such change,
 cost and source of money involved in the change, duly verified, shall be
 filed  with  the office within ten days after such change. Failure to do
 so shall, if willful and deliberate, be cause for denial  or  revocation
 of the license.
   6. In giving any notice, or taking any action in reference to a regis-
 tered  organization  or  licensee of a licensed premises, the office may
 rely upon the information furnished  in  such  application  and  in  any
 supplemental  statement connected therewith, and such information may be
 presumed to be correct, and shall be binding upon a registered organiza-
 tions, licensee or licensed premises  as  if  correct.  All  information
 required  to be furnished in such application or supplemental statements
 shall be deemed material in any prosecution for perjury, any  proceeding
 to  revoke,  cancel or suspend any license, and in the office's determi-
 nation to approve or deny the license.
   § 63. Fees. 1. The office shall have the authority  to  charge  appli-
 cants for licensure under this article a non-refundable application fee.

 A. 1617--A                         28
 
 Such  fee  may  be  based  on  the type of licensure sought, cultivation
 and/or production volume, or any other  factors  deemed  reasonable  and
 appropriate  by  the  office  to  achieve the policy and purpose of this
 chapter.
   2.  The office shall have the authority to charge licensees a biennial
 license fee. Such fee shall be based on the amount  of  cannabis  to  be
 cultivated,  processed,  distributed and/or dispensed by the licensee or
 the gross annual receipts of the licensee for the previous license peri-
 od, and any other factors  deemed  reasonable  and  appropriate  by  the
 office.
   3.  The  office  shall  have the authority to waive or reduce fees for
 social and economic equity applicants.
   § 64. Selection criteria.   1. The executive  director  shall  develop
 regulations for determining whether or not an applicant should be grant-
 ed  the  privilege  of  an adult-use cannabis license, based on, but not
 limited to, the following criteria:
   (a) the applicant will be able to maintain effective  control  against
 the illegal diversion of cannabis;
   (b)  the  applicant  will  be able to comply with all applicable state
 laws and regulations;
   (c) the applicant and its officers are ready,  willing,  and  able  to
 properly carry on the activities for which a license is sought;
   (d)  the  applicant possesses or has the right to use sufficient land,
 buildings, and equipment to properly carry on the activity described  in
 the application;
   (e) the applicant qualifies as a social equity applicant or sets out a
 plan for benefiting communities and people disproportionally impacted by
 cannabis law enforcement;
   (f)  it is in the public interest that such license be granted, taking
 into consideration, but not limited to, the following criteria:
   (i) that it is a privilege, and not a right,  to  cultivate,  process,
 distribute, and sell cannabis;
   (ii) the number, classes, and character of other licenses in proximity
 to the location and in the particular municipality or subdivision there-
 of;
   (iii)  evidence  that  all  necessary  licenses  and permits have been
 obtained from the state and all other governing bodies;
   (iv) effect of the grant of the license  on  pedestrian  or  vehicular
 traffic, and parking, in proximity to the location;
   (v) the existing noise level at the location and any increase in noise
 level that would be generated by the proposed premises;
   (vi) the history of regulatory violations under the alcoholic beverage
 control  law or the cannabis law at the location, as well as any pattern
 of violations under the alcoholic beverage control law or  the  cannabis
 law, and reported criminal activity at the proposed premises;
   (vii)  the  effect  on the production and availability of cannabis and
 cannabis products; and
   (viii) any other factors specified by law or regulation that are rele-
 vant to determine that granting a license would promote  public  conven-
 ience and advantage and the public interest of the community;
   (g)  the applicant and its managing officers are of good moral charac-
 ter and do not  have  an  ownership  or  controlling  interest  in  more
 licenses or permits than allowed by this chapter;
   (h)  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

 A. 1617--A                         29
 
 of  such  a labor peace agreement shall be an ongoing material condition
 of licensure. In evaluating applications from entities with  twenty-five
 or more employees, the office shall give priority to applicants that are
 a  party  to  a  collective  bargaining agreement with a bona-fide labor
 organization in New York or in another state, and uses  union  labor  to
 construct its licensed facility;
   (i) the applicant will contribute to communities and people dispropor-
 tionately  harmed  by cannabis law enforcement and report these contrib-
 utions to the office;
   (j) if the application is for an  adult-use  cultivator  or  processor
 license, the environmental impact of the facility to be licensed; and
   (k)  the applicant satisfies any other conditions as determined by the
 executive director.
   2. If the executive director  is  not  satisfied  that  the  applicant
 should  be  issued  a  license,  the executive director shall notify the
 applicant in writing of the specific reason or reasons for denial.
   3. The executive director shall have the authority to, in consultation
 with the cannabis advisory  board,  determine  the  number  of  licenses
 issued pursuant to this article.
   §  65.  Limitations of licensure; duration.  1. No license of any kind
 may be issued to a person under the age of twenty-one years,  nor  shall
 any licensee employ anyone under the age of twenty-one years.
   2. No licensee shall sell, deliver, or give away or cause or permit or
 procure  to be sold, delivered or given away any cannabis to any person,
 actually or apparently, under the age of  twenty-one  years  unless  the
 person  under twenty-one is also a certified patient and the licensee is
 appropriately licensed under article three of this chapter.
   3. The office shall have the authority  to  limit,  by  canopy,  plant
 count,  square footage or other means, the amount of cannabis allowed to
 be grown, processed, distributed or sold by a licensee.
   4. All licenses under this article shall expire two  years  after  the
 date of issue.
   § 66. License renewal.  1. Each license, issued pursuant to this arti-
 cle,  may  be renewed upon application therefore by the licensee and the
 payment of the fee for such license as prescribed by  this  article.  In
 the  case of applications for renewals, the office may dispense with the
 requirements of such statements as it deems unnecessary in view of those
 contained in the application made for the original license, but  in  any
 event  the  submission  of photographs of the licensed premises shall be
 dispensed with, provided the applicant for such  renewal  shall  file  a
 statement  with  the  office to the effect that there has been no alter-
 ation of such premises since the original license was issued. The office
 may make such rules as it deems necessary, not  inconsistent  with  this
 chapter, regarding applications for renewals of licenses and permits and
 the time for making the same.
   2.  Each  applicant  must  submit  to  the office documentation of the
 racial, ethnic, and gender diversity of the  applicant's  employees  and
 owners  prior  to  a  license being renewed. In addition, the office may
 create a social responsibility framework agreement and make  the  adher-
 ence to such agreement a conditional requirement of license renewal.
   3.  The  office  shall provide an application for renewal of a license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   4. The office may only issue a renewal license  upon  receipt  of  the
 prescribed  renewal  application  and renewal fee from a licensee if, in

 A. 1617--A                         30
 
 addition to the criteria in this section, the licensee's license is  not
 under suspension and has not been revoked.
   5.  Each  applicant must maintain 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
 licensure.
   § 67. Amendments; changes in ownership and  organizational  structure.
 1. Licenses issued pursuant to this article shall specify:
   (a) the name and address of the licensee;
   (b) the activities permitted by the license;
   (c)  the  land,  buildings  and  facilities  that  may be used for the
 licensed activities of the licensee;
   (d) a unique license number issued by the office to the licensee; and
   (e) such other information as the executive director shall deem neces-
 sary to assure compliance with this chapter.
   2. Upon application of a licensee to the  office,  a  license  may  be
 amended  to  allow  the licensee to relocate within the state, to add or
 delete licensed activities or facilities, or to amend the  ownership  or
 organizational  structure of the entity that is the licensee. The execu-
 tive director shall establish a fee for such amendments.
   3. A license shall become void by a change in  ownership,  substantial
 corporate change or location without prior written approval of the exec-
 utive director. The executive director may promulgate regulations allow-
 ing for certain types of changes in ownership without the need for prior
 written approval.
   4.  For purposes of this section, "substantial corporate change" shall
 mean:
   (a) for a corporation, a change of eighty percent or more of the offi-
 cers and/or directors, or a transfer of eighty percent or more of  stock
 of such corporation, or an existing stockholder obtaining eighty percent
 or more of the stock of such corporation; or
   (b)  for  a  limited  liability company, a change of eighty percent or
 more of the managing members of the company, or  a  transfer  of  eighty
 percent  or  more  of ownership interest in said company, or an existing
 member obtaining a cumulative of eighty percent or more of the ownership
 interest in said company.
   § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
 license  shall  authorize  the  acquisition, possession, cultivation and
 sale of cannabis from the licensed premises of the adult-use  cultivator
 by  such  licensee to duly licensed processors in this state. The execu-
 tive director may  establish  regulations  allowing  licensed  adult-use
 cultivators  to  perform certain types of minimal processing without the
 need for an adult-use processor license.
   2. For purposes of this section, cultivation shall include, but not be
 limited to, the planting, growing, cloning, harvesting, drying,  curing,
 grading and trimming of cannabis.
   3.  A  person holding an adult-use cultivator's license may apply for,
 and obtain, one processor's license and one distributor's license.
   4. A person holding an adult-use cultivator's  license  may  not  also
 hold  a retail dispensary license pursuant to this article and no adult-
 use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
 including  by stock ownership, interlocking directors, mortgage or lien,
 personal or real property, or any other means, in any premises  licensed
 as  an  adult-use cannabis retail dispensary or in any business licensed
 as an adult-use cannabis retail dispensary pursuant to this article.

 A. 1617--A                         31
 
   5. A person holding an adult-use cultivator's license may not  hold  a
 license  to  distribute  cannabis under this article unless the licensed
 cultivator is also licensed as a processor under this article.
   6.  No  person  may have a direct or indirect financial or controlling
 interest in more than one adult-use cultivator license  issued  pursuant
 to this chapter.
   §  69.  Adult-use  processor license.   1. A processor's license shall
 authorize the acquisition, possession, processing and sale  of  cannabis
 from  the licensed premises of the adult-use cultivator by such licensee
 to duly licensed distributors.
   2. For purposes of this section, processing shall include, but not  be
 limited  to, blending, extracting, infusing, packaging, labeling, brand-
 ing and otherwise making  or  preparing  cannabis  products.  Processing
 shall not include the cultivation of cannabis.
   3. No processor shall be engaged in any other business on the premises
 to  be  licensed;  except  that  nothing contained in this chapter shall
 prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
 utor from operating on the same premises and from a person  holding  all
 three licenses.
   4.  No  cannabis  processor licensee may hold more than three cannabis
 processor licenses.
   5. No adult-use cannabis processor shall have  a  direct  or  indirect
 interest, including by stock ownership, interlocking directors, mortgage
 or  lien, personal or real property, or any other means, in any premises
 licensed as an adult-use cannabis retail dispensary or in  any  business
 licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
 article.
   § 70. Adult-use cooperative license.  1. A cooperative  license  shall
 authorize  the acquisition, possession, cultivation, processing and sale
 from the licensed premises of the adult-use cooperative by such licensee
 to duly  licensed  distributors  and/or  retail  dispensaries;  but  not
 directly to cannabis consumers.
   2. To be licensed as an adult-use cooperative, the cooperative must:
   (i)  be  comprised  of residents of the state of New York as a limited
 liability company or limited liability partnership under the laws of the
 state, or an appropriate business structure as determined by the  execu-
 tive director;
   (ii)  at least one member of the cooperative must have filed a Federal
 Schedule F (Form 1040) for three of the past five years; and
   (iii) the cooperative must operate according to the seven  cooperative
 principles  published by the International Cooperative Alliance in nine-
 teen hundred ninety-five.
   3. No person shall be a member of more than one adult-use  cooperative
 licensed pursuant to this section.
   4.  No person or member of an adult-use cooperative license may have a
 direct or indirect  financial  or  controlling  interest  in  any  other
 adult-use cannabis license issued pursuant to this chapter.
   5.  No  adult-use cannabis cooperative shall have a direct or indirect
 interest, including by stock ownership, interlocking directors, mortgage
 or lien, personal or real property, or any other means, in any  premises
 licensed  as  an adult-use cannabis retail dispensary or in any business
 licensed as an adult-use cannabis retail  dispensary  pursuant  to  this
 article.
   6. The executive director shall promulgate regulations governing coop-
 erative  licenses,  including,  but not limited to, the establishment of

 A. 1617--A                         32
 
 canopy limits on the size and scope of cooperative licensees, and  other
 measures designed to incentivize the use and licensure of cooperatives.
   § 71. Adult-use distributor license.  1. A distributor's license shall
 authorize the acquisition, possession, distribution and sale of cannabis
 from the licensed premises of a licensed adult-use processor, microbusi-
 ness  or  registered organization authorized to sell adult-use cannabis,
 to duly licensed retail dispensaries.
   2. No distributor shall have a direct or indirect economic interest in
 any adult-use retail dispensary licensed pursuant to this article, or in
 any registered organization registered pursuant to article three of this
 chapter. This restriction shall not prohibit a  registered  organization
 authorized pursuant to section forty of this chapter, from being granted
 licensure by the office to distribute adult-use cannabis products culti-
 vated  and  processed  by  the registered organization to the registered
 organization's own licensed adult-use retail dispensaries.
   3. Nothing in subdivision two of this section shall prevent a distrib-
 utor from charging an appropriate fee for the distribution of  cannabis,
 including based on the volume of cannabis distributed.
   §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
 license shall authorize the acquisition, possession and sale of cannabis
 from the licensed premises of the retail dispensary by such licensee  to
 cannabis consumers.
   2.  No  person  may have a direct or indirect financial or controlling
 interest in more than three retail dispensary licenses  issued  pursuant
 to this chapter.
   3.  No  person  holding  a  retail dispensary license may also hold an
 adult-use cultivation, processor, microbusiness, cooperative or distrib-
 utor license pursuant to this article.
   4. No retail license shall be granted for  any  premises,  unless  the
 applicant  shall  be  the owner thereof, or shall be able to demonstrate
 possession of the premises within thirty days of initial approval of the
 license through a lease, management agreement or other agreement  giving
 the applicant control over the premises, in writing, for a term not less
 than the license period.
   5. With the exception of microbusiness licensees, no premises shall be
 licensed  to  sell  cannabis  products,  unless  said  premises shall be
 located in a store, the principal entrance to which shall  be  from  the
 street  level and located on a public thoroughfare in premises which may
 be occupied, operated or conducted for business, trade or industry or on
 an arcade or sub-surface thoroughfare leading to a railroad terminal.
   6. No cannabis retail license shall be granted for any premises within
 two hundred feet of a school grounds as such  term  is  defined  in  the
 education law.
   §  73. Microbusiness license. 1. A microbusiness license shall author-
 ize the limited cultivation, processing, distribution and dispensing  of
 adult use cannabis and cannabis products.
   2.  A  microbusiness  licensee  may  not  hold  interest  in any other
 license.
   3. The size and scope of a microbusiness shall be  determined  by  the
 executive director.
   §  74.  Notification to municipalities of adult-use retail dispensary.
 1. Not less than thirty days nor more  than  two  hundred  seventy  days
 before  filing  an  application  for  licensure as an adult-use cannabis
 retail dispensary, an applicant shall notify the municipality  in  which
 the  premises  is  located  of  such  applicant's intent to file such an
 application.

 A. 1617--A                         33
 
   2. Such notification shall be made to the clerk of the  village,  town
 or  city,  as  the  case  may  be,  wherein the premises is located. For
 purposes of this section:
   (a) notification need only be given to the clerk of a village when the
 premises is located within the boundaries of the village; and
   (b)  in the city of New York, the community board established pursuant
 to section twenty-eight hundred of the New York city charter with juris-
 diction over the area in which the premises is located shall be  consid-
 ered the appropriate public body to which notification shall be given.
   3. Such notification shall be made in such form as shall be prescribed
 by the rules of the office.
   4.  A  municipality may express an opinion for or against the granting
 of such application. Any such opinion shall be deemed part of the record
 upon which the office makes its  determination  to  grant  or  deny  the
 application.
   5.  Such  notification  shall  be  made by: (a) certified mail, return
 receipt requested; (b) overnight delivery service with proof of mailing;
 or (c) personal service upon the  offices  of  the  clerk  or  community
 board.
   6.  The office shall require such notification to be on a standardized
 form that can be obtained on the internet or from the  office  and  such
 notification to include:
   (a)  the trade name or "doing business as" name, if any, of the estab-
 lishment;
   (b) the full name of the applicant;
   (c) the street address  of  the  establishment,  including  the  floor
 location or room number, if applicable;
   (d)  the  mailing  address of the establishment, if different than the
 street address;
   (e) the name, address and telephone number of the attorney  or  repre-
 sentative of the applicant, if any;
   (f) a statement indicating whether the application is for:
   (i) a new establishment;
   (ii) a transfer of an existing licensed business;
   (iii) a renewal of an existing license; or
   (iv) an alteration of an existing licensed premises;
   (g)  if  the  establishment is a transfer or previously licensed prem-
 ises, the name of the old establishment and such establishment's  regis-
 tration or license number;
   (h)  in the case of a renewal or alteration application, the registra-
 tion or license number of the applicant; and
   (i) the type of license.
   §  75.  On-site  consumption  license;  provisions  governing  on-site
 consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
 sary shall be granted a cannabis on-site  consumption  license  for  any
 premises,  unless  the applicant shall be the owner thereof, or shall be
 in possession of said premises under a lease, in writing, for a term not
 less than the license period except,  however,  that  such  license  may
 thereafter  be renewed without the requirement of a lease as provided in
 this section. This subdivision shall not apply to premises  leased  from
 government agencies; provided, however, that the appropriate administra-
 tor  of  such government agency provides some form of written documenta-
 tion regarding the terms of occupancy under which the applicant is leas-
 ing said premises from the government agency  for  presentation  to  the
 office  at the time of the license application. Such documentation shall
 include the terms of occupancy between the applicant and the  government

 A. 1617--A                         34
 
 agency, including, but not limited to, any short-term leasing agreements
 or written occupancy agreements.
   2. No adult-use cannabis retail dispensary shall be granted a cannabis
 on-site  consumption license for any premises within two hundred feet of
 school grounds as such term is defined in the education law.
   3. The office may consider any or all of the following in  determining
 whether public convenience and advantage and the public interest will be
 promoted  by  the granting of a license for an on-site cannabis consump-
 tion at a particular location:
   (a) that it is a privilege, and not a right,  to  cultivate,  process,
 distribute, and sell cannabis;
   (b)  the number, classes, and character of other licenses in proximity
 to the location and in the particular municipality or subdivision there-
 of;
   (c) evidence  that  all  necessary  licenses  and  permits  have  been
 obtained from the state and all other governing bodies;
   (d)  whether there is a demonstrated need for spaces to consume canna-
 bis;
   (e) effect of the grant of the  license  on  pedestrian  or  vehicular
 traffic, and parking, in proximity to the location;
   (f) the existing noise level at the location and any increase in noise
 level that would be generated by the proposed premises;
   (g) the history of violations under the alcoholic beverage control law
 or  this  chapter  at the location, as well as any pattern of violations
 under the alcoholic beverage control law or this chapter,  and  reported
 criminal activity at the proposed premises; and
   (h) any other factors specified by law or regulation that are relevant
 to  determine  that  granting a license would promote public convenience
 and advantage and the public interest of the community.
   4. If the office  shall  disapprove  an  application  for  an  on-site
 consumption  license, it shall state and file in its offices the reasons
 therefor and shall notify the  applicant  thereof.  Such  applicant  may
 thereupon apply to the office for a review of such action in a manner to
 be prescribed by the rules of the office.
   5.  No adult-use cannabis on-site consumption licensee shall keep upon
 the licensed premises  any  adult-use  cannabis  products  except  those
 purchased  from  a  licensed  distributor,  microbusiness  or registered
 organization authorized to sell adult-use cannabis, and only in contain-
 ers approved by the office. Such containers shall have  affixed  thereto
 such  labels as may be required by the rules of the office.  No cannabis
 retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
 with,  adulterate,  dilute  or  fortify the contents of any container of
 cannabis products as received from the manufacturer or distributor.
   6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
 give  away, or cause or permit or procure to be sold, delivered or given
 away any cannabis for consumption  on  the  premises  where  sold  in  a
 container or package containing more than one gram of cannabis.
   7.  Except  where  a  permit  to do so is obtained pursuant to section
 405.10 of the penal law, no cannabis on-site consumption licensee  shall
 suffer,  permit,  or promote an event on its premises wherein any person
 shall use, explode, or cause to explode, any fireworks  or  other  pyro-
 technics  in  a building as defined in paragraph e of subdivision one of
 section 405.10 of the penal law, that is  covered  by  such  license  or
 possess  such fireworks or pyrotechnics for such purpose. In addition to
 any other penalty provided by law, a violation of this subdivision shall
 constitute an adequate ground for instituting a proceeding  to  suspend,

 A. 1617--A                         35
 
 cancel,  or  revoke  the  license of the violator in accordance with the
 applicable procedures specified in this chapter;  provided  however,  if
 more than one licensee is participating in a single event, upon approval
 by the office, only one licensee must obtain such permit.
   8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
 consumption under this chapter shall be permitted to have any opening or
 means of entrance or  passageway  for  persons  or  things  between  the
 licensed premises and any other room or place in the building containing
 the  licensed  premises,  or  any adjoining or abutting premises, unless
 ingress and egress is restricted by an employee, agent of the  licensee,
 or  other  method  approved  by  the office of controlling access to the
 facility.
   9. Each cannabis on-site consumption licensee shall keep and  maintain
 upon the licensed premises, adequate records of all transactions involv-
 ing the business transacted by such licensee which shall show the amount
 of  cannabis products, in an applicable metric measurement, purchased by
 such licensee together with the names, license  numbers  and  places  of
 business  of  the  persons from whom the same were purchased, the amount
 involved in such purchases, as well as the sales  of  cannabis  products
 made  by  such  licensee.  The office is hereby authorized to promulgate
 rules and regulations permitting an on-site licensee  operating  two  or
 more  premises separately licensed to sell cannabis products for on-site
 consumption to inaugurate or retain in this state methods  or  practices
 of  centralized  accounting,  bookkeeping,  control  records, reporting,
 billing, invoicing or payment respecting purchases, sales or  deliveries
 of cannabis products, or methods and practices of centralized receipt or
 storage  of  cannabis  products within this state without segregation or
 earmarking for any such  separately  licensed  premises,  wherever  such
 methods  and  practices  assure  the  availability,  at  such licensee's
 central or main office in this state, of data reasonably needed for  the
 enforcement  of  this  chapter.  Such  records  shall  be  available for
 inspection by any authorized representative of the office.
   10. All retail licensed premises shall be subject to inspection by any
 peace officer, acting pursuant to his or her special duties,  or  police
 officer and by the duly authorized representatives of the office, during
 the  hours  when the said premises are open for the transaction of busi-
 ness.
   11. A cannabis on-site consumption licensee shall not provide cannabis
 products to any person under the age of twenty-one.
   § 76. Record keeping and tracking. 1. The executive director shall, by
 regulation, require each licensee pursuant to this article to adopt  and
 maintain  security,  tracking,  record  keeping,  record  retention  and
 surveillance systems, relating to all cannabis at every stage of acquir-
 ing, possession, manufacture, sale, delivery, transporting,  testing  or
 distributing  by  the  licensee, subject to regulations of the executive
 director.
   2. Every licensee shall keep and maintain upon the  licensed  premises
 adequate  books  and  records of all transactions involving the licensee
 and sale of its products, which shall include, but is  not  limited  to,
 all information required by any rules promulgated by the office.
   3. Each sale shall be recorded separately on a numbered invoice, which
 shall  have  printed  thereon  the number, the name of the licensee, the
 address of the  licensed  premises,  and  the  current  license  number.
 Licensed  producers  shall  deliver  to  the licensed distributor a true
 duplicate invoice stating the name and address  of  the  purchaser,  the
 quantity  purchased,  description  and  the  price of the product, and a

 A. 1617--A                         36
 
 true, accurate and complete statement of the  terms  and  conditions  on
 which such sale is made.
   4. Such books, records and invoices shall be kept for a period of five
 years  and shall be available for inspection by any authorized represen-
 tative of the office.
   5. Each  adult-use  cannabis  retail  dispensary,  microbusiness,  and
 on-site  consumption  licensee shall keep and maintain upon the licensed
 premises, adequate records of all transactions  involving  the  business
 transacted  by such licensee which shall show the amount of cannabis, in
 weight, purchased by such licensee  together  with  the  names,  license
 numbers  and  places  of business of the persons from whom the same were
 purchased, the amount involved in such purchases, as well as  the  sales
 of cannabis made by such licensee.
   §  77. Inspections and ongoing requirements. All licensed or permitted
 premises, regardless of the  type  of  premises,  shall  be  subject  to
 inspection  by the office, by the duly authorized representatives of the
 office, by any peace officer acting  pursuant  to  his  or  her  special
 duties,  or by a police officer, during the hours when the said premises
 are open for the transaction of business. The office shall make  reason-
 able  accommodations  so  that  ordinary business is not interrupted and
 safety and security procedures are not compromised by the inspection.  A
 person who holds a license or permit must make himself or herself, or an
 agent  thereof, available and present for any inspection required by the
 office.  Such inspection may include, but is not  limited  to,  ensuring
 compliance by the licensee or permittee with all other applicable build-
 ing codes, fire, health, safety, and governmental regulations, including
 at the municipal, county, and state level.
   §  78.  Adult-use  cultivators,  processors  or distributors not to be
 interested in retail dispensaries.  1. It shall be unlawful for a culti-
 vator, processor, cooperative or distributor licensed under this article
 to:
   (a) be interested directly or indirectly in  any  premises  where  any
 cannabis product is sold at retail; or in any business devoted wholly or
 partially  to the sale of any cannabis product at retail by stock owner-
 ship, interlocking directors, mortgage or lien or any personal  or  real
 property, or by any other means.
   (b)  make,  or cause to be made, any loan to any person engaged in the
 manufacture or sale of any cannabis product at wholesale or retail.
   (c) make any gift or  render  any  service  of  any  kind  whatsoever,
 directly  or indirectly, to any person licensed under this chapter which
 in the judgment of the office may tend to  influence  such  licensee  to
 purchase the product of such cultivator or processor or distributor.
   (d)  enter  into  any  contract  with any retail licensee whereby such
 licensee agrees to confine his sales to cannabis  products  manufactured
 or  sold  by  one or more such cultivator or processors or distributors.
 Any such contract shall be void and subject the licenses of all  parties
 concerned to revocation for cause.
   2.  The  provisions  of  this  section shall not prohibit a registered
 organization authorized pursuant to section forty of this chapter,  from
 cultivating,  processing,  distributing  or  selling  adult-use cannabis
 under this article, at facilities wholly  owned  and  operated  by  such
 registered  organization,  subject  to  any  conditions,  limitations or
 restrictions established by the office and this chapter.
   3. The office shall have the power to create rules and regulations  in
 regard to this section.

 A. 1617--A                         37
 
   §  79.  Packaging  and labeling of adult-use cannabis products. 1. The
 office is hereby authorized to promulgate rules and regulations  govern-
 ing  the  advertising,  branding,  marketing,  packaging and labeling of
 cannabis products, sold or possessed for sale in New York state, includ-
 ing  rules pertaining to the accuracy of information and rules restrict-
 ing marketing and advertising to youth.
   2. Such regulations shall include, but not be  limited  to,  requiring
 that:
   (a)  packaging  meets  requirements  similar  to  the  federal "poison
 prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
   (b) all cannabis-infused products shall have a separate packaging  for
 each serving;
   (c)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
 products shall be labeled and placed in  a  resealable,  child-resistant
 package; and
   (d) packages and labels shall not be made to be attractive to minors.
   3.  Such  regulations shall include requiring labels warning consumers
 of any potential impact on human health resulting from  the  consumption
 of  cannabis products that shall be affixed to those products when sold,
 if such labels are deemed warranted by the office.
   4. Such rules and regulations shall establish methods  and  procedures
 for  determining  serving sizes for cannabis-infused products and active
 cannabis concentration per serving size.  Such  regulations  shall  also
 require  a nutritional fact panel that incorporates data regarding serv-
 ing sizes and potency thereof.
   5. The packaging, sale, marketing, branding, advertising, labeling  or
 possession  by  any  licensee  of  any  cannabis  product not labeled or
 offered in conformity with rules and regulations promulgated in  accord-
 ance  with  this  section shall be grounds for the imposition of a fine,
 and/or the suspension, revocation or cancellation of a license.
   § 80. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
 shall  contract  with  an  independent  laboratory permitted pursuant to
 section one hundred twenty-nine of this chapter, to  test  the  cannabis
 products it produces pursuant to rules and regulations prescribed by the
 office.  The executive director may assign an approved testing laborato-
 ry, which the processor of adult-use cannabis must use.
   2.  Adult-use  cannabis  processors shall make laboratory test reports
 available to licensed  distributors  and  retail  dispensaries  for  all
 cannabis products manufactured by the processor.
   3.  Licensed retail dispensaries shall maintain accurate documentation
 of laboratory test reports for each cannabis product offered for sale to
 cannabis consumers. Such documentation shall be made publicly  available
 by the licensed retail dispensary.
   4.  Onsite  laboratory  testing  by licensees is permissible; however,
 such testing shall not be certified by the office and  does  not  exempt
 the  licensee  from  the  requirements of quality assurance testing at a
 testing laboratory pursuant to this section.
   5. An owner of a cannabis laboratory testing permit shall not  hold  a
 license  in  any other category within this article and shall not own or
 have ownership interest in a registered organization registered pursuant
 to article three of this chapter.
   6. The office shall have the authority to require any  licensee  under
 this  article  to  submit  cannabis  or cannabis products to one or more
 independent laboratories for testing.

 A. 1617--A                         38
 
   § 81. Provisions governing the cultivation and processing of adult-use
 cannabis. 1. Cultivation of cannabis must not be visible from  a  public
 place by normal unaided vision.
   2.  No  cultivator  or  processor of adult-use cannabis shall sell, or
 agree to sell or deliver in the state any cannabis products, as the case
 may be, except in sealed containers containing quantities in  accordance
 with  size  standards  pursuant  to  rules  adopted  by the office. Such
 containers shall have affixed thereto such labels as may be required  by
 the rules of the office.
   3.  No  cultivator or processor of adult-use cannabis shall furnish or
 cause to be furnished to any licensee, any exterior  or  interior  sign,
 printed,  painted,  electric  or  otherwise, except as authorized by the
 office. The office may make such rules as it deems  necessary  to  carry
 out the purpose and intent of this subdivision.
   4.  Cultivators  of  adult-use cannabis shall only use pesticides that
 are registered by the department of environmental conservation  or  that
 specifically  meet  the  United  States  environmental protection agency
 registration exemption criteria for minimum risk pesticides, and only in
 compliance with regulations, standards  and  guidelines  issued  by  the
 department of environmental conservation.
   5.  No  cultivator  or  processor  of adult-use cannabis, including an
 adult-use cannabis cooperative or microbusiness may offer any incentive,
 payment or other benefit to a licensed  cannabis  retail  dispensary  in
 return for carrying the cultivator, processor, cooperative or microbusi-
 ness products, or preferential shelf placement.
   6.  All  cannabis  products shall be processed in accordance with good
 manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
 Federal Regulations, as may be modified by  the  executive  director  in
 regulation.
   7. No processor of adult-use cannabis shall produce any product which,
 in  the  discretion of the office, is designed to appeal to anyone under
 the age of twenty-one years.
   8. The use or integration of alcohol or nicotine in cannabis  products
 is strictly prohibited.
   § 82. Provisions governing the distribution of adult-use cannabis.  1.
 No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
 products, as the case may be, in any container, except in a sealed pack-
 age. Such containers shall have affixed thereto such labels  as  may  be
 required by the rules of the office.
   2. No distributor shall deliver any cannabis products, except in vehi-
 cles  owned  and  operated by such distributor, or hired and operated by
 such distributor from a trucking or  transportation  company  registered
 with the office, and shall only make deliveries at the licensed premises
 of the purchaser.
   3.  Each  distributor  shall keep and maintain upon the licensed prem-
 ises, adequate books and records of all transactions involving the busi-
 ness transacted by such distributor, which  shall  show  the  amount  of
 cannabis products purchased by such distributor together with the names,
 license numbers and places of business of the persons from whom the same
 was  purchased and the amount involved in such purchases, as well as the
 amount of cannabis products sold by such distributor together  with  the
 names,  addresses,  and  license  numbers  of such purchasers. Each sale
 shall be recorded separately on a numbered  invoice,  which  shall  have
 printed thereon the number, the name of the licensee, the address of the
 licensed  premises,  and  the  current  license number. Such distributor
 shall deliver to the purchaser a true duplicate invoice stating the name

 A. 1617--A                         39
 
 and address  of  the  purchaser,  the  quantity  of  cannabis  products,
 description  by  brands  and  the price of such cannabis products, and a
 true, accurate and complete statement of the  terms  and  conditions  on
 which  such sale is made. Such books, records and invoices shall be kept
 for a period of five years and shall be available for inspection by  any
 authorized representative of the office.
   4. No distributor shall furnish or cause to be furnished to any licen-
 see, any exterior or interior sign, printed, painted, electric or other-
 wise, unless authorized by the office.
   5.  No  distributor  shall  provide  any  discount, rebate or customer
 loyalty program to any licensed retailer, except as otherwise allowed by
 the office.
   6. The executive director  is  authorized  to  promulgate  regulations
 establishing  a  maximum  margin  for  which a distributor may mark up a
 cannabis product for sale to a retail dispensary. Any adult-use cannabis
 product sold by a distributor for more than the maximum  markup  allowed
 in regulation, shall be unlawful.
   7.  Each  distributor  shall keep and maintain upon the licensed prem-
 ises, adequate books and records to demonstrate the distributor's actual
 cost of doing business, using accounting standards and methods regularly
 employed in the determination of costs for the purpose of federal income
 tax reporting, for the total operation  of  the  licensee.  Such  books,
 records  and invoices shall be kept for a period of five years and shall
 be available for inspection by  any  authorized  representative  of  the
 office  for  use in determining the maximum markup allowed in regulation
 pursuant to subdivision six of this section.
   § 83. Provisions governing adult-use cannabis retail dispensaries.  1.
 No cannabis retail licensee shall sell, deliver, or give away  or  cause
 or permit or procure to be sold, delivered or given away any cannabis to
 any person, actually or apparently, under the age of twenty-one years.
   2.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
 have or possess a license or permit to sell alcoholic beverages, on  the
 same premises where cannabis products are sold.
   3.  No  sign of any kind printed, painted or electric, advertising any
 brand shall be permitted on the exterior or interior of  such  premises,
 except by permission of the office.
   4.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
 products to any person with knowledge of, or with  reasonable  cause  to
 believe,  that the person to whom such cannabis products are being sold,
 has acquired the same for the purpose of selling or giving them away  in
 violation of the provisions of this chapter or in violation of the rules
 and regulations of the office.
   5.  All  premises  licensed  under  this  section  shall be subject to
 inspection by any peace officer described in subdivision four of section
 2.10 of the criminal procedure law acting pursuant to his or her special
 duties, or police officer or any duly authorized representative  of  the
 office,  during the hours when the said premises are open for the trans-
 action of business.
   6. No cannabis retail licensee shall be interested, directly or  indi-
 rectly, in any cultivator, processor, distributor or microbusiness oper-
 ator licensed pursuant to this article, by stock ownership, interlocking
 directors,  mortgage  or lien on any personal or real property or by any
 other means. Any lien, mortgage or other interest  or  estate,  however,
 now held by such retailer on or in the personal or real property of such
 manufacturer  or  distributor,  which mortgage, lien, interest or estate
 was acquired on or before December thirty-first, two thousand  eighteen,

 A. 1617--A                         40
 
 shall  not  be  included  within  the  provisions  of  this subdivision;
 provided, however, the burden of establishing the time of the accrual of
 the interest comprehended by this subdivision, shall be upon the  person
 who claims to be entitled to the protection and exemption afforded here-
 by.
   7. No cannabis retail licensee shall make or cause to be made any loan
 to  any person engaged in the cultivation, processing or distribution of
 cannabis pursuant to this article.
   8. Each cannabis retail licensee shall designate  the  price  of  each
 item  of  cannabis  by  attaching to or otherwise displaying immediately
 adjacent to each such item displayed in the  interior  of  the  licensed
 premises where sales are made a price tag, sign or placard setting forth
 the price at which each such item is offered for sale therein.
   9. No person licensed to sell cannabis products at retail, shall allow
 or  permit any gambling, or offer any gambling on the licensed premises,
 or allow or permit illicit drug activity on the licensed  premises.  The
 use of the licensed premises or any part thereof for the sale of lottery
 tickets,  when duly authorized and lawfully conducted thereon, shall not
 constitute gambling within the meaning of this subdivision.
   10. If an employee of a  cannabis  retail  licensee  suspects  that  a
 cannabis  consumer  may  be  abusing  cannabis,  such  an employee shall
 encourage such cannabis consumer to  seek  help  from  a  substance  use
 disorder  program  or harm reduction services. Cannabis retail licensees
 shall develop standard operating procedures and  written  materials  for
 employees  to  utilize  when  consulting  consumers for purposes of this
 subdivision.
   11. The executive director is  authorized  to  promulgate  regulations
 governing  licensed  adult-use  dispensing facilities, including but not
 limited to, the hours of operation, size and location  of  the  licensed
 facility, potency and types of products offered and establishing a mini-
 mum  margin for which a retail dispensary must markup a cannabis product
 or products before selling to a cannabis consumer. Any adult-use  canna-
 bis product sold by a retail dispensary for less than the minimum markup
 allowed in regulation, shall be unlawful.
   § 84. Adult-use cannabis advertising.  1. The office is hereby author-
 ized  to  promulgate rules and regulations governing the advertising and
 marketing of licensed cannabis and any cannabis products or services.
   2. The office shall promulgate explicit rules prohibiting  advertising
 that:
   (a) is false, deceptive, or misleading;
   (b) promotes overconsumption;
   (c) depicts consumption by children or other minors;
   (d) is designed in any way to appeal to children or other minors;
   (e)  is  within two hundred feet of the perimeter of a school grounds,
 playground, child care center, public park, or library;
   (f) is within two hundred feet of  school  grounds  as  such  term  is
 defined in section 220.00 of the penal law;
   (g) is in public transit vehicles and stations;
   (h) is in the form of an unsolicited internet pop-up;
   (i) is on publicly owned or operated property; or
   (j)  makes medical claims or promotes adult-use cannabis for a medical
 or wellness purpose.
   3. The office shall promulgate explicit rules prohibiting all  market-
 ing  strategies and implementation including, but not limited to, brand-
 ing, packaging, labeling, location of cannabis retailers, and advertise-
 ments that are designed to:

 A. 1617--A                         41
 
   (a) appeal to persons less then twenty-one years of age; or
   (b) disseminate false or misleading information to customers.
   4. The office shall promulgate explicit rules requiring that:
   (a)  all  advertisements and marketing accurately and legibly identify
 the licensee or other business responsible for its content; and
   (b) any broadcast, cable,  radio,  print  and  digital  communications
 advertisements  only be placed where the audience is reasonably expected
 to be twenty-one years of age  or  older,  as  determined  by  reliable,
 up-to-date audience composition data.
   §  85.  Minority,  women-owned  businesses  and disadvantaged farmers;
 incubator program.  1. The office shall implement a social and  economic
 equity  plan  and  actively promote racial, ethnic, and gender diversity
 when issuing licenses for adult-use cannabis related activities, includ-
 ing by prioritizing consideration  of  applications  by  applicants  who
 qualify as a minority and women-owned business or disadvantaged farmers.
 Such qualifications shall be determined by the office in regulation.
   2.  The  office  shall  create  a  social  and economic equity plan to
 promote diversity in ownership and employment in the adult-use  cannabis
 industry and ensure inclusion of:
   (a) minority-owned businesses;
   (b) women-owned businesses;
   (c)  minority  and  women-owned  businesses, as defined in subdivision
 five of this section; and
   (d) disadvantaged farmers, as defined  in  subdivision  five  of  this
 section.
   3.  The  social  and  economic  equity  plan shall consider additional
 criteria in its licensing determinations. Under the social and  economic
 equity  plan,  extra  weight  shall be given to applications that demon-
 strate that an applicant:
   (a) is a member of a community group that has been  disproportionately
 impacted by the enforcement of cannabis prohibition;
   (b)  has  an  income lower than eighty percent of the median income of
 the county in which the applicant resides; and
   (c) was convicted of a cannabis-related offense prior to the effective
 date of this chapter, or had  a  parent,  guardian,  child,  spouse,  or
 dependent,  or was a dependent of an individual who, prior to the effec-
 tive date of this chapter, was convicted of a cannabis-related offense.
   4. The office shall also create an incubator program to provide direct
 support to social and economic equity applicants after  they  have  been
 granted  licenses.  The program shall provide direct support in the form
 of counseling services, education, small business coaching, and  compli-
 ance assistance.
   5.  For  the purposes of this section, the following definitions shall
 apply:
   (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
 including  a sole proprietorship, partnership, limited liability company
 or corporation that is:
   (i) at least fifty-one percent owned by one  or  more  minority  group
 members;
   (ii)  an enterprise in which such minority ownership is real, substan-
 tial and continuing;
   (iii) an enterprise in which such minority ownership has and exercises
 the authority to control independently the day-to-day business decisions
 of the enterprise;
   (iv) an enterprise authorized to do business in this state  and  inde-
 pendently owned and operated; and

 A. 1617--A                         42
 
   (v) an enterprise that is a small business.
   (b)  "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:
   (i) black persons having origins in any of the  black  African  racial
 groups;
   (ii)  Hispanic  persons  of  Mexican,  Puerto Rican, Dominican, Cuban,
 Central or South American of either Indian or Hispanic  origin,  regard-
 less of race;
   (iii)  Native American or Alaskan native persons having origins in any
 of the original peoples of North America; or
   (iv) Asian and Pacific Islander persons having origins in any  of  the
 far  east  countries,  south  east  Asia, the Indian subcontinent or the
 Pacific islands.
   (c) "women-owned business" shall mean a business enterprise, including
 a sole proprietorship, partnership, limited liability company or  corpo-
 ration that is:
   (i)  at  least  fifty-one  percent  owned by one or more United States
 citizens or permanent resident aliens who are women;
   (ii) an enterprise in which the ownership interest of  such  women  is
 real, substantial and continuing;
   (iii)  an  enterprise  in which such women ownership has and exercises
 the authority to control independently the day-to-day business decisions
 of the enterprise;
   (iv) an enterprise authorized to do business in this state  and  inde-
 pendently owned and operated; and
   (v) an enterprise that is a small business.
   (d) a firm owned by a minority group member who is also a woman may be
 defined as a minority-owned business, a women-owned business, or both.
   (e)  "disadvantaged  farmer"  shall  mean a New York state resident or
 business  enterprise,  including  a  sole  proprietorship,  partnership,
 limited  liability  company  or  corporation, that has reported at least
 two-thirds of its federal gross income as income  from  farming,  in  at
 least one of the past five preceding tax years, and who:
   (i) farms in a county that has greater than ten percent rate of pover-
 ty  according  to  the  latest U.S. Census Bureau's American Communities
 Survey;
   (ii) has been disproportionately impacted by low commodity  prices  or
 faces the loss of farmland through development or suburban sprawl; and
   (iii)  meets  any other qualifications as defined in regulation by the
 office.
   6. The office shall actively promote applicants  that  foster  racial,
 ethnic, and gender diversity in their workforce.
   7. Licenses issued under the social and economic equity plan shall not
 be  transferable  except  to qualified social and economic equity appli-
 cants and only upon prior written approval of the executive director.
   8. The office shall collect demographic data on owners  and  employees
 in the adult-use cannabis industry and shall annually publish such data.
   §  86. Regulations.   The executive director shall make regulations to
 implement this article.
 
                                 ARTICLE 5
                               HEMP CANNABIS
 
 Section 90.  Cannabinoid related hemp cannabis licensing.
         91.  Cannabinoid grower licenses.

 A. 1617--A                         43
 
         92.  Cannabinoid extractor license.
         93.  Cannabinoid license applications.
         94.  Information to be requested in applications for licenses.
         95.  Fees.
         96.  Selection criteria.
         97.  Limitations of licensure; duration.
         98.  License renewal.
         99.  Form of license.
         100. Amendments  to  license  and  duty  to  update  information
                submitted for licensing.
         101. Record keeping and tracking.
         102. Inspections and ongoing requirements.
         103. Packaging and labeling of hemp cannabis.
         104. Provisions governing the growing  and  extracting  of  hemp
                cannabis.
         105. Laboratory testing.
         106. Advertising.
         107. Research.
         108. Regulations.
   §  90.  Cannabinoid related hemp cannabis licensing.  1. Persons grow-
 ing, processing,  extracting,  and/or  manufacturing  hemp  cannabis  or
 producing  hemp  cannabis  products  distributed,  sold  or marketed for
 cannabinoid content and used or intended for human or animal consumption
 or use, shall be required to obtain the following  license  or  licenses
 from the office, depending upon the operation:
   (a) cannabinoid grower license; and/or
   (b) cannabinoid extractor license.
   2. Notwithstanding subsection one of this section, those persons grow-
 ing,  processing  or  manufacturing  food  or food ingredients from hemp
 shall be subject to regulation and/or licensing  under  the  agriculture
 and markets law.
   §  91. Cannabinoid grower licenses.  1. A cannabinoid grower's license
 authorizes the acquisition, possession, cultivation  and  sale  of  hemp
 cannabis grown or used for its cannabinoid content on the licensed prem-
 ises of the grower.
   2. A person holding a cannabinoid grower's license shall not sell hemp
 products  marketed,  distributed or sold for its cannabinoid content and
 intended for human consumption or use without also being licensed as  an
 extractor pursuant to this article.
   3.  Persons growing industrial hemp pursuant to article twenty-nine of
 the agriculture and markets law are not authorized to and shall not sell
 hemp cannabis for human or animal consumption.
   4. A person licensed under article twenty-nine of the agriculture  and
 markets  law  as  an  industrial hemp grower may apply for a cannabinoid
 grower's license provided that it can demonstrate to the office that its
 cultivation of industrial hemp  meets  all  the  requirements  for  hemp
 cannabis cultivated under a cannabinoid grower's license.
   §  92.  Cannabinoid  extractor  license.    1. A cannabinoid extractor
 license authorizes the licensee's  acquisition,  possession,  extraction
 and manufacture of hemp from a licensed cannabinoid grower for the proc-
 essing  of  hemp  cannabis  or  the production of hemp cannabis products
 marketed, distributed or  sold  for  cannabinoid  content  and  used  or
 intended for human or animal consumption or use.
   2.  No  cannabinoid extractor licensee shall engage in any other busi-
 ness on the licensed premises; except that  nothing  contained  in  this

 A. 1617--A                         44
 
 chapter  shall  prevent a cannabinoid extractor licensee from also being
 licensed as a cannabinoid grower on the same premises.
   3.  Notwithstanding  subdivisions one and two of this section, nothing
 shall prevent a cannabinoid extractor from manufacturing  hemp  products
 not used or intended for human or animal consumption or use.
   §  93.  Cannabinoid license applications. 1. Persons shall apply for a
 cannabinoid grower license and/or a  cannabinoid  extractor  license  by
 submitting  an application upon a form supplied by the office, providing
 all the requested information, verified by the applicant or  an  author-
 ized representative of the applicant.
   2.  A  separate  license  shall be required for each facility at which
 growing or extracting is conducted.
   3. Each application shall remit with its application the fee for  each
 requested license.
   §  94.  Information  to be requested in applications for licenses.  1.
 The office shall have the authority to prescribe the manner and form  in
 which an application must be submitted to the office for licensure under
 this article.
   2.  The executive director is authorized to adopt regulations, includ-
 ing by emergency rule, establishing information which must  be  included
 on an application for licensure under this article. Such information may
 include, but is not limited to:  information about the applicant's iden-
 tity,  including  racial  and ethnic diversity; ownership and investment
 information, including the corporate structure; evidence of  good  moral
 character,  including the submission of fingerprints by the applicant to
 the division of criminal justice services; information about  the  prem-
 ises  to  be  licensed;  financial statements; and any other information
 prescribed by in regulation.
   3. All license applications shall be signed by the  applicant  (if  an
 individual), by a managing partner (if a limited liability corporation),
 by an officer (if a corporation), or by all partners (if a partnership).
 Each  person  signing  such  application shall verify it or affirm it as
 true under the penalties of perjury.
   4. All license or permit applications shall be accompanied by a check,
 draft or other forms of payment as the office may require  or  authorize
 in the amount required by this article for such license or permit.
   5.  If there be any change, after the filing of the application or the
 granting of a license, in any of the facts required to be set  forth  in
 such application, a supplemental statement giving notice of such change,
 cost and source of money involved in the change, duly verified, shall be
 filed  with  the office within ten days after such change. Failure to do
 so shall, if willful and deliberate, be  cause  for  revocation  of  the
 license.
   6. In giving any notice, or taking any action in reference to a licen-
 see  of  a  licensed  premises, the office may rely upon the information
 furnished  in  such  application  and  in  any  supplemental   statement
 connected therewith, and such information may be presumed to be correct,
 and  shall  be  binding  upon  a  registered  organization,  licensee or
 licensed  premises  as  if  correct.  All  information  required  to  be
 furnished in such application or supplemental statements shall be deemed
 material  in  any  prosecution  for  perjury,  any proceeding to revoke,
 cancel or suspend any license, and  in  the  office's  determination  to
 approve or deny the license.
   7.  The  office  may,  in  its discretion, waive the submission of any
 category of information described in this section for  any  category  of
 license  or permit, provided that it shall not be permitted to waive the

 A. 1617--A                         45
 
 requirement for submission of any such category  of  information  solely
 for an individual applicant or applicants.
   §  95. Fees. The office shall have the authority to charge licensees a
 biennial license fee. Such fee may be based on the amount of hemp canna-
 bis to be grown, processed or extracted by the licensee, the gross annu-
 al receipts of the licensee for the  previous  license  period,  or  any
 other factors deemed appropriate by the office.
   § 96. Selection criteria. 1. An applicant shall furnish evidence:
   (a) its ability to effectively maintain a delta-9 tetrahydrocannabinol
 concentration  that  does not exceed a percentage of delta-9 tetrahydro-
 cannabinol cannabis set by the executive director on a dry weight  basis
 of  any part of the plant of the genus cannabis, or per volume or weight
 of cannabis product, or the combined percent of delta-9 tetrahydrocanna-
 binol and tetrahydrocannabinolic acid in any part of the  plant  of  the
 genus cannabis regardless of moisture content, for all hemp cannabis and
 hemp  derived  products cultivated, processed or extracted by the appli-
 cant;
   (b) its ability to comply with all applicable  state  laws  and  regu-
 lations,  including, without limitation, the provisions of article four-
 teen of the agriculture and markets law;
   (c) that the applicant is ready, willing and able to properly carry on
 the activities for which a license is sought; and
   (d) that the applicant is in possession of or has  the  right  to  use
 land, buildings and equipment sufficient to properly carry on the activ-
 ity described in the application.
   2.  The  office,  in considering whether to grant the license applica-
 tion, shall consider whether:
   (a) it is in the public interest that such license be granted,  taking
 into  consideration  whether  the number of licenses will be adequate or
 excessive to reasonably serve demand;
   (b) the applicant and its managing officers are of good moral  charac-
 ter  and  do  not  have  an  ownership  or  controlling interest in more
 licenses or permits than allowed by this chapter; and
   (c) the applicant satisfies any other conditions as determined by  the
 office.
   3.  If  the  executive  director  is  not satisfied that the applicant
 should be issued a license, the  executive  director  shall  notify  the
 applicant in writing of the specific reason or reasons for denial.
   4.  The  office  shall  give priority in licensing to residents of the
 state of New York. Applicants must have lived in New York state  for  at
 least  three  years  prior  to  the effective date of this chapter to be
 granted such priority.
   5. The executive director shall have authority and sole discretion  to
 determine the number of licenses issued pursuant to this article.
   §  97.  Limitations  of licensure; duration. 1. No license pursuant to
 this article may be issued to a  person  under  the  age  of  twenty-one
 years.
   2.  The  office  shall  have  the authority to limit, by canopy, plant
 count or other means, the amount of hemp cannabis allowed to  be  culti-
 vated, processed, extracted or sold by a licensee.
   3.  All  licenses  under this article shall expire two years after the
 date of issue and be subject to any rules or limitations  prescribed  by
 the executive director in regulation.
   §  98. License renewal. 1. Each license, issued pursuant to this arti-
 cle, may be renewed upon application therefor by the  licensee  and  the
 payment of the fee for such license as prescribed by this article.

 A. 1617--A                         46
 
   2.  In  the case of applications for renewals, the office may dispense
 with the requirements of such statements as it deems unnecessary in view
 of those contained in the application made for the original license, but
 in any event the submission of  photographs  of  the  licensed  premises
 shall  be  dispensed with, provided the applicant for such renewal shall
 file a statement with the office to the effect that there  has  been  no
 alteration of such premises since the original license was issued.
   3.  The office may make such rules as may be necessary, not inconsist-
 ent with this chapter, regarding applications for renewals  of  licenses
 and permits and the time for making the same.
   4.  The  office  shall provide an application for renewal of a license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   5. The office may only issue a renewal license  upon  receipt  of  the
 prescribed  renewal  application  and renewal fee from a licensee if, in
 addition to the criteria in section ninety-four  of  this  article,  the
 license's license is not under suspension and has not been revoked.
   6. The office shall have the authority to charge applicants for licen-
 sure  under  this article a non-refundable application fee. Such fee may
 be based on the type of licensure sought, cultivation and/or  production
 volume,  or  any  other factors deemed reasonable and appropriate by the
 office to achieve the policy and purpose of this chapter.
   § 99. Form of license. Licenses issued pursuant to this article  shall
 specify:
   1. the name and address of the licensee;
   2. the activities permitted by the license;
   3.  the  land,  buildings  and  facilities  that  may  be used for the
 licensed activities of the licensee;
   4. a unique license number issued by the office to the licensee; and
   5. such other information as the executive director shall deem  neces-
 sary to assure compliance with this chapter.
   §  100. Amendments to license and duty to update information submitted
 for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
 license  may  be  amended  to  allow the licensee to relocate within the
 state, to add or delete licensed activities or facilities, or  to  amend
 the  ownership  or  organizational  structure  of the entity that is the
 licensee. The fee for such amendment shall be two hundred fifty dollars.
   2. In the event that any of the information provided by the  applicant
 changes  either while the application is pending or after the license is
 granted, within ten days of any such change, the applicant  or  licensee
 shall submit to the office a verified statement setting forth the change
 in circumstances of facts set forth in the application. Failure to do so
 shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
 license.
   3. A license shall become void by a change in  ownership,  substantial
 corporate change or location without prior written approval of the exec-
 utive  director.    The  executive  director  may promulgate regulations
 allowing for certain types of changes in ownership without the need  for
 prior written approval.
   4.  For purposes of this section, "substantial corporate change" shall
 mean:
   (a) for a corporation, a change of eighty percent or more of the offi-
 cers and/or directors, or a transfer of eighty percent or more of  stock
 of such corporation, or an existing stockholder obtaining eighty percent
 or more of the stock of such corporation; and

 A. 1617--A                         47
 
   (b)  for  a  limited  liability company, a change of eighty percent or
 more of the managing members of the company, or  a  transfer  of  eighty
 percent  or  more  of ownership interest in said company, or an existing
 member obtaining a cumulative of eighty percent or more of the ownership
 interest in said company.
   §  101.  Record keeping and tracking. 1. The executive director shall,
 by regulation, require each licensee pursuant to this article  to  adopt
 and  maintain  security,  tracking, record keeping, record retention and
 surveillance systems, relating to all hemp cannabis at  every  stage  of
 acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
 distribution by the licensee, subject to regulations  of  the  executive
 director.
   2.  Every licensee shall keep and maintain upon the licensed premises,
 adequate books and records of all transactions  involving  the  licensee
 and  sale  of its products, which shall include all information required
 by rules promulgated by the office.
   3. Each sale shall be recorded separately on a numbered invoice, which
 shall have printed thereon the number, the name  of  the  licensee,  the
 address of the licensed premises, and the current license number.
   4. Such books, records and invoices shall be kept for a period of five
 years  and shall be available for inspection by any authorized represen-
 tative of the office.
   § 102. Inspections and ongoing requirements. All  licensees  shall  be
 subject to reasonable inspection by the office, and a person who holds a
 license must make himself or herself, or an agent thereof, available and
 present for any inspection required by the office. The office shall make
 reasonable  accommodations  so that ordinary business is not interrupted
 and  safety  and  security  procedures  are  not  compromised   by   the
 inspection.
   §  103.  Packaging  and  labeling of hemp cannabis.   1. The office is
 hereby authorized to promulgate  rules  and  regulations  governing  the
 packaging  and labeling of hemp cannabis products, sold or possessed for
 sale in New York state.
   2. Such regulations shall include, but not be  limited  to,  requiring
 labels warning consumers of any potential impact on human health result-
 ing from the consumption of hemp cannabis products that shall be affixed
 to  those products when sold, if such labels are deemed warranted by the
 office.
   3. Such rules and regulations shall establish methods  and  procedures
 for  determining,  among  other  things, serving sizes for hemp cannabis
 products, active cannabinoid concentration per serving size, and  number
 of  servings per container. Such regulations shall also require a nutri-
 tional fact panel that incorporates data  regarding  serving  sizes  and
 potency thereof.
   4.  The  packaging,  sale,  or  possession by any licensee of any hemp
 product intended for human or animal consumption or use not  labeled  or
 offered  in conformity with rules and regulations promulgated in accord-
 ance with this section shall be grounds for the imposition  of  a  fine,
 and/or the suspension, revocation or cancellation of a license.
   §  104. Provisions governing the growing and extracting of hemp canna-
 bis.  1. No licensed cannabinoid grower  or  extractor  shall  sell,  or
 agree to sell or deliver in the state any hemp cannabis products, as the
 case  may  be,  except  in  sealed  containers  containing quantities in
 accordance with size standards pursuant to rules adopted by the  office.
 Such  containers  shall  have  affixed  thereto  such  labels  as may be
 required by the rules of the office.

 A. 1617--A                         48
 
   2. Licensed cannabinoid growers shall only  use  pesticides  that  are
 registered  by  the New York state department of environmental conserva-
 tion  or  that  specifically  meet  the  United   States   environmental
 protection  agency  registration  exemption  criteria  for  minimum risk
 pesticides,  and  only  in  compliance  with  regulations, standards and
 guidelines issued by the department of environmental conservation.
   3. All hemp cannabis products shall be extracted and  manufactured  in
 accordance  with  good  manufacturing processes, pursuant to Part 111 of
 Title 21 of the Code of Federal Regulations as may be  modified  by  the
 executive director in regulation.
   4.  The  use  or  integration  of alcohol or nicotine in hemp cannabis
 products is strictly prohibited.
   § 105.  Laboratory  testing.  1.  Every  cannabinoid  extractor  shall
 contract  with  an  independent laboratory to test the cannabis products
 produced by the licensed extractor. The executive director, in consulta-
 tion with the commissioner of health, shall approve the  laboratory  and
 require  that  the  laboratory report testing results in a manner deter-
 mined by the executive director. The executive director is authorized to
 issue regulations requiring the laboratory to perform certain tests  and
 services.
   2. Cannabinoid extractors shall make laboratory test reports available
 to  persons holding a cannabinoid permit pursuant to article six of this
 chapter for all cannabis products manufactured by the licensee.
   3. On-site laboratory testing by licensees  is  permissible;  however,
 such  testing  shall  not be certified by the office and does not exempt
 the licensee from the requirements of quality  assurance  testing  at  a
 testing laboratory pursuant to this section.
   §  106. Advertising. The office shall promulgate rules and regulations
 governing the  advertising  of  hemp  cannabis  and  any  other  related
 products or services as determined by the executive director.
   §  107. Research. 1. The office shall promote research and development
 through public-private partnerships  to  bring  new  hemp  cannabis  and
 industrial hemp derived products to market within the state.
   2.  The executive director may develop and carry out research programs
 relating to industrial hemp and hemp cannabis.
   § 108. Regulations. The executive director shall make  regulations  to
 implement this article.
 
                                 ARTICLE 6
                            GENERAL PROVISIONS
 
 Section 125. General prohibitions and restrictions.
         126. License  to  be confined to premises licensed; premises for
                which no license shall be granted; transporting cannabis.
         127. Protections for the use  of  cannabis;  unlawful  discrimi-
                nations prohibited.
         128. Registrations and licenses.
         129. Laboratory testing permit.
         130. Special use permits.
         131. Professional and medical record keeping.
         132. Local opt-out; municipal control and preemption.
         133. Personal cultivation.
         134. Executive   director  to  be  necessary  party  to  certain
                proceedings.
         135. Penalties for violation of this chapter.

 A. 1617--A                         49

         136. Revocation  of  registrations,  licenses  and  permits  for
                cause; procedure for revocation or cancellation.
         137. Lawful actions pursuant to this chapter.
         138. Review by courts.
         139. Illicit cannabis.
         140. Injunction for unlawful manufacture, sale or consumption of
                cannabis.
         141. Persons  forbidden  to  traffic cannabis; certain officials
                not to be interested in manufacture or sale  of  cannabis
                products.
         142. Access to criminal history information through the division
                of criminal justice services.
   §  125.  General  prohibitions  and restrictions.   1. No person shall
 cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
 retail any cannabis, cannabis product, medical cannabis or hemp cannabis
 product within the state without obtaining the appropriate registration,
 license, or permit therefor required by this chapter.
   2.  No  registered organization, licensee, or permittee shall sell, or
 agree to sell or deliver in this state any cannabis or hemp cannabis for
 the purposes of resale  to  any  person  who  is  not  duly  registered,
 licensed  or permitted pursuant to this chapter to sell such product, at
 wholesale or retail, as the case may be, at the time of  such  agreement
 and sale.
   3. No registered organization, licensee, or permittee shall employ, or
 permit  to  be  employed, or shall allow to work, on any premises regis-
 tered or licensed for retail sale hereunder, any person under the age of
 twenty-one years in any capacity where the duties of such person require
 or permit such person to sell,  dispense  or  handle  cannabis  or  hemp
 cannabis.
   4.  No  registered  organization,  licensee,  or permittee shall sell,
 deliver or give away, or cause, permit or procure to be sold,  delivered
 or  given  away any cannabis, cannabis product, medical cannabis or hemp
 cannabis on credit; except that a registered organization,  licensee  or
 permittee may accept third party credit cards for the sale of any canna-
 bis, cannabis product, medical cannabis or hemp cannabis for which it is
 registered,  licensed  or  permitted  to dispense or sell to patients or
 cannabis consumers. This includes, but is not limited to,  any  consign-
 ment sale of any kind.
   5.  No  registered organization, licensee, or permittee shall cease to
 be operated as a bona fide or legitimate  premises  within  the  contem-
 plation  of  the  registration, license, or permit issued for such prem-
 ises, as determined within the judgment of the office.
   6. No registered organization, licensee, or  permittee  shall  refuse,
 nor  any  person  holding a registration, license, or permit refuse, nor
 any officer or director of any corporation  or  organization  holding  a
 registration,  license, or permit refuse, to appear and/or testify under
 oath at an inquiry or hearing held by the office, with  respect  to  any
 matter bearing upon the registration, license, or permit, the conduct of
 any  people  at  the licensed premises, or bearing upon the character or
 fitness of such registrant, licensee, or permittee to continue  to  hold
 any  registration,  license, or permit. Nor shall any of the above offer
 false testimony under oath at such inquiry or hearing.
   7. No registered organization, licensee, or  permittee  shall  engage,
 participate  in, or aid or abet any violation or provision of this chap-
 ter, or the rules or regulations of the office.

 A. 1617--A                         50
 
   8. The proper conduct of registered, licensed, or  permitted  premises
 is  essential  to the public interest. Failure of a registered organiza-
 tion, licensee, or permittee to exercise adequate supervision  over  the
 registered, licensed, or permitted location poses a substantial risk not
 only  to the objectives of this chapter but imperils the health, safety,
 and welfare of the people of this state. It shall be the  obligation  of
 each  person  registered,  licensed,  or permitted under this chapter to
 ensure that a high degree of supervision is exercised over any  and  all
 conduct  at  any  registered, licensed, or permitted location at any and
 all times in order to safeguard against abuses of the privilege of being
 registered, licensed, or permitted, as well as other violations of  law,
 statute, rule, or regulation. Persons registered, licensed, or permitted
 shall be held strictly accountable for any and all violations that occur
 upon  any  registered,  licensed, or permitted premises, and for any and
 all violations committed by  or  permitted  by  any  manager,  agent  or
 employee of such registered, licensed, or permitted person.
   9.  It  shall  be  unlawful for any person, partnership or corporation
 operating a place for profit or pecuniary gain, with a capacity for  the
 assemblage  of  twenty  or more persons to permit a person or persons to
 come to the place of assembly for the purpose of  cultivating,  process-
 ing,  distributing,  or  retail distribution or sale of cannabis on said
 premises. This includes, but is not limited, to, cannabis that is either
 provided by the operator of the place of assembly, his agents,  servants
 or  employees,  or  cannabis  that  is brought onto said premises by the
 person or persons assembling at such place, unless an appropriate regis-
 tration, license, or permit has first been obtained from the  office  of
 cannabis management by the operator of said place of assembly.
   10.  As it is a privilege under the law to be registered, licensed, or
 permitted to cultivate, process, distribute, traffic, or sell  cannabis,
 the office may impose any such further restrictions upon any registrant,
 licensee,  or permittee in particular instances as it deems necessary to
 further state policy and best serve the public interest. A violation  or
 failure  of any person registered, licensed, or permitted to comply with
 any condition, stipulation, or agreement, upon which  any  registration,
 license, or permit was issued or renewed by the office shall subject the
 registrant,  licensee, or permittee to suspension, cancellation, revoca-
 tion, and/or civil penalties as determined by the office.
   11. No adult-use cannabis or medical cannabis may be imported  to,  or
 exported  out  of, New York state by a registered organization, licensee
 or person holding a license and/or  permit  pursuant  to  this  chapter,
 until  such  time  as  it  may  become legal to do so under federal law.
 Should it become legal to do so under federal law, the office is granted
 the power to promulgate such rules and regulations as it deems necessary
 to protect the public and the policy of the state.
   12. No registered organization, licensee or any of its  agents,  serv-
 ants or employees shall peddle any cannabis product, medical cannabis or
 hemp  cannabis  from  house  to  house by means of a truck or otherwise,
 where the sale is consummated and  delivery  made  concurrently  at  the
 residence  or place of business of a cannabis consumer. This subdivision
 shall not prohibit the delivery by a registered organization  to  certi-
 fied  patients or their designated caregivers, pursuant to article three
 of this chapter.
   13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
 purpose of receiving an order from a certified patient, designated care-
 giver or cannabis consumer for any cannabis product, medical cannabis or
 hemp  cannabis  at  the  residence or place of business of such patient,

 A. 1617--A                         51
 
 caregiver or consumer, nor shall any  licensee  receive  or  accept  any
 order,  for  the  sale of any cannabis product, medical cannabis or hemp
 cannabis which shall be solicited at the residence or place of  business
 of a patient, caregiver or consumer. This subdivision shall not prohibit
 the  solicitation  by a distributor of an order from any licensee at the
 licensed premises of such licensee.
   § 126. License to be confined to premises licensed; premises for which
 no license shall be granted; transporting cannabis.  1. A  registration,
 license,  or  permit issued to any person, pursuant to this chapter, for
 any registered, licensed, or permitted premises shall not be  transfera-
 ble  to  any  other person, to any other location or premises, or to any
 other building or part of the building containing the licensed  premises
 except  in  the  discretion of the office. All privileges granted by any
 registration, license, or permit shall be available only to  the  person
 therein  specified,  and  only  for  the  premises licensed and no other
 except if authorized  by  the  office.    Provided,  however,  that  the
 provisions of this section shall not be deemed to prohibit the amendment
 of  a  registration  or  license  as  provided  for  in  this chapter. A
 violation of this section shall subject the  registration,  license,  or
 permit to revocation for cause.
   2.  Where a registration or license for premises has been revoked, the
 office in its discretion may refuse to issue a registration, license, or
 permit under this chapter, for a period of up to five years  after  such
 revocation, for such premises or for any part of the building containing
 such premises and connected therewith.
   3.  In determining whether to issue such a proscription against grant-
 ing any registration, license, or permit for such five-year  period,  in
 addition  to any other factors deemed relevant to the office, the office
 shall, in the case of a license revoked  due  to  the  illegal  sale  of
 cannabis  to a minor, determine whether the proposed subsequent licensee
 has obtained such premises through an arm's length transaction, and,  if
 such  transaction  is  not  found to be an arm's length transaction, the
 office shall deny the issuance of such license.
   4. For purposes of this section, "arm's length transaction" shall mean
 a sale of a fee of all undivided  interests  in  real  property,  lease,
 management  agreement,  or  other agreement giving the applicant control
 over the cannabis at the premises, or any  part  thereof,  in  the  open
 market,  between  an informed and willing buyer and seller where neither
 is under any compulsion to participate in the transaction, unaffected by
 any unusual conditions indicating a reasonable possibility that the sale
 was made for the purpose of permitting the original  licensee  to  avoid
 the  effect of the revocation. The following sales shall be presumed not
 to  be  arm's  length  transactions  unless  adequate  documentation  is
 provided  demonstrating  that  the sale, lease, management agreement, or
 other agreement giving the applicant control over the  cannabis  at  the
 premises,  was  not  conducted,  in whole or in part, for the purpose of
 permitting the original licensee to avoid the effect of the revocation:
   (a) a sale between relatives;
   (b) a sale between related companies or partners in a business; or
   (c) a sale, lease, management agreement, or other agreement giving the
 applicant control over the cannabis at the premises, affected  by  other
 facts or circumstances that would indicate that the sale, lease, manage-
 ment agreement, or other agreement giving the applicant control over the
 cannabis  at  the  premises,  is entered into for the primary purpose of
 permitting the original licensee to avoid the effect of the revocation.

 A. 1617--A                         52
 
   5. No registered organization, licensee or permittee  shall  transport
 cannabis products or medical cannabis except in vehicles owned and oper-
 ated  by  such  registered organization, licensee or permittee, or hired
 and operated by such registered organization, licensee or permittee from
 a  trucking  or transportation company permitted and registered with the
 office.
   6. No common carrier or person operating a transportation facility  in
 this  state,  other than the United States government, shall receive for
 transportation or delivery within the state  any  cannabis  products  or
 medical cannabis unless the shipment is accompanied by copy of a bill of
 lading,  or  other document, showing the name and address of the consig-
 nor, the name and address of the consignee, the date  of  the  shipment,
 and  the  quantity  and  kind  of  cannabis products or medical cannabis
 contained therein.
   § 127. Protections for the use of cannabis;  unlawful  discriminations
 prohibited.   1. No person, registered organization, licensee or permit-
 tee, employees, or their agents shall be subject to arrest, prosecution,
 or penalty in any manner, or denied any right  or  privilege,  including
 but  not limited to civil liability or disciplinary action by a business
 or occupational or professional licensing board or  office,  solely  for
 conduct  permitted  under  this chapter. For the avoidance of doubt, the
 appellate division of the supreme court of the state of  New  York,  and
 any disciplinary or character and fitness committees established by them
 are occupational and professional licensing boards within the meaning of
 this  section. State or local law enforcement agencies shall not cooper-
 ate with or provide assistance to the government of the United States or
 any agency thereof in enforcing the federal  controlled  substances  act
 solely for actions consistent with this chapter, except as pursuant to a
 valid court order.
   2.  No school or landlord may refuse to enroll or lease to and may not
 otherwise penalize a person solely for conduct allowed under this  chap-
 ter, except as exempted:
   (a)  if  failing to do so would cause the school or landlord to lose a
 monetary or licensing related benefit under federal law or regulations;
   (b) if the institution has  adopted  a  code  of  conduct  prohibiting
 cannabis use on the basis of religious belief; or
   (c)  if  a property is registered with the New York smoke-free housing
 registry, it is not required to permit the smoking of cannabis  products
 on its premises.
   3.  For  the  purposes of medical care, including organ transplants, a
 certified patient's authorized use of medical cannabis must  be  consid-
 ered  the equivalent of the use of any other medication under the direc-
 tion of a practitioner and does not constitute the  use  of  an  illicit
 substance  or  otherwise disqualify a registered qualifying patient from
 medical care.
   4. Unless an employer establishes that the lawful use of cannabis  has
 impaired  the employee's ability to perform the employee's job responsi-
 bilities, it shall be unlawful to take  any  adverse  employment  action
 against an employee based on conduct allowed under this chapter.
   5.  For  the  purposes  of  this  section, an employer may consider an
 employee's ability to perform the employee's job responsibilities to  be
 impaired when the employee manifests specific articulable symptoms while
 working that decrease or lessen the employee's performance of the duties
 or tasks of the employee's job position.
   6.  Nothing  in  this  section shall restrict an employer's ability to
 prohibit or take adverse employment action for the possession or use  of

 A. 1617--A                         53
 
 intoxicating  substances  during  work  hours, or require an employer to
 commit any act that would cause the  employer  to  be  in  violation  of
 federal  law,  or that would result in the loss of a federal contract or
 federal funding.
   7. As used in this section, "adverse employment action" means refusing
 to  hire  or employ, barring or discharging from employment, requiring a
 person to retire from employment, or discriminating against  in  compen-
 sation or in terms, conditions, or privileges of employment.
   8.  A  person  currently under parole, probation or other state super-
 vision, or released on bail awaiting trial may not be punished or other-
 wise penalized for conduct allowed under this chapter.
   9. No person may be denied custody of or visitation or parenting  time
 with  a minor, and there is no presumption of neglect or child endanger-
 ment for conduct allowed under section 222.05 of the penal  law,  unless
 the  person's  behavior  creates an unreasonable danger to the safety of
 the minor as established by  clear  and  convincing  evidence.  For  the
 purposes  of this section, an "unreasonable danger" determination cannot
 be based solely on whether, when, and how often a person  uses  cannabis
 without separate evidence of harm.
   §  128.  Registrations  and  licenses.   1. No registration or license
 shall be transferable or  assignable  except  that  notwithstanding  any
 other provision of law, the registration or license of a sole proprietor
 converting  to  corporate  form,  where such proprietor becomes the sole
 stockholder and only officer and director of such new  corporation,  may
 be  transferred  to  the subject corporation if all requirements of this
 chapter remain the same with respect to such registration or license  as
 transferred  and, further, the registered organization or licensee shall
 transmit to the office, within ten  days  of  the  transfer  of  license
 allowable  under  this  subdivision, on a form prescribed by the office,
 notification of the transfer of such license.
   2. No registration or license shall be pledged or deposited as collat-
 eral security for any loan or upon any other  condition;  and  any  such
 pledge or deposit, and any contract providing therefor, shall be void.
   3.  Licenses  issued  under this chapter shall contain, in addition to
 any further information or material to be prescribed by the rules of the
 office, the following information:
   (a) name of the person to whom the license is issued;
   (b) kind of license and what kind of traffic in  cannabis  is  thereby
 permitted;
   (c)  description by street and number, or otherwise, of licensed prem-
 ises; and
   (d) a statement in substance that such license shall not be  deemed  a
 property  or vested right, and that it may be revoked at any time pursu-
 ant to law.
   § 129. Laboratory testing permit.   1. The  executive  director  shall
 approve and permit one or more independent cannabis testing laboratories
 to test medical cannabis, adult-use cannabis and/or hemp cannabis.
   2. To be permitted as an independent cannabis laboratory, a laboratory
 must  apply  to  the office, on a form and in a manner prescribed by the
 office, and must demonstrate the following to the  satisfaction  of  the
 executive director:
   (a) the owners and directors of the laboratory are of good moral char-
 acter;
   (b)  the laboratory and its staff has the skills, resources and exper-
 tise needed to accurately and consistently perform all  of  the  testing
 required for adult-use cannabis, medical cannabis and/or hemp cannabis;

 A. 1617--A                         54
 
   (c)  the  laboratory has in place and will maintain adequate policies,
 procedures, and facility security to ensure proper:  collection,  label-
 ing, accessioning, preparation, analysis, result reporting, disposal and
 storage of adult-use cannabis, medical cannabis and/or hemp cannabis;
   (d) the laboratory is physically located in New York state;
   (e)  the  laboratory  has  been  approved  by the department of health
 pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
 lations, pertaining to laboratories performing  environmental  analysis;
 and
   (f)  the  laboratory meets any and all requirements prescribed by this
 chapter and by the executive director in regulation.
   3. The owner of a laboratory testing permit under this  section  shall
 not  hold  a registration or license in any category of this chapter and
 shall not have any direct or indirect ownership interest in such  regis-
 tered  organization  or  licensee.  No  board  member, officer, manager,
 owner, partner, principal stakeholder or member of a  registered  organ-
 ization or licensee under this chapter, or such person's immediate fami-
 ly  member,  shall  have  an interest or voting rights in any laboratory
 testing permittee.
   4. The executive director shall require that the permitted  laboratory
 report  testing results to the office in a manner, form and timeframe as
 determined by the executive director.
   5. The executive director is  authorized  to  promulgate  regulations,
 requiring permitted laboratories to perform certain tests and services.
   §  130. Special use permits.  The office is hereby authorized to issue
 the following kinds of permits for  carrying  on  activities  consistent
 with  the  policy  and purpose of this chapter with respect to cannabis.
 The executive director has the authority to set  fees  for  all  permits
 issued  pursuant  to this section, to establish the periods during which
 permits are authorized, and to make  rules  and  regulations,  including
 emergency regulations, to implement this section.
   1.  Industrial  cannabis permit - to purchase cannabis from one of the
 entities licensed by the office for use in the manufacture and  sale  of
 any  of  the following, when such cannabis is not otherwise suitable for
 consumption purposes, namely:  (a) apparel, energy,  paper,  and  tools;
 (b) scientific, chemical, mechanical and industrial products; or (c) any
 other  industrial  use  as determined by the executive director in regu-
 lation.
   2. Trucking permit - to allow for the trucking  or  transportation  of
 cannabis  products,  medical cannabis or hemp cannabis by a person other
 than a registered organization or licensee under this chapter.
   3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
 products,  medical cannabis or hemp cannabis at a location not otherwise
 registered or licensed by the office.
   4. Cannabinoid permit - to sell cannabinoid products derived from hemp
 cannabis for off-premises consumption.
   5. Temporary retail cannabis permit - to authorize the retail sale  of
 adult-use cannabis to cannabis consumers, for a limited purpose or dura-
 tion.
   6. Caterer's permit - to authorize the service of cannabis products at
 a  function, occasion or event in a hotel, restaurant, club, ballroom or
 other premises, which shall authorize within  the  hours  fixed  by  the
 office,  during  which  cannabis  may  lawfully be sold or served on the
 premises in which such function, occasion or event is held.
   7. Packaging permit - to authorize a licensed cannabis distributor  to
 sort,  package,  label  and  bundle  cannabis  products from one or more

 A. 1617--A                         55
 
 registered organizations or licensed processors, on the premises of  the
 licensed  cannabis  distributor or at a warehouse for which a permit has
 been issued under this section.
   8.  Miscellaneous  permits  -  to  purchase, receive or sell cannabis,
 cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
 contracts  or other documents pertaining to cannabis, cannabis products,
 or medical cannabis, in cases not expressly provided for by  this  chap-
 ter,  when  in  the  judgment  of the office it would be appropriate and
 consistent with the policy and purpose of this chapter.
   § 131. Professional and medical  record  keeping.    Any  professional
 providing services in connection with a licensed or potentially licensed
 business under this chapter, or in connection with other conduct permit-
 ted  under  this chapter, and any medical professional providing medical
 care to a patient, other than a certified patient, may agree with  their
 client  or patient to maintain no record, or any reduced level of record
 keeping that professional and client or patient may agree.  In  case  of
 such agreement, the professional's only obligation shall be to keep such
 records  as  agreed, and to keep a record of the agreement. Such reduced
 record keeping is conduct permitted under this chapter.
   § 132. Local opt-out;  municipal  control  and  preemption.    1.  The
 provisions of article four of this chapter, authorizing the cultivation,
 processing,  distribution  and  sale  of  adult-use cannabis to cannabis
 consumers, shall not be applicable to a town,  city  or  village  which,
 after  a  mandatory  referendum held pursuant to section twenty-three of
 the municipal home rule law, adopts a local law to prohibit  the  estab-
 lishment  or  operation  of  one  or more types of licenses contained in
 article four of this chapter, within the jurisdiction of the town,  city
 or village. Provided, however, that any town law shall apply to the area
 of the town outside of any village within such town.
   2.  Except  as  provided  for  in subdivision one of this section, all
 county, town, city and village governing  bodies  are  hereby  preempted
 from  adopting any rule, ordinance, regulation or prohibition pertaining
 to the operation or licensure  of  registered  organizations,  adult-use
 cannabis  licenses  or  hemp  licenses. However, municipalities may pass
 local laws and ordinances  governing  the  time,  place  and  manner  of
 licensed adult-use cannabis retail dispensaries, provided such ordinance
 or  regulation  does  not  make  the  operation  of such licensed retail
 dispensaries unreasonably impracticable as determined by  the  executive
 director in his or her sole discretion.
   §  133.  Personal cultivation. 1. Notwithstanding any provision of law
 to the contrary, a person over the age of twenty-one shall  be  able  to
 plant,  cultivate,  harvest,  dry  or  process cannabis for personal use
 subject to the following restrictions:
   (a) all cultivation shall be done in accordance with local ordinances;
 and
   (b) the living plants and any  cannabis  produced  by  the  plants  in
 excess  of  three  ounces must be kept within the person's private resi-
 dence, or upon the grounds  of  that  private  residence  (e.g.,  in  an
 outdoor  garden  area),  in  a  locked  space, and not visible by normal
 unaided vision from a public place; and
   (c) not more than  six  living  plants  may  be  planted,  cultivated,
 harvested, dried or processed within a single private residence, or upon
 the grounds of that private residence, at one time.
   2.  A  town,  city  or  village  may  enact and enforce regulations to
 reasonably regulate the actions and conduct under this section.    Regu-

 A. 1617--A                         56
 
 lations  may  not  completely  prohibit persons engaging in conduct made
 lawful under subdivision one of this section.
   3.  A  violation  of subdivision one of this section is a misdemeanor,
 punishable under section 222.10 of the penal law and subject to a  local
 fine of not more than one hundred dollars.
   §   134.   Executive   director  to  be  necessary  party  to  certain
 proceedings.   The executive director shall  be  made  a  party  to  all
 actions  and proceedings affecting in any manner the ability of a regis-
 tered organization or licensee to operate within a municipality, or  the
 result of any vote thereupon; to all actions and proceedings relative to
 issuance  or  revocation  of  registrations, licenses or permits; to all
 injunction proceedings, and to all other civil  actions  or  proceedings
 which in any manner affect the enjoyment of the privileges or the opera-
 tion of the restrictions provided for in this chapter.
   §  135.  Penalties  for  violation of this chapter.  1. Any person who
 cultivates for sale or sells cannabis, cannabis products, medical canna-
 bis or hemp cannabis without having an appropriate registration, license
 or permit therefor, or whose registration, license, or permit  has  been
 revoked,  surrendered  or  cancelled,  shall be subject to conviction as
 provided by article two hundred twenty-two of the penal law.
   2. Any registered organization  or  licensee,  whose  registration  or
 license  has  been suspended pursuant to the provisions of this chapter,
 who sells cannabis, cannabis products, medical cannabis or hemp cannabis
 during the suspension period, shall be subject to conviction as provided
 by article two hundred twenty-two of the penal law, and upon  conviction
 thereof  shall  be  punished  by  a  fine of not more than five thousand
 dollars per instance.
   3. Any person who shall make any false statement  in  the  application
 for  a  registration,  license  or  a permit under this chapter shall be
 guilty of a misdemeanor, and upon conviction thereof shall be punishable
 by a fine of not more than five thousand dollars, or by imprisonment  in
 a  county jail or penitentiary for a term of not more than six months or
 both.
   4. Any violation by any person of any provision of  this  chapter  for
 which  no  punishment or penalty is otherwise provided shall be a misde-
 meanor.
   § 136. Revocation of registrations, licenses and  permits  for  cause;
 procedure  for revocation or cancellation.  1. Any registration, license
 or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
 suspended  and/or  subjected  to  the  imposition of a civil penalty for
 cause, and must be revoked for the following causes:
   (a) conviction of the registered organization, licensee, permittee  or
 his  or  her  agent  or employee for selling any illegal cannabis on the
 premises registered, licensed or permitted; or
   (b) for  transferring,  assigning  or  hypothecating  a  registration,
 license or permit without prior written approval of the office.
   2.  Notwithstanding  the issuance of a registration, license or permit
 by way of renewal, the office may revoke, cancel or suspend such  regis-
 tration, license or permit and/or may impose a civil penalty against any
 holder  of  such  registration, license or permit, as prescribed by this
 section, for causes or violations occurring during  the  license  period
 immediately  preceding  the  issuance  of  such registration, license or
 permit.
   3. (a) As used in this  section,  the  term  "for  cause"  shall  also
 include  the  existence of a sustained and continuing pattern of miscon-
 duct, failure to adequately prevent diversion or disorder  on  or  about

 A. 1617--A                         57
 
 the  registered, licensed or permitted premises, or in the area in front
 of or adjacent to the registered or licensed premises, or in any parking
 lot provided by the registered  organization  or  licensee  for  use  by
 registered organization or licensee's patrons, which, in the judgment of
 the office, adversely affects or tends to affect the protection, health,
 welfare,  safety,  or repose of the inhabitants of the area in which the
 registered or licensed premises is located, or results in  the  licensed
 premises becoming a focal point for police attention, or is offensive to
 public decency.
   (b)  (i)  As  used  in  this  section, the term "for cause" shall also
 include deliberately misleading the authority:
   (A) as to the nature and character of the business to be  operated  by
 the registered organization, licensee or permittee; or
   (B) by substantially altering the nature or character of such business
 during  the registration or licensing period without seeking appropriate
 approvals from the office.
   (ii) As used in this subdivision, the term "substantially altering the
 nature or character" of such business shall mean any significant  alter-
 ation  in  the  scope  of  business activities conducted by a registered
 organization, licensee or permittee  that  would  require  obtaining  an
 alternate form of registration, license or permit.
   4.  As used in this chapter, the existence of a sustained and continu-
 ing pattern of misconduct, failure to adequately  prevent  diversion  or
 disorder  on  or about the premises may be presumed upon the sixth inci-
 dent reported to the office by a law enforcement agency,  or  discovered
 by  the  office  during  the course of any investigation, of misconduct,
 diversion or disorder on or about the premises or related to the  opera-
 tion  of  the  premises,  absent clear and convincing evidence of either
 fraudulent intent on the part of any complainant or a factual error with
 respect to the content of any report concerning  such  complaint  relied
 upon by the office.
   5.  Notwithstanding any other provision of this chapter to the contra-
 ry, a suspension imposed under this section  against  the  holder  of  a
 registration  issued  pursuant  to  article three of this chapter, shall
 only suspend the licensed activities related to the  type  of  cannabis,
 medical cannabis or adult-use cannabis involved in the violation result-
 ing in the suspension.
   6.  Any  registration, license or permit issued by the office pursuant
 to this chapter  may  be  revoked,  cancelled  or  suspended  and/or  be
 subjected  to  the  imposition  of  a  monetary  penalty  in  the manner
 prescribed by this section and by the executive director in regulation.
   7. The office may on its  own  initiative,  or  on  complaint  of  any
 person, institute proceedings to revoke, cancel or suspend any adult-use
 cannabis   retail  dispensary  license  or  adult-use  cannabis  on-site
 consumption license and may impose a civil penalty against the  licensee
 after  a  hearing at which the licensee shall be given an opportunity to
 be heard. Such hearing shall be held in such manner and upon such notice
 as may be prescribed in regulation by the executive director.
   8. All other registrations, licenses  or  permits  issued  under  this
 chapter  may be revoked, cancelled, suspended and/or made subject to the
 imposition of a civil penalty by the office after a hearing to  be  held
 in  such  manner and upon such notice as may be prescribed in regulation
 by the executive director.
   9. Where a licensee or permittee is convicted of two or more  qualify-
 ing  offenses  within  a  five-year  period, the office, upon receipt of
 notification of such second or subsequent conviction, shall, in addition

 A. 1617--A                         58

 to any other sanction or civil or criminal penalty imposed  pursuant  to
 this  chapter, impose on such licensee a civil penalty not to exceed ten
 thousand dollars.   For  purposes  of  this  subdivision,  a  qualifying
 offense  shall  mean the unlawful sale of cannabis to a person under the
 age of twenty-one. For purposes of this subdivision, a conviction  of  a
 licensee  or  an  employee  or agent of such licensee shall constitute a
 conviction of such licensee.
   § 137. Lawful actions pursuant to this chapter.  1. Contracts  related
 to the operation of registered organizations, licenses and permits under
 this  chapter  shall  be lawful and shall not be deemed unenforceable on
 the basis that the  actions  permitted  pursuant  to  the  registration,
 license or permit are prohibited by federal law.
   2. The following actions are not unlawful as provided under this chap-
 ter, shall not be an offense under any state or local law, and shall not
 result  in  any  civil fine, seizure, or forfeiture of assets, or be the
 basis for detention or search against any person  acting  in  accordance
 with this chapter:
   (a)  Actions  of a registered organization, licensee, or permittee, or
 the employees or agents of such  registered  organization,  licensee  or
 permittee,  as  permitted  by this chapter and consistent with rules and
 regulations of the office, pursuant to a valid registration, license  or
 permit issued by the office.
   (b)  Actions  of  those  who allow property to be used by a registered
 organization, licensee, or permittee, or the employees or agents of such
 registered organization, licensee or permittee,  as  permitted  by  this
 chapter  and consistent with rules and regulations of the office, pursu-
 ant to a valid registration, license or permit issued by the office.
   (c) Actions of any person or entity, their employees, or their  agents
 providing a service to a registered organization, licensee, permittee or
 a  potential registered organization, licensee, or permittee, as permit-
 ted by this chapter and consistent with rules  and  regulations  of  the
 office, relating to the formation of a business.
   (d)  The  purchase,  possession,  or  consumption of cannabis, medical
 cannabis and hemp cannabis, as permitted by this chapter and  consistent
 with rules and regulations of the office, obtained from a validly regis-
 tered, licensed or permitted retailer.
   §  138. Review by courts.  1. The following actions by the office, and
 only the following actions by the office, shall be subject to review  by
 the supreme court in the manner provided in article seventy-eight of the
 civil practice law and rules:
   (a)  Refusal  by  the  office  to  issue a registration, license, or a
 permit.
   (b) The revocation, cancellation  or  suspension  of  a  registration,
 license, or permit by the office.
   (c) The failure or refusal by the office to render a decision upon any
 application  or  hearing submitted to or held by the office within sixty
 days after such submission or hearing.
   (d) The transfer by the office of a registration, license,  or  permit
 to any other entity or premises, or the failure or refusal by the office
 to approve such a transfer.
   (e) Refusal to approve alteration of premises.
   (f)  Refusal to approve a corporate change in stockholders, stockhold-
 ings, officers or directors.
   2. No stay shall be granted pending the determination of  such  matter
 except on notice to the office and only for a period of less than thirty
 days. In no instance shall a stay be granted where the office has issued

 A. 1617--A                         59
 
 a  summary  suspension  of  a  registration,  license, or permit for the
 protection of the public health, safety, and welfare.
   § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
 cannabis  product,  medical cannabis or hemp cannabis owned, cultivated,
 distributed, bought, sold, packaged, rectified, blended, treated, forti-
 fied, mixed, processed, warehoused,  possessed  or  transported,  or  on
 which  any tax required to have been paid under any applicable state law
 has not been paid.
   2. Any person who shall knowingly possess or have  under  his  or  her
 control any cannabis known by the person to be illicit cannabis is guil-
 ty of a misdemeanor.
   3.  Any  person  who shall knowingly barter or exchange with, or sell,
 give or offer to sell or to give  another  any  cannabis  known  by  the
 person to be illicit cannabis is guilty of a misdemeanor.
   4.  Any  person  who shall possess or have under his or her control or
 transport any cannabis known by the person to be illicit  cannabis  with
 intent  to  barter  or  exchange with, or to sell or give to another the
 same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
 presumptively  established  by proof that the person knowingly possessed
 or had under his or her control one or more ounces of illicit  cannabis.
 This presumption may be rebutted.
   5.  Any  person who, being the owner, lessee, or occupant of any room,
 shed, tenement, booth or building, float or  vessel,  or  part  thereof,
 knowingly  permits  the same to be used for the cultivation, processing,
 distribution, purchase, sale, warehousing, transportation, or storage of
 any illicit cannabis, is guilty of a misdemeanor.
   § 140. Injunction for unlawful manufacture,  sale  or  consumption  of
 cannabis.    1. If any person shall engage or participate or be about to
 engage or participate  in  the  cultivation,  production,  distribution,
 traffic, or sale of cannabis products, medical cannabis or hemp cannabis
 in  this  state without obtaining the appropriate registration, license,
 or permit therefor, or  shall  traffic  in  cannabis  products,  medical
 cannabis  or hemp cannabis contrary to any provision of this chapter, or
 otherwise unlawfully, or shall traffic  in  illicit  cannabis  products,
 medical  cannabis  or hemp cannabis, or, operating a place for profit or
 pecuniary gain, with a capacity for the assemblage  of  twenty  or  more
 persons,  shall  permit  a  person  or  persons to come to such place of
 assembly for the purpose of consuming cannabis products  without  having
 the  appropriate  license  or  permit therefor, the office may present a
 verified petition or complaint to a justice of the supreme  court  at  a
 special term of the supreme court of the judicial district in which such
 city,  village  or  town is situated, for an order enjoining such person
 engaging or participating in such activity  or  from  carrying  on  such
 business.  Such  petition  or complaint shall state the facts upon which
 such application is based. Upon the  presentation  of  the  petition  or
 complaint, the justice or court may grant an order temporarily restrain-
 ing  any person from continuing to engage in conduct as specified in the
 petition or complaint, and shall grant an order requiring such person to
 appear before such justice or court at or before a special term  of  the
 supreme  court  in  such judicial district on the day specified therein,
 not more than ten days after the granting thereof,  to  show  cause  why
 such  person should not be permanently enjoined from engaging or partic-
 ipating in such activity or from carrying on such business, or why  such
 person should not be enjoined from carrying on such business contrary to
 the provisions of this chapter. A copy of such petition or complaint and
 order  shall  be  served upon the person, in the manner directed by such

 A. 1617--A                         60
 
 order, not less than three days before the return day  thereof.  On  the
 day  specified  in such order, the justice or court before whom the same
 is returnable shall hear the proofs of the parties and  may,  if  deemed
 necessary  or  proper,  take testimony in relation to the allegations of
 the petition or complaint. If the justice or  court  is  satisfied  that
 such person is about to engage or participate in the unlawful traffic in
 cannabis,  medical  cannabis  or  hemp cannabis or has unlawfully culti-
 vated, processed, or sold cannabis products, medical  cannabis  or  hemp
 cannabis  without  having obtained a registration or license or contrary
 to the provisions of this chapter, or has trafficked in  illicit  canna-
 bis,  or,  is  operating or is about to operate such place for profit or
 pecuniary gain, with such capacity, and has permitted  or  is  about  to
 permit  a  person  or  persons to come to such place of assembly for the
 purpose of consuming cannabis products without having  such  appropriate
 license, an order shall be granted enjoining such person from thereafter
 engaging  or  participating in or carrying on such activity or business.
 If, after the entry of such an order in the county clerk's office of the
 county in which the principal place of business of  the  corporation  or
 partnership  is  located, or in which the individual so enjoined resides
 or conducts such business, and the service of a copy thereof  upon  such
 person,  or  such  substituted  service  as  the  court may direct, such
 person, partnership or corporation shall, in violation  of  such  order,
 cultivate, process, distribute or sell cannabis products, medical canna-
 bis  or hemp cannabis, or illicit cannabis products, medical cannabis or
 hemp cannabis, or permit a person or persons to come to  such  place  of
 assembly  for  the purpose of consuming cannabis products, such activity
 shall be deemed a contempt of court and  be  punishable  in  the  manner
 provided  by the judiciary law, and, in addition to any such punishment,
 the justice or court before whom or which the petition or  complaint  is
 heard,  may,  in his or its discretion, order the seizure and forfeiture
 of any cannabis products and any fixtures, equipment and  supplies  used
 in the operation or promotion of such illegal activity and such property
 shall  be subject to forfeiture pursuant to law. Costs upon the applica-
 tion for such injunction may be awarded in  favor  of  and  against  the
 parties  thereto  in  such  sums  as in the discretion of the justice or
 court before whom or which the petition or complaint is heard  may  seem
 proper.
   2. The owner, lessor and lessee of a building, erection or place where
 cannabis  products,  medical  cannabis  or  hemp  cannabis is unlawfully
 cultivated, processed, distributed, sold, consumed or  permitted  to  be
 unlawfully  cultivated,  processed, distributed, sold or consumed may be
 made a respondent or defendant in the proceeding or action.
   § 141. Persons forbidden to traffic cannabis; certain officials not to
 be interested in manufacture  or  sale  of  cannabis  products.  1.  The
 following are forbidden to traffic in cannabis:
   (a)  An individual who has been convicted of an offense related to the
 functions or duties of owning and  operating  a  business  within  three
 years of the application date, except that if the office determines that
 the  owner or licensee is otherwise suitable to be issued a license, and
 granting the license would not  compromise  public  safety,  the  office
 shall  conduct a thorough review of the nature of the crime, conviction,
 circumstances and evidence of rehabilitation of  the  owner,  and  shall
 evaluate the suitability of the owner or licensee to be issued a license
 based  on  the  evidence  found through the review. In determining which
 offenses are substantially related to the functions or duties of  owning

 A. 1617--A                         61
 
 and  operating  a business, the office shall include, but not be limited
 to, the following:
   (i) a felony conviction involving fraud, money laundering, forgery and
 other unlawful conduct related to owning and operating a business; and
   (ii)  a  felony  conviction for hiring, employing, or using a minor in
 transporting, carrying, selling, giving away,  preparing  for  sale,  or
 peddling,  any  controlled substance to a minor; or selling, offering to
 sell, furnishing, offering to  furnish,  administering,  or  giving  any
 controlled substance to a minor.
   (b) A person under the age of twenty-one years;
   (c)  A  person  who  is not a citizen of the United States or an alien
 lawfully admitted for permanent residence in the United States;
   (d) A partnership or a corporation, unless each member of the partner-
 ship, or each of the principal officers  and  directors  of  the  corpo-
 ration,  is a citizen of the United States or an alien lawfully admitted
 for permanent residence in the United States, not less  than  twenty-one
 years  of  age;  provided  however  that  a  corporation which otherwise
 conforms to the requirements of this section and chapter may be licensed
 if each of its principal officers and more than one-half of  its  direc-
 tors  are  citizens of the United States or aliens lawfully admitted for
 permanent residence in the United States; and provided  further  that  a
 corporation  organized  under  the not-for-profit corporation law or the
 education law which otherwise  conforms  to  the  requirements  of  this
 section  and  chapter  may be licensed if each of its principal officers
 and directors are not less than twenty-one years of age;  and  provided,
 further,  that  a  corporation organized under the not-for-profit corpo-
 ration law or the education law and located on the premises of a college
 as defined by section two of the education law which otherwise  conforms
 to  the requirements of this section and chapter may be licensed if each
 of its principal officers and each of its directors are  not  less  than
 twenty-one years of age;
   (e)  A  person  who  shall have had any registration or license issued
 under this chapter revoked for cause, until the expiration of two  years
 from the date of such revocation;
   (f)  A  person not registered or licensed under the provisions of this
 chapter, who has been convicted of a violation of  this  chapter,  until
 the expiration of two years from the date of such conviction; or
   (g)  A  corporation or partnership, if any officer and director or any
 partner, while not licensed under the provisions of  this  chapter,  has
 been convicted of a violation of this chapter, or has had a registration
 or  license issued under this chapter revoked for cause, until the expi-
 ration of two years from the date of such conviction or revocation.
   2. Except as may otherwise be provided for in regulation, it shall  be
 unlawful   for  any  police  commissioner,  police  inspector,  captain,
 sergeant, roundsman, patrolman or other police official  or  subordinate
 of  any  police  department in the state, to be either directly or indi-
 rectly interested in the cultivation, processing, distribution, or  sale
 of  cannabis  products  or to offer for sale, or recommend to any regis-
 tered organization or licensee any cannabis products. A person  may  not
 be  denied  any  registration or license granted under the provisions of
 this chapter solely on the grounds of being the spouse of a public serv-
 ant described in this section. The solicitation or  recommendation  made
 to  any  registered  organization  or licensee, to purchase any cannabis
 products by any police official or subordinate as hereinabove described,
 shall be presumptive evidence of the interest of such official or subor-

 A. 1617--A                         62
 
 dinate in the cultivation, processing, distribution, or sale of cannabis
 products.
   3. No elective village officer shall be subject to the limitations set
 forth  in  subdivision  two of this section unless such elective village
 officer shall be assigned duties directly relating to the  operation  or
 management of the police department.
   §  142. Access to criminal history information through the division of
 criminal justice services.   In connection with  the  administration  of
 this  chapter,  the executive director is authorized to request, receive
 and review criminal history information through the division of criminal
 justice services with respect to  any  person  seeking  a  registration,
 license,  permit  or  authorization to cultivate, process, distribute or
 sell medical cannabis, adult use cannabis or hemp cannabis. At the exec-
 utive director's request, each person, member, principal and/or  officer
 of  the  applicant shall submit to the office his or her fingerprints in
 such form and in such manner as  specified  by  the  division,  for  the
 purpose  of  conducting a criminal history search and returning a report
 thereon in accordance with the procedures and  requirements  established
 by the division pursuant to the provisions of article thirty-five of the
 executive  law,  which shall include the payment of the prescribed proc-
 essing fees for the cost of the division's full search and retain proce-
 dures and a national criminal history record check. The executive direc-
 tor, or his or her designee, shall  submit  such  fingerprints  and  the
 processing fee to the division. The division shall forward to the execu-
 tive director a report with respect to the applicant's previous criminal
 history, if any, or a statement that the applicant has no previous crim-
 inal history according to its files. Fingerprints submitted to the divi-
 sion  pursuant  to this subdivision may also be submitted to the federal
 bureau of investigation for a national criminal history record check. If
 additional copies of fingerprints  are  required,  the  applicant  shall
 furnish them upon request.
   § 3. Section 3302 of the public health law, as added by chapter 878 of
 the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
 subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
 25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
 and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
 subdivision  20, the opening paragraph of subdivision 22 and subdivision
 29 as amended by chapter 163 of the laws  of  1973,  subdivision  31  as
 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
 vision  41 as added by section 6 of part A of chapter 447 of the laws of
 2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   §  3302.  Definitions  of terms of general use in this article. Except
 where  different  meanings  are  expressly   specified   in   subsequent
 provisions of this article, the following terms have the following mean-
 ings:
   1.  "Addict" means a person who habitually uses a controlled substance
 for a non-legitimate or unlawful use, and who by reason of such  use  is
 dependent thereon.
   2.   "Administer"   means  the  direct  application  of  a  controlled
 substance, whether by injection, inhalation,  ingestion,  or  any  other
 means, to the body of a patient or research subject.
   3.  "Agent" means an authorized person who acts on behalf of or at the
 direction of a manufacturer, distributor, or dispenser. No person may be
 authorized to so act if under title  VIII  of  the  education  law  such

 A. 1617--A                         63
 
 person  would  not  be  permitted to engage in such conduct. It does not
 include a common or contract carrier, public warehouseman,  or  employee
 of  the  carrier  or  warehouseman  when  acting in the usual and lawful
 course of the carrier's or warehouseman's business.
   4. ["Concentrated Cannabis" means
   (a)  the  separated  resin, whether crude or purified, obtained from a
 plant of the genus Cannabis; or
   (b) a material, preparation,  mixture,  compound  or  other  substance
 which  contains  more than two and one-half percent by weight of delta-9
 tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
 terpene numbering system.
   5.]  "Controlled  substance" means a substance or substances listed in
 section thirty-three hundred six of this [chapter] TITLE.
   [6.] 5. "Commissioner" means commissioner of health of  the  state  of
 New York.
   [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
 attempted transfer from one person to another of a controlled substance,
 whether or not there is an agency relationship.
   [8.] 7. "Department" means the department of health of  the  state  of
 New York.
   [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
 mate user or research subject by lawful means, including by means of the
 internet, and includes the packaging, labeling, or compounding necessary
 to prepare the substance for such delivery.
   [10.] 9. "Distribute" means to deliver a controlled substance, includ-
 ing by means of the internet, other than by administering or dispensing.
   [11.]  10.  "Distributor"  means a person who distributes a controlled
 substance.
   [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
 of  a  controlled  substance by a person or in a manner not specifically
 authorized by law.
   [13.] 12. "Drug" means
   (a) substances recognized as drugs in the official United States Phar-
 macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
 official National Formulary, or any supplement to any of them;
   (b)  substances  intended  for use in the diagnosis, cure, mitigation,
 treatment, or prevention of disease in man or animals; and
   (c) substances (other than food) intended to affect the structure or a
 function of the body of man or animal. It does not  include  devices  or
 their components, parts, or accessories.
   [14.]  13. "Federal agency" means the Drug Enforcement Administration,
 United States Department of Justice, or its successor agency.
   [15.] 14. "Federal controlled substances act" means the  Comprehensive
 Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
 any act or  acts  amendatory  or  supplemental  thereto  or  regulations
 promulgated thereunder.
   [16.]  15. "Federal registration number" means such number assigned by
 the Federal agency to any person authorized to manufacture,  distribute,
 sell, dispense or administer controlled substances.
   [17.]  16.  "Habitual  user"  means any person who is, or by reason of
 repeated use of any controlled substance for non-legitimate or  unlawful
 use is in danger of becoming, dependent upon such substance.
   [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
 hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
 hospital or similar facility approved and certified by the department as

 A. 1617--A                         64
 
 authorized  to  obtain  controlled  substances  by  distribution  and to
 dispense and administer such substances pursuant to the order of a prac-
 titioner.
   [19.]  18.  "License"  means  a  written  authorization  issued by the
 department or the New York  state  department  of  education  permitting
 persons  to  engage  in  a specified activity with respect to controlled
 substances.
   [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
 gation,   compounding,   cultivation,  conversion  or  processing  of  a
 controlled substance, either directly or  indirectly  or  by  extraction
 from substances of natural origin, or independently by means of chemical
 synthesis, or by a combination of extraction and chemical synthesis, and
 includes  any  packaging  or repackaging of the substance or labeling or
 relabeling of its container, except that this term does not include  the
 preparation,   compounding,   packaging  or  labeling  of  a  controlled
 substance:
   (a) by a practitioner as an incident to his administering or  dispens-
 ing  of  a  controlled substance in the course of his professional prac-
 tice; or
   (b) by a practitioner, or by his authorized  agent  under  his  super-
 vision, for the purpose of, or as an incident to, research, teaching, or
 chemical analysis and not for sale; or
   (c)  by  a pharmacist as an incident to his dispensing of a controlled
 substance in the course of his professional practice.
   [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
 whether  growing or not; the seeds thereof; the resin extracted from any
 part of the plant; and every compound,  manufacture,  salt,  derivative,
 mixture,  or  preparation  of the plant, its seeds or resin. It does not
 include the mature stalks of the plant, fiber produced from the  stalks,
 oil  or cake made from the seeds of the plant, any other compound, manu-
 facture, salt, derivative, mixture, or preparation of the mature  stalks
 (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
 sterilized seed of the plant which is incapable of germination.
   22.] 20. "Narcotic drug" means any of the following, whether  produced
 directly  or  indirectly  by  extraction  from  substances  of vegetable
 origin, or independently by means of chemical synthesis, or by a  combi-
 nation of extraction and chemical synthesis:
   (a)  opium and opiate, and any salt, compound, derivative, or prepara-
 tion of opium or opiate;
   (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
 which  is  chemically equivalent or identical with any of the substances
 referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
 including the isoquinoline alkaloids of opium;
   (c) opium poppy and poppy straw.
   [23.]  21. "Opiate" means any substance having an addiction-forming or
 addiction-sustaining liability similar to morphine or being  capable  of
 conversion  into a drug having addiction-forming or addiction-sustaining
 liability. It  does  not  include,  unless  specifically  designated  as
 controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
 cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
 its salts (dextromethorphan). It does include its racemic and  levorota-
 tory forms.
   [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
 somniferum L., except its seeds.

 A. 1617--A                         65
 
   [25.] 23. "Person" means individual, institution, corporation, govern-
 ment or governmental subdivision  or  agency,  business  trust,  estate,
 trust, partnership or association, or any other legal entity.
   [26.]  24. "Pharmacist" means any person licensed by the state depart-
 ment of education to practice pharmacy.
   [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
 York  state  board  of  pharmacy  and registered with the Federal agency
 pursuant to the federal controlled substances act.
   [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
 opium poppy, after mowing.
   [29.] 27. "Practitioner" means:
   A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
 gator, or other person licensed, or  otherwise  permitted  to  dispense,
 administer or conduct research with respect to a controlled substance in
 the  course  of  a  licensed  professional practice or research licensed
 pursuant to this article. Such person shall be deemed  a  "practitioner"
 only  as  to such substances, or conduct relating to such substances, as
 is permitted by his license, permit or otherwise permitted by law.
   [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
 prescription,  permitting an ultimate user lawfully to obtain controlled
 substances  from  any  person  authorized  by  law  to   dispense   such
 substances.
   [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
 prescription, an electronic prescription, an oral prescription[,] OR  an
 out-of-state prescription[, or any one].
   [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
 er, or offer or agree to do the same.
   [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
 possesses a controlled substance for his own use or the use by a  member
 of  his  household  or  for an animal owned by him or in his custody. It
 shall also mean and include a person designated, by a practitioner on  a
 prescription, to obtain such substance on behalf of the patient for whom
 such substance is intended.
   [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
 cations facilities which comprise the worldwide network of networks that
 employ a set of industry standards and protocols, or any predecessor  or
 successor  protocol  to  such  protocol,  to exchange information of all
 kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
 networks,  whether  private  or  public, used to transmit information by
 electronic means.
   [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
 distribution,  or  dispensing  of  a  controlled substance that uses the
 internet, is initiated by use of the internet or causes the internet  to
 be used.
   [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
 in  the  United  States  that sells, delivers or dispenses, or offers to
 sell, deliver, or dispense, a  controlled  substance  by  means  of  the
 internet.
   [37.]  35.  "Electronic prescription" means a prescription issued with
 an electronic signature and transmitted by electronic means  in  accord-
 ance with regulations of the commissioner and the commissioner of educa-
 tion  and consistent with federal requirements. A prescription generated
 on an electronic system that is printed out or transmitted via facsimile
 is not considered  an  electronic  prescription  and  must  be  manually
 signed.

 A. 1617--A                         66
 
   [38.] 36. "Electronic" means of or relating to technology having elec-
 trical, digital, magnetic, wireless, optical, electromagnetic or similar
 capabilities. "Electronic" shall not include facsimile.
   [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
 created, generated, transmitted, communicated,  received  or  stored  by
 means  of electronic equipment and includes the preservation, retrieval,
 use and disposition in accordance with regulations of  the  commissioner
 and the commissioner of education and in compliance with federal law and
 regulations.
   [40.] 38. "Electronic signature" means an electronic sound, symbol, or
 process,  attached  to or logically associated with an electronic record
 and executed or adopted by a person with the intent to sign the  record,
 in  accordance with regulations of the commissioner and the commissioner
 of education.
   [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
 means  the prescription monitoring program registry established pursuant
 to section thirty-three hundred forty-three-a of this article.
   [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
 ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
 drug substance to create a drug with respect to an outsourcing  facility
 under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
 further defined in this section.
   [43.] 41. "Outsourcing facility" means a facility that:
   (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
 section sixty-eight hundred two of the education law;
   (b)  is  currently  registered  as an outsourcing facility pursuant to
 article one hundred thirty-seven of the education law; and
   (c) complies with all applicable requirements  of  federal  and  state
 law, including the Federal Food, Drug and Cosmetic Act.
   Notwithstanding  any  other  provision of law to the contrary, when an
 outsourcing facility distributes or dispenses any  drug  to  any  person
 pursuant to a prescription, such outsourcing facility shall be deemed to
 be  providing  pharmacy services and shall be subject to all laws, rules
 and regulations governing pharmacies and pharmacy services.
   § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
 26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
 section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
 18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
 laws of 2006, are amended to read as follows:
   (13) [Marihuana.
   (14)] Mescaline.
   [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
   [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
 fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
 not, the seeds thereof, any extract from any part  of  such  plant,  and
 every  compound, manufacture, salts, derivative, mixture, or preparation
 of such plant, its seeds or extracts.
   [(17)] (16) N-ethyl-3-piperidyl benzilate.
   [(18)] (17) N-methyl-3-piperidyl benzilate.
   [(19)] (18) Psilocybin.
   [(20)] (19) Psilocyn.
   [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
 DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances

 A. 1617--A                         67
 
 contained  in the plant, or in the resinous extractives of cannabis, sp.
 and/or synthetic substances, derivatives, and their isomers with similar
 chemical structure and pharmacological activity such as the following:
   [/\]  DELTA  1  cis  or  trans tetrahydrocannabinol, and their optical
 isomers
   [/\] DELTA 6 cis or  trans  tetrahydrocannabinol,  and  their  optical
 isomers
   [/\]  DELTA  3,  4  cis or trans tetrahydrocannabinol, and its optical
 isomers (since nomenclature of these substances is  not  internationally
 standardized,  compounds  of  these  structures, regardless of numerical
 designation of atomic positions covered).
   [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
 names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
   [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
   [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
 names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
 phencyclidine, TPCP, TCP.
   [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
   [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
 N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
 MDE, MDEA.
   [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
 N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
 N-hydroxy MDA.
   [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
 names: TCPY.
   [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
 etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
 3- (2-aminobutyl) indole; Alpha-ET or AET.
   [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
 names: DOET.
   [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
 names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
 DOB; 2C-B, Nexus.
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.
   § 5. Section 3382 of the public health law is REPEALED.
   § 6. Title 5-A of article 33 of the public health law is REPEALED.
   §  7.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
 (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
 and  rules,  paragraph (d) of subdivision 3 and subdivision 3-a as added
 by chapter 655 of the laws  of  1990  and  paragraphs  (a)  and  (b)  of
 subdivision  11 as amended by section 47 of part A1 of chapter 56 of the
 laws of 2010, are amended to read as follows:
   (d) In a forfeiture action commenced by a claiming authority against a
 defendant,  the  following  rebuttable  presumption  shall  apply:   all
 currency  or  negotiable  instruments  payable  to  the  bearer shall be
 presumed to be the proceeds of a pre-conviction  forfeiture  crime  when
 such currency or negotiable instruments are (i) found in close proximity
 to  a  controlled  substance unlawfully possessed by the defendant in an
 amount sufficient to constitute a violation of section 220.18 or  220.21
 of  the penal law, or (ii) found in close proximity to any quantity of a
 controlled  substance  [or  marihuana]  unlawfully  possessed  by   such
 defendant  in  a  room,  other  than a public place, under circumstances

 A. 1617--A                         68
 
 evincing an intent to unlawfully mix, compound, distribute,  package  or
 otherwise prepare for sale such controlled substance [or marihuana].
   3-a.  Conviction  of  a person in a criminal action upon an accusatory
 instrument which includes one or  more  of  the  felonies  specified  in
 subdivision  four-b  of section thirteen hundred ten of this article, of
 any felony other than such felonies, shall not preclude a defendant,  in
 any subsequent proceeding under this article where that conviction is at
 issue, from adducing evidence that the conduct underlying the conviction
 would  not  establish  the  elements of any of the felonies specified in
 such subdivision other than the one to which the criminal defendant pled
 guilty. If the defendant does adduce such evidence, the burden shall  be
 upon  the claiming authority to prove, by clear and convincing evidence,
 that the conduct underlying the criminal conviction would establish  the
 elements  of the felony specified in such subdivision. Nothing contained
 in this subdivision shall affect the validity of  a  settlement  of  any
 forfeiture action negotiated between the claiming authority and a crimi-
 nal defendant contemporaneously with the taking of a plea of guilty in a
 criminal  action to any felony defined in article two hundred twenty [or
 section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
 commit the same.
   (a) Any stipulation or settlement agreement between the parties  to  a
 forfeiture  action  shall  be filed with the clerk of the court in which
 the forfeiture action is pending. No stipulation or settlement agreement
 shall be accepted for filing unless it is accompanied  by  an  affidavit
 from  the  claiming  authority that written notice of the stipulation or
 settlement agreement, including the terms of such, has been given to the
 office of victim  services,  the  state  division  of  criminal  justice
 services[,  and in the case of a forfeiture based on a felony defined in
 article two hundred twenty or section 221.30 or 221.55 of the penal law,
 to the state division of substance abuse services].
   (b) No judgment or order of forfeiture shall be  accepted  for  filing
 unless  it  is  accompanied  by an affidavit from the claiming authority
 that written notice of judgment or order, including the terms  of  such,
 has  been  given to the office of victim services, the state division of
 criminal justice services[, and in the case of a forfeiture based  on  a
 felony defined in article two hundred twenty or section 221.30 or 221.55
 of the penal law, to the state division of substance abuse services].
   §  8.  Subdivision  1  of  section 3397-b of the public health law, as
 added by chapter 810 of the laws of 1980, is amended to read as follows:
   1. ["Marijuana"] "CANNABIS" means [marijuana] CANNABIS as  defined  in
 [section  thirty-three  hundred  two of this chapter] SUBDIVISION SIX OF
 SECTION 220.00 OF THE PENAL LAW and shall also include  tetrahydrocanna-
 binols or a chemical derivative of tetrahydrocannabinol.
   § 9. Section 114-a of the vehicle and traffic law, as added by chapter
 163 of the laws of 1973, is amended to read as follows:
   § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
 includes any substance listed in section thirty-three hundred six of the
 public health law AND CANNABIS AND CONCENTRATED CANNABIS AS  DEFINED  IN
 SECTION 220.00 OF THE PENAL LAW.
   §  10.  Subdivisions  5,  6  and 9 of section 220.00 of the penal law,
 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
 6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
 amended  by  chapter  664  of  the laws of 1985, are amended and two new
 subdivisions 21 and 22 are added to read as follows:
   5. "Controlled substance" means any substance listed  in  schedule  I,
 II,  III,  IV  or  V  of  section thirty-three hundred six of the public

 A. 1617--A                         69
 
 health law other than [marihuana] CANNABIS, but  including  concentrated
 cannabis  as  defined  in  [paragraph (a) of subdivision four of section
 thirty-three hundred two of such law]  SUBDIVISION  TWENTY-ONE  OF  THIS
 SECTION.
   6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna-
 bis"  as  those terms are defined in section thirty-three hundred two of
 the public health law] ALL PARTS OF THE PLANT  OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT
 INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
 OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
 FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
 (EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
 STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
 NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   9. "Hallucinogen" means any controlled substance listed  in  [schedule
 I(d)]  PARAGRAPHS  (5),  [(18),  (19),  (20), (21) and (22)] (17), (18),
 (19), (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION  THIRTY-
 THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
   21. "CONCENTRATED CANNABIS" MEANS:
   (A)  THE  SEPARATED  RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A
 PLANT OF THE GENUS CANNABIS; OR
   (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
 WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
 CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
 DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
 NUMBERING SYSTEM.
   22. "CANNABIS PRODUCTS" MEANS  CANNABIS,  CONCENTRATED  CANNABIS,  AND
 CANNABIS-INFUSED  PRODUCTS  CONTAINING  CONCENTRATED  CANNABIS AND OTHER
 INGREDIENTS.
   § 11.  Subdivision 4 of section 220.06 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   4.  one  or  more  preparations,  compounds,  mixtures  or  substances
 containing  concentrated cannabis as defined in [paragraph (a) of subdi-
 vision four of section thirty-three hundred two  of  the  public  health
 law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
 preparations, compounds, mixtures or  substances  are  of  an  aggregate
 weight of one-fourth ounce or more; or
   § 12. Subdivision 10 of section 220.09 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   10.  one  or  more  preparations,  compounds,  mixtures  or substances
 containing concentrated cannabis as defined in [paragraph (a) of  subdi-
 vision  four  of  section  thirty-three hundred two of the public health
 law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
 preparations,  compounds,  mixtures  or  substances  are of an aggregate
 weight of one ounce or more; or
   § 13. Subdivision 3 of section 220.34 of the penal law, as amended  by
 chapter 537 of the laws of 1998, is amended to read as follows:
   3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
 four of section thirty-three hundred  two  of  the  public  health  law]
 SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
   §  14.  Section  220.50 of the penal law, as amended by chapter 627 of
 the laws of 1990, is amended to read as follows:

 A. 1617--A                         70
 
 § 220.50 Criminally using drug paraphernalia in the second degree.
   A  person  is  guilty  of  criminally  using drug paraphernalia in the
 second degree when he knowingly possesses or sells:
   1. Diluents, dilutants or adulterants, including but not  limited  to,
 any  of the following: quinine hydrochloride, mannitol, mannite, lactose
 or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
 under  circumstances  evincing  an intent to use, or under circumstances
 evincing knowledge that  some  person  intends  to  use,  the  same  for
 purposes  of  unlawfully mixing, compounding, or otherwise preparing any
 narcotic  drug  or  stimulant,  OTHER  THAN  CANNABIS  OR   CONCENTRATED
 CANNABIS; or
   2. Gelatine capsules, glassine envelopes, vials, capsules or any other
 material suitable for the packaging of individual quantities of narcotic
 drugs  or  stimulants  under circumstances evincing an intent to use, or
 under circumstances evincing knowledge that some person intends to  use,
 the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
 dispensing of any narcotic drug or stimulant,  OTHER  THAN  CANNABIS  OR
 CONCENTRATED CANNABIS; or
   3. Scales and balances used or designed for the purpose of weighing or
 measuring  controlled substances, under circumstances evincing an intent
 to use, or under  circumstances  evincing  knowledge  that  some  person
 intends  to use, the same for purpose of unlawfully manufacturing, pack-
 aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA-
 BIS OR CONCENTRATED CANNABIS.
   Criminally using drug paraphernalia in the second degree is a class  A
 misdemeanor.
   § 15. Article 221 of the penal law is REPEALED.
   §  16. The penal law is amended by adding a new article 222 to read as
 follows:
                                ARTICLE 222
                                 CANNABIS
 SECTION 222.00 CANNABIS; DEFINITIONS.
         222.05 PERSONAL USE OF CANNABIS.
         222.10 UNLAWFUL CULTIVATION OF CANNABIS.
         222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
         222.20 UNLAWFUL POSSESSION OF CANNABIS.
         222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
         222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
         222.35 SALE OF CANNABIS TO A PERSON LESS THAN  TWENTY-ONE  YEARS
                  OF AGE IN THE SECOND DEGREE.
         222.40 SALE  OF  CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS
                  OF AGE IN THE FIRST DEGREE.
 § 222.00 CANNABIS; DEFINITIONS.
   1. "CANNABIS" MEANS ALL PARTS OF THE  PLANT  OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
 INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
 OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
 FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
 (EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
 STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION.  IT DOES
 NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   2. "CONCENTRATED CANNABIS" MEANS:

 A. 1617--A                         71

   (A)  THE  SEPARATED  RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A
 PLANT OF THE GENUS CANNABIS; OR
   (B)  A  MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND OR OTHER SUBSTANCE
 WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9  TETRAHYDRO-
 CANNABINOL,  OR  ITS  ISOMER,  DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR
 DELTA-1 TETRAHYDROCANNABINOL OR ITS  ISOMER,  DELTA  1  (6)  MONOTERPENE
 NUMBERING SYSTEM.
   3.  "CANNABIS-INFUSED PRODUCTS" MEANS PRODUCTS THAT HAVE BEEN MANUFAC-
 TURED AND CONTAIN EITHER CANNABIS OR  CONCENTRATED  CANNABIS  AND  OTHER
 INGREDIENTS THAT ARE INTENDED FOR USE OR CONSUMPTION.
   4.  "MATURE  CANNABIS  PLANT"  MEANS  A CANNABIS PLANT WITH OBSERVABLE
 FLOWERS OR BUDS.
   5. FOR THE PURPOSES OF  THIS  ARTICLE,  "SALE"  SHALL  MEAN  TO  SELL,
 EXCHANGE  OR  DISPOSE  OF FOR COMPENSATION. "SALE" SHALL NOT INCLUDE THE
 TRANSFER OF CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED  PRODUCT
 BETWEEN PERSONS TWENTY-ONE YEARS OF AGE OR OLDER WITHOUT COMPENSATION IN
 THE QUANTITIES AUTHORIZED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
 222.05 OF THIS ARTICLE.
 § 222.05 PERSONAL USE OF CANNABIS.
   NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY:
   1.  THE  FOLLOWING ACTS ARE LAWFUL FOR PERSONS TWENTY-ONE YEARS OF AGE
 OR OLDER:  (A) POSSESSING, DISPLAYING, PURCHASING, OBTAINING, OR  TRANS-
 PORTING  UP  TO  THREE OUNCES OF CANNABIS AND UP TO TWENTY-FOUR GRAMS OF
 CONCENTRATED  CANNABIS,  OR  EQUIVALENT   AMOUNT   OF   CANNABIS-INFUSED
 PRODUCTS;
   (B)  TRANSFERRING,  WITHOUT COMPENSATION, TO A PERSON TWENTY-ONE YEARS
 OF AGE OR OLDER, UP TO THREE OUNCES OF CANNABIS AND  UP  TO  TWENTY-FOUR
 GRAMS OF CONCENTRATED CANNABIS, OR EQUIVALENT AMOUNT OF CANNABIS-INFUSED
 PRODUCTS;
   (C)  USING,  SMOKING,  INGESTING,  OR CONSUMING CANNABIS, CONCENTRATED
 CANNABIS OR CANNABIS-INFUSED PRODUCTS  UNLESS  OTHERWISE  PROHIBITED  BY
 STATE LAW OR REGULATION;
   (D)  POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR-
 ING, TRANSPORTING OR GIVING TO ANY PERSON TWENTY-ONE  YEARS  OF  AGE  OR
 OLDER CANNABIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
   (E)  ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE OR OLDER,
 OR ALLOWING PROPERTY TO BE USED, IN ANY OF THE ACTS DESCRIBED  IN  PARA-
 GRAPHS (A) THROUGH (D) OF THIS SUBDIVISION.
   2.  CANNABIS, CONCENTRATED CANNABIS, CANNABIS-INFUSED PRODUCTS, CANNA-
 BIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA INVOLVED IN ANY
 WAY WITH CONDUCT DEEMED LAWFUL BY THIS SECTION ARE  NOT  CONTRABAND  NOR
 SUBJECT  TO  SEIZURE  OR FORFEITURE OF ASSETS UNDER ARTICLE FOUR HUNDRED
 EIGHTY OF THIS CHAPTER, SECTION THIRTEEN HUNDRED  ELEVEN  OF  THE  CIVIL
 PRACTICE  LAW  AND RULES, OR OTHER APPLICABLE LAW, AND NO CONDUCT DEEMED
 LAWFUL BY THIS SECTION SHALL CONSTITUTE THE BASIS FOR APPROACH,  SEARCH,
 SEIZURE, ARREST OR DETENTION.
   3. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, NONE OF THE
 FOLLOWING SHALL, INDIVIDUALLY OR IN COMBINATION WITH EACH OTHER, CONSTI-
 TUTE  REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE OF PROBABLE
 CAUSE IN ANY CRIMINAL PROCEEDING AGAINST A DEFENDANT TWENTY-ONE YEARS OF
 AGE OR OLDER:
   (A) THE ODOR OF CANNABIS OR OF BURNT CANNABIS;
   (B) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  CANNABIS,
 CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS  IN  THE  AMOUNTS
 AUTHORIZED IN THIS SECTION;

 A. 1617--A                         72
 
   (C) THE POSSESSION OF MULTIPLE CONTAINERS OF CANNABIS WITHOUT EVIDENCE
 OF POSSESSION OF MORE THAN THREE OUNCES OF CANNABIS,  TWENTY-FOUR  GRAMS
 OF  CONCENTRATED  CANNABIS  OR THE EQUIVALENT AMOUNT OF CANNABIS-INFUSED
 PRODUCTS; OR
   (D) THE PRESENCE OF CASH OR CURRENCY IN PROXIMITY TO CANNABIS, CONCEN-
 TRATED CANNABIS OR CANNABIS-INFUSED PRODUCTS.
   4.  SUBDIVISION  THREE  OF  THIS  SECTION  SHALL  NOT APPLY WHEN A LAW
 ENFORCEMENT OFFICER IS INVESTIGATING: (A) AN ALLEGED OFFENSE PURSUANT TO
 SECTION 222.20, 222.25, 222.30, 222.35 OR 222.40 OF THIS ARTICLE; OR (B)
 WHETHER A PERSON IS OPERATING OR IN PHYSICAL CONTROL  OF  A  VEHICLE  OR
 WATERCRAFT  WHILE  INTOXICATED,  UNDER  THE INFLUENCE OF, OR IMPAIRED BY
 ALCOHOL OR A DRUG OR ANY COMBINATION THEREOF  IN  VIOLATION  OF  ARTICLE
 THIRTY-ONE OF THE VEHICLE AND TRAFFIC LAW.
   5. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT ANY PERSON
 TO:
   (I) SMOKE CANNABIS IN PUBLIC;
   (II)  SMOKE  CANNABIS  PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS
 PROHIBITED PURSUANT TO SECTION THIRTEEN  HUNDRED  NINETY-NINE-O  OF  THE
 PUBLIC HEALTH LAW;
   (III)  POSSESS,  SMOKE  OR  INGEST  CANNABIS  PRODUCTS  IN OR UPON THE
 GROUNDS OF ANY SCHOOL PROPERTY USED FOR SCHOOL PURPOSES WHICH  IS  OWNED
 BY OR LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE
 CHILDREN ARE PRESENT; OR
   (IV)  SMOKE  OR  INGEST  CANNABIS  PRODUCTS WHILE DRIVING, OPERATING A
 MOTOR VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR  TRANS-
 PORTATION.
   (B) FOR PURPOSES OF THIS SECTION:
   (I)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
 HEATED DEVICE OR PIPE, OR  ANY  OTHER  LIGHTED  OR  HEATED  CANNABIS  OR
 CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
 OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
   (II) "SMOKE" DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING  DEVICE
 THAT  CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES EXTEND
 PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   (C) VIOLATIONS OF THE RESTRICTIONS UNDER THIS SUBDIVISION ARE  SUBJECT
 TO  A FINE NOT EXCEEDING TWENTY-FIVE DOLLARS OR AN APPROPRIATE AMOUNT OF
 COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
 § 222.10 UNLAWFUL CULTIVATION OF CANNABIS.
   A PERSON IS GUILTY OF UNLAWFUL CULTIVATION OF CANNABIS WHEN HE OR  SHE
 KNOWINGLY  AND  UNLAWFULLY PLANTS, CULTIVATES, HARVESTS, DRIES, OR PROC-
 ESSES CANNABIS ON PUBLIC LANDS OR OTHERWISE IN VIOLATION OF ARTICLE  SIX
 OF THE CANNABIS LAW.
   UNLAWFUL CULTIVATION OF CANNABIS IS A CLASS B MISDEMEANOR.
 § 222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
   THE  CRIMINAL PENALTIES PURSUANT TO THE PROVISIONS OF THIS ARTICLE FOR
 POSSESSING, MANUFACTURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANS-
 FERRING CANNABIS, CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS
 SHALL  NOT  APPLY  TO  ANY PERSON ENGAGED IN SUCH ACTIVITY IN COMPLIANCE
 WITH THE CANNABIS LAW.
 § 222.20 UNLAWFUL POSSESSION OF CANNABIS.
   A PERSON IS GUILTY OF UNLAWFUL POSSESSION OF CANNABIS WHEN HE  OR  SHE
 KNOWINGLY AND UNLAWFULLY POSSESSES:
   1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN THREE OUNCES; OR
   2.  CONCENTRATED  CANNABIS  AND SUCH CONCENTRATED CANNABIS WEIGHS MORE
 THAN TWENTY-FOUR GRAMS; OR
   3. EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.

 A. 1617--A                         73
 
   UNLAWFUL POSSESSION OF CANNABIS IS A VIOLATION PUNISHABLE BY A FINE OF
 NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS.
 § 222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
   1.  A  PERSON  IS  GUILTY OF UNLICENSED SALE OF CANNABIS IN THE SECOND
 DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS  CANNABIS,  CONCEN-
 TRATED CANNABIS OR EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
   2.  A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING PENALTIES,
 AS APPLICABLE:
   (A) VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED  TWEN-
 TY-FIVE DOLLARS;
   (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE  CRIME  OF  UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE, SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
 IN THE FIRST DEGREE OR THIS SECTION, THEN A VIOLATION  PUNISHABLE  BY  A
 FINE  OF  NOT  MORE  THAN  TWO  HUNDRED  FIFTY DOLLARS FOR A SECOND SUCH
 OFFENSE; OR
   (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE CRIME OF UNLICENSED SALE OF CANNABIS IN THE FIRST  DEGREE,  SALE  OF
 CANNABIS  TO  A  PERSON  LESS THAN TWENTY-ONE YEARS OF AGE IN THE SECOND
 DEGREE, SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS  OF  AGE
 IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS B MISDEMEANOR FOR SUCH
 THIRD OR SUBSEQUENT OFFENSE.
 § 222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
   1.  A  PERSON  IS  GUILTY  OF UNLICENSED SALE OF CANNABIS IN THE FIRST
 DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS MORE THAN TWO OUNC-
 ES OF CANNABIS, MORE THAN SIXTEEN GRAMS OF CONCENTRATED CANNABIS OR  THE
 EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
   2.  A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING PENALTIES,
 AS APPLICABLE:
   (A) A VIOLATION PUNISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
 FIFTY DOLLARS;
   (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
 IN THE FIRST DEGREE OR THIS SECTION, THEN A VIOLATION  PUNISHABLE  BY  A
 FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR SUCH SECOND OFFENSE; OR
   (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
 IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS A MISDEMEANOR FOR SUCH
 THIRD OR SUBSEQUENT OFFENSE.
 § 222.35 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
            IN THE SECOND DEGREE.
   A  PERSON  TWENTY-ONE  YEARS  OF AGE OR OLDER IS GUILTY OF THE SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE WHEN, BEING TWENTY-ONE YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY
 AND UNLAWFULLY SELLS CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED
 PRODUCTS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE.
   SALE  OF  CANNABIS  TO  A  PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE
 SECOND DEGREE IS A CLASS A MISDEMEANOR.
 § 222.40 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
            IN THE FIRST DEGREE.

 A. 1617--A                         74
 
   A  PERSON  TWENTY-ONE  YEARS OF AGE AND OLDER IS GUILTY OF THE SALE OF
 CANNABIS TO A PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE  FIRST  DEGREE
 WHEN,  BEING  TWENTY-ONE  YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY AND
 UNLAWFULLY SELLS MORE THAN THREE OUNCES OF CANNABIS, MORE  THAN  TWENTY-
 FOUR  GRAMS  OF CONCENTRATED CANNABIS OR THE EQUIVALENT AMOUNT OF CANNA-
 BIS-INFUSED PRODUCTS.
   SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE IN  THE
 FIRST DEGREE IS A CLASS E FELONY.
   §  17.  Subdivision  8  of section 1399-n of the public health law, as
 amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
 follows:
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter  or  substance  which  contains  tobacco  OR  CANNABIS;
 PROVIDED  THAT  IT  DOES  NOT  INCLUDE  THE USE OF AN ELECTRONIC SMOKING
 DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE  STATUTES
 EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   §  18. Section 1.20 of the criminal procedure law is amended by adding
 a new subdivision 45 to read as follows:
   45. "EXPUNGE" MEANS, WHERE AN  ARREST  AND  ANY  ENFORCEMENT  ACTIVITY
 CONNECTED WITH THAT ARREST, INCLUDING PROSECUTION AND ANY DISPOSITION IN
 ANY  NEW  YORK  STATE  COURT,  IS  DEEMED  A  NULLITY AND THE ACCUSED IS
 RESTORED, IN CONTEMPLATION OF THE LAW, TO  THE  STATUS  SUCH  INDIVIDUAL
 OCCUPIED  BEFORE  THE  ARREST  AND/OR  PROSECUTION; THAT RECORDS OF SUCH
 ARREST, PROSECUTION AND/OR DISPOSITION SHALL BE MARKED  AS  EXPUNGED  OR
 SHALL  BE  DESTROYED  AS  SET  FORTH  IN SECTION 160.50 OF THIS CHAPTER.
 NEITHER THE ARREST NOR PROSECUTION AND/OR  DISPOSITION,  IF  ANY,  OF  A
 MATTER  DEEMED  A  NULLITY  SHALL  OPERATE  AS A DISQUALIFICATION OF ANY
 PERSON SO ACCUSED TO PURSUE OR ENGAGE IN ANY  LAWFUL  ACTIVITY,  OCCUPA-
 TION,  PROFESSION  OR  CALLING.  EXCEPT  WHERE  SPECIFICALLY REQUIRED OR
 PERMITTED BY STATUTE OR UPON SPECIFIC AUTHORIZATION OF A SUPERIOR COURT,
 NO SUCH PERSON SHALL BE REQUIRED TO DIVULGE  INFORMATION  PERTAINING  TO
 THE ARREST, PROSECUTION AND/OR DISPOSITION OF SUCH A MATTER.
   §  19.  Subdivision 1 of section 160.50 of the criminal procedure law,
 as amended by chapter 169 of the laws of 1994, paragraph (d) as  amended
 by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
 is added to read as follows:
   1.  Upon  the termination of a criminal action or proceeding against a
 person in favor of such person, as defined in subdivision three of  this
 section,  unless  the  district  attorney upon motion with not less than
 five days notice to such person or his or her attorney  demonstrates  to
 the  satisfaction  of  the  court  that the interests of justice require
 otherwise, or the court on its own motion with not less than  five  days
 notice  to such person or his or her attorney determines that the inter-
 ests of justice require otherwise and states the reasons for such deter-
 mination on the record, [the record of such action or  proceeding  shall
 be  sealed  and  the  clerk of the court wherein such criminal action or
 proceeding was terminated shall immediately notify the  commissioner  of
 the division of criminal justice services and the heads of all appropri-
 ate  police  departments  and  other  law  enforcement agencies that the
 action has been terminated in favor of the accused, and unless the court
 has directed otherwise, that the record of  such  action  or  proceeding
 shall  be  sealed.  Upon receipt of notification of such termination and
 sealing] SUCH ACTION OR PROCEEDING SHALL BE DEEMED A NULLITY AND RECORDS
 OF SUCH ACTION OR PROCEEDING EXPUNGED, AND THE CLERK OF THE COURT WHERE-
 IN SUCH CRIMINAL ACTION OR PROCEEDING WAS TERMINATED  SHALL  IMMEDIATELY
 NOTIFY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES AND

 A. 1617--A                         75
 
 THE  HEADS  OF ALL APPROPRIATE POLICE DEPARTMENTS AND OTHER LAW ENFORCE-
 MENT AGENCIES THAT THE ACTION  HAS  BEEN  TERMINATED  IN  FAVOR  OF  THE
 ACCUSED  AND  DEEMED A NULLITY, AND UNLESS THE COURT HAS DIRECTED OTHER-
 WISE,  THAT THE RECORD OF OR RELATING TO SUCH ACTION OR PROCEEDING SHALL
 BE IMMEDIATELY EXPUNGED AS FOLLOWS:
   (a) every photograph of such person and photographic plate  or  proof,
 and  all palmprints and fingerprints, RETINA SCANS OR DNA MATERIAL taken
 or made of such person pursuant to the provisions  of  this  article  in
 regard  to  the  action  or  proceeding  terminated, [except a dismissal
 pursuant to section 170.56 or 210.46 of this chapter,]  and  all  dupli-
 cates  and  copies  thereof,  except  a  digital fingerprint image where
 authorized pursuant to paragraph (e) of this subdivision,  shall  forth-
 with  be[,  at the discretion of the recipient agency, either] destroyed
 [or returned to such person, or to the  attorney  who  represented  such
 person]  at the time of the termination of the action or proceeding[, at
 the address given by such  person  or  attorney  during  the  action  or
 proceeding,]  by  the  division  of criminal justice services and by any
 police department or law enforcement agency having any such  photograph,
 photographic  plate or proof, palmprint [or], fingerprints, RETINA SCANS
 OR DNA MATERIAL in its possession or under its control;
   (b) any police department or law  enforcement  agency,  including  the
 division  of  criminal  justice services, which transmitted or otherwise
 forwarded to any agency of the United States or of any other state or of
 any other jurisdiction outside the state of New York copies of any  such
 photographs,  photographic  plates  or proofs, palmprints [and], finger-
 prints, RETINA SCANS  OR  DNA  MATERIAL,  including  those  relating  to
 actions  or  proceedings which were dismissed pursuant to section 170.56
 or 210.46 of this [chapter] PART, shall forthwith formally [request  in]
 INFORM THEM IN writing that [all such copies be destroyed or returned to
 the  police  department  or  law enforcement agency which transmitted or
 forwarded them, and, if returned, such department or  agency  shall,  at
 its discretion, either destroy or return them as provided herein, except
 that  those  relating to dismissals pursuant to section 170.56 or 210.46
 of this chapter shall not be destroyed or returned by such department or
 agency] THE MATTER HAS BEEN EXPUNGED AND REQUEST  IN  WRITING  THAT  ALL
 SUCH COPIES BE DESTROYED;
   (c) all official records and papers, including judgments and orders of
 a  court  but  not  including  published  court decisions or opinions or
 records and briefs on appeal, relating to  the  arrest  or  prosecution,
 including  all  duplicates and copies thereof, on file with the division
 of criminal justice services, any court, police agency, or  prosecutor's
 office  shall  be [sealed and not made available to any person or public
 or private agency] MARKED AS EXPUNGED BY CONSPICUOUSLY INDICATING ON THE
 FACE OF THE RECORD OR AT THE BEGINNING OF  THE  DIGITIZED  FILE  OF  THE
 RECORD THAT THE RECORD HAS BEEN DESIGNATED AS EXPUNGED. SUCH RECORDS AND
 PAPERS  SHALL NOT BE MADE AVAILABLE TO ANY PERSON, EXCEPT THE INDIVIDUAL
 WHOSE CASE HAS BEEN DEEMED A NULLITY OR THEIR DESIGNATED  AGENT  AS  SET
 FORTH  IN PARAGRAPH (D) OF THIS SUBDIVISION, OR TO ANY PUBLIC OR PRIVATE
 AGENCY;
   (d) [such] records SET FORTH IN  PARAGRAPH  (C)  OF  THIS  SUBDIVISION
 shall be made available to the person accused or to such person's desig-
 nated  agent,  and  shall  be  made available to (i) a prosecutor in any
 proceeding in which the accused has  moved  for  an  order  pursuant  to
 section  170.56 or 210.46 of this [chapter] PART, or (ii) a law enforce-
 ment agency upon ex parte motion  in  any  superior  court,  or  in  any
 district court, city court or the criminal court of the city of New York

 A. 1617--A                         76
 
 provided  that  such  court ORIGINALLY sealed OR EXPUNGED the record, if
 such agency demonstrates to the satisfaction of the court  that  justice
 requires  that  such records be made available to it, or (iii) any state
 or  local  officer  or  agency  with  responsibility for the issuance of
 licenses to possess guns, when the accused has made application for such
 a license, or (iv) the New York  state  department  of  corrections  and
 community  supervision  when  the  accused is on parole supervision as a
 result of conditional release or a parole release  granted  by  the  New
 York  state  board of parole, and the arrest which is the subject of the
 inquiry is one which occurred while the accused was  under  such  super-
 vision,  or  (v)  any  prospective employer of a police officer or peace
 officer as those terms are  defined  in  subdivisions  thirty-three  and
 thirty-four  of section 1.20 of this chapter, in relation to an applica-
 tion for employment as a police  officer  or  peace  officer;  provided,
 however,  that  every  person  who  is  an applicant for the position of
 police officer or peace officer shall be furnished with a  copy  of  all
 records  obtained  under  this  paragraph and afforded an opportunity to
 make an explanation thereto, or (vi) the probation department  responsi-
 ble  for supervision of the accused when the arrest which is the subject
 of the inquiry is one which occurred while the accused  was  under  such
 supervision; and
   (e)  where fingerprints subject to the provisions of this section have
 been received by the division of criminal justice services and have been
 filed by the division as digital images, such images  may  be  retained,
 provided  that  a fingerprint card of the individual is on file with the
 division which was not [sealed] DESTROYED pursuant to  this  section  or
 section 160.55 of this article.
   (1-A) CASES PREVIOUSLY SEALED PURSUANT TO THIS SECTION SHALL BE DEEMED
 EXPUNGED, AND DIGITAL RECORDS SHALL BE SO MARKED.
   §  20.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
 of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
 ter  905  of  the laws of 1977, paragraph (k) as added by chapter 835 of
 the laws of 1977 and as relettered by chapter 192 of the  laws  of  1980
 and  such  subdivision as renumbered by chapter 142 of the laws of 1991,
 are amended to read as follows:
   (i) prior to the filing of an accusatory instrument in a local  crimi-
 nal  court  against  such person, the prosecutor elects not to prosecute
 such person. In such event, the prosecutor shall serve  a  certification
 of  such  disposition upon the division of criminal justice services and
 upon the appropriate police department or law enforcement agency  which,
 upon  receipt  thereof,  shall  comply with the provisions of paragraphs
 (a), (b), (c) and (d) of subdivision one of this  section  in  the  same
 manner  as  is  required  thereunder with respect to an order of a court
 entered pursuant to said subdivision one[.]; OR
   (j) following the arrest of such person, the arresting police  agency,
 prior  to  the  filing  of  an accusatory instrument in a local criminal
 court but subsequent to the forwarding of a copy of the fingerprints  of
 such  person to the division of criminal justice services, elects not to
 proceed further. In such event, the head of the arresting police  agency
 shall  serve  a  certification  of such disposition upon the division of
 criminal justice services which, upon receipt thereof, shall comply with
 the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
 this section in the same manner as is required thereunder  with  respect
 to an order of a court entered pursuant to said subdivision one[.]; OR
   (k)  (i)  The accusatory instrument alleged a violation of article two
 hundred twenty or section 240.36 of the penal law, prior to  the  taking

 A. 1617--A                         77
 
 effect  of  article  two  hundred twenty-one of the penal law, or BY THE
 CONVICTION OF SUCH PERSON OF a violation of [article two  hundred  twen-
 ty-one]  SECTION  221.45 of the penal law ON OR AFTER THE EFFECTIVE DATE
 OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
 PARAGRAPH OR A VIOLATION OF  SECTION  221.05,  221.10,  221.15,  221.20,
 221.25, 221.30, 221.35 OR 221.40 OF THE PENAL LAW PRIOR TO THE EFFECTIVE
 DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
 THIS PARAGRAPH; AND (ii)  the  sole  controlled  substance  involved  is
 [marijuana; (iii) the conviction was only for a violation or violations;
 and  (iv)  at  least three years have passed since the offense occurred]
 MARIHUANA. NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO  WAIVE  ELIGI-
 BILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUIL-
 TY, SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR A VIOLATION OF
 SECTION  221.45  OF  THE PENAL LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID
 AND WHOLLY UNENFORCEABLE.
   § 21. Subdivision 4 of section 160.50 of the criminal procedure law is
 REPEALED, and three new subdivisions 4, 5, and 6 are added  to  read  as
 follows:
   4.  (A)  RECORDS OF ANY ACTION OR PROCEEDING TERMINATED FOR ANY REASON
 OTHER THAN A CRIMINAL  CONVICTION  PRIOR  TO  NOVEMBER  FIRST,  NINETEEN
 HUNDRED  NINETY-ONE SHALL BE EXPUNGED.  THE DIVISION OF CRIMINAL JUSTICE
 SERVICES SHALL IDENTIFY SUCH RECORDS WITHIN SIX MONTHS OF THE  EFFECTIVE
 DATE  OF THIS SUBDIVISION, AND NOTIFY THE NEW YORK STATE OFFICE OF COURT
 ADMINISTRATION (HEREINAFTER OCA) THAT SUCH ACTION QUALIFIES FOR EXPUNGE-
 MENT. UPON RECEIPT OF SUCH NOTIFICATION, THE MATTER SHALL BE EXPUNGED AS
 DESCRIBED IN SUBDIVISION ONE OF THIS SECTION.
   (B) WHERE A CRIMINAL ACTION OR PROCEEDING WAS TERMINATED,  AS  DEFINED
 IN  PARAGRAPH  (K)  OF  SUBDIVISION  THREE OF THIS SECTION, PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBDIVISION, SUCH CRIMINAL ACTION  OR  PROCEEDING
 SHALL  BE  AUTOMATICALLY  VACATED AND DISMISSED, AND ALL RECORDS OF SUCH
 ACTION OR PROCEEDING EXPUNGED AS SET FORTH IN SUBDIVISION  ONE  OF  THIS
 SECTION,  AND THE MATTER TERMINATED IN FAVOR OF THE ACCUSED AND DEEMED A
 NULLITY, BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID. OCA  SHALL
 AUTOMATICALLY  NOTIFY  THE  COMMISSIONER  OF  THE  DIVISION  OF CRIMINAL
 JUSTICE SERVICES AND THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND
 OTHER LAW ENFORCEMENT AGENCIES THAT THE PRIOR CONVICTION IS NOW  LEGALLY
 INVALID AND THAT THE ACTION HAS BEEN VACATED, DISMISSED AND EXPUNGED AND
 THUS TERMINATED IN FAVOR OF THE ACCUSED. UPON RECEIPT OF NOTIFICATION OF
 SUCH  VACATUR,  TERMINATION AND EXPUNGEMENT, ALL RECORDS RELATING TO THE
 CRIMINAL ACTION SHALL BE EXPUNGED AS DESCRIBED  IN  SUBDIVISION  ONE  OF
 THIS SECTION.
   5.  IN  SITUATIONS WHERE AUTOMATIC VACATUR, DISMISSAL, EXPUNGEMENT AND
 RECORD DESTRUCTION IS REQUIRED BY PARAGRAPH (B) OF SUBDIVISION  FOUR  OF
 THIS  SECTION BUT HAS NOT TAKEN PLACE, OR WHERE SUPPORTING COURT RECORDS
 CANNOT BE LOCATED OR HAVE BEEN DESTROYED, AND  AN  INDIVIDUAL  OR  THEIR
 ATTORNEY  PRESENTS  TO  OCA  FINGERPRINT RECORDS FROM THE NEW YORK STATE
 DIVISION OF CRIMINAL JUSTICE SERVICES OR A COURT DISPOSITION WHICH INDI-
 CATE THAT A CRIMINAL ACTION OR  PROCEEDING  AGAINST  THE  APPLICANT  WAS
 TERMINATED  BY  A  CONVICTION FOR SECTION 221.05, 221.10 221.15, 221.20,
 221.25, 221.30, 221.35, OR 221.40 OF THE PENAL LAW IN  EFFECT  PRIOR  TO
 THE  EFFECTIVE DATE OF THIS SUBDIVISION, WITHIN THIRTY DAYS OF NOTICE TO
 OCA, THE ACTION SHALL FORTHWITH BE VACATED, DISMISSED, AND  EXPUNGED  AS
 SET FORTH IN SUBDIVISION ONE OF THIS SECTION.
   6. VACATUR, DISMISSAL AND EXPUNGEMENT AS SET FORTH IN PARAGRAPH (A) OR
 (B)  OF  SUBDIVISION FOUR OR SUBDIVISION FIVE OF THIS SECTION IS WITHOUT
 PREJUDICE TO AN INDIVIDUAL OR  THEIR  ATTORNEY  SEEKING  FURTHER  RELIEF

 A. 1617--A                         78
 
 PURSUANT  TO  SECTION  440.10  OF  THIS PART. NOTHING IN THIS SECTION IS
 INTENDED TO DIMINISH OR ABROGATE ANY RIGHTS OR REMEDIES OTHERWISE AVAIL-
 ABLE TO THE INDIVIDUAL.
   §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
 as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
 follows:
   1.  Upon or after arraignment in a local criminal court upon an infor-
 mation, a prosecutor's information or a misdemeanor complaint, where the
 sole  remaining  count  or  counts  charge  a violation or violations of
 section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
 law,  OR  UPON SUMMONS FOR A NUISANCE OFFENSE UNDER SECTION SIXTY-FIVE-C
 OF THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea  of
 guilty  thereto  or  commencement  of   a trial thereof, the court, upon
 motion of a defendant, may order that all proceedings be  suspended  and
 the  action  adjourned  in contemplation of dismissal, or upon a finding
 that adjournment would not be necessary or appropriate and  the  setting
 forth  in  the  record  of the reasons for such findings, may dismiss in
 furtherance of justice the  accusatory  instrument;  provided,  however,
 that  the  court  may  not  order  such  adjournment in contemplation of
 dismissal or dismiss the accusatory instrument if: (a) the defendant has
 previously been granted such adjournment in contemplation of  dismissal,
 or  (b) the defendant has previously been granted a dismissal under this
 section, or (c) the defendant  has  previously  been  convicted  of  any
 offense involving controlled substances, or (d) the defendant has previ-
 ously  been  convicted  of  a  crime  and the district attorney does not
 consent or (e) the defendant has previously been adjudicated a  youthful
 offender on the basis of any act or acts involving controlled substances
 and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
 TIONS  SET  FORTH  IN  THIS  SUBDIVISION,  THE  COURT MAY ORDER THAT ALL
 PROCEEDINGS BE SUSPENDED AND THE ACTION ADJOURNED  IN  CONTEMPLATION  OF
 DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
 PURPOSES OF THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES  EXIST  WHEN,
 REGARDLESS  OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A PLEA
 OF GUILTY IS LIKELY TO RESULT IN SEVERE OR ONGOING CONSEQUENCES, INCLUD-
 ING, BUT NOT LIMITED TO, POTENTIAL OR ACTUAL IMMIGRATION CONSEQUENCES.
   § 23. Paragraph (j) of subdivision 1 of section 440.10 of the criminal
 procedure law, as amended by section 2 of part MMM of chapter 59 of  the
 laws  of  2019,  is  amended and a new paragraph (k) is added to read as
 follows:
   (j) The judgment is a conviction for a class A or unclassified  misde-
 meanor  entered prior to the effective date of this paragraph and satis-
 fies the ground prescribed in paragraph (h) of this subdivision.   There
 shall  be  a rebuttable presumption that a conviction by plea to such an
 offense was not knowing, voluntary and  intelligent,  based  on  ongoing
 collateral  consequences,  including  potential  or  actual  immigration
 consequences, and  there  shall  be  a  rebuttable  presumption  that  a
 conviction  by  verdict  constitutes  cruel and unusual punishment under
 section five of article one of the  state  constitution  based  on  such
 consequences[.]; OR
   (K)  IF  PERTINENT,  SUCH RELIEF IS AVAILABLE NOTWITHSTANDING THAT THE
 JUDGMENT WAS FOR A VIOLATION OF SECTION 221.05, 221.10, 221.15,  221.20,
 221.25,  221.30,  221.35,  OR 221.40 OF THE PENAL LAW IN EFFECT PRIOR TO
 THE EFFECTIVE DATE OF THIS PARAGRAPH AND THAT THE UNDERLYING  ACTION  OR
 PROCEEDING  HAS ALREADY BEEN VACATED, DISMISSED AND EXPUNGED PURSUANT TO
 PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION 160.50  OF  THIS  PART,  IN
 WHICH  CASE  THE  COURT  SHALL  PRESUME  THAT A CONVICTION BY PLEA FOR A

 A. 1617--A                         79
 
 VIOLATION OF THE AFOREMENTIONED SECTIONS OF THE THEN PENAL LAW  WAS  NOT
 KNOWING AND VOLUNTARY, IF IT HAS ONGOING CONSEQUENCES, INCLUDING BUT NOT
 LIMITED  TO,  POTENTIAL  OR  ACTUAL  IMMIGRATION CONSEQUENCES, AND SHALL
 PRESUME  THAT  A CONVICTION BY VERDICT OF THE AFOREMENTIONED SECTIONS OF
 THE THEN PENAL LAW CONSTITUTES CRUEL AND UNUSUAL  PUNISHMENT  UNDER  THE
 STATE  CONSTITUTION,  BASED  ON  THOSE CONSEQUENCES. THE PROSECUTION MAY
 REBUT THESE PRESUMPTIONS.
   § 24. The criminal procedure law is amended by adding  a  new  section
 440.46-a to read as follows:
 § 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
             OFFENSES.
   1.  WHERE  A  PERSON IS CURRENTLY SERVING A SENTENCE FOR A CONVICTION,
 WHETHER BY VERDICT OR BY OPEN OR NEGOTIATED PLEA,  WHO  WOULD  NOT  HAVE
 BEEN  GUILTY  OF AN OFFENSE AFTER THE EFFECTIVE DATE OF THIS SECTION HAD
 THIS SECTION BEEN IN EFFECT AT THE TIME OF THEIR CONVICTION, THE  OFFICE
 OF  COURT ADMINISTRATION SHALL AUTOMATICALLY VACATE, DISMISS AND EXPUNGE
 SUCH CONVICTION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION
 160.50 OF THIS PART AND IMMEDIATELY NOTIFY THE NEW YORK STATE DEPARTMENT
 OF CORRECTIONS AND COMMUNITY SUPERVISION AND LOCAL JAILS, WHICH ENTITIES
 SHALL IMMEDIATELY EFFECTUATE THE APPROPRIATE RELIEF. THE OFFICE OF COURT
 ADMINISTRATION SHALL LIKEWISE AUTOMATICALLY NOTIFY THE DIVISION OF CRIM-
 INAL JUSTICE SERVICES AND ANY  POLICE  DEPARTMENT  AND  LAW  ENFORCEMENT
 AGENCY,  WHICH  DIVISION,  DEPARTMENT OR AGENCY MUST IMMEDIATELY DESTROY
 APPURTENANT RECORDS AS SET FORTH IN PARAGRAPH (B) OF SUBDIVISION FOUR OF
 SECTION 160.50 OF THIS PART.
   2. (A) A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER
 BY VERDICT OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY  OF
 A  LESSER  OFFENSE  AFTER  THE  EFFECTIVE  DATE OF THIS SECTION HAD THIS
 SECTION BEEN IN EFFECT AT THE TIME OF THEIR CONVICTION MAY PETITION  FOR
 A RECALL OF SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT OF
 CONVICTION  IN  THEIR  CASE  TO  REQUEST RESENTENCING IN ACCORDANCE WITH
 ARTICLE TWO HUNDRED TWENTY-TWO OF THE PENAL LAW.
   (B) UPON RECEIVING A MOTION UNDER PARAGRAPH (A) OF  THIS  SUBDIVISION,
 THE  COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUCH PARA-
 GRAPH (A) UNLESS THE PARTY OPPOSING  THE  MOTION  PROVES  BY  CLEAR  AND
 CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
 THE MOVANT SATISFIES THE CRITERIA IN PARAGRAPH (A) OF THIS  SUBDIVISION,
 THE COURT SHALL GRANT THE MOTION TO RESENTENCE.
   3.  UNDER  NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT
 IN THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL  SENTENCE,  OR  THE
 REINSTATEMENT  OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA AGREE-
 MENT.
   4. (A) A PERSON WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
 UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
 ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY OF  A
 LESSER  OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS
 SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN
 APPLICATION  BEFORE  THE  TRIAL  COURT  THAT  ENTERED  THE  JUDGMENT  OF
 CONVICTION  IN  HIS  OR HER CASE TO HAVE THE CONVICTION REDESIGNATED (OR
 "RECLASSIFIED"), IN ACCORDANCE WITH ARTICLE TWO  HUNDRED  TWENTY-TWO  OF
 THE PENAL LAW.
   (B)  UPON  RECEIVING A MOTION UNDER PARAGRAPH (A) OF THIS SUBDIVISION,
 THE COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA  IN  PARAGRAPH
 (A)  OF  THIS SUBDIVISION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY
 CLEAR AND CONVINCING EVIDENCE THAT  THE  MOVANT  DOES  NOT  SATISFY  THE
 CRITERIA.  IF THE MOVANT SATISFIES THE CRITERIA IN PARAGRAPH (A) OF THIS

 A. 1617--A                         80
 
 SUBDIVISION, THE  COURT  SHALL  GRANT  THE  MOTION  TO  REDESIGNATE  (OR
 "RECLASSIFY") THE CONVICTION.
   5. (A) IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAIL-
 ABLE,  THE  PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE
 PETITION OR APPLICATION.
   (B) UNLESS REQUESTED BY THE MOVANT, NO HEARING IS NECESSARY  TO  GRANT
 AN APPLICATION FILED UNDER SUBDIVISION TWO OR FOUR OF THIS SECTION.
   (C) ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDI-
 VISION  TWO  OF THIS SECTION OR DESIGNATED AS A MISDEMEANOR OR VIOLATION
 UNDER SUBDIVISION FOUR OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR
 OR VIOLATION FOR  ALL  PURPOSES.  ANY  MISDEMEANOR  CONVICTION  THAT  IS
 VACATED  AND RESENTENCED UNDER SUBDIVISION TWO OF THIS SECTION OR DESIG-
 NATED AS A VIOLATION UNDER SUBDIVISION FOUR OF  THIS  SECTION  SHALL  BE
 CONSIDERED A VIOLATION FOR ALL PURPOSES.
   (D)  NOTHING  IN  THIS SECTION IS INTENDED TO DIMINISH OR ABROGATE ANY
 RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
   (E) NOTHING IN THIS AND RELATED SECTIONS IS INTENDED  TO  DIMINISH  OR
 ABROGATE  THE  FINALITY  OF JUDGMENTS IN ANY CASE NOT FALLING WITHIN THE
 PURVIEW OF THIS SECTION.
   (F) THE PROVISIONS OF THIS SECTION SHALL  APPLY  EQUALLY  TO  JUVENILE
 DELINQUENCY  ADJUDICATIONS  AND  DISPOSITIONS UNDER SECTION FIVE HUNDRED
 ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
 AN OFFENSE OR WOULD HAVE BEEN GUILTY OF  A  LESSER  OFFENSE  UNDER  THIS
 SECTION  HAD  THIS  SECTION  BEEN  IN  EFFECT  AT THE TIME OF HIS OR HER
 CONVICTION.
   (G) THE OFFICE OF  COURT  ADMINISTRATION  SHALL  PROMULGATE  AND  MAKE
 AVAILABLE  ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS AND
 APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
 THE EFFECTIVE DATE OF THIS SECTION.
   § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
 procedure law, as amended by chapter 37 of the laws of 2014, is  amended
 to read as follows:
   (c)  Criminal  possession  of  a  controlled  substance in the seventh
 degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
 possession  of  a controlled substance in the fifth degree as defined in
 section 220.06 of the penal law, criminal  possession  of  a  controlled
 substance in the fourth degree as defined in section 220.09 of the penal
 law,  criminal  possession of a controlled substance in the third degree
 as defined in section 220.16 of the penal law, criminal possession of  a
 controlled  substance  in the second degree as defined in section 220.18
 of the penal law, criminal possession of a controlled substance  in  the
 first  degree  as  defined  in section 220.21 of the penal law, criminal
 sale of a controlled substance in the fifth degree as defined in section
 220.31 of the penal law, criminal sale of a controlled substance in  the
 fourth  degree  as  defined in section 220.34 of the penal law, criminal
 sale of a controlled substance in the third degree as defined in section
 220.39 of the penal law, criminal sale of a controlled substance in  the
 second  degree  as  defined in section 220.41 of the penal law, criminal
 sale of a controlled substance in the first degree as defined in section
 220.43 of the penal law, criminally possessing a  hypodermic  instrument
 as  defined  in  section  220.45  of  the  penal law, criminal sale of a
 prescription for a controlled substance or a controlled substance  by  a
 practitioner  or  pharmacist  as  defined in section 220.65 of the penal
 law, criminal possession of methamphetamine  manufacturing  material  in
 the  second degree as defined in section 220.70 of the penal law, crimi-
 nal possession of methamphetamine manufacturing material  in  the  first

 A. 1617--A                         81
 
 degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
 possession of precursors of methamphetamine as defined in section 220.72
 of the penal law, unlawful manufacture of methamphetamine in  the  third
 degree  as defined in section 220.73 of the penal law, unlawful manufac-
 ture of methamphetamine in the  second  degree  as  defined  in  section
 220.74  of the penal law, unlawful manufacture of methamphetamine in the
 first degree as defined in section 220.75 of  the  penal  law,  unlawful
 disposal  of  methamphetamine  laboratory material as defined in section
 220.76 of the penal law, operating as a major trafficker as  defined  in
 section  220.77  of  the penal law, [criminal possession of marihuana in
 the first degree as defined in section 221.30 of the penal law, criminal
 sale of marihuana in the first degree as defined in  section  221.55  of
 the  penal  law,]  promoting gambling in the second degree as defined in
 section 225.05 of the penal law, promoting gambling in the first  degree
 as  defined  in  section 225.10 of the penal law, possession of gambling
 records in the second degree as defined in section 225.15 of  the  penal
 law,  possession  of  gambling records in the first degree as defined in
 section 225.20 of the penal law, and possession of a gambling device  as
 defined in section 225.30 of the penal law;
   § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
 9  of  section  1310 of the civil practice law and rules, paragraphs (b)
 and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
 and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
 are amended to read as follows:
   (b) on three or more occasions, engaging  in  conduct  constituting  a
 violation  of  any  of  the  felonies defined in section 220.09, 220.16,
 220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or  221.55]
 of  the  penal law, which violations do not constitute a single criminal
 offense as defined in subdivision one of section 40.10 of  the  criminal
 procedure law, or a single criminal transaction, as defined in paragraph
 (a)  of  subdivision two of section 40.10 of the criminal procedure law,
 and at least one of which resulted in a conviction of such  offense,  or
 where  the  accusatory  instrument charges one or more of such felonies,
 conviction upon a plea of guilty to a felony  for  which  such  plea  is
 otherwise authorized by law; or
   (c)  a  conviction  of  a  person  for  a violation of section 220.09,
 220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
 nal  defendant  for  a violation of section 221.30 of the penal law,] or
 where the accusatory instrument charges any such felony, conviction upon
 a plea of guilty to a felony for which the plea is otherwise  authorized
 by  law,  together with evidence which: (i) provides substantial indicia
 that the defendant used the real property  to  engage  in  a  continual,
 ongoing  course  of  conduct involving the unlawful mixing, compounding,
 manufacturing, warehousing, or packaging of  controlled  substances  [or
 where  the  conviction is for a violation of section 221.30 of the penal
 law, marijuana,] as part of an illegal trade or business for  gain;  and
 (ii) establishes, where the conviction is for possession of a controlled
 substance  [or where the conviction is for a violation of section 221.30
 of the penal law, marijuana], that such possession was with  the  intent
 to sell it.
   [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
 article two hundred twenty or section 221.30  or  221.55  of  the  penal
 law.]
   9.  "Criminal defendant" means a person who has criminal liability for
 a crime defined in [subdivisions] SUBDIVISION five [and six  hereof]  OF
 THIS  SECTION.  For  purposes  of  this  article,  a person has criminal

 A. 1617--A                         82

 liability when [(a)] he has been convicted of a post-conviction  forfei-
 ture  crime[, or (b) the claiming authority proves by clear and convinc-
 ing evidence that such person has committed an act in violation of arti-
 cle two hundred twenty or section 221.30 or 221.55 of the penal law].
   §  27.  Subdivision 13 of section 89-f of the general business law, as
 added by chapter 336 of the laws of 1992, is amended to read as follows:
   13. "Serious offense" shall mean any  felony  involving  the  offenses
 enumerated  in  the  closing  paragraph  of this subdivision; a criminal
 solicitation of or a conspiracy to commit or an attempt to commit  or  a
 criminal  facilitation  of a felony involving the offenses enumerated in
 the closing paragraph of this subdivision, which criminal  solicitation,
 conspiracy, attempt or criminal facilitation itself constitutes a felony
 or  any  offense  in  any  other jurisdiction which if committed in this
 state would constitute a felony; any offense in any  other  jurisdiction
 which if committed in this state would constitute a felony provided that
 for the purposes of this article, none of the following shall be consid-
 ered  criminal  convictions  or  reported  as such: (i) a conviction for
 which an executive pardon has been issued pursuant to the executive law;
 (ii) a conviction which has been vacated  and  replaced  by  a  youthful
 offender  finding pursuant to article seven hundred twenty of the crimi-
 nal procedure law, or the applicable provisions  of  law  of  any  other
 jurisdiction;  or  (iii)  a  conviction  the  records of which have been
 sealed pursuant to the applicable provisions of the laws of  this  state
 or  of  any  other  jurisdiction;  and (iv) a conviction for which other
 evidence of successful rehabilitation to remove the disability has  been
 issued.
   Felonies involving: assault, aggravated assault and reckless endanger-
 ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
 manslaughter and murder pursuant to article one hundred twenty-five; sex
 offenses pursuant to article one hundred thirty; unlawful  imprisonment,
 kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
 criminal trespass and burglary pursuant to article  one  hundred  forty;
 criminal  mischief,  criminal  tampering  and  tampering with a consumer
 product pursuant to article one hundred forty-five;  arson  pursuant  to
 article one hundred fifty; larceny and offenses involving theft pursuant
 to article one hundred fifty-five; offenses involving computers pursuant
 to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
 hundred sixty; criminal possession of stolen property pursuant to  arti-
 cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
 article one hundred seventy; involving false written statements pursuant
 to article one hundred seventy-five; commercial bribing  and  commercial
 bribe  receiving pursuant to article one hundred eighty; criminal imper-
 sonation and scheme to defraud pursuant to article one  hundred  ninety;
 bribery involving public servants and related offenses pursuant to arti-
 cle  two  hundred;  perjury and related offenses pursuant to article two
 hundred ten; tampering with a witness, intimidating a victim or  witness
 and  tampering  with  physical  evidence pursuant to article two hundred
 fifteen; criminal possession  of  a  controlled  substance  pursuant  to
 sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
 controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
 220.41,  220.43  and  220.44;  [criminal] UNLICENSED sale of [marijuana]
 CANNABIS IN THE FIRST DEGREE pursuant to [sections  221.45,  221.50  and
 221.55]  SECTION 222.30; riot in the first degree, aggravated harassment
 in the first degree, criminal nuisance in the first degree  and  falsely
 reporting  an incident in the second or first degree pursuant to article

 A. 1617--A                         83
 
 two hundred forty; and crimes against public safety pursuant to  article
 two hundred sixty-five of the penal law.
   §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
 business law is REPEALED.
   § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
 business  law, as amended by chapter 812 of the laws of 1980, is amended
 to read as follows:
   (h) Objects, used or designed for the purpose of ingesting,  inhaling,
 or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
 into the human body.
   § 30. Subdivision 7 of section 995 of the executive law, as amended by
 chapter 19 of the laws of 2012, is amended to read as follows:
   7.  "Designated  offender"  means  a  person  convicted  of any felony
 defined in any chapter of the laws  of  the  state  or  any  misdemeanor
 defined  in  the  penal  law  [except that where the person is convicted
 under section 221.10 of the penal law, only  a  person  convicted  under
 subdivision two of such section, or a person convicted under subdivision
 one  of  such  section  who  stands previously convicted of any crime as
 defined in subdivision six of section 10.00 of the penal law].
   § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
 penal law, paragraph (b) as amended by section 31 of part AAA of chapter
 56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
 laws of 1990, are amended to read as follows:
   (b) three or more violations of any of the felonies defined in section
 220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
 220.43[,] OR 220.77[, or 221.55] of this chapter,  which  violations  do
 not  constitute  a single criminal offense as defined in subdivision one
 of section 40.10 of the criminal procedure law,  or  a  single  criminal
 transaction,  as  defined in paragraph (a) of subdivision two of section
 40.10 of the criminal procedure law, and at least one of which  resulted
 in  a  conviction  of  such  offense, or where the accusatory instrument
 charges one or more of such felonies, conviction upon a plea  of  guilty
 to a felony for which such plea is otherwise authorized by law; or
   (c)  a  conviction  of  a  person  for  a violation of section 220.09,
 220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
 accusatory instrument charges any such felony, conviction upon a plea of
 guilty  to  a  felony for which the plea is otherwise authorized by law,
 together with evidence which: (i) provides substantial indicia that  the
 defendant  used  the  real  property  to  engage in a continual, ongoing
 course of conduct involving the unlawful mixing,  compounding,  manufac-
 turing, warehousing, or packaging of controlled substances [or where the
 conviction  is  for a violation of section 221.30 of this chapter, mari-
 juana] as part of an illegal trade or business for gain; and (ii) estab-
 lishes, where the conviction is for possession of a controlled substance
 [or where the conviction is for a violation of section  221.30  of  this
 chapter,  marijuana],  that  such possession was with the intent to sell
 it.
   § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
 and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
 amended to read as follows:
   (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
 subdivision one and subparagraph (i) of paragraph (c) of subdivision two
 of  this  section  that  result in disqualification for a period of five
 years shall include a conviction under sections 100.10, 105.13,  115.05,
 120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
 125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,

 A. 1617--A                         84
 
 140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
 220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
 230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
 235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
 section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
 265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
 the aforesaid offenses under section 110.00 of the  penal  law,  or  any
 similar  offenses  committed under a former section of the penal law, or
 any offenses committed under a former section of  the  penal  law  which
 would  constitute violations of the aforesaid sections of the penal law,
 or any offenses committed outside  this  state  which  would  constitute
 violations of the aforesaid sections of the penal law.
   §  33.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
 section 1194 of the vehicle and traffic law, as amended by  chapter  196
 of the laws of 1996, is amended to read as follows:
   When authorized. Any person who operates a motor vehicle in this state
 shall  be deemed to have given consent to a chemical test of one or more
 of the following:   breath, blood[,] OR  urine[,  or  saliva,]  for  the
 purpose  of  determining  the  alcoholic and/or drug content, OTHER THAN
 CANNABIS CONTENT  INCLUDING  BUT  NOT  LIMITED  TO  TETRAHYDROCANNABINOL
 CONTENT,  of  the blood provided that such test is administered by or at
 the direction of a police officer with respect to  a  chemical  test  of
 breath,  urine [or saliva] or, with respect to a chemical test of blood,
 at the direction of a police officer:
   § 34. The article heading of article 20-B of the tax law, as added  by
 chapter 90 of the laws of 2014, is amended to read as follows:
                                ARTICLE 20-B
                EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
   §  35.  Subdivision  1  of section 171-a of the tax law, as amended by
 section 3 of part XX of chapter 59 of the laws of 2019,  is  amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  twenty-B, TWENTY-C, twenty-D, twenty-one, twenty-two, twenty-four,
 twenty-six, twenty-eight (except as otherwise provided in section eleven
 hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
 nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
 hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
 chapter  shall  be  deposited daily in one account with such responsible
 banks, banking houses or trust companies as may  be  designated  by  the
 comptroller,  to  the  credit of the comptroller. Such an account may be
 established in one or more of such depositories. Such deposits shall  be
 kept  separate  and  apart from all other money in the possession of the
 comptroller. The comptroller shall require adequate  security  from  all
 such depositories. Of the total revenue collected or received under such
 articles  of  this  chapter,  the  comptroller shall retain in the comp-
 troller's hands such amount as the  commissioner  may  determine  to  be
 necessary  for  refunds  or  reimbursements  under such articles of this
 chapter out of which amount the comptroller shall  pay  any  refunds  or
 reimbursements to which taxpayers shall be entitled under the provisions

 A. 1617--A                         85
 
 of  such  articles of this chapter. The commissioner and the comptroller
 shall maintain a system  of  accounts  showing  the  amount  of  revenue
 collected  or  received from each of the taxes imposed by such articles.
 The  comptroller,  after  reserving  the  amount  to pay such refunds or
 reimbursements, shall, on or before the tenth day  of  each  month,  pay
 into  the  state  treasury to the credit of the general fund all revenue
 deposited under this section during the  preceding  calendar  month  and
 remaining  to the comptroller's credit on the last day of such preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two of this chapter and the interest  on  such  amount  which  is
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against past-due support pursuant to subdivision six of section
 one hundred seventy-one-c of this article,  (ii)  and  except  that  the
 comptroller  shall  pay  to the New York state higher education services
 corporation and the state university of New York or the city  university
 of  New  York respectively that amount of overpayments of tax imposed by
 article twenty-two of this chapter and the interest on such amount which
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against  the  amount  of  defaults  in repayment of guaranteed
 student loans and state university loans or city university loans pursu-
 ant to subdivision five of section one hundred seventy-one-d and  subdi-
 vision  six  of section one hundred seventy-one-e of this article, (iii)
 and except further that, notwithstanding any law, the comptroller  shall
 credit   to   the   revenue   arrearage  account,  pursuant  to  section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
 or  thirty-three  of  this  chapter,  and any interest thereon, which is
 certified to the comptroller by the commissioner as  the  amount  to  be
 credited  against  a  past-due  legally enforceable debt owed to a state
 agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it  to the special offset fiduciary account, pursuant to section ninety-
 one-c of the state finance law, any such amount creditable as a  liabil-
 ity  as  set  forth  in  paragraph (b) of subdivision six of section one
 hundred seventy-one-f of this article, (iv) and except further that  the
 comptroller shall pay to the city of New York that amount of overpayment
 of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
 thirty-B or thirty-three of this chapter and any interest  thereon  that
 is  certified to the comptroller by the commissioner as the amount to be
 credited against city of New York tax warrant judgment debt pursuant  to
 section  one  hundred  seventy-one-l  of  this  article,  (v) and except
 further that the comptroller shall pay to a  non-obligated  spouse  that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter  and the interest on such amount which has been credited pursuant to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
 ty-one-l of this article and which is certified to  the  comptroller  by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this
 chapter;  and  (vi) the comptroller shall deduct a like amount which the
 comptroller shall pay into the treasury to the  credit  of  the  general
 fund  from  amounts  subsequently  payable  to  the department of social
 services, the state university of New York, the city university  of  New
 York,  or  the  higher  education  services  corporation, or the revenue
 arrearage account  or  special  offset  fiduciary  account  pursuant  to

 A. 1617--A                         86
 
 section  ninety-one-a  or  ninety-one-c of the state finance law, as the
 case may be, whichever had been credited the amount originally  withheld
 from  such  overpayment,  and  (vii)  with respect to amounts originally
 withheld  from such overpayment pursuant to section one hundred seventy-
 one-l of this article and paid to the city of New York, the  comptroller
 shall collect a like amount from the city of New York.
   §  36.  Subdivision  1  of section 171-a of the tax law, as amended by
 section 4 of part XX of chapter 59 of the laws of 2019,  is  amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  TWENTY-C,  twenty-D,  twenty-one, twenty-two, twenty-four, twenty-
 six, twenty-eight  (except  as  otherwise  provided  in  section  eleven
 hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
 nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
 hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
 chapter shall be deposited daily in one account  with  such  responsible
 banks,  banking  houses  or  trust companies as may be designated by the
 comptroller, to the credit of the comptroller. Such an  account  may  be
 established  in one or more of such depositories. Such deposits shall be
 kept separate and apart from all other money in the  possession  of  the
 comptroller.  The  comptroller  shall require adequate security from all
 such depositories. Of the total revenue collected or received under such
 articles of this chapter, the comptroller  shall  retain  in  the  comp-
 troller's  hands  such  amount  as  the commissioner may determine to be
 necessary for refunds or reimbursements  under  such  articles  of  this
 chapter  out  of  which  amount the comptroller shall pay any refunds or
 reimbursements to which taxpayers shall be entitled under the provisions
 of such articles of this chapter. The commissioner and  the  comptroller
 shall  maintain  a  system  of  accounts  showing  the amount of revenue
 collected or received from each of the taxes imposed by  such  articles.
 The  comptroller,  after  reserving  the  amount  to pay such refunds or
 reimbursements, shall, on or before the tenth day  of  each  month,  pay
 into  the  state  treasury to the credit of the general fund all revenue
 deposited under this section during the  preceding  calendar  month  and
 remaining  to the comptroller's credit on the last day of such preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two of this chapter and the interest  on  such  amount  which  is
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against past-due support pursuant to subdivision six of section
 one hundred seventy-one-c of this article,  (ii)  and  except  that  the
 comptroller  shall  pay  to the New York state higher education services
 corporation and the state university of New York or the city  university
 of  New  York respectively that amount of overpayments of tax imposed by
 article twenty-two of this chapter and the interest on such amount which
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against  the  amount  of  defaults  in repayment of guaranteed
 student loans and state university loans or city university loans pursu-
 ant to subdivision five of section one hundred seventy-one-d and  subdi-

 A. 1617--A                         87
 
 vision  six  of section one hundred seventy-one-e of this article, (iii)
 and except further that, notwithstanding any law, the comptroller  shall
 credit   to   the   revenue   arrearage  account,  pursuant  to  section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
 or thirty-three of this chapter, and  any  interest  thereon,  which  is
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against a past-due legally enforceable debt  owed  to  a  state
 agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it to the special offset fiduciary account, pursuant to section  ninety-
 one-c  of the state finance law, any such amount creditable as a liabil-
 ity as set forth in paragraph (b) of  subdivision  six  of  section  one
 hundred  seventy-one-f of this article, (iv) and except further that the
 comptroller shall pay to the city of New York that amount of overpayment
 of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
 thirty-B  or  thirty-three of this chapter and any interest thereon that
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against city of New York tax warrant judgment debt pursuant to
 section one hundred  seventy-one-l  of  this  article,  (v)  and  except
 further  that  the  comptroller shall pay to a non-obligated spouse that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter and the interest on such amount which has been credited pursuant  to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
 ty-one-l  of  this  article and which is certified to the comptroller by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this
 chapter; and (vi) the comptroller shall deduct a like amount  which  the
 comptroller  shall  pay  into  the treasury to the credit of the general
 fund from amounts subsequently  payable  to  the  department  of  social
 services,  the  state university of New York, the city university of New
 York, or the higher  education  services  corporation,  or  the  revenue
 arrearage  account  or  special  offset  fiduciary  account  pursuant to
 section ninety-one-a or ninety-one-c of the state finance  law,  as  the
 case  may be, whichever had been credited the amount originally withheld
 from such overpayment, and (vii)  with  respect  to  amounts  originally
 withheld  from such overpayment pursuant to section one hundred seventy-
 one-l of this article and paid to the city of New York, the  comptroller
 shall collect a like amount from the city of New York.
   §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
 of 2014, is amended to read as follows:
   § 490. [Definitions] EXCISE TAX ON MEDICAL  CANNABIS.    1.  (a)  [All
 definitions  of terms applicable to title five-A of article thirty-three
 of the public health law shall apply to this article.] FOR  PURPOSES  OF
 THIS  ARTICLE,  THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION,"
 "CERTIFIED PATIENT," AND "DESIGNATED  CAREGIVER"  SHALL  HAVE  THE  SAME
 DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW.
   (b)  As used in this section, where not otherwise specifically defined
 and unless a different meaning is clearly required "gross receipt" means
 the amount received in or by reason of any sale, conditional  or  other-
 wise, of medical [marihuana] CANNABIS or in or by reason of the furnish-
 ing of medical [marihuana] CANNABIS from the sale of medical [marihuana]
 CANNABIS provided by a registered organization to a certified patient or
 designated caregiver.  Gross receipt is expressed in money, whether paid
 in  cash,  credit or property of any kind or nature, and shall be deter-

 A. 1617--A                         88
 
 mined without any deduction therefrom on account  of  the  cost  of  the
 service  sold  or the cost of materials, labor or services used or other
 costs, interest or discount paid,  or  any  other  expenses  whatsoever.
 "Amount received" for the purpose of the definition of gross receipt, as
 the term gross receipt is used throughout this article, means the amount
 charged for the provision of medical [marihuana] CANNABIS.
   2.  There  is  hereby imposed an excise tax on the gross receipts from
 the sale of medical [marihuana] CANNABIS by a registered organization to
 a certified patient or designated caregiver, to be paid  by  the  regis-
 tered  organization,  at  the  rate of seven percent. The tax imposed by
 this article shall be charged against and  be  paid  by  the  registered
 organization and shall not be added as a separate charge or line item on
 any sales slip, invoice, receipt or other statement or memorandum of the
 price given to the retail customer.
   3.  The  commissioner  may  make,  adopt and amend rules, regulations,
 procedures and forms necessary for the  proper  administration  of  this
 article.
   4. Every registered organization that makes sales of medical [marihua-
 na]  CANNABIS  subject  to  the tax imposed by this article shall, on or
 before the twentieth date of each month, file with  the  commissioner  a
 return  on  forms  to  be  prescribed  by  the commissioner, showing its
 receipts from the retail sale of medical [marihuana] CANNABIS during the
 preceding calendar month and the amount of tax due thereon. Such returns
 shall contain such further information as the commissioner may  require.
 Every  registered  organization  required  to  file  a return under this
 section shall, at the time of filing such return, pay to the commission-
 er the total amount of tax due on its retail sales of medical  [marihua-
 na]  CANNABIS  for the period covered by such return. If a return is not
 filed when due, the tax shall be due on the day on which the  return  is
 required to be filed.
   5.  Whenever the commissioner shall determine that any moneys received
 under the provisions of this article were paid in error,  he  may  cause
 the  same  to  be refunded, with interest, in accordance with such rules
 and regulations as he may prescribe, except that no  interest  shall  be
 allowed  or  paid  if  the amount thereof would be less than one dollar.
 Such interest shall be at the overpayment rate set by  the  commissioner
 pursuant  to subdivision twenty-sixth of section one hundred seventy-one
 of this chapter, or if no rate is set, at the rate of  six  percent  per
 annum,  from  the  date when the tax, penalty or interest to be refunded
 was paid to a date preceding the date of the refund check  by  not  more
 than  thirty  days.  Provided,  however,  that  for the purposes of this
 subdivision, any tax paid before the last day prescribed for its payment
 shall be deemed to have been paid on such last day. Such moneys received
 under the provisions of this article which the commissioner shall deter-
 mine were paid in error, may be refunded out of funds in the custody  of
 the  comptroller  to  the  credit  of such taxes provided an application
 therefor is filed with the commissioner within two years from  the  time
 the erroneous payment was made.
   6.  The provisions of article twenty-seven of this chapter shall apply
 to the tax imposed by this article in the same manner and with the  same
 force  and  effect  as if the language of such article had been incorpo-
 rated in full into this section and had expressly referred  to  the  tax
 imposed by this article, except to the extent that any provision of such
 article  is  either  inconsistent with a provision of this article or is
 not relevant to this article.

 A. 1617--A                         89
 
   7. All taxes, interest and penalties  collected  or  received  by  the
 commissioner  under  this  article  shall  be  deposited and disposed of
 pursuant to the provisions of section one hundred seventy-one-a of  this
 chapter,  provided that an amount equal to one hundred percent collected
 under  this article less any amount determined by the commissioner to be
 reserved by the comptroller for refunds or reimbursements shall be  paid
 by  the  comptroller  to  the credit of the medical [marihuana] CANNABIS
 trust fund established by section eighty-nine-h  of  the  state  finance
 law.
   8. A registered organization that dispenses medical [marihuana] CANNA-
 BIS  shall  provide  to  the department information on where the medical
 [marihuana] CANNABIS was dispensed and  where  the  medical  [marihuana]
 CANNABIS was manufactured. A registered organization that obtains [mari-
 huana]  CANNABIS  from another registered organization shall obtain from
 such registered organization information on where the medical  [marihua-
 na] CANNABIS was manufactured.
   §  38.  Section 491 of the tax law, as added by chapter 90 of the laws
 of 2014, subdivision 1 as amended by section 1 of part II of chapter  60
 of the laws of 2016, is amended to read as follows:
   § 491. Returns to be secret. 1. Except in accordance with proper judi-
 cial  order or as in this section or otherwise provided by law, it shall
 be unlawful for the commissioner, any officer or employee of the depart-
 ment, or any officer or person who, pursuant to this section, is permit-
 ted to inspect any return or report or to whom a copy, an abstract or  a
 portion of any return or report is furnished, or to whom any information
 contained in any return or report is furnished, or any person engaged or
 retained  by  such  department  on  an independent contract basis or any
 person who in any manner may acquire knowledge  of  the  contents  of  a
 return or report filed pursuant to this article to divulge or make known
 in  any  manner  the  contents  or any other information relating to the
 business of a distributor, owner or other person contained in any return
 or report required under this article. The  officers  charged  with  the
 custody  of such returns or reports shall not be required to produce any
 of them or evidence of anything contained  in  them  in  any  action  or
 proceeding  in  any  court,  except  on  behalf of the state, [the state
 department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner
 in an action or proceeding under the provisions of this  chapter  or  on
 behalf  of the state or the commissioner in any other action or proceed-
 ing involving the collection of a tax due under this  chapter  to  which
 the  state  or the commissioner is a party or a claimant or on behalf of
 any party to any action or proceeding under the provisions of this arti-
 cle, when the returns or the reports or  the  facts  shown  thereby  are
 directly  involved  in  such  action  or  proceeding, or in an action or
 proceeding relating to the regulation or taxation of medical [marihuana]
 CANNABIS on behalf of officers  to  whom  information  shall  have  been
 supplied as provided in subdivision two of this section, in any of which
 events  the  court  may  require  the  production  of,  and may admit in
 evidence so much of said returns or reports or of the facts shown there-
 by as are pertinent to the action or proceeding  and  no  more.  Nothing
 herein  shall  be  construed to prohibit the commissioner, in his or her
 discretion, from allowing the inspection or delivery of a certified copy
 of any return or report filed under this article or of  any  information
 contained  in any such return or report by or to a duly authorized offi-
 cer or employee of the [state department of health] OFFICE  OF  CANNABIS
 MANAGEMENT;  or  by  or to the attorney general or other legal represen-
 tatives of the state when an  action  shall  have  been  recommended  or

 A. 1617--A                         90
 
 commenced  pursuant  to this chapter in which such returns or reports or
 the facts shown thereby are directly involved; or the inspection of  the
 returns  or  reports  required  under this article by the comptroller or
 duly designated officer or employee of the state department of audit and
 control,  for  purposes  of  the  audit of a refund of any tax paid by a
 registered organization or other  person  under  this  article;  nor  to
 prohibit the delivery to a registered organization, or a duly authorized
 representative  of such registered organization, a certified copy of any
 return or report filed by such registered organization pursuant to  this
 article,  nor to prohibit the publication of statistics so classified as
 to prevent the identification of particular returns or reports  and  the
 items  thereof. This section shall also not be construed to prohibit the
 disclosure, for tax administration purposes,  to  the  division  of  the
 budget  and  the  office of the state comptroller, of information aggre-
 gated from the returns filed by all the registered organizations  making
 sales  of, or manufacturing, medical [marihuana] CANNABIS in a specified
 county, whether the number of such registered organizations  is  one  or
 more.  Provided  further  that,  notwithstanding  the provisions of this
 subdivision, the commissioner may, in his or her discretion, permit  the
 proper  officer of any county entitled to receive an allocation, follow-
 ing appropriation by the  legislature,  pursuant  to  this  article  and
 section eighty-nine-h of the state finance law, or the authorized repre-
 sentative  of such officer, to inspect any return filed under this arti-
 cle, or may furnish to such officer or the officer's  authorized  repre-
 sentative  an abstract of any such return or supply such officer or such
 representative with information concerning an item contained in any such
 return, or disclosed by any investigation of tax  liability  under  this
 article.
   2.  The  commissioner,  in  his or her discretion and pursuant to such
 rules and regulations as he or she may adopt, may  permit  [the  commis-
 sioner  of  internal  revenue  of the United States, or] the appropriate
 officers of any other state which regulates or taxes medical [marihuana]
 CANNABIS, or the duly authorized representatives of  such  [commissioner
 or of any such] officers, to inspect returns or reports made pursuant to
 this  article,  or may furnish to such [commissioner or] other officers,
 or duly authorized representatives, a copy of any such return or  report
 or  an  abstract  of  the  information therein contained, or any portion
 thereof, or may supply [such commissioner or] any such officers or  such
 representatives  with  information  relating to the business of a regis-
 tered organization making returns or reports hereunder. The commissioner
 may refuse to supply information pursuant to this  subdivision  [to  the
 commissioner  of  internal revenue of the United States or] to the offi-
 cers of any other state if the statutes [of the United  States,  or]  of
 the state represented by such officers, do not grant substantially simi-
 lar privileges to the commissioner, but such refusal shall not be manda-
 tory. Information shall not be supplied to [the commissioner of internal
 revenue  of  the United States or] the appropriate officers of any other
 state which regulates or taxes medical [marihuana] CANNABIS, or the duly
 authorized representatives [of such commissioner  or]  of  any  of  such
 officers,  unless  such [commissioner,] officer or other representatives
 shall agree not to divulge or make known in any manner  the  information
 so  supplied,  but  such officers may transmit such information to their
 employees or legal representatives when necessary, who in turn shall  be
 subject  to  the  same  restrictions  as  those hereby imposed upon such
 [commissioner,] officer or other representatives.

 A. 1617--A                         91
 
   3. (a) Any officer or employee of the state who willfully violates the
 provisions of subdivision one or two of this section shall be  dismissed
 from  office and be incapable of holding any public office in this state
 for a period of five years thereafter.
   (b)  Cross-reference: For criminal penalties, see article thirty-seven
 of this chapter.
   § 39. The tax law is amended by adding a new article 20-C to  read  as
 follows:
 
                               ARTICLE 20-C
                    TAX ON ADULT-USE CANNABIS PRODUCTS
 SECTION 492. DEFINITIONS.
         493. TAX ON CANNABIS.
         494. REGISTRATION AND RENEWAL.
         495. RETURNS AND PAYMENT OF TAX.
         496. RETURNS TO BE KEPT SECRET.
   §  492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
 NITIONS SHALL APPLY:
   (A) "CANNABIS" MEANS ALL PARTS OF  A  PLANT  OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES
 OF THIS ARTICLE, CANNABIS DOES NOT  INCLUDE  MEDICAL  CANNABIS  OR  HEMP
 CANNABIS AS DEFINED IN SECTION THREE OF THE CANNABIS LAW.
   (B)  "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
 BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS-
 ING WHEREBY THE  PLANT  MATERIAL  IS  TRANSFORMED  INTO  A  CONCENTRATE,
 INCLUDING,  BUT  NOT  LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR
 TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS  AND  OTHER
 INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
   (C)  "CANNABIS  TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS
 OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND  CURED,
 AND  PRIOR  TO  ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED
 INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO,  CONCENTRATED  CANNA-
 BIS,  OR  AN  EDIBLE  OR  TOPICAL  PRODUCT CONTAINING CANNABIS AND OTHER
 INGREDIENTS.
   (D) "CANNABIS PRODUCT" OR "ADULT USE CANNABIS" MEANS A CANNABIS  PROD-
 UCT  AS  DEFINED  IN  SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF
 THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL  ADULT-USE  CANNABIS  PRODUCT
 INCLUDE MEDICAL CANNABIS OR HEMP CANNABIS AS DEFINED IN SECTION THREE OF
 THE CANNABIS LAW.
   (E)  "PERSON"  MEANS  EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY
 COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
 RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING  IN  A
 FIDUCIARY  OR  REPRESENTATIVE  CAPACITY, WHETHER APPOINTED BY A COURT OR
 OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
   (F) "WHOLESALER" MEANS ANY PERSON THAT SELLS  OR  TRANSFERS  ADULT-USE
 CANNABIS  PRODUCTS  TO  A RETAIL DISPENSARY LICENSED PURSUANT TO SECTION
 SEVENTY-TWO OF THE CANNABIS LAW. WHERE THE CULTIVATOR  OR  PROCESSOR  IS
 ALSO  THE  RETAIL  DISPENSARY, THE RETAIL DISPENSARY SHALL BE THE WHOLE-
 SALER FOR PURPOSES OF THIS ARTICLE.
   (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
 OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
   (H) "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL  ADULT-USE
 CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.

 A. 1617--A                         92
 
   (I)  "TRANSFER"  MEANS  TO  GRANT,  CONVEY,  HAND  OVER, ASSIGN, SELL,
 EXCHANGE OR BARTER, IN ANY MANNER OR  BY  ANY  MEANS,  WITH  OR  WITHOUT
 CONSIDERATION.
   (J)  "SALE"  MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE
 OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR  CONSUME,  CONDITIONAL  OR
 OTHERWISE,  IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION
 OR ANY AGREEMENT THEREFOR.
   (K) "PROCESSOR" HAS THE SAME MEANING AS DESCRIBED IN  SUBDIVISION  TWO
 OF SECTION SIXTY-NINE OF THE CANNABIS LAW.
   §  493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE PAID
 A TAX ON THE CULTIVATION OF CANNABIS FLOWER AND  CANNABIS  TRIM  AT  THE
 RATE  OF  ONE  DOLLAR PER DRY-WEIGHT GRAM OF CANNABIS FLOWER AND TWENTY-
 FIVE CENTS PER DRY-WEIGHT GRAM OF CANNABIS TRIM. WHERE THE WHOLESALER IS
 NOT THE CULTIVATOR, SUCH TAX SHALL BE COLLECTED FROM THE  CULTIVATOR  BY
 THE  WHOLESALER  AT  THE  TIME SUCH FLOWER OR TRIM IS TRANSFERRED TO THE
 WHOLESALER. WHERE THE WHOLESALER IS THE CULTIVATOR, SUCH  TAX  SHALL  BE
 PAID  BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SALE OR TRANSFER
 TO A RETAIL DISPENSARY.  WHERE THE CULTIVATOR IS ALSO THE RETAIL DISPEN-
 SARY, SUCH TAX SHALL ACCRUE AT THE  TIME  OF  THE  SALE  TO  THE  RETAIL
 CUSTOMER.
   (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION,
 THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO
 A  RETAIL  DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID BY SUCH
 WHOLESALER. WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH  TAX
 SHALL  BE  AT THE RATE OF TWENTY PERCENT OF THE INVOICE PRICE CHARGED BY
 THE WHOLESALER TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE  TIME  OF
 SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL
 BE  AT  THE  RATE  OF  TWENTY PERCENT OF THE PRICE CHARGED TO THE RETAIL
 CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE.
   (C) IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS (A)  AND  (B)  OF
 THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A
 WHOLESALER  TO  A  RETAIL  DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, IN
 TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS
 LOCATED. SUCH TAX SHALL BE PAID BY THE WHOLESALER AND  SHALL  ACCRUE  AT
 THE  TIME  OF SUCH SALE.  WHERE THE WHOLESALER IS NOT THE RETAIL DISPEN-
 SARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE INVOICE  PRICE
 CHARGED  BY  THE WHOLESALER TO A RETAIL DISPENSARY. WHERE THE WHOLESALER
 IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF  TWO  PERCENT
 OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
   (D)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, THE
 TAXES IMPOSED BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY  TO  ANY
 PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE.
   §  494.  REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST FILE WITH
 THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A  CERTIFICATE  OF
 REGISTRATION  BEFORE  ENGAGING  IN  BUSINESS. IN ORDER TO APPLY FOR SUCH
 CERTIFICATE OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION  OF
 A  VALID  LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. AN APPLICATION
 FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A
 FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY  A  NON-
 REFUNDABLE  APPLICATION  FEE  OF  SIX  HUNDRED DOLLARS. A CERTIFICATE OF
 REGISTRATION SHALL NOT  BE  ASSIGNABLE  OR  TRANSFERABLE  AND  SHALL  BE
 DESTROYED  IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS SPECI-
 FIED IN SUCH CERTIFICATE, OR IN  THE  EVENT  THAT  SUCH  BUSINESS  NEVER
 COMMENCED.
   (B)  THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRA-
 TION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE  OF  REGISTRATION

 A. 1617--A                         93
 
 OF  ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE OFFICE
 OF CANNABIS MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE  A  CERTIF-
 ICATE  OF  REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1) HAS A
 PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN-
 TY-ONE-V  OF  THIS  CHAPTER;  (2)  HAS HAD A CERTIFICATE OF REGISTRATION
 UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR
 ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED  WITHIN
 ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN
 CONVICTED  OF  A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM
 THE DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S  ISSU-
 ANCE;  (4)  WILLFULLY  FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS
 ARTICLE; (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO  BE
 GIVEN  A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTI-
 CLE WHICH IS FALSE; OR (6) WILLFULLY  FAILS  TO  COLLECT  OR  TRUTHFULLY
 ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE.
   (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
 FIED  THEREON,  UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
 OF THE TERM STATED ON A CERTIFICATE OF  REGISTRATION,  SUCH  CERTIFICATE
 SHALL BE NULL AND VOID.
   (D)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
 COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
 ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
 THE  CERTIFICATE  OF  REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
 BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS  AND  MUST  BE
 MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
   (E)  EVERY  HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE
 SHALL BE REQUIRED TO REAPPLY PRIOR  TO  SUCH  CERTIFICATE'S  EXPIRATION,
 DURING  A  REAPPLICATION  PERIOD  ESTABLISHED  BY THE COMMISSIONER. SUCH
 REAPPLICATION PERIOD SHALL NOT OCCUR  MORE  FREQUENTLY  THAN  EVERY  TWO
 YEARS.  SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND
 CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS  AN  INITIAL  APPLICATION,
 INCLUDING THE PAYMENT OF THE APPLICATION FEE.
   (F)  PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN
 TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS  PRODUCTS  WITHOUT  A  VALID
 CERTIFICATE  OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION
 SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH  OR
 PART  THEREOF  DURING  WHICH  SUCH PERSON CONTINUES TO POSSESS ADULT-USE
 CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS
 SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER  WHICH  SUCH
 PERSON  OPERATES  WITHOUT  A  VALID  CERTIFICATE OF REGISTRATION, NOT TO
 EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE.
   § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER  SHALL,  ON
 OR  BEFORE  THE TWENTIETH DAY OF THE MONTH, FILE WITH THE COMMISSIONER A
 RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE  TOTAL
 WEIGHT  OF  CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO
 SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND
 THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND
 THE TOTAL AMOUNT OF TAX DUE UNDER  SUBDIVISIONS  (B)  AND  (C)  OF  SUCH
 SECTION  ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN-
 DAR MONTH, ALONG WITH SUCH OTHER INFORMATION  AS  THE  COMMISSIONER  MAY
 REQUIRE.  EVERY  PERSON  REQUIRED  TO  FILE  A RETURN UNDER THIS SECTION
 SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO  THE  COMMISSIONER  THE
 TOTAL  AMOUNT  OF  TAX  DUE  FOR THE PERIOD COVERED BY SUCH RETURN. IF A
 RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY  ON  WHICH
 THE RETURN IS REQUIRED TO BE FILED.

 A. 1617--A                         94
 
   2.  THE  WHOLESALER  SHALL  MAINTAIN  SUCH RECORDS IN SUCH FORM AS THE
 COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE  THE  WHOLESALER
 IS  NOT  THE  CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS
 TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER  IS  THE
 CULTIVATOR,  THE  WEIGHT  OF  SUCH  FLOWER  AND TRIM PRODUCED BY IT; THE
 GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT  SOLD  ADULT-
 USE  CANNABIS  PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY
 THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY  SUCH  PERSON  FOR  A
 PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED.
   (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO  THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE  HAD  BEEN  INCORPO-
 RATED  IN  FULL  INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
 IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
 ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS  ARTICLE  OR  IS
 NOT RELEVANT TO THIS ARTICLE.
   (C) 1. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
 COMMISSIONER  UNDER  THIS  ARTICLE  SHALL  BE  DEPOSITED AND DISPOSED OF
 PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF  THIS
 CHAPTER,  PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
 UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO  BE
 RESERVED  BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
 BY THE COMPTROLLER TO THE CREDIT OF THE  CANNABIS  REVENUE  FUND  ESTAB-
 LISHED  BY SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW. OF THE TOTAL
 REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER  SHALL
 RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
 REFUNDS.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
 REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED  NINETY-
 FOUR  OF  THIS  ARTICLE,  BEFORE  DEPOSIT INTO THE CANNABIS REVENUE FUND
 DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-
 ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
 MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND  DISTRIBUTE  THE
 TAXES IMPOSED BY THIS ARTICLE.
   2.  NOTWITHSTANDING  THE  FOREGOING, THE COMMISSIONER SHALL CERTIFY TO
 THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND  INTEREST  RECEIVED
 BY  HIM  OR  HER  ON  ACCOUNT  OF  THE TAX IMPOSED BY SUBDIVISION (C) OF
 SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST  FOR  AND  ON
 ACCOUNT  OF  EACH  COUNTY IN WHICH A RETAIL DISPENSARY IS LOCATED. ON OR
 BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMPTROLLER,  AFTER  RESERVING
 SUCH  REFUND  FUND,  SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF EACH
 SUCH COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED  BY
 THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH.
   § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER
 JUDICIAL  ORDER  OR  AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT
 SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE  OF  THE
 DEPARTMENT,  OR  ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS
 PERMITTED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT
 OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFOR-
 MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON WHO
 IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF  THE  CONTENTS  OF  A  RETURN  OR
 REPORT  FILED  PURSUANT  TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY
 MANNER THE CONTENT OR ANY OTHER INFORMATION RELATED TO THE  BUSINESS  OF
 THE  WHOLESALER  CONTAINED  IN  ANY RETURN OR REPORT REQUIRED UNDER THIS
 ARTICLE. THE OFFICERS CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  OR
 REPORTS  SHALL  NOT  BE  REQUIRED  TO PRODUCE ANY OF THEM OR EVIDENCE OF
 ANYTHING CONTAINED IN THEM IN ANY ACTION OR  PROCEEDING  IN  ANY  COURT,

 A. 1617--A                         95
 
 EXCEPT ON BEHALF OF THE STATE, THE OFFICE OF CANNABIS MANAGEMENT, OR THE
 COMMISSIONER  IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF TAX
 DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY
 OR  A  CLAIMANT  OR  ON  BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING
 UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR
 THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEED-
 ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION
 OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION
 SHALL HAVE BEEN SUPPLIED AS PROVIDED IN THIS SECTION, IN  ANY  OF  WHICH
 EVENTS  THE  COURTS  MAY  REQUIRE  THE  PRODUCTION  OF, AND MAY ADMIT IN
 EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
 BY AS ARE PERTINENT TO THE ACTION OR PROCEEDING  AND  NO  MORE.  NOTHING
 HEREIN  SHALL  BE  CONSTRUED TO PROHIBIT THE COMMISSIONER, IN HIS OR HER
 DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
 OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE OR OF  ANY  INFORMATION
 CONTAINED  IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED OFFI-
 CER OR EMPLOYEE OF THE OFFICE OF CANNABIS MANAGEMENT OR  BY  OR  TO  THE
 ATTORNEY  GENERAL  OR  OTHER  LEGAL REPRESENTATIVES OF THE STATE WHEN AN
 ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
 IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED; OR THE INSPECTION OF THE RETURNS  OR  REPORTS  REQUIRED  UNDER
 THIS  ARTICLE  BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE
 OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE  AUDIT
 OF A REFUND OF ANY TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO
 PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE
 OF  SUCH  PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH
 PERSON PURSUANT TO THIS ARTICLE, NOR  TO  PROHIBIT  THE  PUBLICATION  OF
 STATISTICS  SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR
 RETURNS OR REPORTS AND THE ITEMS THEREOF. THIS SECTION SHALL ALSO NOT BE
 CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX  ADMINISTRATION  PURPOSES,
 TO  THE  DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER,
 OF INFORMATION AGGREGATED FROM THE  RETURNS  FILED  BY  ALL  WHOLESALERS
 PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF
 SUCH  PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE
 PROVISIONS OF THIS SUBDIVISION, THE  COMMISSIONER  MAY  IN  HIS  OR  HER
 DISCRETION,  PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE
 ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY
 SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR
 THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER,  TO  INSPECT  ANY  RETURN
 FILED  UNDER  THIS  ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI-
 CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY
 SUCH OFFICER OR  REPRESENTATIVE  WITH  INFORMATION  CONCERNING  AN  ITEM
 CONTAINED  IN  ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX
 LIABILITY UNDER THIS ARTICLE.
   (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE  APPRO-
 PRIATE  OFFICERS  OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR
 THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY  SUCH
 OFFICERS,  TO  INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE,
 OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY  AUTHORIZED
 REPRESENTATIVES,  A  COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF
 THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY
 SUCH COMMISSIONER OR ANY SUCH  OFFICERS  OR  SUCH  REPRESENTATIVES  WITH
 INFORMATION  RELATING  TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR
 REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS-
 SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION  TO
 THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED

 A. 1617--A                         96
 
 BY  SUCH  OFFICERS  DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE
 COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL
 NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT  REGULATES
 OR  TAXES  CANNABIS,  OR  THE  DULY  AUTHORIZED  REPRESENTATIVES OF SUCH
 COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER,
 OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY
 MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT  SUCH
 INFORMATION  TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY,
 WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS  AS  THOSE  HEREBY
 IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES.
   (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF SUBDIVISION (A) OR (B) OF THIS SECTION SHALL BE DISMISSED
 FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN  THE  STATE
 FOR A PERIOD OF FIVE YEARS THEREAFTER.
   2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   §  40.  Subdivision  (a)  of section 1115 of the tax law is amended by
 adding a new paragraph 3-b to read as follows:
   (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY  ARTICLE  TWENTY-C  OF
 THIS CHAPTER.
   § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
 health  law,  the  tax  law, the state finance law, the general business
 law, the penal law and the criminal procedure law  relating  to  medical
 use of marihuana, is amended to read as follows:
   §  12. This act shall take effect immediately [and]; PROVIDED, HOWEVER
 THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV-
 EN OF THIS ACT shall expire and be deemed  repealed  seven  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.
   §  42.  The  office  of  cannabis management, in consultation with the
 division of the budget, the department  of  taxation  and  finance,  the
 department of health, office of alcoholism and substance abuse services,
 office of mental health, New York state police and the division of crim-
 inal  justice  services,  shall conduct a  study of the effectiveness of
 this act. Such study shall examine all aspects of  this  act,  including
 economic  and fiscal impacts, the impact on the public health and safety
 of New York residents and the progress made in achieving social  justice
 goals and toward eliminating the illegal market for cannabis products in
 New  York. The office shall make recommendations regarding the appropri-
 ate level of taxation of adult-use cannabis, as well as changes, if any,
 necessary to improve and protect the public health  and  safety  of  New
 Yorkers.  Such  study  shall  be conducted two years after the effective
 date of this act and shall be presented to the  governor,  the  majority
 leader  of  the  senate  and  the speaker of the assembly, no later than
 October 1, 2022.
   § 43. Section 102 of the alcoholic beverage control law is amended  by
 adding a new subdivision 8 to read as follows:
   8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
 OR  POSSESS  A  LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES
 WHERE ALCOHOLIC BEVERAGES ARE SOLD.

 A. 1617--A                         97
 
   § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
 general  obligations  law,  as added by chapter 406 of the laws of 2000,
 are amended to read as follows:
   1.  "Illegal  drug"  means any controlled substance [or marijuana] the
 possession of which is an offense under the public  health  law  or  the
 penal law.
   4.  "Grade  one  violation"  means  possession of one-quarter ounce or
 more, but less than four ounces, or distribution of less than one  ounce
 of  an illegal drug [other than marijuana, or possession of one pound or
 twenty-five plants or more, but less than four pounds or  fifty  plants,
 or distribution of less than one pound of marijuana].
   5.  "Grade two violation" means possession of four ounces or more, but
 less than eight ounces, or distribution of one ounce or more,  but  less
 than two ounces, of an illegal drug [other than marijuana, or possession
 of  four pounds or more or fifty plants or distribution of more than one
 pound but less than ten pounds of marijuana].
   6. "Grade three violation" means possession of eight ounces  or  more,
 but less than sixteen ounces, or distribution of two ounces or more, but
 less  than  four  ounces,  of a specified illegal drug [or possession of
 eight pounds or more or seventy-five  plants  or  more,  but  less  than
 sixteen  pounds or one hundred plants, or distribution of more than five
 pounds but less than ten pounds of marijuana].
   7. "Grade four violation" means possession of sixteen ounces  or  more
 or  distribution  of four ounces or more of a specified illegal drug [or
 possession of sixteen pounds or more or one hundred plants  or  more  or
 distribution of ten pounds or more of marijuana].
   13. "Drug trafficker" means a person convicted of a class A or class B
 felony  controlled  substance  [or marijuana offense] who, in connection
 with the  criminal  conduct  for  which  he  or  she  stands  convicted,
 possessed, distributed, sold or conspired to sell a controlled substance
 [or  marijuana] which, by virtue of its quantity, the person's prominent
 role in the enterprise responsible for the sale or distribution of  such
 controlled  substance  and  other circumstances related to such criminal
 conduct  indicate  that  such  person's  criminal  possession,  sale  or
 conspiracy to sell such substance was not an isolated occurrence and was
 part  of  an ongoing pattern of criminal activity from which such person
 derived substantial income or resources and in which such person  played
 a leadership role.
   §  45.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
 services law, as added by section 1 of part B of chapter 501 of the laws
 of 2012, is amended to read as follows:
   (g) "Unlawful use or administration of a controlled substance,"  which
 shall  mean any administration by a custodian to a service recipient of:
 a controlled substance as defined by article thirty-three of the  public
 health law, without a prescription; or other medication not approved for
 any  use  by  the  federal  food and drug administration, EXCEPT FOR THE
 ADMINISTRATION OF  MEDICAL  CANNABIS  WHEN  SUCH  ADMINISTRATION  IS  IN
 ACCORDANCE  WITH  ARTICLE  THREE OF THE CANNABIS LAW AND ANY REGULATIONS
 PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS,  POLICIES,  OR
 PROCEDURES  OF  THE  STATE  OVERSIGHT  AGENCY OR AGENCIES GOVERNING SUCH
 CUSTODIANS. It also  shall  include  a  custodian  unlawfully  using  or
 distributing  a  controlled substance as defined by article thirty-three
 of the public health law, at the workplace or while on duty.
   § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
 social  services  law, as added by section 1 of part B of chapter 501 of

 A. 1617--A                         98
 
 the laws of 2012, are amended and a new paragraph (g) is added  to  read
 as follows:
   (e)  information  regarding  individual reportable incidents, incident
 patterns and trends, and  patterns  and  trends  in  the  reporting  and
 response  to  reportable incidents is shared, consistent with applicable
 law, with the justice center, in the form and  manner  required  by  the
 justice  center  and,  for  facilities or provider agencies that are not
 state operated, with the applicable state oversight agency  which  shall
 provide such information to the justice center; [and]
   (f)  incident  review  committees  are established; provided, however,
 that the regulations may authorize an exemption from  this  requirement,
 when  appropriate,  based on the size of the facility or provider agency
 or other relevant factors. Such committees shall be composed of  members
 of  the  governing  body  of  the  facility or provider agency and other
 persons identified by the director of the facility or  provider  agency,
 including  some members of the following: direct support staff, licensed
 health care practitioners, service  recipients  and  representatives  of
 family,  consumer and other advocacy organizations, but not the director
 of the facility or provider agency. Such committee shall meet  regularly
 to:  (i)  review the timeliness, thoroughness and appropriateness of the
 facility or provider agency's responses to  reportable  incidents;  (ii)
 recommend  additional  opportunities  for improvement to the director of
 the facility or provider agency, if appropriate; (iii)  review  incident
 trends  and  patterns  concerning  reportable  incidents;  and (iv) make
 recommendations to the director of the facility or  provider  agency  to
 assist  in reducing reportable incidents. Members of the committee shall
 be trained in confidentiality laws and  regulations,  and  shall  comply
 with section seventy-four of the public officers law[.]; AND
   (G)  SAFE  STORAGE,  ADMINISTRATION, AND DIVERSION PREVENTION POLICIES
 REGARDING CONTROLLED SUBSTANCES AND MEDICAL CANNABIS.
   § 47. Subdivision 1 of section 505 of the agriculture and markets law,
 as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
 follows:
   1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
 of  such  plant,  INCLUDING  THE  SEEDS  THEREOF  AND  ALL  DERIVATIVES,
 EXTRACTS,  CANNABINOIDS,  ISOMERS,  ACIDS,  SALTS, AND SALTS OF ISOMERS,
 whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
 tration of not more than 0.3 percent on a dry weight basis.
   §  48.  Section  506 of the agriculture and markets law, as amended by
 section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
 read as follows:
   §  506.  Growth,  sale, distribution, transportation and processing of
 industrial hemp and products derived from such hemp permitted. [Notwith-
 standing any provision of law to the contrary, industrial] 1. INDUSTRIAL
 hemp and products derived from such hemp are agricultural products which
 may be grown, produced [and],  possessed  [in  the  state,  and],  sold,
 distributed,  transported  [or] AND/OR processed [either] in [or out of]
 state [as part of agricultural pilot programs pursuant to  authorization
 under  federal  law  and  the  provisions  of  this article] PURSUANT TO
 AUTHORIZATION UNDER FEDERAL LAW, THE PROVISIONS OF THIS  ARTICLE  AND/OR
 THE CANNABIS LAW.  [Notwithstanding any provision of law to the contrary
 restricting  the growing or cultivating, sale, distribution, transporta-
 tion or processing of industrial hemp and  products  derived  from  such
 hemp, and subject to authorization under federal law, the]
   2. THE commissioner may authorize the growing or cultivating of indus-
 trial  hemp  as  part  of  agricultural  pilot programs conducted by the

 A. 1617--A                         99
 
 department and/or an institution of higher education to study the growth
 and cultivation, sale, distribution, transportation  and  processing  of
 such  hemp  and  products derived from such hemp provided that the sites
 and  programs used for growing or cultivating industrial hemp are certi-
 fied by, and registered with, the department.
   3. IN ADDITION TO THE  DEPARTMENT'S  LICENSING  AUTHORITY  HEREINAFTER
 PROVIDED  IN  THIS  ARTICLE,  THE  OFFICE  OF  CANNABIS MANAGEMENT SHALL
 LICENSE AND REGULATE THE GROWTH, EXTRACTION, PROCESSING AND/OR  MANUFAC-
 TURING  OF HEMP FOR DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS,
 SALTS AND SALTS OR ISOMERS AND/OR HEMP  PRODUCTS  FOR  HUMAN  OR  ANIMAL
 CONSUMPTION  OR  USE (EXCEPT FOR THOSE FOOD AND/OR FOOD INGREDIENTS THAT
 ARE GENERALLY RECOGNIZED AS SAFE).
   4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART-
 MENT UNDER ANY OTHER ARTICLE OF THIS CHAPTER.
   § 49. Section 507 of the agriculture and markets law is REPEALED and a
 new section 507 is added to read as follows:
   § 507. LICENSING; FEES. 1. NO PERSON SHALL: (A) GROW  INDUSTRIAL  HEMP
 IN  THE  STATE  AND/OR  SELL  OR DISTRIBUTE INDUSTRIAL HEMP GROWN IN THE
 STATE UNLESS LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) GROW,  PROC-
 ESS AND/OR PRODUCE INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM HEMP IN THE
 STATE  OR  SELL  OR  DISTRIBUTE UNLESS AUTHORIZED BY THE COMMISSIONER AS
 PART OF AN AGRICULTURAL RESEARCH PILOT PROGRAM  ESTABLISHED  UNDER  THIS
 ARTICLE.
   2.  APPLICATION  FOR  A  LICENSE TO GROW INDUSTRIAL HEMP SHALL BE MADE
 UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A NON-REFUND-
 ABLE APPLICATION FEE OF FIVE HUNDRED DOLLARS.
   3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD  CHARACTER,
 EXPERIENCE  AND  COMPETENCY, THAT THE APPLICANT HAS ADEQUATE FACILITIES,
 EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY  AND  SECURITY  TO  GROW
 HEMP.
   4. GROWERS WHO INTEND TO CULTIVATE HEMP FOR CANNABINOIDS SHALL ALSO BE
 REQUIRED TO OBTAIN A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT.
   5.  A  RENEWAL  APPLICATION  SHALL BE SUBMITTED TO THE COMMISSIONER AT
 LEAST THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD.
   § 50. Section 508 of the agriculture and markets law is REPEALED and a
 new section 508 is added to read as follows:
   § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER  DETERMINES,  AFTER
 NOTICE  AND  AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY
 VIOLATED A PROVISION OF THIS ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO
 COMPLY WITH A CORRECTIVE ACTION PLAN ESTABLISHED BY THE COMMISSIONER  TO
 CORRECT THE VIOLATION BY A REASONABLE DATE AND TO PERIODICALLY REPORT TO
 THE  COMMISSIONER  WITH  RESPECT  TO THE LICENSEE'S COMPLIANCE WITH THIS
 ARTICLE FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOW-
 ING THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN. THE  PROVISIONS
 OF  THIS SECTION SHALL NOT BE APPLICABLE TO RESEARCH PARTNERS CONDUCTING
 HEMP RESEARCH PURSUANT TO A RESEARCH PARTNER  AGREEMENT,  THE  TERMS  OF
 WHICH SHALL CONTROL.
   § 51. Section 509 of the agriculture and markets law is REPEALED and a
 new section 509 is added to read as follows:
   §  509.  GRANTING,  SUSPENDING OR REVOKING LICENSES.  THE COMMISSIONER
 MAY DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE,  MAY
 SUSPEND  OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND OPPOR-
 TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT:
   (1) ANY STATEMENT CONTAINED IN AN  APPLICATION  FOR  AN  APPLICANT  OR
 LICENSEE IS OR WAS FALSE OR MISLEADING;

 A. 1617--A                         100
 
   (2)  THE  APPLICANT  OR  LICENSEE  DOES  NOT  HAVE GOOD CHARACTER, THE
 REQUIRED EXPERIENCE AND/OR COMPETENCY, ADEQUATE  FACILITIES,  EQUIPMENT,
 PROCESS  CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP OR
 PRODUCTS DERIVED FROM HEMP;
   (3)  THE  APPLICANT  OR  LICENSEE HAS FAILED OR REFUSED TO PRODUCE ANY
 RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER  REASON-
 ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR
   (4)  THE  APPLICANT  OR  LICENSEE,  OR ANY OFFICER, DIRECTOR, PARTNER,
 HOLDER OF TEN PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON  EXERCIS-
 ING  ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY
 OF THE PROVISIONS OF THIS ARTICLE OR RULES AND  REGULATIONS  PROMULGATED
 PURSUANT THERETO.
   § 52. Section 510 of the agriculture and markets law is REPEALED and a
 new section 510 is added to read as follows:
   § 510. REGULATIONS.  THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST-
 ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION,
 SALE,  DISTRIBUTION,  AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN IN THE
 STATE, INCLUDING:
   (A) THE AUTHORIZATION OR LICENSING OF ANY PERSON WHO MAY:  ACQUIRE  OR
 POSSESS  HEMP  PLANTS  OR  SEEDS;  GROW OR CULTIVATE HEMP PLANTS; AND/OR
 SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH PLANTS,  PLANT  PARTS,  OR
 SEEDS;
   (B)  MAINTAINING  RELEVANT  INFORMATION REGARDING LAND ON WHICH INDUS-
 TRIAL HEMP IS PRODUCED WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION
 OF THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS;
   (C) THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE STATE
 FOR DELTA-9 TETRAHYDROCANNABINOL LEVELS, USING POST  DECARBOXYLATION  OR
 OTHER SIMILARLY RELIABLE METHODS;
   (D)  THE PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR
 PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS  ARTI-
 CLE;
   (E)  A PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL
 HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF  THIS
 ARTICLE;
   (F) ANY REQUIRED SECURITY MEASURES; AND
   (G) SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO-
 PRIATE OR NECESSARY.
   § 53. Section 511 of the agriculture and markets law is REPEALED and a
 new section 511 is added to read as follows:
   §  511.  PROHIBITIONS.    EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU-
 LATIONS PROMULGATED THEREUNDER,  THE  GROWTH,  CULTIVATION,  PROCESSING,
 SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
   § 54. Section 512 of the agriculture and markets law is REPEALED and a
 new section 512 is added to read as follows:
   §  512.  INDUSTRIAL  HEMP  DATA COLLECTION AND BEST FARMING PRACTICES.
 THE COMMISSIONER SHALL HAVE THE POWER TO COLLECT AND  PUBLISH  DATA  AND
 RESEARCH  CONCERNING,  AMONG  OTHER  THINGS,  THE  GROWTH,  CULTIVATION,
 PRODUCTION AND  PROCESSING  METHODS  OF  INDUSTRIAL  HEMP  AND  PRODUCTS
 DERIVED  FROM  INDUSTRIAL  HEMP  AND  WORK  WITH THE CORNELL COOPERATIVE
 EXTENSION TO PROMOTE BEST FARMING PRACTICES FOR  INDUSTRIAL  HEMP  WHICH
 ARE  COMPATIBLE  WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJEC-
 TIVES.
   § 55. Sections 513 and 514 of the  agriculture  and  markets  law  are
 REPEALED and a new section 513 is added to read as follows:
   §  513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF
 CRIMINAL JUSTICE SERVICES.   IN CONNECTION WITH  THE  ADMINISTRATION  OF

 A. 1617--A                         101
 
 THIS  ARTICLE,  THE  COMMISSIONER  IS AUTHORIZED TO REQUEST, RECEIVE AND
 REVIEW CRIMINAL HISTORY INFORMATION THROUGH  THE  DIVISION  OF  CRIMINAL
 JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE
 OR  AUTHORIZATION  TO UNDERTAKE A HEMP PILOT PROJECT. AT THE COMMISSION-
 ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT
 SHALL SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM  AND
 IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT-
 ING  A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN ACCORD-
 ANCE WITH THE PROCEDURES AND REQUIREMENTS ESTABLISHED  BY  THE  DIVISION
 PURSUANT  TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE LAW,
 WHICH SHALL INCLUDE THE PAYMENT OF THE PRESCRIBED  PROCESSING  FEES  FOR
 THE  COST  OF  THE  DIVISION'S  FULL  SEARCH AND RETAIN PROCEDURES AND A
 NATIONAL CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR  HER
 DESIGNEE,  SHALL  SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE TO THE
 DIVISION.  THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT  WITH
 RESPECT  TO  THE  APPLICANT'S  PREVIOUS  CRIMINAL  HISTORY, IF ANY, OR A
 STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY  ACCORDING
 TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
 SERVICES  PURSUANT  TO  THIS  SUBDIVISION  MAY  ALSO BE SUBMITTED TO THE
 FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  RECORD
 CHECK.  IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE APPLICANT
 SHALL FURNISH THEM UPON REQUEST.
   § 56. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
 law,  as added by chapter 90 of the laws of 2014, are amended to read as
 follows:
 § 179.00 Criminal  diversion  of  medical  [marihuana]  CANNABIS;  defi-
            nitions.
   The following definitions are applicable to this article:
   1.  "Medical  [marihuana] CANNABIS" means medical [marihuana] CANNABIS
 as defined in [subdivision eight of section thirty-three  hundred  sixty
 of the public health law] SECTION THREE OF THE CANNABIS LAW.
   2.  "Certification" means a certification, made under section [thirty-
 three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS
 LAW.
 § 179.05 Criminal diversion of  medical  [marihuana]  CANNABIS;  limita-
            tions.
   The provisions of this article shall not apply to:
   1.  a  practitioner  authorized  to issue a certification who acted in
 good faith in the lawful course of his or her profession; or
   2. a registered organization as that term is defined  in  [subdivision
 nine  of  section  thirty-three  hundred sixty of the public health law]
 SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith  in  the
 lawful course of the practice of pharmacy; or
   3.  a  person  who acted in good faith seeking treatment for A medical
 condition or assisting another person to obtain treatment for a  medical
 condition.
 § 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first
            degree.
   A person is guilty of criminal diversion of medical [marihuana] CANNA-
 BIS  in  the first degree when he or she is a practitioner, as that term
 is defined in [subdivision twelve of section thirty-three hundred  sixty
 of  the public health law] SECTION THREE OF THE CANNABIS LAW, who issues
 a certification with knowledge of reasonable grounds to  know  that  (i)
 the  recipient  has  no medical need for it, or (ii) it is for a purpose
 other than to treat a serious condition as defined in [subdivision seven

 A. 1617--A                         102

 of section thirty-three hundred sixty of the public health law]  SECTION
 THREE OF THE CANNABIS LAW.
   Criminal diversion of medical [marihuana] CANNABIS in the first degree
 is a class E felony.
 § 179.11 Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the
            second degree.
   A person is guilty of criminal diversion of medical [marihuana] CANNA-
 BIS in the second degree when he or  she  sells,  trades,  delivers,  or
 otherwise  provides  medical  [marihuana] CANNABIS to another with know-
 ledge or reasonable grounds to know that the recipient is not registered
 under [title five-A of article thirty-three of the  public  health  law]
 ARTICLE THREE OF THE CANNABIS LAW.
   Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the second
 degree is a class B misdemeanor.
 § 179.15 Criminal retention of medical [marihuana] CANNABIS.
   A person is guilty of criminal retention of medical [marihuana] CANNA-
 BIS when, being a certified patient or designated  caregiver,  as  those
 terms  are  defined  in  [subdivisions three and five of section thirty-
 three hundred sixty of the  public  health  law,  respectively]  SECTION
 THREE  OF  THE  CANNABIS  LAW,  he  or she knowingly obtains, possesses,
 stores or maintains an amount of [marihuana] CANNABIS in excess  of  the
 amount he or she is authorized to possess under the provisions of [title
 five-A  of  article thirty-three of the public health law] ARTICLE THREE
 OF THE CANNABIS LAW.
   Criminal retention of medical [marihuana] CANNABIS is a class A misde-
 meanor.
   § 57. Section 220.78 of the penal law, as added by chapter 154 of  the
 laws of 2011, is amended to read as follows:
 § 220.78 Witness or victim of drug or alcohol overdose.
   1.  A  person who, in good faith, seeks health care for someone who is
 experiencing a drug  or  alcohol  overdose  or  other  life  threatening
 medical  emergency  shall  not be charged or prosecuted for a controlled
 substance offense under THIS article [two hundred twenty] or a [marihua-
 na] CANNABIS offense under article two hundred  [twenty-one]  TWENTY-TWO
 of this title, other than an offense involving sale for consideration or
 other  benefit or gain, or charged or prosecuted for possession of alco-
 hol by a person under age twenty-one years under section sixty-five-c of
 the alcoholic beverage control law, or for possession of drug  parapher-
 nalia  under  article  thirty-nine  of  the  general  business law, with
 respect to any controlled substance, [marihuana]  CANNABIS,  alcohol  or
 paraphernalia that was obtained as a result of such seeking or receiving
 of health care.
   2.  A  person  who is experiencing a drug or alcohol overdose or other
 life threatening medical emergency and, in good faith, seeks health care
 for himself or herself or is the subject of such a  good  faith  request
 for  health  care,  shall  not be charged or prosecuted for a controlled
 substance offense under this article or a [marihuana]  CANNABIS  offense
 under  article  two hundred [twenty-one] TWENTY-TWO of this title, other
 than an offense involving sale for consideration  or  other  benefit  or
 gain,  or  charged  or  prosecuted for possession of alcohol by a person
 under age twenty-one years under section sixty-five-c of  the  alcoholic
 beverage  control  law,  or  for  possession of drug paraphernalia under
 article thirty-nine of the general business law,  with  respect  to  any
 substance,  [marihuana]  CANNABIS,  alcohol  or  paraphernalia  that was
 obtained as a result of such seeking or receiving of health care.

 A. 1617--A                         103
 
   3. Definitions. As used in this section the following terms shall have
 the following meanings:
   (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
 including, but not limited to, physical illness, coma,  mania,  hysteria
 or  death,  which  is  the  result of consumption or use of a controlled
 substance or alcohol and relates to an adverse reaction to or the  quan-
 tity  of  the  controlled substance or alcohol or a substance with which
 the controlled substance  or  alcohol  was  combined;  provided  that  a
 patient's  condition shall be deemed to be a drug or alcohol overdose if
 a prudent layperson, possessing an average  knowledge  of  medicine  and
 health, could reasonably believe that the condition is in fact a drug or
 alcohol overdose and (except as to death) requires health care.
   (b) "Health care" means the professional services provided to a person
 experiencing  a  drug  or alcohol overdose by a health care professional
 licensed, registered or certified under title eight of the education law
 or article thirty of the public health law who, acting within his or her
 lawful scope of practice, may provide diagnosis, treatment or  emergency
 services for a person experiencing a drug or alcohol overdose.
   4.  It  shall  be an affirmative defense to a criminal sale controlled
 substance offense under this article or a criminal sale  of  [marihuana]
 CANNABIS  offense  under  article two hundred [twenty-one] TWENTY-TWO of
 this title, not covered by subdivision one or two of this section,  with
 respect  to  any  controlled substance or [marihuana] CANNABIS which was
 obtained as a result of such seeking or receiving of health care, that:
   (a) the defendant, in good faith, seeks health care for someone or for
 him or herself who is experiencing a drug or alcohol overdose  or  other
 life threatening medical emergency; and
   (b)  the  defendant  has  no  prior  conviction  for the commission or
 attempted commission of a class A-I, A-II or B felony under  this  arti-
 cle.
   5. Nothing in this section shall be construed to bar the admissibility
 of  any evidence in connection with the investigation and prosecution of
 a crime with regard to another  defendant  who  does  not  independently
 qualify  for  the bar to prosecution or for the affirmative defense; nor
 with regard to other crimes committed by a person who  otherwise  quali-
 fies under this section; nor shall anything in this section be construed
 to  bar any seizure pursuant to law, including but not limited to pursu-
 ant to section thirty-three hundred eighty-seven of  the  public  health
 law.
   6.  The  bar  to  prosecution described in subdivisions one and two of
 this section shall not apply to the prosecution of a  class  A-I  felony
 under this article, and the affirmative defense described in subdivision
 four  of  this section shall not apply to the prosecution of a class A-I
 or A-II felony under this article.
   § 58. Subdivision 1 of section 260.20 of the penal law, as amended  by
 chapter 362 of the laws of 1992, is amended as follows:
   1.  He knowingly permits a child less than eighteen years old to enter
 or remain in or upon a place, premises  or  establishment  where  sexual
 activity as defined by article one hundred thirty, two hundred thirty or
 two  hundred  sixty-three  of  this [chapter] PART or activity involving
 controlled substances as defined by article two hundred twenty  of  this
 [chapter  or involving marihuana as defined by article two hundred twen-
 ty-one of this chapter] PART is maintained or conducted, and he knows or
 has reason to know that such activity is being maintained or  conducted;
 or

 A. 1617--A                         104
 
   § 59. Section 89-h of the state finance law, as added by chapter 90 of
 the laws of 2014, is amended to read as follows:
   §  89-h.  Medical  [marihuana] CANNABIS trust fund. 1. There is hereby
 established in the joint  custody  of  the  state  comptroller  and  the
 commissioner  of  taxation and finance a special fund to be known as the
 "medical [marihuana] CANNABIS trust fund."
   2. The medical [marihuana] CANNABIS trust fund shall  consist  of  all
 moneys  required  to  be  deposited  in the medical [marihuana] CANNABIS
 trust fund pursuant to the provisions of section four hundred ninety  of
 the tax law.
   3.  The moneys in the medical [marihuana] CANNABIS trust fund shall be
 kept separate and shall not be commingled with any other moneys  in  the
 custody  of the commissioner of taxation and finance and the state comp-
 troller.
   4. The moneys of the medical [marihuana] CANNABIS trust fund,  follow-
 ing  appropriation by the legislature, shall be allocated upon a certif-
 icate of approval of availability by  the  director  of  the  budget  as
 follows:   (a) Twenty-two and five-tenths percent of the monies shall be
 transferred to the counties in New  York  state  in  which  the  medical
 [marihuana] CANNABIS was manufactured and allocated in proportion to the
 gross  sales  originating from medical [marihuana] CANNABIS manufactured
 in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
 moneys  shall  be transferred to the counties in New York state in which
 the medical [marihuana] CANNABIS was dispensed and allocated in  propor-
 tion  to the gross sales occurring in each such county; (c) five percent
 of the monies shall be transferred  to  the  office  of  alcoholism  and
 substance  abuse  services,  which shall use that revenue for additional
 drug abuse prevention, counseling and treatment services; and  (d)  five
 percent  of  the revenue received by the department shall be transferred
 to the division of criminal  justice  services,  which  shall  use  that
 revenue  for  a  program  of discretionary grants to state and local law
 enforcement agencies that demonstrate a need relating to  [title  five-A
 of  article  thirty-three of the public health law] ARTICLE THREE OF THE
 CANNABIS LAW; said grants could be used for personnel costs of state and
 local law enforcement agencies. For purposes of  this  subdivision,  the
 city of New York shall be deemed to be a county.
   §  60.  The  state finance law is amended by adding three new sections
 99-hh, 99-ii and 99-jj to read as follows:
   § 99-HH. NEW YORK STATE CANNABIS REVENUE  FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "NEW YORK STATE CANNABIS REVENUE FUND".
   2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
 OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  ARTICLE  EIGH-
 TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
 OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
 PURPOSES:
   (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
 PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
 REVENUES RECEIVED.

 A. 1617--A                         105
 
   (B) REASONABLE COSTS INCURRED BY THE OFFICE OF CANNABIS MANAGEMENT FOR
 IMPLEMENTING, ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION  AND
 TAXATION  ACT  TO  THE EXTENT THOSE COSTS ARE NOT REIMBURSED PURSUANT TO
 THE CANNABIS LAW. THIS PARAGRAPH SHALL REMAIN OPERATIVE THROUGH THE  TWO
 THOUSAND TWENTY-FOUR--TWO THOUSAND TWENTY-FIVE FISCAL YEAR.
   (C)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-
 TWO FISCAL YEAR AND CONTINUING  THROUGH  THE  TWO  THOUSAND  THIRTY--TWO
 THOUSAND  THIRTY-ONE  FISCAL  YEAR,  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE SHALL ANNUALLY DISBURSE THE FOLLOWING SUMS FOR THE  PURPOSES  OF
 DATA COLLECTION AND REPORTING:
   (I)  SEVEN  HUNDRED  FIFTY  THOUSAND DOLLARS TO THE OFFICE OF CANNABIS
 MANAGEMENT POLICY TO TRACK AND REPORT DATA RELATED TO THE  LICENSING  OF
 CANNABIS  BUSINESSES,  INCLUDING THE GEOGRAPHIC LOCATION, STRUCTURE, AND
 FUNCTION OF LICENSED CANNABIS BUSINESSES, AND DEMOGRAPHIC DATA,  INCLUD-
 ING  RACE,  ETHNICITY,  AND  GENDER,  OF  LICENSE HOLDERS. THE OFFICE OF
 CANNABIS MANAGEMENT SHALL PUBLISH REPORTS ON ITS FINDINGS  ANNUALLY  AND
 SHALL MAKE THE REPORTS AVAILABLE TO THE PUBLIC.
   (II)  SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMI-
 NAL JUSTICE SERVICES TO TRACK AND REPORT DATA  RELATED  TO  ANY  INFRAC-
 TIONS,  VIOLATIONS,  OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE
 REMAINING  CANNABIS  STATUTES.    THE  DEPARTMENT  OF  CRIMINAL  JUSTICE
 SERVICES  SHALL  PUBLISH REPORTS ON ITS FINDINGS ANNUALLY AND SHALL MAKE
 THE REPORTS AVAILABLE TO THE PUBLIC.
   (III) ONE MILLION DOLLARS TO THE  STATE  UNIVERSITY  OF  NEW  YORK  TO
 RESEARCH  AND  EVALUATE  THE  IMPLEMENTATION AND EFFECT OF THE MARIHUANA
 REGULATION AND TAXATION ACT.  NO MORE THAN FOUR PERCENT OF THESE  MONIES
 MAY  BE  USED FOR EXPENSES RELATED TO ADMINISTRATIVE COSTS OF CONDUCTING
 SUCH RESEARCH, AND TO,  IF  APPROPRIATE,  MAKE  RECOMMENDATIONS  TO  THE
 LEGISLATURE  AND GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE MARIHUANA
 REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS SHALL PUBLISH
 REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS AND SHALL MAKE
 THE REPORTS AVAILABLE TO THE PUBLIC. THE  RESEARCH  FUNDED  PURSUANT  TO
 THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:
   (A)  THE  IMPACTS  ON PUBLIC HEALTH, INCLUDING HEALTH COSTS ASSOCIATED
 WITH CANNABIS USE, AS WELL AS WHETHER CANNABIS USE IS ASSOCIATED WITH AN
 INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
   (B) THE IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND  THE  EFFEC-
 TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
   (C)  PUBLIC  SAFETY ISSUES RELATED TO CANNABIS USE, INCLUDING STUDYING
 THE EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND  ADVER-
 TISING  AND  MARKETING  RESTRICTIONS  CONTAINED IN THE ACT AT PREVENTING
 UNDERAGE ACCESS TO AND USE OF CANNABIS AND CANNABIS PRODUCTS, AND STUDY-
 ING THE HEALTH-RELATED EFFECTS AMONG USERS OF VARYING POTENCY LEVELS  OF
 CANNABIS AND CANNABIS PRODUCTS;
   (D)  CANNABIS  USE  RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
 AND DIAGNOSIS RATES OF CANNABIS-RELATED SUBSTANCE USE DISORDERS;
   (E) CANNABIS MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES  AND
 RATES,  INCLUDING  AN  EVALUATION  OF  HOW TO BEST TAX CANNABIS BASED ON
 POTENCY, AND THE STRUCTURE AND FUNCTION OF LICENSED CANNABIS BUSINESSES;
   (F) WHETHER ADDITIONAL PROTECTIONS  ARE  NEEDED  TO  PREVENT  UNLAWFUL
 MONOPOLIES  OR  ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE CANNABIS
 INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST  EFFECTIVE  MEASURES
 FOR PREVENTING SUCH BEHAVIOR;
   (G)  THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS, INCLUDING
 BUT NOT NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE  SAFETY,  REVEN-
 UES,  TAXES  GENERATED FOR STATE AND LOCAL BUDGETS, AND CRIMINAL JUSTICE

 A. 1617--A                         106
 
 IMPACTS, INCLUDING, BUT NOT  NECESSARILY  LIMITED  TO,  IMPACTS  ON  LAW
 ENFORCEMENT  AND  PUBLIC  RESOURCES, SHORT AND LONG TERM CONSEQUENCES OF
 INVOLVEMENT IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL  GOVERN-
 MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
   (H)  WHETHER  THE  REGULATORY  AGENCIES  TASKED  WITH IMPLEMENTING AND
 ENFORCING THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING  SO
 CONSISTENT  WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT AGENCIES
 MIGHT DO SO MORE EFFECTIVELY; AND
   (I) ANY ENVIRONMENTAL ISSUES RELATED TO CANNABIS  PRODUCTION  AND  THE
 CRIMINAL PROHIBITION OF CANNABIS PRODUCTION.
   (D)  ONE MILLION DOLLARS ANNUALLY, FOR A PERIOD OF THREE YEARS, TO THE
 STATE POLICE TO EXPAND AND ENHANCE THE DRUG RECOGNITION EXPERT  TRAINING
 PROGRAM  AND  TECHNOLOGIES  UTILIZED  IN THE PROCESS OF MAINTAINING ROAD
 SAFETY.
   4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
 SECTION, THE REMAINING MONEYS IN THE FUND  DEPOSITED  DURING  THE  PRIOR
 FISCAL YEAR SHALL BE DISBURSED INTO THE STATE LOTTERY FUND AND TWO ADDI-
 TIONAL  SUB-FUNDS  CREATED WITHIN THE CANNABIS REVENUE FUND KNOWN AS THE
 DRUG TREATMENT AND PUBLIC EDUCATION FUND AND THE COMMUNITY GRANTS  REIN-
 VESTMENT FUND, AS FOLLOWS:
   (A)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
 ESTABLISHED BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT  SUCH
 MONEYS SHALL BE DISTRIBUTED TO THE DEPARTMENT OF EDUCATION IN ACCORDANCE
 WITH  SUBDIVISIONS  TWO AND FOUR OF SECTION NINETY-TWO-C OF THIS ARTICLE
 AND SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF  SUCH
 SECTION.  MONIES  ALLOCATED  BY  THIS ARTICLE MAY ENHANCE, BUT SHALL NOT
 SUPPLANT, EXISTING DEDICATED FUNDS TO THE DEPARTMENT OF EDUCATION;
   (B) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE DRUG  TREATMENT  AND
 PUBLIC  EDUCATION  FUND  ESTABLISHED  BY  SECTION NINETY-NINE-II OF THIS
 ARTICLE; AND
   (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
 MENT FUND ESTABLISHED BY SECTION NINETY-NINE-JJ OF THIS ARTICLE.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF  TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY
 PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR  OF  THE  SENATE
 FINANCE  COMMITTEE,  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE
 STATE COMPTROLLER AND THE PUBLIC.  SUCH  REPORT  SHALL  DETAIL  HOW  THE
 MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
 SHALL INCLUDE:
   (A)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
 YEAR.
   6.  MONEYS SHALL BE PAYABLE DIRECTLY FROM THE CANNABIS REVENUE FUND TO
 THE DEPARTMENT.
   § 99-II. NEW YORK STATE DRUG TREATMENT AND PUBLIC EDUCATION  FUND.  1.
 THERE  IS  HEREBY  ESTABLISHED  IN  THE JOINT CUSTODY OF THE STATE COMP-
 TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL  FUND  TO
 BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
   2.  SUCH  FUND  SHALL  CONSIST  OF  REVENUES  RECEIVED PURSUANT TO THE
 PROVISIONS OF SECTION NINETY-NINE-HH  OF  THIS  ARTICLE  AND  ALL  OTHER

 A. 1617--A                         107
 
 MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
 LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
 RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
 DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
 LAW.
   3. THE MONEYS IN SUCH FUND SHALL BE EXPENDED TO  THE  COMMISSIONER  OF
 THE  OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE AND DISBURSED IN CONSULTA-
 TION WITH THE COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
   (A) TO DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC  HEALTH  EDUCATION
 AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
 VENTION,  AND  HEALTH  CARE  SERVICES AND PROGRAMS TO REDUCE THE RISK OF
 CANNABIS AND OTHER SUBSTANCE USE BY SCHOOL-AGED CHILDREN;
   (B) TO DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC  HEALTH  CAMPAIGN
 FOCUSED  ON  THE  HEALTH EFFECTS OF CANNABIS AND LEGAL USE, INCLUDING AN
 ONGOING EDUCATION AND PREVENTION  CAMPAIGN  THAT  EDUCATES  THE  GENERAL
 PUBLIC,  INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE OF
 CANNABIS, THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE  IMPORTANCE  OF
 SAFE STORAGE AND PREVENTING SECONDHAND CANNABIS SMOKE EXPOSURE, INFORMA-
 TION  FOR  PREGNANT  OR  BREASTFEEDING WOMEN, AND THE OVERCONSUMPTION OF
 EDIBLES;
   (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
 ADULTS, WITH AN EMPHASIS ON PROGRAMS  THAT  ARE  CULTURALLY  AND  GENDER
 COMPETENT,  TRAUMA-INFORMED,  EVIDENCE-BASED  AND PROVIDE A CONTINUUM OF
 CARE THAT INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE  DISORDER  AS
 WELL  AS  MENTAL  HEALTH),  EARLY INTERVENTION, ACTIVE TREATMENT, FAMILY
 INVOLVEMENT, CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF  COMMU-
 NICABLE  DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT FOR
 SUBSTANCE USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS,  VOCA-
 TIONAL  SERVICES,  LITERACY  SERVICES, PARENTING CLASSES, FAMILY THERAPY
 AND COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS,  PSYCHIATRIC
 MEDICATION AND PSYCHOTHERAPY; AND
   (D)  TO  EVALUATE  THE PROGRAMS BEING FUNDED TO DETERMINE THEIR EFFEC-
 TIVENESS.
   4. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
 WRITTEN  REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE
 ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE, CHAIR OF  THE  ASSEMBLY
 WAYS  AND  MEANS  COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON ALCOHOLISM
 AND DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE  COMMIT-
 TEE,  THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL HOW
 THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
 AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF EDUCATION.
   § 99-JJ. NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND.  1.  THERE
 IS  HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND

 A. 1617--A                         108
 
 THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE  KNOWN  AS
 THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
   2.  SUCH  FUND  SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO THE
 PROVISIONS OF SECTION NINETY-NINE-HH  OF  THIS  ARTICLE  AND  ALL  OTHER
 MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
 LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
 RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
 DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
 LAW.
   3.  THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE STEER-
 ING COMMITTEE OF THIRTEEN MEMBERS ESTABLISHED BY THE OFFICE OF  CHILDREN
 AND  FAMILY  SERVICES  AND INCLUDING ADDITIONAL REPRESENTATIVES FROM THE
 LABOR DEPARTMENT, AND THE HEALTH DEPARTMENT APPOINTED  BY  THE  GOVERNOR
 AND  A REPRESENTATIVE OF THE EDUCATION DEPARTMENT APPOINTED BY THE BOARD
 OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS OF THE SENATE
 AND ASSEMBLY SHALL EACH APPOINT ONE MEMBER TO  THE  STEERING  COMMITTEE,
 THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL MEMBERS, AND THE ATTORNEY
 GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL GOVERN-
 MENT  ENTITIES AND COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHOULD BE
 MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH SHALL HAVE EXPER-
 TISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAVIORAL  HEALTH  AND
 SUBSTANCE USE DISORDER TREATMENT, AND EFFECTIVE REHABILITATIVE TREATMENT
 FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZA-
 TIONS  SERVING COMMUNITIES IMPACTED BY PAST FEDERAL AND STATE DRUG POLI-
 CIES.
   4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
 COMMITTEE TO QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS  FOR  THE
 PURPOSE  OF  REINVESTING  IN  COMMUNITIES DISPROPORTIONATELY AFFECTED BY
 PAST FEDERAL AND STATE DRUG POLICIES. THE GRANTS FROM THIS PROGRAM SHALL
 BE USED TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT  EDUCATION,
 MENTAL  HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, SYSTEM NAVI-
 GATION SERVICES, LEGAL SERVICES TO  ADDRESS  BARRIERS  TO  REENTRY,  AND
 LINKAGES  TO  MEDICAL CARE, WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-
 BASED SUPPORTIVE SERVICES.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF  THE  OFFICE  OF CHILDREN AND FAMILY SERVICES SHALL PROVIDE A WRITTEN
 REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
 BLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS
 AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
 LIES, CHAIR OF THE ASSEMBLY CHILDREN AND FAMILIES  COMMITTEE,  CHAIR  OF
 THE  SENATE  COMMITTEE  ON LABOR, CHAIR OF THE ASSEMBLY LABOR COMMITTEE,
 CHAIR OF THE SENATE COMMITTEE ON HEALTH, CHAIR OF  THE  ASSEMBLY  HEALTH
 COMMITTEE,  CHAIR  OF  THE  SENATE  COMMITTEE ON EDUCATION, CHAIR OF THE
 ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
 REPORT SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING  THE
 PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
   (A)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
 YEAR.

 A. 1617--A                         109
 
   6.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF EDUCATION.
   §  61.  This act shall take effect immediately; provided, however that
 if section 3 of part XX of chapter 59 of the laws of 2019 shall not have
 taken effect on or before such date then section thirty-five of this act
 shall take effect on the same date and in the same manner as such  chap-
 ter  of  the laws of 2019 takes effect; provided, further, that sections
 thirty-nine and forty of this act shall take effect April 1,  2020,  and
 shall  apply  on and after such date: (a) to the cultivation of cannabis
 flower and cannabis trim transferred by a cultivator who is not a whole-
 saler; (b) to the cultivation of cannabis flower and cannabis trim  sold
 or  transferred  to  a retail dispensary by a cultivator who is a whole-
 saler; and (c) to the sale or transfer of adult use cannabis products to
 a retail dispensary; provided, further, that the amendments  to  article
 179  of  the  penal  law made by section fifty-six of this act shall not
 affect the repeal of such article and shall be  deemed  to  be  repealed
 therewith; provided, further, that the amendments to section 89-h of the
 state  finance  law  made  by  section  fifty-nine of this act shall not
 affect the repeal of such section and shall be  deemed  repealed  there-
 with;  and  provided,  further, that the amendments to  subdivision 1 of
 section 171-a of the tax law made by section  thirty-five  of  this  act
 shall  not  affect  the  expiration of such subdivision and shall expire
 therewith, when upon such date the provisions of section  thirty-six  of
 this act shall take effect.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1617--B
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2019
                                ___________
 
 Introduced  by  M.  of  A.  PEOPLES-STOKES,  GOTTFRIED, LUPARDO, WRIGHT,
   WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE, L. ROSENTHAL, JAFFEE, DINOW-
   ITZ, JEAN-PIERRE, ABINANTI, RICHARDSON, HEVESI, WALKER,  VANEL,  NIOU,
   BICHOTTE, CAHILL, LIFTON, EPSTEIN, QUART, ORTIZ, REYES, DICKENS, FRON-
   TUS,  CRUZ,  SOLAGES,  RAYNOR,  RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
   DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS, BENEDETTO,  SIMO-
   TAS -- Multi-Sponsored by -- M. of A. MOSLEY, SEAWRIGHT, SIMON, STECK,
   TAYLOR  -- read once and referred to the Committee on Codes -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted  to  said  committee -- again reported from said committee with
   amendments, ordered reprinted  as  amended  and  recommitted  to  said
   committee
 
 AN ACT in relation to constituting chapter 7-A of the consolidated laws,
   in relation to the creation of a new office of cannabis management, as
   an  independent  entity  within  the  division  of  alcoholic beverage
   control, providing for the licensure of persons authorized  to  culti-
   vate, process, distribute and sell cannabis and the use of cannabis by
   persons  aged  twenty-one or older; to amend the public health law, in
   relation to the description of cannabis; to amend the  penal  law,  in
   relation  to  the  growing  and  use of cannabis by persons twenty-one
   years of age or older; to amend the tax law, in relation to  providing
   for  the levying of taxes on cannabis; to amend the criminal procedure
   law, the civil practice law and rules, the general business  law,  the
   state  finance  law,  the  executive law, the penal law, the alcoholic
   beverage control law, the general obligations law, the social services
   law, the agriculture and markets law and the vehicle and traffic  law,
   in  relation  to making conforming changes; to amend the public health
   law, in relation to the definition of  smoking;  to  amend  the  state
   finance  law,  in relation to establishing the New York state cannabis
   revenue fund, the New York state drug treatment and  public  education
   fund  and  the  New  York state community grants reinvestment fund; to
   amend chapter 90 of the laws of 2014 amending the public  health  law,
   the  tax  law,  the  state  finance law, the general business law, the
   penal law and the criminal procedure law relating to  medical  use  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07592-10-9

 A. 1617--B                          2
 
   marihuana, in relation to the effectiveness thereof; to repeal certain
   provisions  of  the  public health law relating to growing of cannabis
   and medical use of marihuana; to repeal article 221 of the  penal  law
   relating  to  offenses involving marihuana; to repeal paragraph (f) of
   subdivision 2 of section 850 of the general business law  relating  to
   drug related paraphernalia; to repeal certain provisions of the crimi-
   nal  procedure law relating to certain criminal actions; and to repeal
   certain provisions of the agriculture  and  markets  law  relating  to
   industrial hemp
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "marihuana
 regulation and taxation act".
   §  2.  Chapter  7-A  of  the  consolidated laws is enacted, to read as
 follows:
 
                   CHAPTER 7-A OF THE CONSOLIDATED LAWS
                               CANNABIS LAW
                                 ARTICLE 1
               SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
                                DEFINITIONS
 
 Section 1. Short title.
         2. Legislative findings and intent
         3. Definitions.
 
   Section 1. Short title.  This chapter shall be known and may be  cited
 and referred to as the "cannabis law".
   §  2.  Legislative  findings  and  intent.  The legislature finds that
 existing marihuana laws have not been beneficial to the welfare  of  the
 general public. Existing laws have been ineffective in reducing or curb-
 ing  marihuana  use  and have instead resulted in devastating collateral
 consequences that inhibit an otherwise law-abiding citizen's ability  to
 access  housing,  employment  opportunities,  and  other vital services.
 Existing laws have also created an illicit  market  which  represents  a
 threat  to  public  health and reduces the ability of the legislature to
 deter the accessing of marihuana by minors. Existing marihuana laws have
 also disproportionately impacted African-American  and  Latino  communi-
 ties.
   The  intent  of  this  act is to regulate, control, and tax marihuana,
 heretofore known as cannabis, generate millions of dollars in new reven-
 ue, prevent access to cannabis by those  under  the  age  of  twenty-one
 years,  reduce  the illegal drug market and reduce violent crime, reduce
 participation of otherwise law-abiding citizens in the  illicit  market,
 end  the  racially disparate impact of existing cannabis laws and create
 new industries and increase employment.
   Nothing in this act is intended to limit the authority of any district
 government agency or office or employers to enact and  enforce  policies
 pertaining  to  cannabis  in  the  workplace, to allow driving under the
 influence of cannabis, to allow individuals to engage  in  conduct  that
 endangers  others, to allow smoking cannabis in any location where smok-
 ing tobacco is prohibited, or to require any individual to engage in any
 conduct that violates federal law or to exempt anyone from any  require-

 A. 1617--B                          3
 
 ment  of  federal law or pose any obstacle to the federal enforcement of
 federal law.
   It  is  the intent of this act that no child shall be the subject of a
 child neglect or abuse investigation or proceeding  based  solely  on  a
 parent's  alleged  cannabis use, or activity made lawful by this act.  A
 newborn child's positive toxicology result for cannabis, is  not  suffi-
 cient  on its own to support a finding of child neglect or abuse. Enact-
 ment of this act shall provide sufficient basis for New  York  state  to
 favorably resolve open investigations and to amend and seal individuals'
 family  court  records  and  records of indicated child abuse or neglect
 reports currently in the statewide central register of child  abuse  and
 maltreatment  based  solely on the use of cannabis or where the reporter
 of suspected abuse or neglect was a  law  enforcement  agency  or  staff
 person  and  the  report  was  based solely upon the presence of a child
 during a cannabis-related arrest.
   The legislature further finds and declares that  it  is  in  the  best
 interest  of the state to regulate medical cannabis, adult-use cannabis,
 and hemp extracts under one independent agency, known as the  office  of
 cannabis management.
   §  3.  Definitions.  Whenever  used  in this chapter, unless otherwise
 expressly stated or unless the context  or  subject  matter  requires  a
 different  meaning,  the  following  terms shall have the representative
 meanings hereinafter set forth or indicated:
   1. "Applicant" means a resident of  New  York  state  aged  twenty-one
 years  or older applying for any cannabis or hemp license or special use
 permit issued by the office of cannabis management.
   2. "Cannabinoid extractor" means a person licensed by  the  office  to
 acquire,  possess,  extract  and  manufacture hemp extract from licensed
 cannabinoid growers  for  the  manufacture  and  sale  of  hemp  extract
 products marketed for cannabinoid content and used or intended for human
 or animal consumption or use.
   3.  "Cannabinoid grower" means a person licensed by the office, and in
 compliance with article twenty-nine of the agriculture and markets  law,
 to  acquire,  possess, cultivate, and sell hemp extract for its cannabi-
 noid content.
   4. "Cannabis" means all parts of the  plant  of  the  genus  Cannabis,
 whether  growing or not; the seeds thereof; the resin extracted from any
 part of the plant; and every compound,  manufacture,  salt,  derivative,
 mixture,  or  preparation of the plant, its seeds or resin.  It does not
 include the mature stalks of the plant, fiber produced from the  stalks,
 oil  or cake made from the seeds of the plant, any other compound, manu-
 facture, salt, derivative, mixture, or preparation of the mature  stalks
 (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
 sterilized seed of the plant which is incapable of germination.  It does
 not include hemp extract as defined by this section.
   5. "Cannabis consumer" means a person twenty-one years of age or older
 acting in accordance with any provision of this chapter.
   6. "Cannabis flower" means the flower of a plant of the genus Cannabis
 that has been harvested, dried, and cured, and prior to  any  processing
 whereby the plant material is transformed into a concentrate, including,
 but not limited to, concentrated cannabis, or an edible or topical prod-
 uct  containing cannabis or concentrated cannabis and other ingredients.
 Cannabis flower excludes leaves and stem.
   7. "Cannabis product" or "adult-use cannabis" means cannabis,  concen-
 trated  cannabis,  and  cannabis-infused  products for use by a cannabis
 consumer.

 A. 1617--B                          4
 
   8. "Cannabis-infused products" means products that have been  manufac-
 tured  and  contain  either  cannabis or concentrated cannabis and other
 ingredients that are intended for use or consumption.
   9.  "Cannabis trim" means all parts of the plant of the genus Cannabis
 other than cannabis flower that have been harvested, dried,  and  cured,
 but prior to any further processing.
   10.  "Caring for" means treating a patient, in the course of which the
 practitioner has completed a full assessment of  the  patient's  medical
 history and current medical condition.
   11. "Certification" means a certification made under this chapter.
   12.  "Certified medical use" includes the acquisition, administration,
 cultivation, manufacture, delivery,  harvest,  possession,  preparation,
 transfer,  transportation,  or use of cannabis or paraphernalia relating
 to the administration of cannabis to  treat  or  alleviate  a  certified
 patient's  medical  condition  or symptoms associated with the patient's
 medical condition.
   13. "Certified patient" means a patient who is a resident of New  York
 state or receiving care and treatment in New York state as determined by
 the  executive director in regulation, and is certified under this chap-
 ter.
   14. "Commercial cannabis activity" means the production,  cultivation,
 manufacturing,  processing,  possession,  storing,  laboratory  testing,
 packaging, labeling, transportation, delivery, or sale of  cannabis  and
 cannabis products as provided for in this chapter.
   15.  "Concentrated  cannabis"  means: (a) the separated resin, whether
 crude or purified, obtained from a plant of the genus Cannabis; or (b) a
 material,  preparation,  mixture,  compound  or  other  substance  which
 contains more than three percent by weight of delta-9 tetrahydrocannabi-
 nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
 tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
 system.
   16.  "Condition" means having one of the following conditions: cancer,
 positive status for human  immunodeficiency  virus  or  acquired  immune
 deficiency syndrome, amyotrophic lateral sclerosis, 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, neuropathies,  Huntington's  disease,  post-
 traumatic  stress  disorder,  pain  that  degrades health and functional
 capability where the use of medical cannabis is an alternative to opioid
 use, substance use disorder, Alzheimer's, muscular dystrophy,  dystonia,
 rheumatoid  arthritis,  autism  or  any other condition certified by the
 practitioner.
   17. "Cultivation" means growing, cloning, harvesting, drying,  curing,
 grading, and trimming of cannabis plants for sale to certain other cate-
 gories of cannabis license- and permit-holders.
   18.  "Delivery"  means  the  direct delivery of cannabis products by a
 retail licensee, microbusiness licensee, or delivery license holder to a
 cannabis consumer.
   19. "Designated caregiver facility" means a general hospital or  resi-
 dential  health care facility operating pursuant to article twenty-eight
 of the public health law; an adult care facility operating  pursuant  to
 title  two  of  article  seven  of  the social services law; a community
 mental health residence established pursuant to  section  41.44  of  the
 mental hygiene law; a hospital operating pursuant to section 7.17 of the
 mental  hygiene  law;  a  mental  hygiene facility operating pursuant to
 article thirty-one of the mental hygiene law; an inpatient  or  residen-

 A. 1617--B                          5
 
 tial  treatment  program certified pursuant to article thirty-two of the
 mental hygiene law; a residential facility for the care and treatment of
 persons with developmental disabilities operating  pursuant  to  article
 sixteen  of the mental hygiene law; a residential treatment facility for
 children and youth operating  pursuant  to  article  thirty-one  of  the
 mental  hygiene  law;  a  private or public school; research institution
 with an internal review board; or any other facility  as  determined  by
 the  executive director in regulation; that registers with the office to
 assist one or more certified patients with the acquisition,  possession,
 delivery, transportation or administration of medical cannabis.
   20.  "Designated caregiver" means an individual designated by a certi-
 fied patient in a registry application. A certified patient  may  desig-
 nate  up to five designated caregivers not counting designated caregiver
 facilities or designated caregiver facilities' employees.
   21. "Designated caregiver facility employee" means an  employee  of  a
 designated caregiver facility.
   22. "Distributor" means any person who sells at wholesale any cannabis
 product,  except  medical  cannabis,  for the sale of which a license is
 required under the provisions of this chapter.
   23. "Executive director" means the executive director of the office of
 cannabis management.
   24. "Form of medical cannabis" means characteristics  of  the  medical
 cannabis  recommended  or  limited  for  a particular certified patient,
 including the method of consumption and any particular strain,  variety,
 and quantity or percentage of cannabis or particular active ingredient.
   25.  "Hemp  extract" means any product made or derived from industrial
 hemp, including the seeds thereof and all derivatives, extracts,  canna-
 binoids, isomers, acids, salts, and salts of isomers, whether growing or
 not,  with a delta-9 tetrahydrocannabinol concentration of not more than
 an amount determined by the office in regulation, used or  intended  for
 human  or  animal  consumption  or  use  for its cannabinoid content, as
 determined  by  the  executive  director  in  regulation.  Hemp  extract
 excludes  industrial hemp used or intended exclusively for an industrial
 purpose.
   26. "Industrial hemp" means the plant Cannabis sativa L. and any  part
 of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
 extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
 whether  growing  or  not,  with  a delta-9 tetrahydrocannabinol concen-
 tration of not more than three-tenths of one percent  on  a  dry  weight
 basis, used or intended for an industrial purpose.
   27. "Labor peace agreement" means an agreement between an entity and a
 labor  organization that, at a minimum, protects the state's proprietary
 interests by prohibiting labor organizations and members  from  engaging
 in picketing, work stoppages, boycotts, and any other economic interfer-
 ence with the entity.
   28.  "Laboratory  testing  facility"  means any independent laboratory
 capable of testing cannabis and  cannabis  products  for  adult-use  and
 medical-use;  hemp extract; or for all categories of cannabis and canna-
 bis products as per regulations set forth by the office.
   29. "License" means a written authorization issued by  the  office  of
 cannabis management permitting persons to engage in a specified activity
 with respect to cannabis or cannabis products.
   30.  "Medical  cannabis"  means  cannabis  as defined in this section,
 intended for a certified medical use, as  determined  by  the  executive
 director in consultation with the commissioner of health.

 A. 1617--B                          6
 
   31.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
 producer for the cultivation of cannabis, a cannabis  processor,  and  a
 cannabis  retailer  under  this article; provided such licensee complies
 with all requirements imposed by this  article  on  licensed  producers,
 processors,  and  retailers  to  the extent the licensee engages in such
 activities. A "microbusiness" may distribute its cannabis  and  cannabis
 products  to other licensed cannabis businesses and may deliver cannabis
 and cannabis products to customers.
   32. "Nursery" means a licensee that  produces  only  clones,  immature
 plants, seeds, and other agricultural products used specifically for the
 planting, propagation, and cultivation of cannabis.
   33.  "Office"  or  "office  of cannabis management" means the New York
 state office of cannabis management.
   34. "On-site consumption" means the consumption of cannabis in an area
 licensed for such activity by the office.
   35. "Owner" means an individual with an aggregate  ownership  interest
 of  twenty  percent  or more in a cannabis business licensed pursuant to
 this chapter, unless such interest is solely a security, lien, or encum-
 brance, or an individual that will be participating  in  the  direction,
 control, or management of the licensed cannabis business.
   36.  "Package"  means  any  container  or  receptacle used for holding
 cannabis or cannabis products.
   37. "Permit" means a permit issued pursuant to this chapter.
   38. "Permittee" means any person to whom  a  permit  has  been  issued
 pursuant to this chapter.
   39.  "Practitioner"  means  a  practitioner  who: (i) is authorized to
 prescribe controlled substances within the state, (ii)  by  training  or
 experience  is  qualified  to  treat patients; and (iii) completes, at a
 minimum, a two-hour course as determined by the  executive  director  in
 regulation.    A person's status as a practitioner under this chapter is
 deemed to be a "license" for purposes of  section  thirty-three  hundred
 ninety of the public health law and shall be subject to the same revoca-
 tion process.
   40.  "Processor"  means a licensee that extracts concentrated cannabis
 and/or compounds, blends, extracts, infuses, or  otherwise  manufactures
 concentrated  cannabis  or cannabis products, but not the cultivation of
 the cannabis contained in the cannabis product.
   41. "Registered organization" means an organization  registered  under
 article three of this chapter.
   42. "Registry application" means an application properly completed and
 filed  with  the  office  of  cannabis management by a certified patient
 under article three of this chapter.
   43. "Registry identification card" means a document that identifies  a
 certified  patient or designated caregiver, as provided under this chap-
 ter.
   44. "Retail sale" means to solicit or receive an order for, to keep or
 expose for sale, and to keep with intent to sell, made  by  any  person,
 whether  principal,  proprietor,  agent,  or  employee, of any cannabis,
 cannabis product, or hemp extract product to a cannabis consumer for any
 purpose other than resale.
   45. "Retailer" means any person who sells at retail any cannabis prod-
 uct, the sale of which a license is required  under  the  provisions  of
 this chapter.
   46. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any  other  matter  or  substance  which  contains  tobacco  or cannabis
 provided that it does not include  the  use  of  an  electronic  smoking

 A. 1617--B                          7
 
 device that creates an aerosol or vapor, unless local laws or ordinances
 or  state  statutes extend prohibitions on smoking to electronic smoking
 devices.
   47.  "Terminally ill" means an individual has a medical prognosis that
 the individual's life expectancy is approximately one year  or  less  if
 the illness runs its normal course.
   48.  "Warehouse" means and includes a place in which cannabis products
 are housed or stored.
   49. "Wholesale" means to solicit or receive an order for, to  keep  or
 expose  for  sale,  and to keep with intent to sell, made by any person,
 whether principal, proprietor, agent,  or  employee  of  any  adult-use,
 medical-use, or hemp extract product for purposes of resale.
 
                                 ARTICLE 2
               NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
 
 Section 9. Establishment of an office of cannabis management.
         10. Executive director.
         11. Functions,  powers  and  duties  of the office and executive
               director.
         12. Rulemaking authority.
         13. State cannabis advisory board.
         14. Disposition of moneys received for license fees.
         15. Legal presumptions.
         16. Violations of cannabis laws or  regulations;  penalties  and
               injunctions.
         17. Formal hearings; notice and procedure.
         18. Ethics, transparency and accountability.
   § 9. Establishment of an office of cannabis management. There is here-
 by  established,  within  the division of alcoholic beverage control, an
 independent office of cannabis management, which  shall  have  exclusive
 jurisdiction to exercise the powers and duties provided by this chapter.
 The  office  shall  exercise  its  authority by and through an executive
 director.
   § 10. Executive director.  The executive director shall  be  appointed
 by  the  governor and confirmed by the senate. The executive director of
 the state office of cannabis management shall receive an  annual  salary
 not to exceed an amount appropriated therefor by the legislature and his
 or  her expenses actually and necessarily incurred in the performance of
 official duties, unless otherwise provided by the legislature.
   § 11. Functions, powers and duties of the office and executive  direc-
 tor.    The  office of cannabis management, by and through its executive
 director, shall have the following powers and duties:
   1. To issue or refuse to issue any  registration,  license  or  permit
 provided  for  in  this  chapter,  and to issue temporary or provisional
 licenses.
   2. To issue or refuse to issue registrations, licenses,  permits,  and
 temporary  or  provisional  licenses in a manner that prioritizes social
 equity applicants, and small business opportunities and concerns, avoids
 market dominance in sectors of the industry, and reflects the demograph-
 ics of the state.
   3. To limit, or not to limit, in the executive director's  discretion,
 the  number  of  registrations, licenses and permits of each class to be
 issued within the state or any political  subdivision  thereof,  and  in
 connection therewith to prohibit the acceptance of applications for such

 A. 1617--B                          8
 
 classes  which  have  been so limited.   Such limitations shall consider
 consumer access, market demand, and geographic diversity.
   4.  To  develop  testing standards and certify testing laboratories in
 the state.
   5. To regulate advertising, marketing, branding, packaging, and label-
 ing, including regulating the accuracy of information about cannabis and
 cannabis products and restricting marketing and advertising to youth.
   6. To revoke, cancel or suspend for cause any  registration,  license,
 or permit issued under this chapter and/or to impose a civil penalty for
 cause  against  any  holder of a registration, license, or permit issued
 pursuant to this chapter.
   7. To fix by rule the  standards  of  cultivation  and  processing  of
 medical cannabis, adult use cannabis and hemp extract, including but not
 limited  to,  the  ability to regulate potency and the types 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 cannabis, adult use  cannabis,
 and hemp extract to be sold or consumed in the state.
   8.  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.
   9. To appoint any necessary directors, deputies, counsels, assistants,
 investigators,  and other employees within the limits provided by appro-
 priation.  Investigators so employed by the office shall be deemed to be
 peace officers for the purpose of enforcing the provisions of the canna-
 bis control law or judgements or orders obtained for violation  thereof,
 with  all the powers set forth in section 2.20 of the criminal procedure
 law.  Directors, deputies, and counsels 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.
 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.
   10.  To remove any employee of the office for cause, after giving such
 employee a copy of the charges against him or her  in  writing,  and  an
 opportunity to be heard thereon. Any action taken under this subdivision
 shall be subject to and in accordance with the civil service law.
   11.  To inspect or provide for the inspection at any time of any prem-
 ises where medical cannabis, adult use  cannabis,  or  hemp  extract  is
 cultivated, processed, stored, distributed or sold.
   12. To prescribe forms of applications for registrations, licenses and
 permits  under  this  chapter and of all reports deemed necessary by the
 office.
   13. To delegate the powers provided in  this  section  to  such  other
 officers or employees or other state agencies as may be deemed appropri-
 ate by the executive director.
   14.  To  appoint  such advisory groups and committees as the executive
 director deems necessary to provide assistance to the  office  to  carry
 out the purposes and objectives of this chapter.

 A. 1617--B                          9
 
   15.  To  exercise the powers and perform the duties in relation to the
 administration of the office as are necessary but not specifically vest-
 ed by this chapter, including but not limited to  budgetary  and  fiscal
 matters in consultation with the cannabis advisory board.
   16. To develop and establish minimum criteria for certifying employees
 to  work  in  the  cannabis  industry,  including the establishment of a
 cannabis workers certification program.
   17. To enter into contracts, memoranda of  understanding,  and  agree-
 ments  as deemed appropriate by the executive director to effectuate the
 policy and purpose of this chapter.
   18. To issue and administer low interest or  zero-interest  loans  and
 other assistance to qualified social equity applicants.
   19.  If  the  executive  director finds that public health, safety, or
 welfare imperatively requires emergency action, and incorporates a find-
 ing 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  executive director may 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.
   20. To issue regulations, declaratory rulings, guidance  and  industry
 advisories.
   §  12.  Rulemaking authority.   1. The office shall perform such acts,
 prescribe such forms and propose such rules, regulations and  orders  as
 it  may  deem  necessary or proper to fully effectuate the provisions of
 this chapter.
   2. The office shall have the power to promulgate any and all necessary
 rules and regulations governing the cultivation,  manufacture,  process-
 ing,  transportation,  distribution,  testing,  delivery,  and  sale  of
 medical cannabis, adult-use cannabis, and hemp  extract,  including  but
 not  limited  to  the  registration  of organizations authorized to sell
 medical cannabis, the licensing and/or permitting of adult-use  cannabis
 cultivators,  processors,  cooperatives, distributors, laboratories, and
 retailers, and the licensing of hemp extract  producers  and  processors
 pursuant to this chapter, including, but not limited to:
   (a) prescribing forms and establishing application, reinstatement, and
 renewal fees;
   (b)  the  qualifications  and  selection  criteria  for  registration,
 licensing, or permitting;
   (c) the books and records to be created and maintained  by  registered
 organizations,  licensees,  and  permittees, including the reports to be
 made thereon to the office, and inspection of  any  and  all  books  and
 records maintained by any registered organization, licensee, or permitee
 and  on the premise of any registered organization, licensee, or permit-
 tee;
   (d) methods of producing, processing, and packaging cannabis,  medical
 cannabis,  cannabis-infused  products,  concentrated  cannabis, and hemp
 extract; conditions of sanitation, and standards of ingredients,  quali-
 ty,  and  identity of cannabis products cultivated, processed, packaged,
 or sold by registered organizations and licensees;
   (e) security requirements for adult-use cannabis  retail  dispensaries
 and  premises  where  cannabis  products,  medical  cannabis,  and  hemp
 extract, are cultivated, produced,  processed,  or  stored,  and  safety

 A. 1617--B                         10
 
 protocols  for  registered organizations, licensees and their employees;
 and
   (f) hearing procedures and additional causes for cancellation, revoca-
 tion, and/or civil penalties against any person registered, licensed, or
 permitted by the authority.
   3. The office shall promulgate rules and regulations that are designed
 to:
   (a)  prevent  the  distribution of adult-use cannabis to persons under
 twenty-one years of age;
   (b) prevent the revenue from the sale of cannabis from going to crimi-
 nal enterprises, gangs, and cartels;
   (c) prevent the diversion of cannabis from this state to other states;
   (d) prevent cannabis activity that is legal under state law from being
 used as a cover or pretext for the trafficking of other illegal drugs or
 other illegal activity;
   (e) prevent drugged driving and  the  exacerbation  of  other  adverse
 public health consequences associated with the use of cannabis;
   (f) prevent the growing of cannabis on public lands; and
   (g) prevent the possession and use of cannabis on federal property.
   4.  The office, in consultation with the department of agriculture and
 markets and the department of environmental conservation, shall  promul-
 gate  necessary  rules  and regulations governing the safe production of
 cannabis, including environmental and energy standards and  restrictions
 on the use of pesticides.
   §  13. State cannabis advisory board.  1. The executive director shall
 establish within the office a state cannabis  advisory  board  prior  to
 engaging  in  rulemaking, which may consider all matters submitted to it
 by the executive director, and advise the office and the legislature  on
 cannabis cultivation, processing, distribution, transport, equity in the
 cannabis  industry,  public  health concerns related to cannabis, and on
 the testing and sale of cannabis and cannabis products.
   2. The executive director of the office shall serve as the chairperson
 of the board. The vice chairperson  shall  be  elected  from  among  the
 members  of  the board by the members of such board, and shall represent
 the board in the absence of the chairperson at all official board  func-
 tions.
   3. The members of the board shall be appointed by the temporary presi-
 dent  of the senate and the speaker of the assembly and 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.
   4. The executive director shall  promulgate  regulations  establishing
 the  number  of  members on the board, the term of the board members and
 any other terms or conditions  regarding  the  state  cannabis  advisory
 board,  including  that  such  board  shall  include  members  from  the
 geographic regions of the state.
   5. Every effort shall be made to ensure a balanced and diverse  board,
 which  shall  have  expertise in public and behavioral health, substance
 use disorder treatment, effective rehabilitative  treatment  for  adults
 and  juveniles,  economic  development,  environmental conservation, job
 training and placement, criminal justice, and drug policy. Further,  the
 board shall include residents from communities most impacted by cannabis
 prohibition,  people with prior drug convictions, the formerly incarcer-
 ated, and representatives of organizations serving communities  impacted
 by past federal and state drug policies.

 A. 1617--B                         11
 
   §  14.  Disposition  of  moneys received for license fees.  The office
 shall establish a scale of application,  licensing,  and  renewal  fees,
 based upon the cost of enforcing this chapter and the size of the canna-
 bis business being licensed, as follows:
   1.  The office shall charge each registered organization, licensee and
 permittee a registration, licensure or permit fee, and renewal  fee,  as
 applicable.    The  fees may vary depending upon the nature and scope of
 the different registration, licensure and permit activities.
   2. The total fees assessed pursuant to this chapter shall be set at an
 amount that will generate sufficient total revenue  to,  at  a  minimum,
 fully cover the total costs of administering this chapter.
   3.  All registration and licensure fees shall be set on a scaled basis
 by the office, dependent on the size and capacity of the business.
   4. The office shall deposit all fees collected in the New  York  state
 cannabis  revenue fund established pursuant to section ninety-nine-hh of
 the state finance law.
   § 15. Legal presumptions.   The action,  proceedings,  authority,  and
 orders of the office in enforcing the provisions of the cannabis law and
 applying  them  to  specific  cases shall at all times be regarded as in
 their nature judicial, and shall be treated  as  prima  facie  just  and
 legal.
   §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
 injunctions.  1. A person who willfully violates any provision  of  this
 chapter,  or  any  regulation lawfully made or established by any public
 officer under authority of this chapter, the  punishment  for  violating
 which  is  not otherwise prescribed by this chapter or any other law, is
 punishable by imprisonment not exceeding one year,  or  by  a  fine  not
 exceeding five thousand dollars or by both.
   2.  Any  person  who  violates,  disobeys  or  disregards  any term or
 provision of this chapter or of any lawful notice, order  or  regulation
 pursuant  thereto for which a civil or criminal penalty is not otherwise
 expressly prescribed by law, shall be liable to the people of the  state
 for  a  civil  penalty  of not to exceed five thousand dollars for every
 such violation.
   3. The penalty provided for in subdivision one of this section may  be
 recovered by an action brought by the executive director in any court of
 competent jurisdiction.
   4.  Such civil penalty may be released or compromised by the executive
 director before the matter has been referred to  the  attorney  general,
 and  where  such  matter  has been referred to the attorney general, any
 such penalty may be released or compromised and any action commenced  to
 recover the same may be settled and discontinued by the attorney general
 with the consent of the executive director.
   5.  It  shall  be the duty of the attorney general upon the request of
 the executive director to bring an action for an injunction against  any
 person  who  violates,  disobeys  or disregards any term or provision of
 this chapter or of any lawful notice, order or regulation pursuant ther-
 eto; provided, however, that the executive director  shall  furnish  the
 attorney  general with such material, evidentiary matter or proof as may
 be requested by the attorney general for  the  prosecution  of  such  an
 action.
   6. It is the purpose of this section to provide additional and cumula-
 tive  remedies,  and  nothing  herein  contained  shall abridge or alter
 rights of action or remedies now or hereafter existing,  nor  shall  any
 provision  of  this  section,  nor  any  action  done  by virtue of this

 A. 1617--B                         12
 
 section, be construed as estopping the state, persons or  municipalities
 in the exercising of their respective rights.
   §  17. Formal hearings; notice and procedure.  1. The executive direc-
 tor, or any person designated by him or her for this purpose, may  issue
 subpoenas  and administer oaths in connection with any hearing or inves-
 tigation under or pursuant to this chapter, and it shall be the duty  of
 the executive director and any persons designated by him or her for such
 purpose  to  issue  subpoenas  at  the request of and upon behalf of the
 respondent.
   2. The executive director and those designated by him or her shall not
 be bound by the laws of evidence in the conduct of hearing  proceedings,
 but  the  determination  shall  be  founded  upon sufficient evidence to
 sustain it.
   3. Notice of hearing shall be served at least fifteen  days  prior  to
 the  date  of  the hearing, provided that, whenever because of danger to
 the public health, safety or  welfare  it  appears  prejudicial  to  the
 interests  of  the people of the state to delay action for fifteen days,
 the executive director may serve the respondent with an order  requiring
 certain  action  or  the  cessation of certain activities immediately or
 within a specified period of less than fifteen days.
   4. Service of notice of hearing or order shall  be  made  by  personal
 service  or  by  registered or certified mail. Where service, whether by
 personal service or by registered or certified mail,  is  made  upon  an
 incompetent,  partnership,  or  corporation,  it  shall be made upon the
 person or persons designated to  receive  personal  service  by  article
 three of the civil practice law and rules.
   5.  At a hearing, the respondent may appear personally, shall have the
 right of counsel, and may cross-examine witnesses against him or her and
 produce evidence and witnesses in his or her behalf.
   6. Following a hearing, the executive director  may  make  appropriate
 determinations and issue a final order in accordance therewith.
   7.  The  executive director may adopt, amend and repeal administrative
 rules and regulations governing  the  procedures  to  be  followed  with
 respect  to  hearings,  such  rules to be consistent with the policy and
 purpose of this chapter and the effective and fair  enforcement  of  its
 provisions.
   8.  The provisions of this section shall be applicable to all hearings
 held pursuant to this chapter, except where  other  provisions  of  this
 chapter  applicable  thereto  are inconsistent therewith, in which event
 such other provisions shall apply.
   § 18. Ethics, transparency and  accountability.    No  member  of  the
 office  or any officer, deputy, assistant, inspector or employee thereof
 shall have any interest, direct or indirect, either  proprietary  or  by
 means  of  any  loan, mortgage or lien, or in any other manner, in or on
 any premises where adult use cannabis, medical cannabis or hemp  extract
 is  cultivated, processed, distributed or sold; nor shall he or she have
 any interest, direct or indirect, in any business  wholly  or  partially
 devoted  to the cultivation, processing, distribution, sale, transporta-
 tion or storage of adult use cannabis, medical cannabis or hemp extract,
 or own any stock in any corporation which has any interest,  proprietary
 or otherwise, direct or indirect, in any premises where adult use canna-
 bis, medical cannabis or hemp extract is cultivated, processed, distrib-
 uted  or  sold,  or  in  any business wholly or partially devoted to the
 cultivation, processing, distribution, sale, transportation  or  storage
 of  adult use cannabis, medical cannabis or hemp extract, or receive any
 commission or profit whatsoever, direct or  indirect,  from  any  person

 A. 1617--B                         13
 
 applying  for  or  receiving  any license or permit provided for in this
 chapter, or hold any other elected or appointed  public  office  in  the
 state  or  in  any political subdivision. Anyone who violates any of the
 provisions of this section shall be removed and shall divulge themselves
 of  such  direct or indirect interests, in addition to any other penalty
 provided by law.
 
                                 ARTICLE 3
                             MEDICAL CANNABIS
 
 Section 30. Certification of patients.
         31. Lawful medical use.
         32. Registry identification cards.
         33. Registration as a designated caregiver facility.
         34. Registered organizations.
         35. Registering of registered organizations.
         36. Reports of registered organizations.
         37. Evaluation; research programs; report by office.
         38. Cannabis research license.
         39. Registered organizations and adult-use cannabis.
         40. Relation to other laws.
         41. Protections for the medical use of cannabis.
         42. Regulations.
         43. Suspend; terminate.
         44. Pricing.
   § 30. Certification of patients.  1. A patient certification may  only
 be issued if:
   (a)  the  patient  has  a  condition,  which shall be specified in the
 patient's health care record;
   (b) the practitioner by training or experience is qualified  to  treat
 the condition;
   (c)  the  patient  is under the practitioner's continuing care for the
 condition; and
   (d) in the practitioner's professional  opinion  and  review  of  past
 treatments,  the  patient is likely to receive therapeutic or palliative
 benefit from the primary or adjunctive treatment  with  medical  use  of
 cannabis for the 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 condition
 and the patient is under the practitioner's care for the 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,
 telephone  number, and the signature of the certifying practitioner. The
 executive director may require  by  regulation  that  the  certification
 shall be on a form provided by the office. The practitioner may state in
 the  certification that, in the practitioner's professional opinion, the
 patient would benefit from medical cannabis only until a specified date.
 The practitioner may state in the certification that, in the practition-
 er's professional opinion, the patient is terminally ill  and  that  the
 certification shall not expire until the patient dies.
   3.  In  making a certification, the practitioner may consider the form
 of medical cannabis the patient should consume, including the method  of
 consumption and any particular strain, variety, and quantity or percent-
 age of cannabis or particular active ingredient, and appropriate dosage.
 The  practitioner  may  state in the certification any recommendation or

 A. 1617--B                         14
 
 limitation the practitioner makes, in his or her  professional  opinion,
 concerning the appropriate form or forms of medical cannabis and dosage.
   4.  Every  practitioner  shall  consult  the  prescription  monitoring
 program registry prior to making or issuing  a  certification,  for  the
 purpose  of  reviewing  a  patient's  controlled  substance history. For
 purposes of this section, a practitioner may  authorize  a  designee  to
 consult  the  prescription  monitoring  program  registry  on his or her
 behalf, provided that such designation is  in  accordance  with  section
 thirty-three hundred forty-three-a of the public health law.
   5.  The  practitioner  shall  give  the certification to the certified
 patient, and place a copy in the patient's health care record.
   6. No practitioner shall issue a certification under this section  for
 themselves.
   7.  A  registry  identification  card  based  on a certification shall
 expire one year after the date the certification is signed by the  prac-
 titioner.
   8.  (a)  If  the practitioner states in the certification that, in the
 practitioner's professional opinion,  the  patient  would  benefit  from
 medical  cannabis only until a specified earlier date, then the registry
 identification card shall expire on that date; (b) if  the  practitioner
 states  in  the  certification  that  in the practitioner's professional
 opinion the patient is terminally ill and that the  certification  shall
 not expire until the patient dies, then the registry identification card
 shall state that the patient is terminally ill and that the registration
 card  shall  not  expire until the patient dies; (c) if the practitioner
 re-issues the certification to terminate the certification on an earlier
 date, then the registry identification card shall expire  on  that  date
 and  shall  be  promptly  destroyed by the certified patient; (d) if the
 certification so provides, the registry identification card shall  state
 any  recommendation  or limitation by the practitioner as to the form or
 forms of medical cannabis or dosage for the certified patient;  and  (e)
 the executive director shall make regulations to implement this subdivi-
 sion.
   §  31. Lawful medical use. The possession, acquisition, use, delivery,
 transfer, transportation, or administration of  medical  cannabis  by  a
 certified patient, designated caregiver or the employees of a designated
 caregiver  facility,  for  certified  medical use, shall be lawful under
 this article provided that:
   1. the cannabis that may be possessed by a certified patient shall not
 exceed a sixty-day supply of the dosage if determined by the practition-
 er, consistent with any guidance and regulations issued by the executive
 director, provided that during the last  seven  days  of  any  sixty-day
 period, the certified patient may also possess up to such amount for the
 next sixty-day period;
   2.  the  cannabis  that may be possessed by designated caregivers does
 not exceed the quantities referred to in subdivision one of this section
 for each certified patient for whom  the  caregiver  possesses  a  valid
 registry identification card, up to five certified patients;
   3.  the cannabis that may be possessed by designated caregiver facili-
 ties does not exceed the quantities referred to in  subdivision  one  of
 this  section  for each certified patient under the care or treatment of
 the facility;
   4. the form or forms of medical cannabis that may be possessed by  the
 certified patient, designated caregiver or designated caregiver facility
 pursuant  to a certification shall be in compliance with any recommenda-
 tion or limitation by the practitioner  as  to  the  form  or  forms  of

 A. 1617--B                         15
 
 medical  cannabis  or  dosage  for  the certified patient in the certif-
 ication;
   5. the medical cannabis shall be kept in the original package in which
 it  was dispensed under this article, except for the portion removed for
 immediate  consumption  for  certified  medical  use  by  the  certified
 patient; and
   6.  in  the  case  of  a  designated  caregiver facility, the employee
 assisting the patient has been designated  as  such  by  the  designated
 caregiver facility.
   §  32. Registry identification cards.  1. Upon approval of the certif-
 ication, the office shall issue registry identification cards for certi-
 fied patients and designated caregivers. A registry identification  card
 shall  expire  as  provided  in this article or as otherwise provided in
 this section.  The office shall begin  issuing  registry  identification
 cards  as  soon as practicable after the certifications required by this
 chapter are granted. The office may specify a form for a registry appli-
 cation, in which case the office shall  provide  the  form  on  request,
 reproductions  of  the form may be used, and the form shall be available
 for downloading from the office's website.
   2. To obtain, amend or renew a registry identification card, a  certi-
 fied  patient  or designated caregiver shall file a registry application
 with the office, unless otherwise exempted by the executive director  in
 regulation.  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 cannabis, if the certification states such a date;
   (vi) the name, address, and telephone number of the certifying practi-
 tioner;
   (vii) any recommendation or limitation by the practitioner as  to  the
 form or forms of medical cannabis or dosage for the certified patient;
   (viii) if the certified patient designates a designated caregiver, the
 name,  address, and date of birth of the designated caregiver, and other
 individual identifying information required by the office;
   (ix) if the designated caregiver is a cannabis research license holder
 under  this  chapter,  the  name  of  the  organization  conducting  the
 research,  the address, phone number, name of the individual leading the
 research or appropriate  designee,  and  other  identifying  information
 required by the executive director; and
   (x) other individual identifying information required by the office;
   (b) 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 office;
   (c)  a  statement  that  a  false statement made in the application is
 punishable under section 210.45 of the penal law;

 A. 1617--B                         16
 
   (d) the date of the application and the  signature  of  the  certified
 patient or designated caregiver, as the case may be;
   (e) any other requirements determined by the executive director.
   3. Where a certified patient is under the age of eighteen or otherwise
 incapable of consent:
   (a)  The  application for a registry identification card shall be made
 by the person responsible for  making  health  care  decisions  for  the
 patient.
   (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;  (iii) an employee of a designated caregiver facility, includ-
 ing a cannabis research license holder; or (iv)  an  appropriate  person
 approved by the office upon a sufficient showing that no parent or legal
 guardian is appropriate or available.
   4.  No  person  may  be  a designated caregiver if the person is under
 twenty-one years of age unless a  sufficient  showing  is  made  to  the
 office  that  the  person  should  be permitted to serve as a designated
 caregiver. The requirements for such a showing shall  be  determined  by
 the executive director.
   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  cannabis  research
 license holder as defined by this chapter.
   6.  If  a  certified  patient wishes to change or terminate his or her
 designated caregiver, for whatever reason, the certified  patient  shall
 notify  the  office  as  soon  as  practicable. The office shall issue a
 notification to the designated caregiver that their registration card is
 invalid and must be promptly destroyed. The newly  designated  caregiver
 must comply with all requirements set forth in this section.
   7.  If the certification so provides, the registry identification card
 shall contain any recommendation or limitation by the practitioner as to
 the form or forms of  medical  cannabis  or  dosage  for  the  certified
 patient.
   8.  The  office shall issue separate registry identification cards for
 certified patients and designated caregivers as soon as reasonably prac-
 ticable after receiving  a  complete  application  under  this  section,
 unless  it  determines  that  the application is incomplete or factually
 inaccurate, in which case it shall promptly notify the applicant.
   9. If the application of a certified patient designates an  individual
 as a designated caregiver who is not authorized to be a designated care-
 giver, that portion of the application shall be denied by the office but
 that shall not affect the approval of the balance of the application.
   10. A registry identification card shall:
   (a)  contain the name of the certified patient or the designated care-
 giver as the case may be;
   (b) contain the date of issuance and expiration date of  the  registry
 identification card;
   (c) contain a registry identification number for the certified patient
 or  designated  caregiver, as the case may be and a registry identifica-
 tion number;
   (d) contain a photograph of the individual to whom the registry  iden-
 tification  card  is being issued, which shall be obtained by the office
 in  a  manner  specified  by  the  executive  director  in  regulations;
 provided,  however,  that  if  the office requires certified patients to
 submit photographs for this purpose, there shall be a reasonable  accom-
 modation  of  certified  patients who are confined to their homes due to

 A. 1617--B                         17

 their medical conditions and may  therefore  have  difficulty  procuring
 photographs;
   (e) be a secure document as determined by the office;
   (f) plainly state any recommendation or limitation by the practitioner
 as  to the form or forms of medical cannabis or dosage for the certified
 patient; and
   (g) any other requirements determined by the executive director.
   11. A certified patient or designated caregiver who has been issued  a
 registry  identification  card  shall notify the office of any change in
 his or her name or address or, with respect to the patient, if he or she
 ceases to have the condition noted on the certification within ten  days
 of such change. The certified patient's or designated caregiver's regis-
 try  identification  card  shall be deemed invalid and shall be promptly
 destroyed.
   12. If a certified patient or designated caregiver loses  his  or  her
 registry  identification  card, he or she shall notify the office within
 ten days of losing the card. The office shall issue a new registry iden-
 tification card as soon as practicable, which may contain a new registry
 identification number, to the certified patient or designated caregiver,
 as the case may be.
   13. The office shall maintain a confidential list of  the  persons  to
 whom it has issued registry identification cards. Individual identifying
 information obtained by the office under this article shall be confiden-
 tial and exempt from disclosure under article six of the public officers
 law.  Notwithstanding this subdivision, the office may notify any appro-
 priate  law  enforcement agency of information relating to any violation
 or suspected violation of this article.
   14. The office shall verify to law enforcement personnel in an  appro-
 priate case whether a registry identification card is valid.
   15.  If a certified patient or designated caregiver willfully violates
 any provision of this article as determined by the  executive  director,
 his  or  her  certification  and  registry  identification  card  may be
 suspended or revoked. This is in addition to any other penalty that  may
 apply.
   §  33. Registration as a designated caregiver facility.  1. To obtain,
 amend or renew a registration as a designated  caregiver  facility,  the
 facility shall file a registry application with the office. The registry
 application or renewal application shall include:
   (a) the facility's full name and address;
   (b) operating certificate or license number where appropriate;
   (c)  printed  name,  title,  and  signature  of an authorized facility
 representative;
   (d) a statement that the facility agrees to secure and  ensure  proper
 handling of all medical cannabis 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 executive direc-
 tor.
   2. Prior to issuing or renewing a designated caregiver facility regis-
 tration, the office may verify the information submitted by  the  appli-
 cant.  The applicant shall provide, at the office's request, such infor-
 mation and documentation, including any consents or authorizations  that
 may be necessary for the office to verify the information.
   3.  The  office shall approve, deny or determine incomplete or inaccu-
 rate an initial or renewal application within thirty days of receipt  of
 the  application.  If  the application is approved within the thirty-day

 A. 1617--B                         18
 
 period, the office shall issue a registration as soon as  is  reasonably
 practicable.
   4. An applicant shall have thirty days from the date of a notification
 of an incomplete or factually inaccurate application to submit the mate-
 rials  required  to  complete, revise or substantiate information in the
 application. If the applicant fails to  submit  the  required  materials
 within  such  thirty-day time period, the application shall be denied by
 the office.
   5. Registrations issued under this section shall remain valid for  two
 years from the date of issuance.
   § 34. Registered organizations.  1. A registered organization shall be
 a for-profit business entity or not-for-profit corporation organized for
 the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
 ing, transporting, distributing or  dispensing  cannabis  for  certified
 medical use.
   2.  The acquiring, possession, manufacture, sale, delivery, transport-
 ing, distributing or dispensing of  medical  cannabis  by  a  registered
 organization  under  this  article  in  accordance with its registration
 under this article or a renewal thereof shall be lawful under this chap-
 ter.
   3. Each registered organization shall  contract  with  an  independent
 laboratory permitted by the office to test the medical cannabis produced
 by the registered organization. The executive director shall approve the
 laboratory  used by the registered organization and may require that the
 registered organization use a particular testing laboratory.  The execu-
 tive director is authorized to issue regulations requiring the laborato-
 ry to perform certain tests and services.
   4. (a) A registered organization may lawfully, in  good  faith,  sell,
 deliver,  distribute or dispense medical cannabis to a certified patient
 or designated caregiver upon presentation to the registered organization
 of a valid registry identification card for that  certified  patient  or
 designated  caregiver.   When presented with the registry identification
 card, the registered organization shall provide to the certified patient
 or designated caregiver a receipt, which shall state: the name, address,
 and registry identification number of the registered  organization;  the
 name and registry identification number of the certified patient and the
 designated caregiver, if any; the date the cannabis was sold; any recom-
 mendation  or  limitation by the practitioner as to the form or forms of
 medical cannabis or dosage for the certified patient; and the  form  and
 the quantity of medical cannabis sold. The registered organization shall
 retain  a  copy  of the registry identification card and the receipt for
 six years.
   (b) The proprietor of a registered organization shall file or cause to
 be filed any receipt and certification information with  the  office  by
 electronic  means  on  a real-time basis as the executive director shall
 require by regulation. When filing receipt and certification information
 electronically pursuant to this paragraph, the proprietor of the  regis-
 tered   organization   shall  dispose  of  any  electronically  recorded
 prescription information in such manner as the executive director  shall
 by regulation require.
   5.  (a)  No  registered  organization may sell, deliver, distribute or
 dispense to any certified patient or designated caregiver a quantity  of
 medical cannabis larger than that individual would be allowed to possess
 under this chapter.
   (b)  When dispensing medical cannabis to a certified patient or desig-
 nated caregiver, the registered organization:  (i) shall not dispense an

 A. 1617--B                         19
 
 amount greater than a 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 consulting the
 prescription monitoring program registry under this article.
   (c) Medical cannabis 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 cannabis or dosage for the certified patient.
   6.  When  a  registered  organization  sells, delivers, distributes or
 dispenses medical cannabis to a certified patient or designated caregiv-
 er, it shall provide to that individual a safety insert, which  will  be
 developed  by  the registered organization and approved by the executive
 director and include, but not be limited to, information on:
   (a) methods for administering medical cannabis,
   (b) any potential dangers stemming from the use of medical cannabis,
   (c) how to recognize what may be problematic usage of medical cannabis
 and obtain appropriate services or treatment for problematic usage, and
   (d) other information as determined by the executive director.
   7.  Registered organizations shall not be managed by or employ  anyone
 who  has  been  convicted within three years of the date of hire, of any
 felony related to the functions  or  duties  of  operating  a  business,
 except  that  if  the  executive director determines that the manager or
 employee is otherwise suitable to be hired, and hiring  the  manager  or
 employee  would  not  compromise  public  safety, the executive director
 shall conduct a thorough review of the nature of the crime,  conviction,
 circumstances,  and evidence of rehabilitation of the manager or employ-
 ee, and shall evaluate the suitability of the manager or employee  based
 on  the evidence found through the review. In determining which offenses
 are substantially related to the functions  or  duties  of  operating  a
 business,  the  executive director shall include, but not be limited to,
 the following:
   (a) a felony conviction involving fraud, money laundering, forgery and
 other unlawful conduct related to owning and operating a business; and
   (b) a felony conviction for hiring, employing  or  using  a  minor  in
 transporting,  carrying,  selling,  giving  away, preparing for sale, or
 peddling, any  controlled  substance,  or  selling,  offering  to  sell,
 furnishing, offering to furnish, administering, or giving any controlled
 substance to a minor.
   A felony conviction for the sale or possession of drugs, narcotics, or
 controlled  substances  is  not  substantially related. This subdivision
 shall only apply to managers or employees who come into contact with  or
 handle medical cannabis.
   8.  Manufacturing  of  medical  cannabis  by a registered organization
 shall only be done in an indoor, enclosed, secure  facility  located  in
 New  York  state, which may include a greenhouse. The executive director
 shall promulgate regulations establishing requirements for such  facili-
 ties.
   9.  Dispensing  of medical cannabis by a registered organization shall
 only be done in an indoor, enclosed, secure facility located in New York
 state, which may include a  greenhouse.  The  executive  director  shall
 promulgate regulations establishing requirements for such facilities.
   10.  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 article
 including, but not  limited  to,  shipping,  maintenance,  construction,

 A. 1617--B                         20
 
 repair,  and  security,  provided  that  the  person or entity shall not
 perform any function or activity directly involving the planting,  grow-
 ing,  tending,  harvesting, processing, or packaging of cannabis plants,
 medical  cannabis,  or  medical  cannabis products being produced by the
 registered organization; or any other function directly involving  manu-
 facturing  or  retailing  of  medical cannabis. All laws and regulations
 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 executive director may make regulations consist-
 ent with this article relating to contracts  and  parties  to  contracts
 under this subdivision.
   11. A registered organization shall, based on the findings of an inde-
 pendent  laboratory,  provide  documentation  of the quality, safety and
 clinical strength of the medical cannabis manufactured or  dispensed  by
 the registered organization to the office and to any person or entity to
 which the medical cannabis is sold or dispensed.
   12.  A  registered  organization  shall be deemed to be a "health care
 provider" for the purposes of title two-D of article two of  the  public
 health law.
   13.  Medical  cannabis  shall  be  dispensed to a certified patient or
 designated caregiver in a  sealed  and  properly  labeled  package.  The
 labeling  shall  contain: (a) the information required to be included in
 the receipt provided to the certified patient or designated caregiver by
 the registered organization; (b) the packaging date; (c) any  applicable
 date  by  which the medical cannabis should be used; (d) a warning stat-
 ing, "This product is for medicinal use only. Women should  not  consume
 during  pregnancy  or  while  breastfeeding  except on the advice of the
 certifying health care practitioner, and in the  case  of  breastfeeding
 mothers,  including the infant's pediatrician. This product might impair
 the ability to drive. Keep out of reach of children."; (e) the amount of
 individual doses contained within; and (f) a warning  that  the  medical
 cannabis  must  be  kept  in  the  original  container  in  which it was
 dispensed.
   14. The executive director is authorized to make rules and regulations
 restricting the advertising and marketing of medical cannabis.
   § 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  executive  director 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 equip-
 ment 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;

 A. 1617--B                         21
 
   (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 enti-
 ty, shall submit an affidavit with the application setting forth:
   (A)  any  position of management or ownership during the preceding ten
 years of a twenty per centum or greater interest in any other  business,
 located in or outside this state, manufacturing or distributing drugs;
   (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
   (C)  such  other  information as the executive director 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 executive director shall grant a registration or  amendment
 to a registration under this section if he or she is 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 or a service-disabled veteran-owned business;
   (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; and
   (E)  the  affordability  of  medical  cannabis products offered by the
 registered organization;
   (vi) the applicant and its managing officers are of good moral charac-
 ter;
   (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

 A. 1617--B                         22
 
   (viii)  the  applicant satisfies any other conditions as determined by
 the executive director.
   (b)  If  the  executive  director  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 the denial is based.  Within  thirty
 days  of  the  receipt  of such notification, the applicant may submit a
 written request to the executive director to appeal the decision.
   (c) The fee for a registration under this section shall be  an  amount
 determined  by  the  office  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 executive director 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  two  hundred  fifty
 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  executive director 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 office 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 executive director, 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 executive director 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 any substance listed in section thirty-three hundred  six  of
 the public health law.
   (c)  An  applicant  for  renewal  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 circum-
 stance which is required to be included in the application.

 A. 1617--B                         23
 
   (d) If the executive director is not  satisfied  that  the  registered
 organization  applicant is entitled to a renewal of the registration, he
 or she shall within a reasonably practicable time as determined  by  the
 executive director, serve upon the registered organization or its attor-
 ney  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 executive director
 that the registration should be renewed.
   6. (a) The executive director 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  applica-
 ble 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; or
   (iv)  the  applicant has either violated or terminated its labor peace
 agreement.
   (b) For purposes of this section, proof that  a  registered  organiza-
 tion,  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 applica-
 ble state laws relating to the activities in which it engages under  the
 registration,  shall  constitute  grounds for suspension, termination or
 limitation of the registered organization's registration  or  as  deter-
 mined  by the executive director. The registered organization shall also
 be under a continuing duty to  report  to  the  authority  any  material
 change or fact or circumstance to the information provided in the regis-
 tered organization's application.
   7.  The  office  may suspend or terminate the registration of a regis-
 tered organization, on grounds and using procedures under  this  article
 relating  to a license, to the extent consistent with this article.  The
 authority 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. The executive director shall  ensure  that
 such  registered  organizations  and dispensing sites are geographically
 distributed across the state and that their ownership reflects the demo-
 graphics of the state. The executive director shall register  additional
 registered organizations reflecting the demographics of the state.
   §  36. Reports of registered organizations.  1. The executive director
 shall, by regulation,  require  each  registered  organization  to  file
 reports  by  the registered organization during a particular period. The
 executive director shall determine the information to  be  reported  and
 the forms, time, and manner of the reporting.
   2.  The  executive  director shall, by regulation, require each regis-
 tered organization to adopt  and  maintain  security,  tracking,  record
 keeping,  record  retention  and  surveillance  systems, relating to all
 medical cannabis at every stage of acquiring,  possession,  manufacture,

 A. 1617--B                         24
 
 sale,  delivery, transporting, distributing, or dispensing by the regis-
 tered organization, subject to regulations of the executive director.
   §  37. Evaluation; research programs; report by office.  1. The execu-
 tive director may provide for the analysis and evaluation of the  opera-
 tion  of this article.  The executive director may enter into agreements
 with one or more persons, not-for-profit corporations or other organiza-
 tions, for the performance of an evaluation of  the  implementation  and
 effectiveness of this article.
   2.  The  office  may develop, seek any necessary federal approval for,
 and carry out research programs relating to  medical  use  of  cannabis.
 Participation  in  any  such  research program shall be voluntary on the
 part of practitioners, patients, and designated caregivers.
   3. The office shall report every two years, beginning two years  after
 the  effective date of this chapter, to the governor and the legislature
 on the medical use of cannabis under this article and  make  appropriate
 recommendations.
   §  38.  Cannabis  research  license.   1. The executive director shall
 establish a  cannabis  research  license  that  permits  a  licensee  to
 produce, process, purchase and possess cannabis for the following limit-
 ed research purposes:
   (a) to test chemical potency and composition levels;
   (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
 products;
   (c) to conduct research on the efficacy and  safety  of  administering
 cannabis as part of medical treatment; and
   (d) to conduct genomic or agricultural research.
   2. As part of the application process for a cannabis research license,
 an  applicant  must  submit  to the office a description of the research
 that is intended to be conducted as well as the amount of cannabis to be
 grown or purchased. The office  shall  review  an  applicant's  research
 project  and  determine whether it meets the requirements of subdivision
 one of this section. In addition, the office shall assess  the  applica-
 tion 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  human,  animal,  or  other
 approvals in place to successfully conduct the project; and
   (c)  whether  the  amount  of cannabis to be grown or purchased by the
 applicant is consistent with the  project's  scope  and  goals.  If  the
 office  determines  that the research project does not meet the require-
 ments of subdivision one  of  this  section,  the  application  must  be
 denied.
   3. A cannabis research licensee may only sell cannabis grown or within
 its  operation  to  other  cannabis  research  licensees. The office may
 revoke a cannabis research license for violations of this subsection.
   4. A cannabis research licensee may contract with the higher education
 institutions to perform research in conjunction with the university. All
 research projects, entered into under this section must be  approved  by
 the office and meet the requirements of subdivision one of this section.
   5. In establishing a cannabis research license, the executive director
 may adopt regulations on the following:
   (a) application requirements;
   (b)  cannabis research license renewal requirements, including whether
 additional research projects may be added or considered;
   (c) conditions for license revocation;

 A. 1617--B                         25
 
   (d) security measures to ensure cannabis is not diverted  to  purposes
 other than research;
   (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
 cannabis-infused products a licensee may have on its premises;
   (f) licensee reporting requirements;
   (g) conditions under which cannabis grown by licensed cannabis produc-
 ers and other product types from licensed  cannabis  processors  may  be
 donated to cannabis research licensees; and
   (h) any additional requirements deemed necessary by the office.
   6. A cannabis research license issued pursuant to this section must be
 issued  in  the  name of the applicant and specify the location at which
 the cannabis researcher intends to operate, which  must  be  within  the
 state of New York.
   7. The application fee for a cannabis research license shall be deter-
 mined by the executive director on an annual basis.
   8. Each cannabis research licensee shall issue an annual report to the
 office.  The office shall review such report and make a determination as
 to whether the research project continues to meet  the  research  quali-
 fications under this section.
   §  39. Registered organizations and adult-use cannabis.  1. The execu-
 tive director shall have the authority to  grant  some  or  all  of  the
 registered  organizations  registered  with the department of health and
 currently registered and in good standing with the office,  the  ability
 to  be  licensed  to  cultivate, process, or sell adult-use cannabis and
 cannabis products, pursuant to any fees, rules or conditions  prescribed
 by  the executive director in regulation and subject to the restrictions
 on licensed adult-use cultivators and processors on having any ownership
 interest in a licensed adult-use  retail  dispensary  pursuant  to  this
 chapter.
   2.  Prior to granting the licenses provided by subdivision one of this
 section, the office shall assess a  registered  organization  registered
 prior to the enactment of this chapter with a one-time special licensing
 fee  so  that  they  may become authorized to bypass the restrictions on
 having any ownership interest in a licensed adult-use retail dispensary,
 provided that the fees generated from such assessment shall be  used  to
 administer  incubators  and low or zero-interest loans and other assist-
 ance to qualified social equity applicants. The  timing  and  manner  in
 which  registered  organizations  may be granted such authority shall be
 determined by the executive director in regulation.
   § 40. Relation to other laws.  1. The provisions of this article shall
 apply, except that where a provision  of  this  article  conflicts  with
 another provision of this chapter, this article shall apply.
   2. Medical cannabis shall not be deemed to be a "drug" for purposes of
 article one hundred thirty-seven of the education law.
   §  41.  Protections  for  the  medical use of cannabis.   1. Certified
 patients, designated caregivers, designated caregiver facilities,  prac-
 titioners,  registered  organizations  and  the  employees of registered
 organizations, and cannabis researchers 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 cannabis, or for
 any other action or conduct in accordance with this article.
   2. Being a certified patient shall be deemed to be having a "disabili-
 ty" under article fifteen of the executive law, section forty-c  of  the
 civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,

 A. 1617--B                         26
 
 and section 200.50 of the criminal procedure law. This subdivision shall
 not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
 performing  his  or her employment duties while impaired by a controlled
 substance. This subdivision shall not require any person or entity to do
 any  act  that  would  put  the  person or entity in direct violation of
 federal law or cause it to lose a federal contract or funding.
   3. The fact that a person is a  certified  patient  and/or  acting  in
 accordance with this article, shall not be a consideration in a proceed-
 ing  pursuant  to applicable sections of the domestic relations law, the
 social services law and the family court act.
   4. (a) Certification applications, certification forms, any  certified
 patient  information contained within a database, and copies of registry
 identification cards shall be deemed exempt from public disclosure under
 sections eighty-seven and eighty-nine of the public officers law.
   (b) The name, contact information, and other information  relating  to
 practitioners  registered  with  the  office under this article shall be
 public information and shall be maintained by the executive director  on
 the office's website accessible to the public in searchable form. Howev-
 er, if a practitioner notifies the office in writing that he or she does
 not  want  his or her name and other information disclosed, that practi-
 tioner's name and other  information  shall  thereafter  not  be  public
 information  or  maintained  on the office's website, unless the practi-
 tioner cancels the request.
   § 42. Regulations.   The executive  director  shall  promulgate  regu-
 lations  in  consultation  with the cannabis advisory board to implement
 this article.
   § 43. Suspend; terminate.  Based upon the recommendation of the execu-
 tive director and/or the superintendent of state police that there is  a
 risk to the public health or safety, the governor may immediately termi-
 nate all licenses issued to registered organizations.
   § 44. Pricing.  Registered organizations shall submit documentation to
 the executive director of any change in pricing per dose for any medical
 cannabis  product  within fifteen days of such change. Prior approval by
 the executive director shall  not  be  required  for  any  such  change;
 provided however that the executive director is authorized to modify the
 price per dose for any medical cannabis product if necessary to maintain
 public access to appropriate medication.
 
                                 ARTICLE 4
                            ADULT-USE CANNABIS
 Section 60. Licenses issued.
         61. License application.
         62. Information to be requested in applications for licenses.
         63. Fees.
         64. Selection criteria.
         65. Limitations of licensure; duration.
         66. License renewal.
         67. Amendments;  changes  in ownership and organizational struc-
               ture.
         68. Adult-use cultivator license.
         69. Adult-use processor license.
         70. Adult-use cooperative license.
         71. Adult-use distributor license.
         72. Adult-use retail dispensary license.
         73. Micro business license.

 A. 1617--B                         27

         74. Notification to municipalities of adult-use  retail  dispen-
               sary.
         75. On-site  consumption  license;  provisions governing on-site
               consumption licenses.
         76. Record keeping and tracking.
         77. Inspections and ongoing requirements.
         78. Adult-use cultivators, processors or distributors not to  be
               interested in retail dispensaries.
         79. Packaging and labeling of adult-use cannabis products.
         80. Laboratory testing.
         81. Provisions  governing  the  cultivation  and  processing  of
               adult-use cannabis.
         82. Provisions governing the distribution of adult-use cannabis.
         83. Provisions governing adult-use cannabis retail dispensaries.
         84. Adult-use cannabis advertising.
         85. Social and  economic  equity,  minority,  women-owned  busi-
               nesses, and disadvantaged farmers; incubator program.
         86. Regulations.
   §  60.  Licenses  issued.    The  following kinds of licenses shall be
 issued by  the  executive  director  for  the  cultivation,  processing,
 distribution  and sale of cannabis, cannabis producers, and concentrated
 cannabis to cannabis consumers:
   1. Adult-use cultivator license;
   2. Adult-use processor license;
   3. Adult-use cooperative license;
   4. Adult-use distributor license;
   5. Adult-use retail dispensary license;
   6. On-site consumption license;
   7. Microbusiness license;
   8. Delivery license;
   9. Nursery license; and
   10. Any other type of license as prescribed by the executive  director
 in regulation.
   §  61. License Application.  1. Any person may apply to the office for
 a license to cultivate, process, distribute or dispense cannabis  within
 this  state  for sale. Such application shall be in writing and verified
 and shall contain such information as the  office  shall  require.  Such
 application  shall  be  accompanied  by  a check or draft for the amount
 required by this article for such license. If the office  shall  approve
 the  application,  it  shall  issue  a  license in such form as shall be
 determined by its rules. Such license shall contain a description of the
 licensed premises and in form and in substance shall be a license to the
 person therein specifically designated to cultivate, process, distribute
 or dispense cannabis in the premises therein specifically licensed.
   2. Except as otherwise provided in this article,  a  separate  license
 shall  be  required  for each facility at which cultivation, processing,
 distribution or retail dispensing is conducted.
   3. An applicant shall not be denied a license under this article based
 solely on a conviction for a violation of article two hundred twenty  or
 section  240.36  of the penal law, prior to the date article two hundred
 twenty-two of the penal law took effect, or a conviction for a violation
 of article two hundred twenty-two of the penal law after  the  effective
 date of this chapter.
   §  62.  Information  to be requested in applications for licenses.  1.
 The office shall have the authority to prescribe the manner and form  in

 A. 1617--B                         28
 
 which an application must be submitted to the office for licensure under
 this article.
   2.  The executive director is authorized to adopt regulations, includ-
 ing by emergency rule, establishing information which must  be  included
 on an application for licensure under this article. Such information may
 include, but is not limited to:  information about the applicant's iden-
 tity,  including  racial  and ethnic diversity; ownership and investment
 information, including the corporate structure; evidence of  good  moral
 character,  including the submission of fingerprints by the applicant to
 the division of criminal justice services; information about  the  prem-
 ises  to  be  licensed;  financial statements; and any other information
 prescribed by regulation.
   3. All license applications shall be signed by the  applicant  (if  an
 individual),  by  a managing member (if a limited liability company), by
 an officer (if a corporation), or by all partners  (if  a  partnership).
 Each  person  signing  such  application shall verify it or affirm it as
 true under the penalties of perjury.
   4. All license or permit applications shall be accompanied by a check,
 draft or other forms of payment as the office may require  or  authorize
 in the amount required by this article for such license or permit.
   5.  If there be any change, after the filing of the application or the
 granting of a license, in any of the facts required to be set  forth  in
 such application, a supplemental statement giving notice of such change,
 cost and source of money involved in the change, duly verified, shall be
 filed  with  the office within ten days after such change. Failure to do
 so shall, if willful and deliberate, be cause for denial  or  revocation
 of the license.
   6. In giving any notice, or taking any action in reference to a regis-
 tered  organization  or  licensee of a licensed premises, the office may
 rely upon the information furnished  in  such  application  and  in  any
 supplemental  statement connected therewith, and such information may be
 presumed to be correct, and shall be binding upon a registered organiza-
 tions, licensee or licensed premises  as  if  correct.  All  information
 required  to be furnished in such application or supplemental statements
 shall be deemed material in any prosecution for perjury, any  proceeding
 to  revoke,  cancel or suspend any license, and in the office's determi-
 nation to approve or deny the license.
   § 63. Fees. 1. The office shall have the authority  to  charge  appli-
 cants for licensure under this article a non-refundable application fee.
 Such  fee  may  be  based  on  the type of licensure sought, cultivation
 and/or production volume, or any other  factors  deemed  reasonable  and
 appropriate  by  the  office  to  achieve the policy and purpose of this
 chapter.
   2. The office shall have the authority to charge licensees a  biennial
 license  fee.  Such  fee  shall be based on the amount of cannabis to be
 cultivated, processed, distributed and/or dispensed by the  licensee  or
 the gross annual receipts of the licensee for the previous license peri-
 od,  and  any  other  factors  deemed  reasonable and appropriate by the
 office.
   3. The office shall have the authority to waive  or  reduce  fees  for
 social and economic equity applicants.
   §  64.  Selection  criteria.   1. The executive director shall develop
 regulations for determining whether or not an applicant should be grant-
 ed the privilege of an adult-use cannabis license,  based  on,  but  not
 limited to, the following criteria:

 A. 1617--B                         29
 
   (a)  the  applicant will be able to maintain effective control against
 the illegal diversion of cannabis;
   (b)  the  applicant  will  be able to comply with all applicable state
 laws and regulations;
   (c) the applicant and its officers are ready,  willing,  and  able  to
 properly carry on the activities for which a license is sought;
   (d)  the  applicant possesses or has the right to use sufficient land,
 buildings, and equipment to properly carry on the activity described  in
 the application;
   (e) the applicant qualifies as a social equity applicant or sets out a
 plan for benefiting communities and people disproportionally impacted by
 cannabis law enforcement;
   (f)  it is in the public interest that such license be granted, taking
 into consideration, but not limited to, the following criteria:
   (i) that it is a privilege, and not a right,  to  cultivate,  process,
 distribute, and sell cannabis;
   (ii) the number, classes, and character of other licenses in proximity
 to the location and in the particular municipality or subdivision there-
 of;
   (iii)  evidence  that  all  necessary  licenses  and permits have been
 obtained from the state and all other governing bodies;
   (iv) effect of the grant of the license  on  pedestrian  or  vehicular
 traffic, and parking, in proximity to the location;
   (v) the existing noise level at the location and any increase in noise
 level that would be generated by the proposed premises;
   (vi)  the ability to mitigate adverse environmental impacts, including
 but not limited to energy usage and carbon emissions;
   (vii) the effect on the production and availability  of  cannabis  and
 cannabis products; and
   (viii) any other factors specified by law or regulation that are rele-
 vant  to  determine that granting a license would promote public conven-
 ience and advantage and the public interest of the community;
   (g) the applicant and its managing officers are of good moral  charac-
 ter  and  do  not  have  an  ownership  or  controlling interest in more
 licenses or permits than allowed by this chapter;
   (h) 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  licensure. In evaluating applications from entities with twenty-five
 or more employees, the office shall give priority to applicants that are
 a party to a collective bargaining  agreement  with  a  bona-fide  labor
 organization  in  New  York or in another state, and uses union labor to
 construct its licensed facility;
   (i) the applicant will contribute to communities and people dispropor-
 tionately harmed by cannabis law enforcement and report  these  contrib-
 utions to the office;
   (j)  if  the  application  is for an adult-use cultivator or processor
 license, the environmental impact of the facility to be licensed; and
   (k) the applicant satisfies any other conditions as determined by  the
 executive director.
   2.  If  the  executive  director  is  not satisfied that the applicant
 should be issued a license, the  executive  director  shall  notify  the
 applicant in writing of the specific reason or reasons for denial.

 A. 1617--B                         30
 
   3. The executive director shall have the authority to, in consultation
 with  the  cannabis  advisory  board,  determine  the number of licenses
 issued pursuant to this article.
   §  65.  Limitations of licensure; duration.  1. No license of any kind
 may be issued to a person under the age of twenty-one years,  nor  shall
 any licensee employ anyone under the age of twenty-one years.
   2. No licensee shall sell, deliver, or give away or cause or permit or
 procure  to be sold, delivered or given away any cannabis to any person,
 actually or apparently, under the age of  twenty-one  years  unless  the
 person  under twenty-one is also a certified patient and the licensee is
 appropriately licensed under article three of this chapter.
   3. The office shall have the authority  to  limit,  by  canopy,  plant
 count,  square footage or other means, the amount of cannabis allowed to
 be grown, processed, distributed or sold by a licensee.
   4. All licenses under this article shall expire two  years  after  the
 date of issue.
   § 66. License renewal.  1. Each license, issued pursuant to this arti-
 cle,  may  be renewed upon application therefore by the licensee and the
 payment of the fee for such license as prescribed by  this  article.  In
 the  case of applications for renewals, the office may dispense with the
 requirements of such statements as it deems unnecessary in view of those
 contained in the application made for the original license, but  in  any
 event  the  submission  of photographs of the licensed premises shall be
 dispensed with, provided the applicant for such  renewal  shall  file  a
 statement  with  the  office to the effect that there has been no alter-
 ation of such premises since the original license was issued. The office
 may make such rules as it deems necessary, not  inconsistent  with  this
 chapter, regarding applications for renewals of licenses and permits and
 the time for making the same.
   2.  Each  applicant  must  submit  to  the office documentation of the
 racial, ethnic, and gender diversity of the  applicant's  employees  and
 owners  prior  to  a  license being renewed. In addition, the office may
 create a social responsibility framework agreement and make  the  adher-
 ence to such agreement a conditional requirement of license renewal.
   3.  The  office  shall provide an application for renewal of a license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   4. The office may only issue a renewal license  upon  receipt  of  the
 prescribed  renewal  application  and renewal fee from a licensee if, in
 addition to the criteria in this section, the licensee's license is  not
 under suspension and has not been revoked.
   5.  Each  applicant must maintain 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
 licensure. Each applicant must provide  evidence  of  the  execution  of
 their  plan  for benefitting communities and people required for initial
 licensing pursuant to section sixty-four of this article.
   § 67. Amendments; changes in ownership and  organizational  structure.
 1. Licenses issued pursuant to this article shall specify:
   (a) the name and address of the licensee;
   (b) the activities permitted by the license;
   (c)  the  land,  buildings  and  facilities  that  may be used for the
 licensed activities of the licensee;
   (d) a unique license number issued by the office to the licensee; and

 A. 1617--B                         31
 
   (e) such other information as the executive director shall deem neces-
 sary to assure compliance with this chapter.
   2.  Upon  application  of  a  licensee to the office, a license may be
 amended to allow the licensee to relocate within the state,  to  add  or
 delete  licensed  activities or facilities, or to amend the ownership or
 organizational structure of the entity that is the licensee. The  execu-
 tive director shall establish a fee for such amendments.
   3.  A  license shall become void by a change in ownership, substantial
 corporate change or location without prior written approval of the exec-
 utive director. The executive director may promulgate regulations allow-
 ing for certain types of changes in ownership without the need for prior
 written approval.
   4. For purposes of this section, "substantial corporate change"  shall
 mean:
   (a) for a corporation, a change of eighty percent or more of the offi-
 cers  and/or directors, or a transfer of eighty percent or more of stock
 of such corporation, or an existing stockholder obtaining eighty percent
 or more of the stock of such corporation; or
   (b) for a limited liability company, a change  of  eighty  percent  or
 more  of  the  managing  members of the company, or a transfer of eighty
 percent or more of ownership interest in said company,  or  an  existing
 member obtaining a cumulative of eighty percent or more of the ownership
 interest in said company.
   §  68.  Adult-use  cultivator  license.   1. An adult-use cultivator's
 license shall authorize the  acquisition,  possession,  cultivation  and
 sale  of cannabis from the licensed premises of the adult-use cultivator
 by such licensee to duly licensed processors in this state.  The  execu-
 tive  director  may  establish  regulations  allowing licensed adult-use
 cultivators to perform certain types of minimal processing  without  the
 need for an adult-use processor license.
   2. For purposes of this section, cultivation shall include, but not be
 limited  to, the planting, growing, cloning, harvesting, drying, curing,
 grading and trimming of cannabis.
   3. A person holding an adult-use cultivator's license may  apply  for,
 and  obtain,  one processor's license and one distributor's license that
 may only be used to distribute their own cannabis and cannabis products.
   4. A person holding an adult-use cultivator's  license  may  not  also
 hold  a retail dispensary license pursuant to this article and no adult-
 use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
 including  by stock ownership, interlocking directors, mortgage or lien,
 personal or real property, or any other means, in any premises  licensed
 as  an  adult-use cannabis retail dispensary or in any business licensed
 as an adult-use cannabis retail dispensary pursuant to this article.
   5. A person holding an adult-use cultivator's license may not  hold  a
 license  to  distribute  cannabis under this article unless the licensed
 cultivator is also licensed as a processor under this article.
   6. No person may have a direct or indirect  financial  or  controlling
 interest  in  more than one adult-use cultivator license issued pursuant
 to this chapter.
   § 69. Adult-use processor license.   1. A  processor's  license  shall
 authorize  the  acquisition, possession, processing and sale of cannabis
 from the licensed premises of the adult-use cultivator by such  licensee
 to duly licensed distributors.
   2.  For purposes of this section, processing shall include, but not be
 limited to, blending, extracting, infusing, packaging, labeling,  brand-

 A. 1617--B                         32
 
 ing  and  otherwise  making  or  preparing cannabis products. Processing
 shall not include the cultivation of cannabis.
   3. No processor shall be engaged in any other business on the premises
 to  be  licensed;  except  that  nothing contained in this chapter shall
 prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
 utor from operating on the same premises and from a person  holding  all
 three licenses.
   4.  No  cannabis  processor licensee may hold more than three cannabis
 processor licenses.
   5. No adult-use cannabis processor shall have  a  direct  or  indirect
 interest, including by stock ownership, interlocking directors, mortgage
 or  lien, personal or real property, or any other means, in any premises
 licensed as an adult-use cannabis retail dispensary or in  any  business
 licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
 article.
   § 70. Adult-use cooperative license.  1. A cooperative  license  shall
 authorize  the acquisition, possession, cultivation, processing and sale
 from the licensed premises of the adult-use cooperative by such licensee
 to duly licensed distributors, on-site consumption sites, and/or  retail
 dispensaries; but not directly to cannabis consumers.
   2. To be licensed as an adult-use cooperative, the cooperative must:
   (i)  be  comprised  of residents of the state of New York as a limited
 liability company or limited liability partnership under the laws of the
 state, or an appropriate business structure as determined by the  execu-
 tive director;
   (ii) subordinate capital, both as regards control over the cooperative
 undertaking,  and  as  regards  the  ownership of the pecuniary benefits
 arising therefrom;
   (iii) be democratically controlled by the members  themselves  on  the
 basis of one vote per member;
   (iv)  vest  in  and allocate with priority to and among the members of
 all increases arising from their cooperative endeavor in  proportion  to
 the members' active participation in the cooperative endeavor; and
   (v)  the  cooperative  must operate according to the seven cooperative
 principles published by the International Cooperative Alliance in  nine-
 teen hundred ninety-five.
   3.  No  natural  person  shall  be a member of more than one adult-use
 cooperative licensed pursuant to this section.
   4. No natural person or member of an adult-use cooperative license may
 have a direct or indirect financial or controlling interest in any other
 adult-use cannabis license issued pursuant to this chapter.
   5. No adult-use cannabis cooperative shall have a direct  or  indirect
 interest, including by stock ownership, interlocking directors, mortgage
 or  lien, personal or real property, or any other means, in any premises
 licensed as an adult-use cannabis retail dispensary or in  any  business
 licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
 chapter.
   6. The executive director shall promulgate regulations governing coop-
 erative licenses, including, but not limited to,  the  establishment  of
 canopy  limits on the size and scope of cooperative licensees, and other
 measures designed to incentivize the use and licensure of cooperatives.
   § 71. Adult-use distributor license.  1. A distributor's license shall
 authorize the acquisition, possession, distribution and sale of cannabis
 from the licensed premises of a licensed adult-use processor, microbusi-
 ness or registered organization authorized pursuant to this  chapter  to
 sell adult-use cannabis, to duly licensed retail dispensaries.

 A. 1617--B                         33

   2. No distributor shall have a direct or indirect economic interest in
 any adult-use retail dispensary licensed pursuant to this article, or in
 any registered organization registered pursuant to article three of this
 chapter.  This  restriction shall not prohibit a registered organization
 authorized  pursuant  to section thirty-nine of this chapter, from being
 granted  licensure  by  the  office  to  distribute  adult-use  cannabis
 products cultivated and processed by the registered organization only to
 the  registered  organization's own licensed adult-use retail dispensar-
 ies.
   3. Nothing in subdivision two of this section shall prevent a distrib-
 utor from charging an appropriate fee for the distribution of  cannabis,
 including based on the volume of cannabis distributed.
   §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
 license shall authorize the acquisition, possession and sale of cannabis
 from the licensed premises of the retail dispensary by such licensee  to
 cannabis consumers.
   2.  No  person  may have a direct or indirect financial or controlling
 interest in more than three retail dispensary licenses  issued  pursuant
 to this chapter.
   3.  No  person  holding  a  retail dispensary license may also hold an
 adult-use cultivation, processor, microbusiness, cooperative or distrib-
 utor license pursuant to this article.
   4. No retail license shall be granted for  any  premises,  unless  the
 applicant  shall  be  the owner thereof, or shall be able to demonstrate
 possession of the premises within thirty days of initial approval of the
 license through a lease, management agreement or other agreement  giving
 the applicant control over the premises, in writing, for a term not less
 than the license period.
   5. With the exception of microbusiness licensees, no premises shall be
 licensed  to  sell  cannabis  products,  unless  said  premises shall be
 located in a store, the principal entrance to which shall  be  from  the
 street  level and located on a public thoroughfare in premises which may
 be occupied, operated or conducted for business, trade or industry or on
 an arcade or sub-surface thoroughfare leading to a railroad terminal.
   6. No cannabis retail license shall be granted for any premises within
 two hundred feet of a school grounds as such  term  is  defined  in  the
 education law.
   §  73. Microbusiness license. 1. A microbusiness license shall author-
 ize the limited cultivation, processing, distribution and dispensing  of
 adult use cannabis and cannabis products.
   2. A microbusiness licensee may not hold interest in any other license
 and  may  only  distribute  its  own  cannabis  and cannabis products to
 dispensaries.
   3. The size and scope of a microbusiness shall be determined by  regu-
 lation by the executive director in consultation with the cannabis advi-
 sory board.
   §  74.  Notification to municipalities of adult-use retail dispensary.
 1. Not less than thirty days nor more  than  two  hundred  seventy  days
 before  filing  an  application  for  licensure as an adult-use cannabis
 retail dispensary, an applicant shall notify the municipality  in  which
 the  premises  is  located  of  such  applicant's intent to file such an
 application.
   2. Such notification shall be made to the clerk of the  village,  town
 or  city,  as  the  case  may  be,  wherein the premises is located. For
 purposes of this section:

 A. 1617--B                         34

   (a) notification need only be given to the clerk of a village when the
 premises is located within the boundaries of the village; and
   (b)  in the city of New York, the community board established pursuant
 to section twenty-eight hundred of the New York city charter with juris-
 diction over the area in which the premises is located shall be  consid-
 ered the appropriate public body to which notification shall be given.
   3. Such notification shall be made in such form as shall be prescribed
 by the rules of the office.
   4.  A  municipality may express an opinion for or against the granting
 of such application. Any such opinion shall be deemed part of the record
 upon which the office makes its  determination  to  grant  or  deny  the
 application.
   5.  Such  notification  shall  be  made by: (a) certified mail, return
 receipt requested; (b) overnight delivery service with proof of mailing;
 or (c) personal service upon the  offices  of  the  clerk  or  community
 board.
   6.  The office shall require such notification to be on a standardized
 form that can be obtained on the internet or from the  office  and  such
 notification to include:
   (a)  the trade name or "doing business as" name, if any, of the estab-
 lishment;
   (b) the full name of the applicant;
   (c) the street address  of  the  establishment,  including  the  floor
 location or room number, if applicable;
   (d)  the  mailing  address of the establishment, if different than the
 street address;
   (e) the name, address and telephone number of the attorney  or  repre-
 sentative of the applicant, if any;
   (f) a statement indicating whether the application is for:
   (i) a new establishment;
   (ii) a transfer of an existing licensed business;
   (iii) a renewal of an existing license; or
   (iv) an alteration of an existing licensed premises;
   (g)  if  the  establishment is a transfer or previously licensed prem-
 ises, the name of the old establishment and such establishment's  regis-
 tration or license number;
   (h)  in the case of a renewal or alteration application, the registra-
 tion or license number of the applicant; and
   (i) the type of license.
   §  75.  On-site  consumption  license;  provisions  governing  on-site
 consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
 sary shall be granted a cannabis on-site  consumption  license  for  any
 premises,  unless  the applicant shall be the owner thereof, or shall be
 in possession of said premises under a lease, in writing, for a term not
 less than the license period except,  however,  that  such  license  may
 thereafter  be renewed without the requirement of a lease as provided in
 this section. This subdivision shall not apply to premises  leased  from
 government agencies; provided, however, that the appropriate administra-
 tor  of  such government agency provides some form of written documenta-
 tion regarding the terms of occupancy under which the applicant is leas-
 ing said premises from the government agency  for  presentation  to  the
 office  at the time of the license application. Such documentation shall
 include the terms of occupancy between the applicant and the  government
 agency, including, but not limited to, any short-term leasing agreements
 or written occupancy agreements.

 A. 1617--B                         35

   2. No adult-use cannabis retail dispensary shall be granted a cannabis
 on-site  consumption license for any premises within two hundred feet of
 school grounds as such term is defined in the education law.
   3.  The office may consider any or all of the following in determining
 whether public convenience and advantage and the public interest will be
 promoted by the granting of a license for an on-site  cannabis  consump-
 tion at a particular location:
   (a)  that  it  is a privilege, and not a right, to cultivate, process,
 distribute, and sell cannabis;
   (b) the number, classes, and character of other licenses in  proximity
 to the location and in the particular municipality or subdivision there-
 of;
   (c)  evidence  that  all  necessary  licenses  and  permits  have been
 obtained from the state and all other governing bodies;
   (d) whether there is a demonstrated need for spaces to consume  canna-
 bis;
   (e)  effect  of  the  grant  of the license on pedestrian or vehicular
 traffic, and parking, in proximity to the location;
   (f) the existing noise level at the location and any increase in noise
 level that would be generated by the proposed premises; and
   (g) any other factors specified by law or regulation that are relevant
 to determine that granting a license would  promote  public  convenience
 and advantage and the public interest of the community.
   4.  If  the  office  shall  disapprove  an  application for an on-site
 consumption license, it shall state and file in its offices the  reasons
 therefor  and  shall  notify  the  applicant thereof. Such applicant may
 thereupon apply to the office for a review of such action in a manner to
 be prescribed by the rules of the office.
   5. No adult-use cannabis on-site consumption licensee shall keep  upon
 the  licensed  premises  any  adult-use  cannabis  products except those
 purchased from a licensed distributor, adult-use cooperative, or  micro-
 business  authorized  to sell adult-use cannabis, and only in containers
 approved by the office. Such containers shall have affixed thereto  such
 labels  as  may  be  required  by the rules of the office.   No cannabis
 retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
 with,  adulterate,  dilute  or  fortify the contents of any container of
 cannabis products as received from the manufacturer or distributor.
   6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
 give  away, or cause or permit or procure to be sold, delivered or given
 away any cannabis for consumption  on  the  premises  where  sold  in  a
 container or package containing more than one gram of cannabis flower or
 one serving of cannabis infused product.
   7.  Except  where  a  permit  to do so is obtained pursuant to section
 405.10 of the penal law, no cannabis on-site consumption licensee  shall
 suffer,  permit,  or promote an event on its premises wherein any person
 shall use, explode, or cause to explode, any fireworks  or  other  pyro-
 technics  in  a building as defined in paragraph e of subdivision one of
 section 405.10 of the penal law, that is  covered  by  such  license  or
 possess  such fireworks or pyrotechnics for such purpose. In addition to
 any other penalty provided by law, a violation of this subdivision shall
 constitute an adequate ground for instituting a proceeding  to  suspend,
 cancel,  or  revoke  the  license of the violator in accordance with the
 applicable procedures specified in this chapter;  provided  however,  if
 more than one licensee is participating in a single event, upon approval
 by the office, only one licensee must obtain such permit.

 A. 1617--B                         36
 
   8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
 consumption under this chapter shall be permitted to have any opening or
 means of entrance or  passageway  for  persons  or  things  between  the
 licensed premises and any other room or place in the building containing
 the  licensed  premises,  or  any adjoining or abutting premises, unless
 ingress and egress is restricted by an employee, agent of the  licensee,
 or  other  method  approved  by  the office of controlling access to the
 facility.
   9. Each cannabis on-site consumption licensee shall keep and  maintain
 upon the licensed premises, adequate records of all transactions involv-
 ing the business transacted by such licensee which shall show the amount
 of  cannabis products, in an applicable metric measurement, purchased by
 such licensee together with the names, license  numbers  and  places  of
 business  of  the  persons from whom the same were purchased, the amount
 involved in such purchases, as well as the sales  of  cannabis  products
 made  by  such  licensee.  The office is hereby authorized to promulgate
 rules and regulations permitting an on-site licensee  operating  two  or
 more  premises separately licensed to sell cannabis products for on-site
 consumption to inaugurate or retain in this state methods  or  practices
 of  centralized  accounting,  bookkeeping,  control  records, reporting,
 billing, invoicing or payment respecting purchases, sales or  deliveries
 of cannabis products, or methods and practices of centralized receipt or
 storage  of  cannabis  products within this state without segregation or
 earmarking for any such  separately  licensed  premises,  wherever  such
 methods  and  practices  assure  the  availability,  at  such licensee's
 central or main office in this state, of data reasonably needed for  the
 enforcement  of  this  chapter.  Such  records  shall  be  available for
 inspection by any authorized representative of the office.
   10. All retail licensed premises shall be subject to inspection by any
 peace officer, acting pursuant to his or her special duties,  or  police
 officer and by the duly authorized representatives of the office, during
 the  hours  when the said premises are open for the transaction of busi-
 ness.
   11. A cannabis on-site consumption licensee shall not provide cannabis
 products to any person under the age of twenty-one.
   § 76. Record keeping and tracking. 1. The executive director shall, by
 regulation, require each licensee pursuant to this article to adopt  and
 maintain  security,  tracking,  record  keeping,  record  retention  and
 surveillance systems, relating to all cannabis at every stage of acquir-
 ing, possession, manufacture, sale, delivery, transporting,  testing  or
 distributing  by  the  licensee, subject to regulations of the executive
 director.
   2. Every licensee shall keep and maintain upon the  licensed  premises
 adequate  books  and  records of all transactions involving the licensee
 and sale of its products, which shall include, but is  not  limited  to,
 all information required by any rules promulgated by the office.
   3. Each sale shall be recorded separately on a numbered invoice, which
 shall  have  printed  thereon  the number, the name of the licensee, the
 address of the  licensed  premises,  and  the  current  license  number.
 Licensed  producers  shall  deliver  to  the licensed distributor a true
 duplicate invoice stating the name and address  of  the  purchaser,  the
 quantity  purchased,  description  and  the  price of the product, and a
 true, accurate and complete statement of the  terms  and  conditions  on
 which such sale is made.

 A. 1617--B                         37
 
   4. Such books, records and invoices shall be kept for a period of five
 years  and shall be available for inspection by any authorized represen-
 tative of the office.
   5.  Each  adult-use  cannabis  retail  dispensary,  microbusiness, and
 on-site consumption licensee shall keep and maintain upon  the  licensed
 premises,  adequate  records  of all transactions involving the business
 transacted by such licensee which shall show the amount of cannabis,  in
 weight,  purchased  by  such  licensee  together with the names, license
 numbers and places of business of the persons from whom  the  same  were
 purchased,  the  amount involved in such purchases, as well as the sales
 of cannabis made by such licensee.
   § 77. Inspections and ongoing requirements. All licensed or  permitted
 premises,  regardless  of  the  type  of  premises,  shall be subject to
 inspection by the office, by the duly authorized representatives of  the
 office,  by  any  peace  officer  acting  pursuant to his or her special
 duties, or by a police officer, during the hours when the said  premises
 are  open for the transaction of business. The office shall make reason-
 able accommodations so that ordinary business  is  not  interrupted  and
 safety  and security procedures are not compromised by the inspection. A
 person who holds a license or permit must make himself or herself, or an
 agent thereof, available and present for any inspection required by  the
 office.    Such  inspection may include, but is not limited to, ensuring
 compliance by the licensee or permittee with all other applicable build-
 ing codes, fire, health, safety, and governmental regulations, including
 at the municipal, county, and state level.
   § 78. Adult-use cultivators, processors  or  distributors  not  to  be
 interested in retail dispensaries.  1. It shall be unlawful for a culti-
 vator, processor, cooperative or distributor licensed under this article
 to:
   (a)  be  interested  directly  or indirectly in any premises where any
 cannabis product is sold at retail; or in any business devoted wholly or
 partially to the sale of any cannabis product at retail by stock  owner-
 ship,  interlocking  directors, mortgage or lien or any personal or real
 property, or by any other means.
   (b) make, or cause to be made, any loan to any person engaged  in  the
 manufacture or sale of any cannabis product at wholesale or retail.
   (c)  make  any  gift  or  render  any  service of any kind whatsoever,
 directly or indirectly, to any person licensed under this chapter  which
 in  the  judgment  of  the office may tend to influence such licensee to
 purchase the product of such cultivator or processor or distributor.
   (d) enter into any contract with  any  retail  licensee  whereby  such
 licensee  agrees  to confine his sales to cannabis products manufactured
 or sold by one or more such cultivator or  processors  or  distributors.
 Any  such contract shall be void and subject the licenses of all parties
 concerned to revocation for cause.
   2. The provisions of this section  shall  not  prohibit  a  registered
 organization authorized pursuant to section thirty-nine of this chapter,
 from  cultivating,  processing, or selling adult-use cannabis under this
 article, at facilities wholly owned  and  operated  by  such  registered
 organization,  subject  to  any  conditions, limitations or restrictions
 established by the office and this chapter.
   3. The office shall have the power to create rules and regulations  in
 regard to this section.
   §  79.  Packaging  and labeling of adult-use cannabis products. 1. The
 office is hereby authorized to promulgate rules and regulations  govern-
 ing  the  advertising,  branding,  marketing,  packaging and labeling of

 A. 1617--B                         38
 
 cannabis products, sold or possessed for sale in New York state, includ-
 ing rules pertaining to the accuracy of information and rules  restrict-
 ing marketing and advertising to youth.
   2.  Such  regulations  shall include, but not be limited to, requiring
 that:
   (a) packaging  meets  requirements  similar  to  the  federal  "poison
 prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
   (b)  all cannabis-infused products shall have a separate packaging for
 each serving;
   (c) prior to delivery or sale at a  retailer,  cannabis  and  cannabis
 products  shall  be  labeled and placed in a resealable, child-resistant
 package; and
   (d) packages and labels shall not be made to be attractive to minors.
   3. Such regulations shall include requiring labels  warning  consumers
 of  any  potential impact on human health resulting from the consumption
 of cannabis products that shall be affixed to those products when  sold,
 if such labels are deemed warranted by the office.
   4.  Such  rules and regulations shall establish methods and procedures
 for determining serving sizes for cannabis-infused products  and  active
 cannabis  concentration  per  serving  size. Such regulations shall also
 require a nutritional fact panel that incorporates data regarding  serv-
 ing sizes and potency thereof.
   5.  The packaging, sale, marketing, branding, advertising, labeling or
 possession by any licensee  of  any  cannabis  product  not  labeled  or
 offered  in conformity with rules and regulations promulgated in accord-
 ance with this section shall be grounds for the imposition  of  a  fine,
 and/or the suspension, revocation or cancellation of a license.
   §  80.  Laboratory  testing.  1. Every processor of adult-use cannabis
 shall contract with an  independent  laboratory  permitted  pursuant  to
 section  one  hundred  twenty-nine of this chapter, to test the cannabis
 products it produces pursuant to rules and regulations prescribed by the
 office.  The executive director may assign an approved testing laborato-
 ry, which the processor of adult-use cannabis must use.
   2. Adult-use cannabis processors shall make  laboratory  test  reports
 available  to  licensed  distributors  and  retail  dispensaries for all
 cannabis products manufactured by the processor.
   3. Licensed retail dispensaries shall maintain accurate  documentation
 of laboratory test reports for each cannabis product offered for sale to
 cannabis  consumers. Such documentation shall be made publicly available
 by the licensed retail dispensary.
   4. Onsite laboratory testing by  licensees  is  permissible;  however,
 such  testing  shall  not be certified by the office and does not exempt
 the licensee from the requirements of quality  assurance  testing  at  a
 testing laboratory pursuant to this section.
   5.  An  owner of a cannabis laboratory testing permit shall not hold a
 license in any other category within this article and shall not  own  or
 have ownership interest in a registered organization registered pursuant
 to article three of this chapter.
   6.  The  office shall have the authority to require any licensee under
 this article to submit cannabis or cannabis  products  to  one  or  more
 independent laboratories for testing.
   § 81. Provisions governing the cultivation and processing of adult-use
 cannabis.  1.  Cultivation of cannabis must not be visible from a public
 place by normal unaided vision.
   2. No cultivator or processor of adult-use  cannabis  shall  sell,  or
 agree to sell or deliver in the state any cannabis products, as the case

 A. 1617--B                         39
 
 may  be, except in sealed containers containing quantities in accordance
 with size standards pursuant  to  rules  adopted  by  the  office.  Such
 containers  shall have affixed thereto such labels as may be required by
 the rules of the office.
   3.  No  cultivator or processor of adult-use cannabis shall furnish or
 cause to be furnished to any licensee, any exterior  or  interior  sign,
 printed,  painted,  electric  or  otherwise, except as authorized by the
 office. The office may make such rules as it deems  necessary  to  carry
 out the purpose and intent of this subdivision.
   4.  Cultivators  of  adult-use cannabis shall comply with plant culti-
 vation regulations, standards, and guidelines issued by the  office,  in
 consultation  with  the  department  of environmental conservation. Such
 regulations, standards, and guidelines shall be  guided  by  sustainable
 farming  principles  and  practices  such  as organic, regenerative, and
 integrated pest management models, and shall restrict whenever possible,
 the use of pesticides, herbicides, and fungicides  to  those  which  are
 botanical and/or biological.
   5.  No  cultivator  or  processor  of adult-use cannabis, including an
 adult-use cannabis cooperative or microbusiness may offer any incentive,
 payment or other benefit to a licensed  cannabis  retail  dispensary  in
 return for carrying the cultivator, processor, cooperative or microbusi-
 ness products, or preferential shelf placement.
   6.  All  cannabis  products shall be processed in accordance with good
 manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
 Federal Regulations, as may be modified by  the  executive  director  in
 regulation.
   7. No processor of adult-use cannabis shall produce any product which,
 in  the  discretion of the office, is designed to appeal to anyone under
 the age of twenty-one years.
   8. The use or integration of alcohol or nicotine in cannabis  products
 is strictly prohibited.
   § 82. Provisions governing the distribution of adult-use cannabis.  1.
 No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
 products, as the case may be, in any container, except in a sealed pack-
 age. Such containers shall have affixed thereto such labels  as  may  be
 required by the rules of the office.
   2. No distributor shall deliver any cannabis products, except in vehi-
 cles  owned  and  operated by such distributor, or hired and operated by
 such distributor from a trucking or  transportation  company  registered
 with the office, and shall only make deliveries at the licensed premises
 of the purchaser.
   3.  Each  distributor  shall keep and maintain upon the licensed prem-
 ises, adequate books and records of all transactions involving the busi-
 ness transacted by such distributor, which  shall  show  the  amount  of
 cannabis products purchased by such distributor together with the names,
 license numbers and places of business of the persons from whom the same
 was  purchased and the amount involved in such purchases, as well as the
 amount of cannabis products sold by such distributor together  with  the
 names,  addresses,  and  license  numbers  of such purchasers. Each sale
 shall be recorded separately on a numbered  invoice,  which  shall  have
 printed thereon the number, the name of the licensee, the address of the
 licensed  premises,  and  the  current  license number. Such distributor
 shall deliver to the purchaser a true duplicate invoice stating the name
 and address  of  the  purchaser,  the  quantity  of  cannabis  products,
 description  by  brands  and  the price of such cannabis products, and a
 true, accurate and complete statement of the  terms  and  conditions  on

 A. 1617--B                         40
 
 which  such sale is made. Such books, records and invoices shall be kept
 for a period of five years and shall be available for inspection by  any
 authorized representative of the office.
   4. No distributor shall furnish or cause to be furnished to any licen-
 see, any exterior or interior sign, printed, painted, electric or other-
 wise, unless authorized by the office.
   5.  No  distributor  shall  provide  any  discount, rebate or customer
 loyalty program to any licensed retailer, except as otherwise allowed by
 the office.
   6. The executive director  is  authorized  to  promulgate  regulations
 establishing  a  maximum  margin  for  which a distributor may mark up a
 cannabis product for sale to a retail dispensary. Any adult-use cannabis
 product sold by a distributor for more than the maximum  markup  allowed
 in regulation, shall be unlawful.
   7.  Each  distributor  shall keep and maintain upon the licensed prem-
 ises, adequate books and records to demonstrate the distributor's actual
 cost of doing business, using accounting standards and methods regularly
 employed in the determination of costs for the purpose of federal income
 tax reporting, for the total operation  of  the  licensee.  Such  books,
 records  and invoices shall be kept for a period of five years and shall
 be available for inspection by  any  authorized  representative  of  the
 office  for  use in determining the maximum markup allowed in regulation
 pursuant to subdivision six of this section.
   § 83. Provisions governing adult-use cannabis retail dispensaries.  1.
 No cannabis retail licensee shall sell, deliver, or give away  or  cause
 or permit or procure to be sold, delivered or given away any cannabis to
 any person, actually or apparently, under the age of twenty-one years.
   2.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
 have or possess a license or permit to sell alcoholic beverages, on  the
 same premises where cannabis products are sold.
   3.  No  sign of any kind printed, painted or electric, advertising any
 brand shall be permitted on the exterior or interior of  such  premises,
 except by permission of the office.
   4.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
 products to any person with knowledge of, or with  reasonable  cause  to
 believe,  that the person to whom such cannabis products are being sold,
 has acquired the same for the purpose of selling or giving them away  in
 violation of the provisions of this chapter or in violation of the rules
 and regulations of the office.
   5.  All  premises  licensed  under  this  section  shall be subject to
 inspection by any peace officer described in subdivision four of section
 2.10 of the criminal procedure law acting pursuant to his or her special
 duties, or police officer or any duly authorized representative  of  the
 office,  during the hours when the said premises are open for the trans-
 action of business.
   6. No cannabis retail licensee shall be interested, directly or  indi-
 rectly, in any cultivator, processor, distributor or microbusiness oper-
 ator licensed pursuant to this article, by stock ownership, interlocking
 directors,  mortgage  or lien on any personal or real property or by any
 other means. Any lien, mortgage or other interest  or  estate,  however,
 now held by such retailer on or in the personal or real property of such
 manufacturer  or  distributor,  which mortgage, lien, interest or estate
 was acquired on or before December thirty-first, two thousand  eighteen,
 shall  not  be  included  within  the  provisions  of  this subdivision;
 provided, however, the burden of establishing the time of the accrual of
 the interest comprehended by this subdivision, shall be upon the  person

 A. 1617--B                         41
 
 who claims to be entitled to the protection and exemption afforded here-
 by.
   7. No cannabis retail licensee shall make or cause to be made any loan
 to  any person engaged in the cultivation, processing or distribution of
 cannabis pursuant to this article.
   8. Each cannabis retail licensee shall designate  the  price  of  each
 item  of  cannabis  by  attaching to or otherwise displaying immediately
 adjacent to each such item displayed in the  interior  of  the  licensed
 premises where sales are made a price tag, sign or placard setting forth
 the price at which each such item is offered for sale therein.
   9. No person licensed to sell cannabis products at retail, shall allow
 or  permit any gambling, or offer any gambling on the licensed premises,
 or allow or permit illicit drug activity on the licensed  premises.  The
 use of the licensed premises or any part thereof for the sale of lottery
 tickets,  when duly authorized and lawfully conducted thereon, shall not
 constitute gambling within the meaning of this subdivision.
   10. If an employee of a  cannabis  retail  licensee  suspects  that  a
 cannabis  consumer  may  be  abusing  cannabis,  such  an employee shall
 encourage such cannabis consumer to  seek  help  from  a  substance  use
 disorder  program  or harm reduction services. Cannabis retail licensees
 shall develop standard operating procedures and  written  materials  for
 employees  to  utilize  when  consulting  consumers for purposes of this
 subdivision.
   11. The executive director is  authorized  to  promulgate  regulations
 governing  licensed  adult-use  dispensing facilities, including but not
 limited to, the hours of operation, size and location  of  the  licensed
 facility, potency and types of products offered and establishing a mini-
 mum  margin for which a retail dispensary must markup a cannabis product
 or products before selling to a cannabis consumer. Any adult-use  canna-
 bis product sold by a retail dispensary for less than the minimum markup
 allowed in regulation, shall be unlawful.
   § 84. Adult-use cannabis advertising.  1. The office is hereby author-
 ized  to  promulgate rules and regulations governing the advertising and
 marketing of licensed cannabis and any cannabis products or services.
   2. The office shall promulgate explicit rules prohibiting  advertising
 that:
   (a) is false, deceptive, or misleading;
   (b) promotes overconsumption;
   (c) depicts consumption by children or other minors;
   (d) is designed in any way to appeal to children or other minors;
   (e)  is  within two hundred feet of the perimeter of a school grounds,
 playground, child care center, public park, or library;
   (f) is within two hundred feet of  school  grounds  as  such  term  is
 defined in section 220.00 of the penal law;
   (g) is in public transit vehicles and stations;
   (h) is in the form of an unsolicited internet pop-up;
   (i) is on publicly owned or operated property; or
   (j)  makes medical claims or promotes adult-use cannabis for a medical
 or wellness purpose.
   3. The office shall promulgate explicit rules prohibiting all  market-
 ing  strategies and implementation including, but not limited to, brand-
 ing, packaging, labeling, location of cannabis retailers, and advertise-
 ments that are designed to:
   (a) appeal to persons less then twenty-one years of age; or
   (b) disseminate false or misleading information to customers.
   4. The office shall promulgate explicit rules requiring that:

 A. 1617--B                         42
 
   (a) all advertisements and marketing accurately and  legibly  identify
 the licensee or other business responsible for its content; and
   (b)  any  broadcast,  cable,  radio,  print and digital communications
 advertisements only be placed where the audience is reasonably  expected
 to  be  twenty-one  years  of  age  or older, as determined by reliable,
 up-to-date audience composition data.
   § 85. Social and economic equity, minority and women-owned businesses,
 and disadvantaged farmers; incubator  program.    1.  The  office  shall
 implement  a social and economic equity plan and actively promote appli-
 cants from communities disproportionately impacted by cannabis  prohibi-
 tion,  and  promote  racial,  ethnic,  and gender diversity when issuing
 licenses for adult-use cannabis related activities, including by  prior-
 itizing  consideration of applications by applicants who are from commu-
 nities disproportionately impacted by the enforcement of cannabis prohi-
 bition or  who  qualify  as  a  minority  or  women-owned  business,  or
 disadvantaged  farmers.  Such  qualifications shall be determined by the
 office in regulation.
   2. The office shall create  a  social  and  economic  equity  plan  to
 promote  diversity  in  ownership  and employment, and opportunities for
 social and economic equity in the adult-use cannabis industry and ensure
 inclusion of:
   (a) individuals from communities disproportionately  impacted  by  the
 enforcement of cannabis prohibition;
   (b) minority-owned businesses;
   (c) women-owned businesses;
   (d)  minority  and women-owned businesses, as defined in paragraph (d)
 of subdivision five of this section; and
   (e) disadvantaged farmers, as defined  in  subdivision  five  of  this
 section.
   3.  The  social  and  economic  equity  plan shall consider additional
 criteria in its licensing determinations. Under the social and  economic
 equity  plan,  extra  weight  shall be given to applications that demon-
 strate that an applicant:
   (a) is a member of a  community  disproportionately  impacted  by  the
 enforcement of cannabis prohibition;
   (b)  has  an  income lower than eighty percent of the median income of
 the county in which the applicant resides; and
   (c) was convicted of a cannabis-related offense prior to the effective
 date of this chapter, or had  a  parent,  guardian,  child,  spouse,  or
 dependent,  or was a dependent of an individual who, prior to the effec-
 tive date of this chapter, was convicted of a cannabis-related offense.
   4. The office shall also create an incubator program to provide direct
 support to social and economic equity applicants  to  achieve  and  upon
 having  been  granted licenses. The program shall provide direct support
 in the form of counseling services, education, small business  coaching,
 and compliance assistance.
   5.  For  the purposes of this section, the following definitions shall
 apply:
   (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
 including  a sole proprietorship, partnership, limited liability company
 or corporation that is:
   (i) at least fifty-one percent owned by one  or  more  minority  group
 members;
   (ii)  an enterprise in which such minority ownership is real, substan-
 tial and continuing;

 A. 1617--B                         43
 
   (iii) an enterprise in which such minority ownership has and exercises
 the authority to control independently the day-to-day business decisions
 of the enterprise;
   (iv)  an  enterprise authorized to do business in this state and inde-
 pendently owned and operated; and
   (v) an enterprise that is a small business.
   (b) "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:
   (i)  black  persons  having origins in any of the black African racial
 groups;
   (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
 Central  or  South American of either Indian or Hispanic origin, regard-
 less of race;
   (iii) Native American or Alaskan native persons having origins in  any
 of the original peoples of North America; or
   (iv)  Asian  and Pacific Islander persons having origins in any of the
 far east countries, south east Asia,  the  Indian  subcontinent  or  the
 Pacific islands.
   (c) "women-owned business" shall mean a business enterprise, including
 a  sole proprietorship, partnership, limited liability company or corpo-
 ration that is:
   (i) at least fifty-one percent owned by  one  or  more  United  States
 citizens or permanent resident aliens who are women;
   (ii)  an  enterprise  in which the ownership interest of such women is
 real, substantial and continuing;
   (iii) an enterprise in which such women ownership  has  and  exercises
 the authority to control independently the day-to-day business decisions
 of the enterprise;
   (iv)  an  enterprise authorized to do business in this state and inde-
 pendently owned and operated; and
   (v) an enterprise that is a small business.
   (d) a firm owned by a minority group member who is also a woman may be
 defined as a minority-owned business, a women-owned business, or both.
   (e) "disadvantaged farmer" shall mean a New  York  state  resident  or
 business  enterprise,  including  a  sole  proprietorship,  partnership,
 limited liability company or corporation, that  has  reported  at  least
 two-thirds  of  its  federal  gross income as income from farming, in at
 least one of the past five preceding tax years, and who:
   (i) farms in a county that has greater than ten percent rate of pover-
 ty according to the latest U.S.  Census  Bureau's  American  Communities
 Survey;
   (ii)  has  been disproportionately impacted by low commodity prices or
 faces the loss of farmland through development or suburban sprawl; and
   (iii) meets any other qualifications as defined in regulation  by  the
 office.
   (f)  "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 office
 shall,  in  consultation  with the cannabis advisory board, issue guide-
 lines to determine how to assess which communities have been  dispropor-
 tionately  impacted and how to assess if someone is a member of a commu-
 nity disproportionately impacted.

 A. 1617--B                         44
 
   6. The office shall actively promote applicants  that  foster  racial,
 ethnic, and gender diversity in their workforce.
   7. Licenses issued under the social and economic equity plan shall not
 be  transferable  except  to qualified social and economic equity appli-
 cants and only upon prior written approval of the executive director.
   8. The office shall collect demographic data on owners  and  employees
 in the adult-use cannabis industry and shall annually publish such data.
   §  86.  Regulations.    The  executive director shall promulgate regu-
 lations in consultation with the cannabis advisory  board  to  implement
 this article.
 
                                 ARTICLE 5
                               HEMP EXTRACT
 Section 90. Definitions.
         91. Rulemaking authority.
         92. Cannabinoid related hemp extract licensing.
         93. Cannabinoid grower licenses.
         94. Cannabinoid manufacturer license.
         95. Cannabinoid extractor license.
         96. Cannabinoid license applications.
         97. Information to be requested in applications for licenses.
         98. Fees.
         99. Selection criteria.
         100. Limitations of licensure; duration.
         101. License renewal.
         102. Form of license.
         103. Amendments  to  license  and  duty  to  update  information
                submitted for licensing.
         104. Record keeping and tracking.
         105. Inspections and ongoing requirements.
         106. Packaging and labeling of hemp extract.
         107. Provisions  governing  the   growing,   manufacturing   and
                extracting of hemp extract.
         108. Laboratory testing.
         109. Advertising.
         110. Research.
         111. Regulations.
         112. Cannabinoid permit.
         113. New York hemp product.
         114. Penalties and violations of this article.
         115. Hemp workgroup.
         116. Prohibitions.
   §  90.  Definitions.  Wherever  used  in this article unless otherwise
 expressly stated or unless the context  or  subject  matter  requires  a
 different  meaning,  the  following  terms shall have the representative
 meanings hereinafter set forth or indicated:
   1. "Applicant" means a for-profit entity or not-for-profit corporation
 and includes board members who submit an application to become a  licen-
 see.
   2.  "Hemp  extract"  means any product made or derived from industrial
 hemp, including the seeds thereof and all derivatives whether growing or
 not, with a delta-9-tetrahydrocannabinol concentration of not more  than
 an  amount  of  the plant Cannabis sativa L. and any part of such plant,
 including the seeds thereof and all derivatives, extracts, cannabinoids,
 isomers, acids, salts, and salts of isomers,  whether  growing  or  not,
 with  a  delta-9-tetrahydrocannabinol  concentration of not more than an

 A. 1617--B                         45
 
 amount determined by the office in  regulation,  used  or  intended  for
 human  or  animal  consumption  or  use  for its cannabinoid content, as
 determined by the office in regulation. Hemp extract excludes industrial
 hemp  used  or  intended exclusively for an industrial purpose and those
 food and/or food ingredients that are generally recognized  as  safe  by
 the department of agriculture and markets, and shall not be regulated as
 hemp extract within the meaning of this article.
   3.  "Cannabinoid grower" means a person licensed by the office, and in
 compliance with this article to acquire, possess,  cultivate,  and  sell
 hemp extract for its cannabinoid content.
   4. "Cannabinoid manufacturer" means a person licensed by the office to
 acquire, possess, and manufacture hemp extract from licensed cannabinoid
 growers  or  cannabinoid extractors for the manufacture and sale of hemp
 extract products marketed for cannabinoid content and used  or  intended
 for human or animal consumption or use.
   5.  "Cannabinoid  extractor"  means a person licensed by the office to
 acquire, possess, extract and manufacture  hemp  extract  from  licensed
 cannabinoid  growers  for  the  manufacture  and  sale  of  hemp extract
 products marketed for cannabinoid content and used or intended for human
 or animal consumption or use.
   6. "License" means a license issued pursuant to this article.
   7. "Industrial hemp" means the plant Cannabis sativa L. and  any  part
 of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
 extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
 whether  growing  or  not,  with  a delta-9-tetrahydrocannabinol concen-
 tration of not more than 0.3 percent on a dry weight basis.
   § 91. Rulemaking authority. 1. The office  shall  perform  such  acts,
 prescribe  such  forms and propose such rules, regulations and orders as
 it may deem necessary or proper to fully effectuate  the  provisions  of
 this article.
   2. In consultation with the cannabis advisory board and the hemp work-
 group,  the office shall have the power to promulgate any and all neces-
 sary rules and regulations governing the production, processing,  trans-
 portation,  distribution,  and  sale  of hemp extract, including but not
 limited to the licensing of cannabinoid growers, manufacturers,  extrac-
 tors and retailers, including, but not limited to:
   (a) prescribing forms and establishing application, reinstatement, and
 renewal fees;
   (b)  the  qualifications  and  selection  criteria  for  licensing, or
 permitting;
   (c) limitations on the number of licenses to be awarded;
   (d) the books and records to be created and maintained  by  licensees,
 and  permittees, including the reports to be made thereon to the office,
 and inspection of any and all books and records maintained by any licen-
 see, or permittee, and on the premises of any licensee or permittee;
   (e) methods of producing,  processing,  and  packaging  hemp  extract;
 conditions  of  sanitation,  and  standards of ingredients, quality, and
 identity of hemp extract products cultivated,  processed,  packaged,  or
 sold by licensees; and
   (f) hearing procedures and additional causes for cancellation, revoca-
 tion,  and/or  civil penalties against any person licensed, or permitted
 by the office.
   3. The office, in consultation with the  department  of  environmental
 conservation  and  the  New  York  state energy research and development
 agency, shall promulgate necessary rules and regulations  governing  the

 A. 1617--B                         46
 
 safe  production  of  hemp  extract,  including environmental and energy
 standards.
   § 92. Cannabinoid related hemp extract licensing.  1. Persons growing,
 processing,  extracting,  and/or manufacturing hemp extract or producing
 hemp extract products distributed,  sold  or  marketed  for  cannabinoid
 content  and  used  or  intended for human or animal consumption or use,
 shall be required to obtain the following license or licenses  from  the
 office, depending upon the operation:
   (a) cannabinoid grower license;
   (b) cannabinoid manufacturer license;
   (c) cannabinoid extractor license.
   2.  Notwithstanding  subdivision  one  of  this section, those persons
 growing, processing or  manufacturing  food  or  food  ingredients  from
 industrial  hemp  pursuant to article twenty-nine of the agriculture and
 markets law which food or food ingredients are generally  recognized  as
 safe, shall be subject to regulation and/or licensing by the office.
   §  93.  Cannabinoid grower licenses. 1. A cannabinoid grower's license
 authorizes the acquisition, possession, cultivation  and  sale  of  hemp
 extract  grown or used for its cannabinoid content on the licensed prem-
 ises of the grower.
   2. A person holding a cannabinoid grower's license shall not sell hemp
 extract products marketed,  distributed  or  sold  for  its  cannabinoid
 content  and  intended  for  human consumption or use without also being
 licensed as a manufacturer or extractor  pursuant  to  this  article  or
 otherwise permitted pursuant to section ninety-two of this article.
   3.  Persons growing industrial hemp pursuant to article twenty-nine of
 the agriculture and markets law are not authorized to and shall not sell
 hemp extract for human or animal consumption or use, other than as  food
 or  a  food  ingredient  that  has  been generally recognized as safe in
 accordance with the office and determined by the state to  be  safe  for
 human  consumption  as  food  or  a  food  ingredient without also being
 licensed as a manufacturer or extractor  pursuant  to  this  article  or
 otherwise permitted pursuant to section ninety-two of this article.
   4.  A  person  authorized under article twenty-nine of the agriculture
 and markets law as an industrial hemp grower may apply for a cannabinoid
 grower license provided he or she can demonstrate to the office that its
 cultivation of industrial hemp  meets  all  the  requirements  for  hemp
 extract cultivated under a cannabinoid grower license.
   §  94. Cannabinoid manufacturer license. 1. A cannabinoid manufacturer
 license authorizes the licensee's acquisition, possession, and  manufac-
 ture  of  hemp extract from a licensed cannabinoid grower or cannabinoid
 extractor for the processing of hemp extract or the production  of  hemp
 extract  products  marketed, distributed or sold for cannabinoid content
 and used or intended for human or animal consumption or use.
   2. Notwithstanding subdivision one  of  this  section,  nothing  shall
 prevent  a  cannabinoid  manufacturer from manufacturing industrial hemp
 products not used or intended for human or animal consumption or use.
   § 95. Cannabinoid extractor  license.    1.  A  cannabinoid  extractor
 license  authorizes  the  licensee's acquisition, possession, extraction
 and manufacture of hemp extract from a licensed cannabinoid  grower  for
 the  processing  of  hemp  extract  or  the  production  of hemp extract
 products marketed, distributed or sold for cannabinoid content and  used
 or intended for human or animal consumption or use.
   2.  No  cannabinoid extractor licensee shall engage in any other busi-
 ness on the licensed premises; except that  nothing  contained  in  this

 A. 1617--B                         47
 
 article  shall  prevent a cannabinoid extractor licensee from also being
 licensed as a cannabinoid grower on the same premises.
   3.  Notwithstanding  subdivisions one and two of this section, nothing
 shall prevent a cannabinoid extractor from manufacturing industrial hemp
 products not used or intended for human or animal consumption or use.
   4. A person authorized under article twenty-nine  of  the  agriculture
 and  markets  law  as  an  industrial hemp processor shall qualify for a
 cannabinoid extractor license provided it can demonstrate to the  office
 that  its  extraction  of industrial hemp meets all the requirements for
 hemp extract under a cannabinoid extractor license.
   § 96. Cannabinoid license applications. 1. Persons shall apply  for  a
 cannabinoid  grower  license,  cannabinoid manufacturer license and/or a
 cannabinoid extractor license by submitting an application upon  a  form
 supplied  by  the office, providing all the requested information, veri-
 fied by the applicant or an authorized representative of the applicant.
   2. A separate license shall be required for  each  facility  at  which
 growing, manufacturing and/or extracting is conducted.
   3.  Each  applicant  shall remit with its application the fee for each
 office requested license.
   § 97. Information to be requested in applications for licenses. 1. The
 office shall have the authority to prescribe  the  manner  and  form  in
 which an application must be submitted to the office for licensure under
 this article.
   2.  The executive director is authorized to adopt regulations pursuant
 to the state administrative procedure act establishing information which
 must be included on an application for  licensure  under  this  article.
 Such  information may include, but is not limited to:  information about
 the applicant's identity, including racial and ethnic diversity;  infor-
 mation  about  prior  use of farmland; ownership and investment informa-
 tion, including the corporate structure; evidence of good moral  charac-
 ter,  including  the  submission of fingerprints by the applicant to the
 division of criminal justice services; information about the premises to
 be licensed; financial statements; and any other information  prescribed
 in regulation.
   3.  All  license  applications shall be signed by the applicant (if an
 individual), by a managing partner (if a limited liability corporation),
 by an officer (if a corporation), or by all partners (if a partnership).
 Each person signing such application shall verify it as true  under  the
 penalties of perjury.
   4. All license or permit applications shall be accompanied by a check,
 draft  or  other forms of payment as the office may require or authorize
 in the amount required by this article for such license or permit.
   5. If there be any change, after the filing of the application or  the
 granting  of  a license, in any of the facts required to be set forth in
 such application, a supplemental statement giving notice of such change,
 cost and source of money involved in the change, duly verified, shall be
 filed with the office within ten days after such change. Failure  to  do
 so  shall,  if  willful  and  deliberate, be cause for revocation of the
 license.
   6. In giving any notice, or taking any action in reference to a licen-
 see of a licensed premises, the office may  rely  upon  the  information
 furnished   in  such  application  and  in  any  supplemental  statement
 connected therewith, and such information may be presumed to be correct,
 and shall be binding upon a licensee or licensed premises as if correct.
 All information required to be furnished in such application or  supple-
 mental statements shall be deemed material in any prosecution for perju-

 A. 1617--B                         48
 
 ry,  any proceeding to revoke, cancel or suspend any license, and in the
 office's determination to approve or deny the license.
   7.  The  office may, upon documentation therefor, waive the submission
 of any category of information described in this section for any catego-
 ry of license or permit, provided that it  shall  not  be  permitted  to
 waive the requirement for submission of any such category of information
 solely for an individual applicant or applicants.
   §  98. Fees. The office shall have the authority to charge licensees a
 biennial license fee. Such fee may  be  based  on  the  amount  of  hemp
 extract  to be grown, processed, manufactured or extracted by the licen-
 see, the gross annual receipts of the licensee for the previous  license
 period, or any other factors deemed appropriate by the office.
   § 99. Selection criteria. 1. An applicant shall furnish evidence:
   (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol
 concentration  that  does not exceed a percentage of delta-9-tetrahydro-
 cannabinol cannabis set by the executive director on a dry weight  basis
 of  combined  leaves  and flowers of the plant of the genus cannabis, or
 per volume or weight of cannabis product;
   (b) its ability to comply with all applicable  state  laws  and  regu-
 lations;
   (c) that the applicant is ready, willing and able to properly carry on
 the activities for which a license is sought; and
   (d)  that  the  applicant  is in possession of or has the right to use
 land, buildings and equipment sufficient to properly carry on the activ-
 ity described in the application.
   2. The office, in considering whether to grant  the  license  applica-
 tion, shall consider whether:
   (a)  it is in the public interest that such license be granted, taking
 into consideration whether the number of licenses will  be  adequate  or
 excessive to reasonably serve demand;
   (b)  the applicant and its managing officers are of good moral charac-
 ter and do not  have  an  ownership  or  controlling  interest  in  more
 licenses or permits than allowed by this chapter;
   (c) preference shall be given to applicants that are currently farming
 in  the  state  and  are eligible or currently receiving an agricultural
 assessment pursuant to article twenty-five-AA  of  the  agriculture  and
 markets law; and
   (d)  the applicant satisfies any other conditions as determined by the
 office.
   3. If the executive director  is  not  satisfied  that  the  applicant
 should  be  issued  a  license,  the executive director shall notify the
 applicant in writing of the specific reason or reasons for denial.
   4. The executive director shall have authority and sole discretion  to
 determine the number of licenses issued pursuant to this article.
   §  100.  Limitations of licensure; duration. 1. No license pursuant to
 this article may be issued to a person under the age of eighteen years.
   2. The office shall have the authority  to  limit,  by  canopy,  plant
 count  or  other  means, the amount of hemp extract allowed to be culti-
 vated, processed, extracted or sold by a licensee.
   3. All licenses under this article shall expire two  years  after  the
 date  of  issue and be subject to any rules or limitations prescribed by
 the executive director in regulation.
   § 101. License renewal. 1. Each license, issued pursuant to this arti-
 cle, may be renewed upon application therefor by the  licensee  and  the
 payment of the fee for such license as prescribed by this article.

 A. 1617--B                         49
 
   2.  In  the case of applications for renewals, the office may dispense
 with the requirements of such statements as it deems unnecessary in view
 of those contained in the application made for the original license, but
 in any event the submission of  photographs  of  the  licensed  premises
 shall  be  dispensed with, provided the applicant for such renewal shall
 file a statement with the office to the effect that there  has  been  no
 alteration of such premises since the original license was issued.
   3.  The office may make such rules as may be necessary, not inconsist-
 ent with this chapter, regarding applications for renewals  of  licenses
 and permits and the time for making the same.
   4.  The  office  shall provide an application for renewal of a license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   5. The office may only issue a renewal license  upon  receipt  of  the
 prescribed  renewal  application  and renewal fee from a licensee if, in
 addition to the criteria in section ninety-seven of  this  article,  the
 licensee's license is not under suspension and has not been revoked.
   6. The office shall have the authority to charge applicants for licen-
 sure  under  this article a non-refundable application fee. Such fee may
 be based on the type of licensure sought, cultivation and/or  production
 volume,  or  any  other factors deemed reasonable and appropriate by the
 office to achieve the policy and purpose of this chapter.
   § 102. Form of license. Licenses issued pursuant to this article shall
 specify:
   1. the name and address of the licensee;
   2. the activities permitted by the license;
   3. the land, buildings  and  facilities  that  may  be  used  for  the
 licensed activities of the licensee;
   4.  a  unique license number issued by the department to the licensee;
 and
   5. such other information as the executive director shall deem  neces-
 sary to assure compliance with this chapter.
   §  103. Amendments to license and duty to update information submitted
 for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
 license  may  be  amended  to  allow the licensee to relocate within the
 state, to add or delete licensed activities or facilities, or  to  amend
 the  ownership  or  organizational  structure  of the entity that is the
 licensee. The fee for such amendment shall be two hundred fifty dollars.
   2. In the event that any of the information provided by the  applicant
 changes  either while the application is pending or after the license is
 granted, within ten days of any such change, the applicant  or  licensee
 shall submit to the office a verified statement setting forth the change
 in circumstances of facts set forth in the application. Failure to do so
 shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
 license.
   3. A license shall become void by a change in  ownership,  substantial
 corporate change or location without prior written approval of the exec-
 utive  director.    The  executive  director  may promulgate regulations
 allowing for certain types of changes in ownership without the need  for
 prior written approval.
   4.  For purposes of this section, "substantial corporate change" shall
 mean:
   (a) for a corporation, a change of eighty percent or more of the offi-
 cers and/or directors, or a transfer of eighty percent or more of  stock
 of such corporation, or an existing stockholder obtaining eighty percent
 or more of the stock of such corporation; and

 A. 1617--B                         50
 
   (b)  for  a  limited  liability company, a change of eighty percent or
 more of the managing members of the company, or  a  transfer  of  eighty
 percent  or  more  of ownership interest in said company, or an existing
 member obtaining a cumulative of eighty percent or more of the ownership
 interest in said company.
   §  104.  Record keeping and tracking. 1. The executive director shall,
 by regulation, require each licensee pursuant to this article  to  adopt
 and  maintain  security,  tracking, record keeping, record retention and
 surveillance systems, relating to all hemp extract  at  every  stage  of
 acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
 distribution by the licensee, subject to regulations  of  the  executive
 director.
   2.  Every licensee shall keep and maintain upon the licensed premises,
 adequate books and records of all transactions  involving  the  licensee
 and  sale  of its products, which shall include all information required
 by rules promulgated by the office.
   3. Each sale shall be recorded separately on a numbered invoice, which
 shall have printed thereon the number, the name  of  the  licensee,  the
 address of the licensed premises, and the current license number.
   4. Such books, records and invoices shall be kept for a period of five
 years  and shall be available for inspection by any authorized represen-
 tative of the office.
   § 105. Inspections and ongoing requirements. All  licensees  shall  be
 subject to reasonable inspection by the office, in consultation with the
 department of health, and a person who holds a license must make himself
 or  herself,  or  an  agent  thereof,  available  and  present  for  any
 inspection required by the office.  The  office  shall  make  reasonable
 accommodations  so  that ordinary business is not interrupted and safety
 and security procedures are not compromised by the inspection.
   § 106. Packaging and labeling of  hemp  extract.  1.  The  office,  in
 consultation  with the department of health, is authorized to promulgate
 rules and regulations governing  the  packaging  and  labeling  of  hemp
 extract products, sold or possessed for sale in New York state.
   2.  Such  regulations  shall include, but not be limited to, requiring
 labels warning consumers of any potential impact on human health result-
 ing from the consumption of hemp extract products that shall be  affixed
 to  those products when sold, if such labels are deemed warranted by the
 office. No label may state that hemp extract can treat, cure or  prevent
 any disease without approval pursuant to federal law.
   3.  Such  rules and regulations shall establish a QR code which may be
 used in conjunction with similar technology  for  labels  and  establish
 methods  and  procedures  for  determining,  among other things, serving
 sizes for hemp extract products, active  cannabinoid  concentration  per
 serving  size, number of servings per container, and the growing region,
 state or country of origin if not from the  United  States.  Such  regu-
 lations  shall  also  require  a supplement fact panel that incorporates
 data regarding serving sizes and potency thereof.
   4. The packaging, sale, or possession by  any  licensee  of  any  hemp
 product  intended  for human or animal consumption or use not labeled or
 offered in conformity with rules and regulations promulgated in  accord-
 ance  with  this  section shall be grounds for the imposition of a fine,
 and/or the suspension, revocation or cancellation of a license.
   § 107. Provisions governing the growing, manufacturing and  extracting
 of  hemp  extract.  1.  No  licensed cannabinoid grower, manufacturer or
 extractor shall sell, or agree to sell or deliver in the state any  hemp
 extract  products,  as  the  case  may  be,  except in sealed containers

 A. 1617--B                         51
 
 containing quantities in accordance  with  size  standards  pursuant  to
 rules  adopted by the office. Such containers shall have affixed thereto
 such labels as may be required by the rules of the office.
   2.  Licensed cannabinoid growers shall be prohibited from using pesti-
 cides.
   3. All hemp extract products shall be extracted  and  manufactured  in
 accordance  with  good  manufacturing processes, pursuant to Part 111 or
 117 of Title 21 of the Code of Federal Regulations as  may  be  modified
 and decided upon by the executive director in regulation.
   4.  Within  thirty  days  of  the  effective date of this article, the
 office shall approve the manufacture, distribution, and sale of beverag-
 es containing no more than twenty milligrams of cannabidiol  per  twelve
 ounce  beverage. The hemp extract used in such beverages shall be grown,
 extracted and manufactured in the state of New York.  The  office  shall
 issue guidance on the label, warning, point of sale, and advertising for
 such beverages.
   5.  Terpenes  derived  from the hemp plant are generally recognized as
 safe.
   6.  Those persons growing, processing or manufacturing  food  or  food
 ingredients  from  hemp  extracts,  which  food  or food ingredients are
 generally recognized as safe, shall  be  subject  to  regulation  and/or
 licensing under this article.
   7.  Notwithstanding  any  other  provision  of  law  to  the contrary,
 prepackaged beverages that contain hemp or any part of the  hemp  plant,
 including the seeds and all naturally occurring cannabinoids, compounds,
 concentrates,  extracts,  isolates,  terpenes,  resins,  isomers, acids,
 salts, salts of isomers or cannabiodiol derivatives, are not  considered
 to  be  adulterated or misbranded under this article based solely on the
 inclusion of hemp or any part of the hemp plant as long as the amount of
 cannabidiol is limited to twenty  milligrams  per  serving.  The  office
 shall  allow  cannabidiol  in  food products and have the power to alter
 amounts in beverages on the basis of scientific evidence connected  with
 health effects.
   8.  The nonpharmaceutical or nonmedical production, marketing, sale or
 distribution of beverages, food or food products within the  state  that
 contain  hemp  or  any  part  of the hemp plant may not be restricted or
 prohibited within the state based solely on the inclusion of hemp or any
 part of the hemp plant.
   9. A beverage and/or food producer may not  make  any  claims  that  a
 beverage,  food  or  food  product that contains hemp can treat, cure or
 prevent any disease without approval pursuant to federal law.
   § 108. Laboratory  testing.  1.  Every  cannabinoid  manufacturer  and
 cannabinoid  extractor  shall contract with an independent laboratory to
 test the hemp extract products produced by the licensed manufacturer  or
 extractor. The executive director, in consultation with the commissioner
 of  health, shall approve the laboratory and require that the laboratory
 report testing results in a manner determined by the executive director.
 The executive director is authorized to issue regulations requiring  the
 laboratory to perform certain tests and services.
   2.  Cannabinoid  manufacturers  and  cannabinoid extractors shall make
 laboratory test reports  available  to  persons  holding  a  cannabinoid
 permit  pursuant  to  section one hundred twelve of this article for all
 cannabis products manufactured by the licensee.
   3. On-site laboratory testing by licensees  is  permissible;  however,
 such  testing  shall  not be certified by the office and does not exempt

 A. 1617--B                         52
 
 the licensee from the requirements of quality  assurance  testing  at  a
 testing laboratory pursuant to this section.
   §  109. Advertising. The office shall promulgate rules and regulations
 governing the advertising of hemp extract and any other related products
 or services as determined by the executive director.
   § 110. Research. 1. The office shall promote research and  development
 through public-private partnerships to bring new hemp extract and indus-
 trial hemp derived products to market within the state.
   2.  The executive director may develop and carry out research programs
 which may include programs at the New York state college of  agriculture
 and life sciences, pursuant to section fifty-seven hundred twelve of the
 education  law  and/or  New  York state university research institutions
 relating to industrial hemp and hemp extract.
   § 111. Regulations. The executive director shall in consultation  with
 the  cannabis  advisory  board  and  the hemp workgroup promulgate regu-
 lations pursuant to the state administrative procedure act to  implement
 this article.
   §  112.  Cannabinoid  permit. The office is hereby authorized to issue
 cannabinoid permits to retailers, wholesalers, and distributors  author-
 izing  them  to  sell  cannabis  products derived from hemp extract. The
 executive director shall have the authority to set fees for such permit,
 to establish the period during which such permit is authorized,  and  to
 make  rules  and regulations, including emergency regulations, to imple-
 ment this section.
   § 113. New York hemp product. The executive director may establish and
 adopt official grades and standards for hemp extract  and  hemp  extract
 products as he or she may deem advisable, which are produced for sale in
 this  state  and, from time to time, may amend or modify such grades and
 standards.
   § 114. Penalties and violations of this article.  Notwithstanding  the
 provision  of  any  law  to the contrary, the failure to comply with the
 requirements of this article,  the  rules  and  regulations  promulgated
 thereunder,  may  be  punishable by a fine of not more than one thousand
 dollars for a first violation; not more than five thousand dollars for a
 second violation; and not more than ten thousand  dollars  for  a  third
 violation and each subsequent violation thereafter.
   § 115. Hemp workgroup. The executive director shall appoint a New York
 state  industrial hemp and hemp extract workgroup, composed of research-
 ers, producers, processors, manufacturers  and  trade  associations,  to
 make  recommendations for the industrial hemp and hemp extract programs,
 state and federal policies and policy initiatives, and opportunities for
 the promotion and marketing of  industrial  hemp  and  hemp  extract  as
 consistent  with  federal  and  state laws, rules and regulations, which
 workgroup shall continue for such time as the executive  director  deems
 appropriate.
   §  116.  Prohibitions. Except as authorized in this article, the manu-
 facturing of hemp extract  for  human  or  animal  consumption  and  the
 distribution  and/or sale thereof is prohibited in this state unless the
 manufacturer is licensed under this article. Hemp extract  and  products
 derived  therefrom for human and animal consumption produced outside the
 state shall not be distributed or sold in this state  unless  they  meet
 all standards and requirements established for such product manufactured
 in  the state under this article and its rules and regulations as deter-
 mined by the office.

 A. 1617--B                         53

                                 ARTICLE 6
                            GENERAL PROVISIONS
 
 Section 125. General prohibitions and restrictions.
         126. License  to  be confined to premises licensed; premises for
                which no license shall be granted; transporting cannabis.
         127. Protections for the use  of  cannabis;  unlawful  discrimi-
                nations prohibited.
         128. Registrations and licenses.
         129. Laboratory testing permits.
         130. Special use permits.
         131. Professional and medical record keeping.
         132. Local opt-out; municipal control and preemption.
         133. Personal cultivation.
         134. Executive   director  to  be  necessary  party  to  certain
                proceedings.
         135. Penalties for violation of this chapter.
         136. Revocation  of  registrations,  licenses  and  permits  for
                cause; procedure for revocation or cancellation.
         137. Lawful actions pursuant to this chapter.
         138. Review by courts.
         139. Illicit cannabis.
         140. Persons  forbidden  to  traffic cannabis; certain officials
                not to be interested in manufacture or sale  of  cannabis
                products.
         141. Access to criminal history information through the division
                of criminal justice services.
         142. Severability.
   §  125.  General  prohibitions  and restrictions.   1. No person shall
 cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
 retail  any cannabis, cannabis product, medical cannabis or hemp extract
 product within the state without obtaining the appropriate registration,
 license, or permit therefor required by this chapter.
   2. No registered organization, licensee, or permittee shall  sell,  or
 agree  to sell or deliver in this state any cannabis or hemp extract for
 the purposes of resale  to  any  person  who  is  not  duly  registered,
 licensed  or permitted pursuant to this chapter to sell such product, at
 wholesale or retail, as the case may be, at the time of  such  agreement
 and sale.
   3. No registered organization, licensee, or permittee shall employ, or
 permit  to  be  employed, or shall allow to work, on any premises regis-
 tered or licensed for retail sale hereunder, any person under the age of
 twenty-one years in any capacity where the duties of such person require
 or permit such person to sell, dispense or handle cannabis.
   4. No registered organization,  licensee,  or  permittee  shall  sell,
 deliver  or give away, or cause, permit or procure to be sold, delivered
 or given away any cannabis, cannabis product,  or  medical  cannabis  on
 credit; except that a registered organization, licensee or permittee may
 accept  third  party credit cards for the sale of any cannabis, cannabis
 product, or medical cannabis for which it  is  registered,  licensed  or
 permitted  to  dispense  or sell to patients or cannabis consumers. This
 includes, but is not limited to, any consignment sale of any kind.
   5. No registered organization, licensee, or permittee shall  cease  to
 be  operated  as  a  bona fide or legitimate premises within the contem-
 plation of the registration, license, or permit issued  for  such  prem-
 ises, as determined within the judgment of the office.

 A. 1617--B                         54

   6.  No  registered  organization, licensee, or permittee shall refuse,
 nor any person holding a registration, license, or  permit  refuse,  nor
 any  officer  or  director  of any corporation or organization holding a
 registration, license, or permit refuse, to appear and/or testify  under
 oath  at  an  inquiry or hearing held by the office, with respect to any
 matter bearing upon the registration, license, or permit, the conduct of
 any people at the licensed premises, or bearing upon  the  character  or
 fitness  of  such registrant, licensee, or permittee to continue to hold
 any registration, license, or permit. Nor shall any of the  above  offer
 false testimony under oath at such inquiry or hearing.
   7.  No  registered  organization, licensee, or permittee shall engage,
 participate in, or aid or abet any violation or provision of this  chap-
 ter, or the rules or regulations of the office.
   8.  The  proper conduct of registered, licensed, or permitted premises
 is essential to the public interest. Failure of a  registered  organiza-
 tion,  licensee,  or permittee to exercise adequate supervision over the
 registered, licensed, or permitted location poses a substantial risk not
 only to the objectives of this chapter but imperils the health,  safety,
 and  welfare  of the people of this state. It shall be the obligation of
 each person registered, licensed, or permitted  under  this  chapter  to
 ensure  that  a high degree of supervision is exercised over any and all
 conduct at any registered, licensed, or permitted location  at  any  and
 all times in order to safeguard against abuses of the privilege of being
 registered,  licensed, or permitted, as well as other violations of law,
 statute, rule, or regulation. Persons registered, licensed, or permitted
 shall be held strictly accountable for any and all violations that occur
 upon any registered, licensed, or permitted premises, and  for  any  and
 all  violations  committed  by  or  permitted  by  any manager, agent or
 employee of such registered, licensed, or permitted person.
   9. It shall be unlawful for any  person,  partnership  or  corporation
 operating  a place for profit or pecuniary gain, with a capacity for the
 assemblage of twenty or more persons to permit a person  or  persons  to
 come  to  the place of assembly for the purpose of cultivating, process-
 ing, distributing, or retail distribution or sale of  cannabis  on  said
 premises. This includes, but is not limited, to, cannabis that is either
 provided  by the operator of the place of assembly, his agents, servants
 or employees, or cannabis that is brought  onto  said  premises  by  the
 person or persons assembling at such place, unless an appropriate regis-
 tration,  license,  or permit has first been obtained from the office of
 cannabis management by the operator of said place of assembly.
   10. As it is a privilege under the law to be registered, licensed,  or
 permitted  to  cultivate,  process,  distribute,  or  sell cannabis, the
 office may impose any such further  restrictions  upon  any  registrant,
 licensee,  or permittee in particular instances as it deems necessary to
 further state policy and best serve the public interest. A violation  or
 failure  of any person registered, licensed, or permitted to comply with
 any condition, stipulation, or agreement, upon which  any  registration,
 license, or permit was issued or renewed by the office shall subject the
 registrant,  licensee, or permittee to suspension, cancellation, revoca-
 tion, and/or civil penalties as determined by the office.
   11. No adult-use cannabis or medical cannabis may be imported  to,  or
 exported  out  of, New York state by a registered organization, licensee
 or person holding a license and/or  permit  pursuant  to  this  chapter,
 until  such  time  as  it  may  become legal to do so under federal law.
 Should it become legal to do so under federal law, the office is granted

 A. 1617--B                         55
 
 the power to promulgate such rules and regulations as it deems necessary
 to protect the public and the policy of the state.
   12.  No  registered organization, licensee or any of its agents, serv-
 ants or employees shall sell any cannabis product, or  medical  cannabis
 from  house to house by means of a truck or otherwise, where the sale is
 consummated and delivery made concurrently at the residence or place  of
 business of a cannabis consumer. This subdivision shall not prohibit the
 delivery  by  a  registered  organization to certified patients or their
 designated caregivers, pursuant to article three of this chapter.
   13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
 purpose of receiving an order from a certified patient, designated care-
 giver or cannabis consumer for any cannabis product, or medical cannabis
 at  the  residence  or  place  of business of such patient, caregiver or
 consumer, nor shall any licensee receive or accept any  order,  for  the
 sale  of any cannabis product, or medical cannabis which shall be solic-
 ited at the residence or place of business of a  patient,  caregiver  or
 consumer.  This  subdivision  shall  not  prohibit the solicitation by a
 distributor of an order from any licensee at the  licensed  premises  of
 such licensee.
   § 126. License to be confined to premises licensed; premises for which
 no  license shall be granted; transporting cannabis.  1. A registration,
 license, or permit issued to any person, pursuant to this  chapter,  for
 any  registered, licensed, or permitted premises shall not be transfera-
 ble to any other person, to any other location or premises,  or  to  any
 other  building or part of the building containing the licensed premises
 except in the discretion of the office. All privileges  granted  by  any
 registration,  license,  or permit shall be available only to the person
 therein specified, and only for  the  premises  licensed  and  no  other
 except  if  authorized  by  the  office.    Provided,  however, that the
 provisions of this section shall not be deemed to prohibit the amendment
 of a registration  or  license  as  provided  for  in  this  chapter.  A
 violation  of  this  section shall subject the registration, license, or
 permit to revocation for cause.
   2. Where a registration or license for premises has been revoked,  the
 office in its discretion may refuse to issue a registration, license, or
 permit  under  this chapter, for a period of up to five years after such
 revocation, for such premises or for any part of the building containing
 such premises and connected therewith.
   3. In determining whether to issue such a proscription against  grant-
 ing  any  registration, license, or permit for such five-year period, in
 addition to any other factors deemed relevant to the office, the  office
 shall,  in  the  case  of  a  license revoked due to the illegal sale of
 cannabis to a minor, determine whether the proposed subsequent  licensee
 has  obtained such premises through an arm's length transaction, and, if
 such transaction is not found to be an  arm's  length  transaction,  the
 office shall deny the issuance of such license.
   4. For purposes of this section, "arm's length transaction" shall mean
 a  sale  of  a  fee  of all undivided interests in real property, lease,
 management agreement, or other agreement giving  the  applicant  control
 over  the  cannabis  at  the  premises, or any part thereof, in the open
 market, between an informed and willing buyer and seller  where  neither
 is under any compulsion to participate in the transaction, unaffected by
 any unusual conditions indicating a reasonable possibility that the sale
 was  made  for  the purpose of permitting the original licensee to avoid
 the effect of the revocation. The following sales shall be presumed  not
 to  be  arm's  length  transactions  unless  adequate  documentation  is

 A. 1617--B                         56
 
 provided demonstrating that the sale, lease,  management  agreement,  or
 other  agreement  giving  the applicant control over the cannabis at the
 premises, was not conducted, in whole or in part,  for  the  purpose  of
 permitting the original licensee to avoid the effect of the revocation:
   (a) a sale between relatives;
   (b) a sale between related companies or partners in a business; or
   (c) a sale, lease, management agreement, or other agreement giving the
 applicant  control  over the cannabis at the premises, affected by other
 facts or circumstances that would indicate that the sale, lease, manage-
 ment agreement, or other agreement giving the applicant control over the
 cannabis at the premises, is entered into for  the  primary  purpose  of
 permitting the original licensee to avoid the effect of the revocation.
   5.  No  registered organization, licensee or permittee shall transport
 cannabis products or medical cannabis except in vehicles owned and oper-
 ated by such registered organization, licensee or  permittee,  or  hired
 and operated by such registered organization, licensee or permittee from
 a  trucking  or transportation company permitted and registered with the
 office.
   6. No common carrier or person operating a transportation facility  in
 this  state,  other than the United States government, shall receive for
 transportation or delivery within the state  any  cannabis  products  or
 medical cannabis unless the shipment is accompanied by copy of a bill of
 lading,  or  other document, showing the name and address of the consig-
 nor, the name and address of the consignee, the date  of  the  shipment,
 and  the  quantity  and  kind  of  cannabis products or medical cannabis
 contained therein.
   § 127. Protections for the use of cannabis;  unlawful  discriminations
 prohibited.   1. No person, registered organization, licensee or permit-
 tee, employees, or their agents shall be subject to arrest, prosecution,
 or penalty in any manner, or denied any right  or  privilege,  including
 but  not limited to civil liability or disciplinary action by a business
 or occupational or professional licensing board or  office,  solely  for
 conduct  permitted  under  this chapter. For the avoidance of doubt, the
 appellate division of the supreme court of the state of  New  York,  and
 any disciplinary or character and fitness committees established by them
 are occupational and professional licensing boards within the meaning of
 this  section. State or local law enforcement agencies shall not cooper-
 ate with or provide assistance to the government of the United States or
 any agency thereof in enforcing the federal  controlled  substances  act
 solely for actions consistent with this chapter, except as pursuant to a
 valid court order.
   2.  No school or landlord may refuse to enroll or lease to and may not
 otherwise penalize a person solely for conduct allowed under this  chap-
 ter, except as exempted:
   (a)  if  failing to do so would cause the school or landlord to lose a
 monetary or licensing related benefit under federal law or regulations;
   (b) if the institution has  adopted  a  code  of  conduct  prohibiting
 cannabis use on the basis of religious belief; or
   (c)  if  a property is registered with the New York smoke-free housing
 registry, it is not required to permit the smoking of cannabis  products
 on its premises.
   3.  For  the  purposes of medical care, including organ transplants, a
 certified patient's authorized use of medical cannabis must  be  consid-
 ered  the equivalent of the use of any other medication under the direc-
 tion of a practitioner and does not constitute the  use  of  an  illicit

 A. 1617--B                         57
 
 substance  or  otherwise disqualify a registered qualifying patient from
 medical care.
   4.  It  is  the  public  policy  of  the state of New York to prohibit
 employers from discriminating against  employees  for  legal  activities
 occurring outside of the workplace. Nothing in this section shall inter-
 fere  with  an  employer's obligation to provide a safe and healthy work
 place, free from recognized hazards, as required by  state  and  federal
 occupation  safety  and  health law or require an employer to commit any
 act that would cause the employer to be in violation of any other feder-
 al law, or that would result in the loss of a federal contract or feder-
 al funding.
   5. For the purposes of this  section,  an  employer  may  consider  an
 employee's  ability to perform the employee's job responsibilities to be
 impaired when the employee manifests specific articulable symptoms while
 working that decrease or lessen the employee's performance of the duties
 or tasks of the employee's job position.
   6. Nothing in this section shall restrict  an  employer's  ability  to
 prohibit  or take adverse employment action for the possession or use of
 intoxicating substances during work hours, or  require  an  employer  to
 commit  any  act  that  would  cause  the employer to be in violation of
 federal law, or that would result in the loss of a federal  contract  or
 federal funding.
   7. As used in this section, "adverse employment action" means refusing
 to  hire  or employ, barring or discharging from employment, requiring a
 person to retire from employment, or discriminating against  in  compen-
 sation or in terms, conditions, or privileges of employment.
   8.  A  person  currently under parole, probation or other state super-
 vision, or released on bail awaiting trial may not be punished or other-
 wise penalized for conduct allowed under this chapter.
   9. No person may be denied custody of or visitation or parenting  time
 with  a minor, and there is no presumption of neglect or child endanger-
 ment for conduct allowed under section 222.05 of the penal  law,  unless
 the  person's  behavior  creates an unreasonable danger to the safety of
 the minor as established by  clear  and  convincing  evidence.  For  the
 purposes  of this section, an "unreasonable danger" determination cannot
 be based solely on whether, when, and how often a person  uses  cannabis
 without separate evidence of harm.
   §  128.  Registrations  and  licenses.   1. No registration or license
 shall be transferable or  assignable  except  that  notwithstanding  any
 other provision of law, the registration or license of a sole proprietor
 converting  to  corporate  form,  where such proprietor becomes the sole
 stockholder and only officer and director of such new  corporation,  may
 be  transferred  to  the subject corporation if all requirements of this
 chapter remain the same with respect to such registration or license  as
 transferred  and, further, the registered organization or licensee shall
 transmit to the office, within ten  days  of  the  transfer  of  license
 allowable  under  this  subdivision, on a form prescribed by the office,
 notification of the transfer of such license.
   2. No registration or license shall be pledged or deposited as collat-
 eral security for any loan or upon any other  condition;  and  any  such
 pledge or deposit, and any contract providing therefor, shall be void.
   3.  Licenses  issued  under this chapter shall contain, in addition to
 any further information or material to be prescribed by the rules of the
 office, the following information:
   (a) name of the person to whom the license is issued;

 A. 1617--B                         58
 
   (b) type of license and what type  of  cannabis  commerce  is  thereby
 permitted;
   (c)  description by street and number, or otherwise, of licensed prem-
 ises; and
   (d) a statement in substance that such license shall not be  deemed  a
 property  or vested right, and that it may be revoked at any time pursu-
 ant to law.
   § 129. Laboratory testing permits. 1.  The  executive  director  shall
 approve and permit one or more independent cannabis testing laboratories
 to test medical cannabis, adult-use cannabis and/or hemp extract.
   2. To be permitted as an independent cannabis laboratory, a laboratory
 must  apply  to  the office, on a form and in a manner prescribed by the
 office, and must demonstrate the following to the  satisfaction  of  the
 executive director:
   (a) the owners and directors of the laboratory are of good moral char-
 acter;
   (b)  the laboratory and its staff has the skills, resources and exper-
 tise needed to accurately and consistently perform all  of  the  testing
 required for adult-use cannabis, medical cannabis and/or hemp extract;
   (c)  the  laboratory has in place and will maintain adequate policies,
 procedures, and facility security to ensure proper:  collection,  label-
 ing, accessioning, preparation, analysis, result reporting, disposal and
 storage of adult-use cannabis, and/or medical cannabis;
   (d) the laboratory is physically located in New York state;
   (e)  the  laboratory  has  been  approved  by the department of health
 pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
 lations, pertaining to laboratories performing  environmental  analysis;
 and
   (f)  the  laboratory meets any and all requirements prescribed by this
 chapter and by the executive director in regulation.
   3. The owner of a laboratory testing permit under this  section  shall
 not  hold  a registration or license in any category of this chapter and
 shall not have any direct or indirect ownership interest in such  regis-
 tered  organization  or  licensee.  No  board  member, officer, manager,
 owner, partner, principal stakeholder or member of a  registered  organ-
 ization or licensee under this chapter, or such person's immediate fami-
 ly  member,  shall  have  an interest or voting rights in any laboratory
 testing permittee.
   4. The executive director shall require that the permitted  laboratory
 report  testing results to the office in a manner, form and timeframe as
 determined by the executive director.
   5. The executive director is  authorized  to  promulgate  regulations,
 requiring permitted laboratories to perform certain tests and services.
   6. A laboratory granted a laboratory testing permit under this chapter
 shall  not required to be licensed by the federal drug enforcement agen-
 cy.
   § 130. Special use permits.  The office is hereby authorized to  issue
 the  following  kinds  of  permits for carrying on activities consistent
 with the policy and purpose of this chapter with  respect  to  cannabis.
 The  executive  director  has  the authority to set fees for all permits
 issued pursuant to this section, to establish the periods  during  which
 permits  are  authorized,  and  to make rules and regulations, including
 emergency regulations, to implement this section.
   1. Industrial cannabis permit - to purchase cannabis from one  of  the
 entities  licensed  by the office for use in the manufacture and sale of
 any of the following, when such cannabis is not otherwise  suitable  for

 A. 1617--B                         59
 
 consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
 (b) scientific, chemical, mechanical and industrial products; or (c) any
 other industrial use as determined by the executive  director  in  regu-
 lation.
   2.  Trucking  permit  - to allow for the trucking or transportation of
 cannabis products, or medical cannabis by a person other than  a  regis-
 tered organization or licensee under this chapter.
   3.  Warehouse  permit - to allow for the storage of cannabis, cannabis
 products, or medical cannabis at a location not otherwise registered  or
 licensed by the office.
   4.  Cannabinoid permit - to sell cannabinoid products for off-premises
 consumption.
   5. Temporary retail cannabis permit - to authorize the retail sale  of
 adult-use cannabis to cannabis consumers, for a limited purpose or dura-
 tion.
   6. Caterer's permit - to authorize the service of cannabis products at
 a  function, occasion or event in a hotel, restaurant, club, ballroom or
 other premises, which shall authorize within  the  hours  fixed  by  the
 office,  during  which  cannabis  may  lawfully be sold or served on the
 premises in which such function, occasion or event is held.
   7. Packaging permit - to authorize a licensed cannabis distributor  to
 sort,  package,  label  and  bundle  cannabis  products from one or more
 registered organizations or licensed processors, on the premises of  the
 licensed  cannabis  distributor or at a warehouse for which a permit has
 been issued under this section.
   8. Miscellaneous permits - to  purchase,  receive  or  sell  cannabis,
 cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
 contracts or other documents pertaining to cannabis, cannabis  products,
 or  medical  cannabis, in cases not expressly provided for by this chap-
 ter, when in the judgment of the office  it  would  be  appropriate  and
 consistent with the policy and purpose of this chapter.
   §  131.  Professional  and  medical record keeping.   Any professional
 providing services in connection with a licensed or potentially licensed
 business under this chapter, or in connection with other conduct permit-
 ted under this chapter, and any medical professional  providing  medical
 care  to a patient, other than a certified patient, may agree with their
 client or patient to maintain no record, or any reduced level of  record
 keeping  that  professional  and client or patient may agree. In case of
 such agreement, the professional's only obligation shall be to keep such
 records as agreed, and to keep a record of the agreement.  Such  reduced
 record keeping is conduct permitted under this chapter.
   §  132.  Local  opt-out;  municipal  control  and preemption.   1. The
 provisions of article four of this chapter, authorizing the cultivation,
 processing, distribution and sale  of  adult-use  cannabis  to  cannabis
 consumers,  shall  not  be  applicable to a town, city or village which,
 after a mandatory referendum held pursuant to  section  twenty-three  of
 the  municipal  home rule law, adopts a local law to prohibit the estab-
 lishment or operation of one or more  types  of  licenses  contained  in
 article  four of this chapter, within the jurisdiction of the town, city
 or village. Provided, however, that any town law shall apply to the area
 of the town outside of any village within such town.
   2. Except as provided for in subdivision  one  of  this  section,  all
 county,  town,  city  and  village governing bodies are hereby preempted
 from adopting any rule, ordinance, regulation or prohibition  pertaining
 to  the  operation  or  licensure of registered organizations, adult-use
 cannabis licenses or hemp licenses.  However,  municipalities  may  pass

 A. 1617--B                         60
 
 local  laws  and  ordinances  governing  the  time,  place and manner of
 licensed adult-use cannabis retail dispensaries, provided such ordinance
 or regulation does not  make  the  operation  of  such  licensed  retail
 dispensaries  unreasonably  impracticable as determined by the executive
 director in consultation with the cannabis advisory board.
   § 133. Personal cultivation. 1. Notwithstanding any provision  of  law
 to  the  contrary,  a person over the age of twenty-one shall be able to
 plant, cultivate, harvest, dry or  process  cannabis  for  personal  use
 subject to the following restrictions:
   (a)  all  cultivation  and processing shall be done in accordance with
 local ordinances; and
   (b) the living plants and any  cannabis  produced  by  the  plants  in
 excess  of  three  ounces must be kept within the person's private resi-
 dence, or upon the grounds  of  that  private  residence  (e.g.,  in  an
 outdoor  garden  area),  in  a  locked  space, and not visible by normal
 unaided vision from a public place; and
   (c) not more than  six  living  plants  may  be  planted,  cultivated,
 harvested, dried or processed within a single private residence, or upon
 the grounds of that private residence, at one time.
   2.  A  town,  city  or  village  may  enact and enforce regulations to
 reasonably regulate the actions and conduct under this section.    Regu-
 lations  may  not  completely  prohibit persons engaging in conduct made
 lawful under subdivision one of this section.
   3. A violation of subdivision one of this section  is  a  misdemeanor,
 punishable  under section 222.10 of the penal law and subject to a local
 fine of not more than one hundred dollars.
   §  134.  Executive  director  to  be  necessary   party   to   certain
 proceedings.    The  executive  director  shall  be  made a party to all
 actions and proceedings affecting in any manner the ability of a  regis-
 tered  organization or licensee to operate within a municipality, or the
 result of any vote thereupon; to all actions and proceedings relative to
 issuance or revocation of registrations, licenses  or  permits;  to  all
 injunction  proceedings,  and  to all other civil actions or proceedings
 which in any manner affect the enjoyment of the privileges or the opera-
 tion of the restrictions provided for in this chapter.
   § 135. Penalties for violation of this chapter.   1.  Any  person  who
 cultivates  for  sale  or  sells cannabis, cannabis products, or medical
 cannabis without having an appropriate registration, license  or  permit
 therefor,  or  whose  registration, license, or permit has been revoked,
 surrendered or cancelled, shall be subject to conviction as provided  by
 article two hundred twenty-two of the penal law.
   2.  Any  registered  organization  or  licensee, whose registration or
 license has been suspended pursuant to the provisions of  this  chapter,
 who  sells cannabis, cannabis products, medical cannabis or hemp extract
 during the suspension period, shall be subject to conviction as provided
 by article two hundred twenty-two of the penal law, and upon  conviction
 thereof  shall  be  punished  by  a  fine of not more than five thousand
 dollars per instance.
   3. Any person who shall make any false statement  in  the  application
 for  a  registration,  license  or  a permit under this chapter shall be
 subject to a fine of not more than five thousand dollars.
   4. Any violation by any person of any provision of  this  chapter  for
 which  no  punishment or penalty is otherwise provided shall be a misde-
 meanor.
   5. Any person under the age of twenty-one found to be in possession of
 cannabis or cannabis products that is not a patient registered  pursuant

 A. 1617--B                         61
 
 to  article  three of this chapter shall be in violation of this chapter
 and shall be subject to the following penalty:
   (a)  (i)  The person shall be subject to a fine of not more than twen-
 ty-five dollars. The fine shall be payable to  the  office  of  cannabis
 management.
   (ii)  Any  identifying  information provided by the enforcement agency
 for the purpose of facilitating payment of the fine shall not be  shared
 or  disclosed  under  any  circumstances  with  any  other agency or law
 enforcement division.
   (b) The person shall, upon payment of the required fine,  be  provided
 with  information related to the dangers of underage use of cannabis and
 information related to cannabis use disorder by the office  of  cannabis
 management.
   (c)  The  issuance and subsequent payment of such fine shall in no way
 qualify as a criminal accusation, admission  of  guilt,  or  a  criminal
 conviction and shall in no way operate as a disqualification of any such
 person  from holding public office, attaining public employment, or as a
 forfeiture of any right or privilege.
   6. Cannabis  recovered  from  individuals  who  are  found  to  be  in
 violation  of  this  chapter shall be considered a nuisance and shall be
 disposed of or destroyed.
   § 136. Revocation of registrations, licenses and  permits  for  cause;
 procedure  for revocation or cancellation.  1. Any registration, license
 or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
 suspended  and/or  subjected  to  the  imposition of a civil penalty for
 cause, and must be revoked for the following causes:
   (a) conviction of the registered organization, licensee, permittee  or
 his  or  her  agent  or employee for selling any illegal cannabis on the
 premises registered, licensed or permitted; or
   (b) for  transferring,  assigning  or  hypothecating  a  registration,
 license or permit without prior written approval of the office.
   2.  Notwithstanding  the issuance of a registration, license or permit
 by way of renewal, the office may revoke, cancel or suspend such  regis-
 tration, license or permit and/or may impose a civil penalty against any
 holder  of  such  registration, license or permit, as prescribed by this
 section, for causes or violations occurring during  the  license  period
 immediately  preceding  the  issuance  of  such registration, license or
 permit.
   3. (a) As used in this  section,  the  term  "for  cause"  shall  also
 include  the  existence of a sustained and continuing pattern of miscon-
 duct, failure to adequately prevent diversion or disorder  on  or  about
 the  registered, licensed or permitted premises, or in the area in front
 of or adjacent to the registered or licensed premises, or in any parking
 lot provided by the registered  organization  or  licensee  for  use  by
 registered organization or licensee's patrons, which, in the judgment of
 the office, adversely affects or tends to affect the protection, health,
 welfare,  safety,  or repose of the inhabitants of the area in which the
 registered or licensed premises is located, or results in  the  licensed
 premises becoming a focal point for police attention, or is offensive to
 public decency.
   (b)  (i)  As  used  in  this  section, the term "for cause" shall also
 include deliberately misleading the authority:
   (A) as to the nature and character of the business to be  operated  by
 the registered organization, licensee or permittee; or

 A. 1617--B                         62
 
   (B) by substantially altering the nature or character of such business
 during  the registration or licensing period without seeking appropriate
 approvals from the office.
   (ii) As used in this subdivision, the term "substantially altering the
 nature  or character" of such business shall mean any significant alter-
 ation in the scope of business  activities  conducted  by  a  registered
 organization,  licensee  or  permittee  that  would require obtaining an
 alternate form of registration, license or permit.
   4. As used in this chapter, the existence of a sustained and  continu-
 ing  pattern  of  misconduct, failure to adequately prevent diversion or
 disorder on or about the premises may be presumed upon the  sixth  inci-
 dent  reported  to the office by a law enforcement agency, or discovered
 by the office during the course of  any  investigation,  of  misconduct,
 diversion  or disorder on or about the premises or related to the opera-
 tion of the premises, absent clear and  convincing  evidence  of  either
 fraudulent intent on the part of any complainant or a factual error with
 respect  to  the  content of any report concerning such complaint relied
 upon by the office.
   5. Notwithstanding any other provision of this chapter to the  contra-
 ry,  a  suspension  imposed  under  this section against the holder of a
 registration issued pursuant to article three  of  this  chapter,  shall
 only  suspend  the  licensed activities related to the type of cannabis,
 medical cannabis or adult-use cannabis involved in the violation result-
 ing in the suspension.
   6. Any registration, license or permit issued by the  office  pursuant
 to  this  chapter  may  be  revoked,  cancelled  or  suspended and/or be
 subjected to  the  imposition  of  a  monetary  penalty  in  the  manner
 prescribed by this section and by the executive director in regulation.
   7.  The  office  may  on  its  own  initiative, or on complaint of any
 person, institute proceedings to revoke, cancel or suspend any adult-use
 cannabis  retail  dispensary  license  or  adult-use  cannabis   on-site
 consumption  license and may impose a civil penalty against the licensee
 after a hearing at which the licensee shall be given an  opportunity  to
 be heard. Such hearing shall be held in such manner and upon such notice
 as may be prescribed in regulation by the executive director.
   8.  All  other  registrations,  licenses  or permits issued under this
 chapter may be revoked, cancelled, suspended and/or made subject to  the
 imposition  of  a civil penalty by the office after a hearing to be held
 in such manner and upon such notice as may be prescribed  in  regulation
 by the executive director.
   9.  Where a licensee or permittee is convicted of two or more qualify-
 ing offenses within a five-year period,  the  office,  upon  receipt  of
 notification of such second or subsequent conviction, shall, in addition
 to  any  other sanction or civil or criminal penalty imposed pursuant to
 this chapter, impose on such licensee a civil penalty not to exceed  ten
 thousand  dollars.    For  purposes  of  this  subdivision, a qualifying
 offense shall mean the unlawful sale of cannabis to a person  under  the
 age  of  twenty-one. For purposes of this subdivision, a conviction of a
 licensee or an employee or agent of such  licensee  shall  constitute  a
 conviction of such licensee.
   §  137. Lawful actions pursuant to this chapter.  1. Contracts related
 to the operation of registered organizations, licenses and permits under
 this chapter shall be lawful and shall not be  deemed  unenforceable  on
 the  basis  that  the  actions  permitted  pursuant to the registration,
 license or permit are prohibited by federal law.

 A. 1617--B                         63
 
   2. The following actions are not unlawful as provided under this chap-
 ter, shall not be an offense under any state or local law, and shall not
 result in any civil fine, seizure, or forfeiture of assets,  or  be  the
 basis  for  detention  or search against any person acting in accordance
 with this chapter:
   (a)  Actions  of a registered organization, licensee, or permittee, or
 the employees or agents of such  registered  organization,  licensee  or
 permittee,  as  permitted  by this chapter and consistent with rules and
 regulations of the office, pursuant to a valid registration, license  or
 permit issued by the office.
   (b)  Actions  of  those  who allow property to be used by a registered
 organization, licensee, or permittee, or the employees or agents of such
 registered organization, licensee or permittee,  as  permitted  by  this
 chapter  and consistent with rules and regulations of the office, pursu-
 ant to a valid registration, license or permit issued by the office.
   (c) Actions of any person or entity, their employees, or their  agents
 providing a service to a registered organization, licensee, permittee or
 a  potential registered organization, licensee, or permittee, as permit-
 ted by this chapter and consistent with rules  and  regulations  of  the
 office, relating to the formation of a business.
   (d)  The purchase, possession, or consumption of cannabis, and medical
 cannabis, as permitted by law, and consistent with rules and regulations
 of the office.
   § 138. Review by courts.  1. The following actions by the office,  and
 only  the following actions by the office, shall be subject to review by
 the supreme court in the manner provided in article seventy-eight of the
 civil practice law and rules:
   (a) Refusal by the office to  issue  a  registration,  license,  or  a
 permit.
   (b)  The  revocation,  cancellation  or  suspension of a registration,
 license, or permit by the office.
   (c) The failure or refusal by the office to render a decision upon any
 application or hearing submitted to or held by the office  within  sixty
 days after such submission or hearing.
   (d)  The  transfer by the office of a registration, license, or permit
 to any other entity or premises, or the failure or refusal by the office
 to approve such a transfer.
   (e) Refusal to approve alteration of premises.
   (f) Refusal to approve a corporate change in stockholders,  stockhold-
 ings, officers or directors.
   2.  No  stay shall be granted pending the determination of such matter
 except on notice to the office and only for a period of less than thirty
 days. In no instance shall a stay be granted where the office has issued
 a summary suspension of a  registration,  license,  or  permit  for  the
 protection of the public health, safety, and welfare.
   § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
 cannabis  product,  or  medical cannabis owned, cultivated, distributed,
 bought, sold, packaged, rectified, blended, treated,  fortified,  mixed,
 processed,  warehoused,  possessed  or  transported, or on which any tax
 required to have been paid under any applicable state law has  not  been
 paid.
   2.  Any  person  who  shall knowingly possess or have under his or her
 control any cannabis known by the person to be illicit cannabis is guil-
 ty of a misdemeanor.

 A. 1617--B                         64
 
   3. Any person who shall knowingly barter or exchange  with,  or  sell,
 give  or  offer  to  sell  or  to give another any cannabis known by the
 person to be illicit cannabis is guilty of a misdemeanor.
   4.  Any  person  who shall possess or have under his or her control or
 transport any cannabis known by the person to be illicit  cannabis  with
 intent  to  barter  or  exchange with, or to sell or give to another the
 same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
 presumptively  established  by proof that the person knowingly possessed
 or had under his or her control one or more ounces of illicit  cannabis.
 This presumption may be rebutted.
   5.  Any  person who, being the owner, lessee, or occupant of any room,
 shed, tenement, booth or building, float or  vessel,  or  part  thereof,
 knowingly  permits  the same to be used for the cultivation, processing,
 distribution, purchase, sale, warehousing, transportation, or storage of
 any illicit cannabis, is guilty of a misdemeanor.
   § 140. Persons forbidden to traffic cannabis; certain officials not to
 be interested in manufacture  or  sale  of  cannabis  products.  1.  The
 following are forbidden to traffic in cannabis:
   (a)  An individual who has been convicted of an offense related to the
 functions or duties of owning and  operating  a  business  within  three
 years of the application date, except that if the office determines that
 the  owner or licensee is otherwise suitable to be issued a license, and
 granting the license would not  compromise  public  safety,  the  office
 shall  conduct a thorough review of the nature of the crime, conviction,
 circumstances and evidence of rehabilitation of  the  owner,  and  shall
 evaluate the suitability of the owner or licensee to be issued a license
 based  on  the  evidence  found through the review. In determining which
 offenses are substantially related to the functions or duties of  owning
 and  operating  a business, the office shall include, but not be limited
 to, the following:
   (i) a felony conviction involving fraud, money laundering, forgery and
 other unlawful conduct related to owning and operating a business; and
   (ii) a felony conviction for hiring, employing, or using  a  minor  in
 transporting,  carrying,  selling,  giving  away, preparing for sale, or
 peddling, any controlled substance to a minor; or selling,  offering  to
 sell,  furnishing,  offering  to  furnish,  administering, or giving any
 controlled substance to a minor.
   (b) A person under the age of twenty-one years;
   (c) A person who is not a citizen of the United  States  or  an  alien
 lawfully admitted for permanent residence in the United States;
   (d) A partnership or a corporation, unless each member of the partner-
 ship,  or  each  of  the  principal officers and directors of the corpo-
 ration, is a citizen of the United States or an alien lawfully  admitted
 for  permanent  residence in the United States, not less than twenty-one
 years of age;  provided  however  that  a  corporation  which  otherwise
 conforms to the requirements of this section and chapter may be licensed
 if  each  of its principal officers and more than one-half of its direc-
 tors are citizens of the United States or aliens lawfully  admitted  for
 permanent  residence  in  the United States; and provided further that a
 corporation organized under the not-for-profit corporation  law  or  the
 education  law  which  otherwise  conforms  to  the requirements of this
 section and chapter may be licensed if each of  its  principal  officers
 and  directors  are not less than twenty-one years of age; and provided,
 further, that a corporation organized under  the  not-for-profit  corpo-
 ration law or the education law and located on the premises of a college
 as  defined by section two of the education law which otherwise conforms

 A. 1617--B                         65
 
 to the requirements of this section and chapter may be licensed if  each
 of  its  principal  officers and each of its directors are not less than
 twenty-one years of age;
   (e)  A  person  who  shall have had any registration or license issued
 under this chapter revoked for cause, until the expiration of two  years
 from the date of such revocation;
   (f)  A  person not registered or licensed under the provisions of this
 chapter, who has been convicted of a violation of  this  chapter,  until
 the expiration of two years from the date of such conviction; or
   (g)  A  corporation or partnership, if any officer and director or any
 partner, while not licensed under the provisions of  this  chapter,  has
 been convicted of a violation of this chapter, or has had a registration
 or  license issued under this chapter revoked for cause, until the expi-
 ration of two years from the date of such conviction or revocation.
   2. Except as may otherwise be provided for in regulation, it shall  be
 unlawful   for  any  police  commissioner,  police  inspector,  captain,
 sergeant, roundsman, patrolman or other police official  or  subordinate
 of  any  police  department in the state, to be either directly or indi-
 rectly interested in the cultivation, processing, distribution, or  sale
 of  cannabis  products  or to offer for sale, or recommend to any regis-
 tered organization or licensee any cannabis products. A person  may  not
 be  denied  any  registration or license granted under the provisions of
 this chapter solely on the grounds of being the spouse of a public serv-
 ant described in this section. The solicitation or  recommendation  made
 to  any  registered  organization  or licensee, to purchase any cannabis
 products by any police official or subordinate as hereinabove described,
 shall be presumptive evidence of the interest of such official or subor-
 dinate in the cultivation, processing, distribution, or sale of cannabis
 products.
   3. No elective village officer shall be subject to the limitations set
 forth in subdivision two of this section unless  such  elective  village
 officer  shall  be assigned duties directly relating to the operation or
 management of the police department.
   § 141. Access to criminal history information through the division  of
 criminal  justice  services.    In connection with the administration of
 this chapter, the executive director is authorized to  request,  receive
 and review criminal history information through the division of criminal
 justice  services  with  respect  to  any person seeking a registration,
 license, permit or authorization to cultivate,  process,  distribute  or
 sell medical cannabis, adult use cannabis or hemp extract. At the execu-
 tive  director's  request, each person, member, principal and/or officer
 of the applicant shall submit to the office his or her  fingerprints  in
 such  form  and  in  such  manner  as specified by the division, for the
 purpose of conducting a criminal history search and returning  a  report
 thereon  in  accordance with the procedures and requirements established
 by the division pursuant to the provisions of article thirty-five of the
 executive law, which shall include the payment of the  prescribed  proc-
 essing fees for the cost of the division's full search and retain proce-
 dures and a national criminal history record check. The executive direc-
 tor,  or  his  or  her  designee, shall submit such fingerprints and the
 processing fee to the division. The division shall forward to the execu-
 tive director a report with respect to the applicant's previous criminal
 history, if any, or a statement that the applicant has no previous crim-
 inal history according to its files. Fingerprints submitted to the divi-
 sion pursuant to this subdivision may also be submitted to  the  federal
 bureau of investigation for a national criminal history record check. If

 A. 1617--B                         66
 
 additional  copies  of  fingerprints  are  required, the applicant shall
 furnish them upon request.
   §  142.  Severability. If any provision of this chapter or application
 thereof to any person or circumstances is held invalid, such  invalidity
 shall  not  affect other provisions or applications of this chapter that
 can be given effect without the invalid provision or application, and to
 this end the provisions of this chapter are declared severable.
   § 3. Section 3302 of the public health law, as added by chapter 878 of
 the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
 subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
 and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
 subdivision 20, the opening paragraph of subdivision 22 and  subdivision
 29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
 vision 41 as added by section 6 of part A of chapter 447 of the laws  of
 2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
 chapter 60 of the laws of 2014, is amended to read as follows:
   § 3302. Definitions of terms of general use in  this  article.  Except
 where   different   meanings   are  expressly  specified  in  subsequent
 provisions of this article, the following terms have the following mean-
 ings:
   1. "Addict" means a person who habitually uses a controlled  substance
 for  a  non-legitimate or unlawful use, and who by reason of such use is
 dependent thereon.
   2.  "Administer"  means  the  direct  application  of   a   controlled
 substance,  whether  by  injection,  inhalation, ingestion, or any other
 means, to the body of a patient or research subject.
   3. "Agent" means an authorized person who acts on behalf of or at  the
 direction of a manufacturer, distributor, or dispenser. No person may be
 authorized  to  so  act  if  under  title VIII of the education law such
 person would not be permitted to engage in such  conduct.  It  does  not
 include  a  common or contract carrier, public warehouseman, or employee
 of the carrier or warehouseman when  acting  in  the  usual  and  lawful
 course of the carrier's or warehouseman's business.
   4. ["Concentrated Cannabis" means
   (a)  the  separated  resin, whether crude or purified, obtained from a
 plant of the genus Cannabis; or
   (b) a material, preparation,  mixture,  compound  or  other  substance
 which  contains  more than two and one-half percent by weight of delta-9
 tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
 terpene numbering system.
   5.]  "Controlled  substance" means a substance or substances listed in
 section thirty-three hundred six of this [chapter] TITLE.
   [6.] 5. "Commissioner" means commissioner of health of  the  state  of
 New York.
   [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
 attempted transfer from one person to another of a controlled substance,
 whether or not there is an agency relationship.
   [8.] 7. "Department" means the department of health of  the  state  of
 New York.
   [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
 mate user or research subject by lawful means, including by means of the

 A. 1617--B                         67
 
 internet, and includes the packaging, labeling, or compounding necessary
 to prepare the substance for such delivery.
   [10.] 9. "Distribute" means to deliver a controlled substance, includ-
 ing by means of the internet, other than by administering or dispensing.
   [11.]  10.  "Distributor"  means a person who distributes a controlled
 substance.
   [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
 of  a  controlled  substance by a person or in a manner not specifically
 authorized by law.
   [13.] 12. "Drug" means
   (a) substances recognized as drugs in the official United States Phar-
 macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
 official National Formulary, or any supplement to any of them;
   (b)  substances  intended  for use in the diagnosis, cure, mitigation,
 treatment, or prevention of disease in man or animals; and
   (c) substances (other than food) intended to affect the structure or a
 function of the body of man or animal. It does not  include  devices  or
 their components, parts, or accessories.
   [14.]  13. "Federal agency" means the Drug Enforcement Administration,
 United States Department of Justice, or its successor agency.
   [15.] 14. "Federal controlled substances act" means the  Comprehensive
 Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
 any act or  acts  amendatory  or  supplemental  thereto  or  regulations
 promulgated thereunder.
   [16.]  15. "Federal registration number" means such number assigned by
 the Federal agency to any person authorized to manufacture,  distribute,
 sell, dispense or administer controlled substances.
   [17.]  16.  "Habitual  user"  means any person who is, or by reason of
 repeated use of any controlled substance for non-legitimate or  unlawful
 use is in danger of becoming, dependent upon such substance.
   [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
 hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
 hospital or similar facility approved and certified by the department as
 authorized  to  obtain  controlled  substances  by  distribution  and to
 dispense and administer such substances pursuant to the order of a prac-
 titioner.
   [19.] 18. "License"  means  a  written  authorization  issued  by  the
 department  or  the  New  York  state department of education permitting
 persons to engage in a specified activity  with  respect  to  controlled
 substances.
   [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
 gation,  compounding,  cultivation,  conversion  or  processing   of   a
 controlled  substance,  either  directly  or indirectly or by extraction
 from substances of natural origin, or independently by means of chemical
 synthesis, or by a combination of extraction and chemical synthesis, and
 includes any packaging or repackaging of the substance  or  labeling  or
 relabeling  of its container, except that this term does not include the
 preparation,  compounding,  packaging  or  labeling  of   a   controlled
 substance:
   (a)  by a practitioner as an incident to his administering or dispens-
 ing of a controlled substance in the course of  his  professional  prac-
 tice; or
   (b)  by  a  practitioner,  or by his authorized agent under his super-
 vision, for the purpose of, or as an incident to, research, teaching, or
 chemical analysis and not for sale; or

 A. 1617--B                         68
 
   (c) by a pharmacist as an incident to his dispensing of  a  controlled
 substance in the course of his professional practice.
   [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
 whether growing or not; the seeds thereof; the resin extracted from  any
 part  of  the  plant; and every compound, manufacture, salt, derivative,
 mixture, or preparation of the plant, its seeds or resin.  It  does  not
 include  the mature stalks of the plant, fiber produced from the stalks,
 oil or cake made from the seeds of the plant, any other compound,  manu-
 facture,  salt, derivative, mixture, or preparation of the mature stalks
 (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
 sterilized seed of the plant which is incapable of germination.
   22.]  20. "Narcotic drug" means any of the following, whether produced
 directly or  indirectly  by  extraction  from  substances  of  vegetable
 origin,  or independently by means of chemical synthesis, or by a combi-
 nation of extraction and chemical synthesis:
   (a) opium and opiate, and any salt, compound, derivative, or  prepara-
 tion of opium or opiate;
   (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
 which is chemically equivalent or identical with any of  the  substances
 referred  to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not
 including the isoquinoline alkaloids of opium;
   (c) opium poppy and poppy straw.
   [23.] 21. "Opiate" means any substance having an addiction-forming  or
 addiction-sustaining  liability  similar to morphine or being capable of
 conversion into a drug having addiction-forming or  addiction-sustaining
 liability.  It  does  not  include,  unless  specifically  designated as
 controlled under section [3306] THIRTY-THREE HUNDRED SIX of this  [arti-
 cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
 its  salts (dextromethorphan). It does include its racemic and levorota-
 tory forms.
   [24.] 22. "Opium  poppy"  means  the  plant  of  the  species  Papaver
 somniferum L., except its seeds.
   [25.] 23. "Person" means individual, institution, corporation, govern-
 ment  or  governmental  subdivision  or  agency, business trust, estate,
 trust, partnership or association, or any other legal entity.
   [26.] 24. "Pharmacist" means any person licensed by the state  depart-
 ment of education to practice pharmacy.
   [27.]  25.  "Pharmacy"  means  any place registered as such by the New
 York state board of pharmacy and  registered  with  the  Federal  agency
 pursuant to the federal controlled substances act.
   [28.]  26.  "Poppy  straw"  means  all parts, except the seeds, of the
 opium poppy, after mowing.
   [29.] 27. "Practitioner" means:
   A physician, dentist, podiatrist,  veterinarian,  scientific  investi-
 gator,  or  other  person  licensed, or otherwise permitted to dispense,
 administer or conduct research with respect to a controlled substance in
 the course of a licensed  professional  practice  or  research  licensed
 pursuant  to  this article. Such person shall be deemed a "practitioner"
 only as to such substances, or conduct relating to such  substances,  as
 is permitted by his license, permit or otherwise permitted by law.
   [30.]   28.   "Prescribe"  means  a  direction  or  authorization,  by
 prescription, permitting an ultimate user lawfully to obtain  controlled
 substances   from   any  person  authorized  by  law  to  dispense  such
 substances.

 A. 1617--B                         69
 
   [31.] 29.  "Prescription"  shall  mean  an  official  New  York  state
 prescription,  an electronic prescription, an oral prescription[,] OR an
 out-of-state prescription[, or any one].
   [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
 er, or offer or agree to do the same.
   [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
 possesses a controlled substance for his own use or the use by a  member
 of  his  household  or  for an animal owned by him or in his custody. It
 shall also mean and include a person designated, by a practitioner on  a
 prescription, to obtain such substance on behalf of the patient for whom
 such substance is intended.
   [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
 cations facilities which comprise the worldwide network of networks that
 employ a set of industry standards and protocols, or any predecessor  or
 successor  protocol  to  such  protocol,  to exchange information of all
 kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
 networks,  whether  private  or  public, used to transmit information by
 electronic means.
   [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
 distribution,  or  dispensing  of  a  controlled substance that uses the
 internet, is initiated by use of the internet or causes the internet  to
 be used.
   [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
 in  the  United  States  that sells, delivers or dispenses, or offers to
 sell, deliver, or dispense, a  controlled  substance  by  means  of  the
 internet.
   [37.]  35.  "Electronic prescription" means a prescription issued with
 an electronic signature and transmitted by electronic means  in  accord-
 ance with regulations of the commissioner and the commissioner of educa-
 tion  and consistent with federal requirements. A prescription generated
 on an electronic system that is printed out or transmitted via facsimile
 is not considered  an  electronic  prescription  and  must  be  manually
 signed.
   [38.] 36. "Electronic" means of or relating to technology having elec-
 trical, digital, magnetic, wireless, optical, electromagnetic or similar
 capabilities. "Electronic" shall not include facsimile.
   [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
 created, generated, transmitted, communicated,  received  or  stored  by
 means  of electronic equipment and includes the preservation, retrieval,
 use and disposition in accordance with regulations of  the  commissioner
 and the commissioner of education and in compliance with federal law and
 regulations.
   [40.] 38. "Electronic signature" means an electronic sound, symbol, or
 process,  attached  to or logically associated with an electronic record
 and executed or adopted by a person with the intent to sign the  record,
 in  accordance with regulations of the commissioner and the commissioner
 of education.
   [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
 means  the prescription monitoring program registry established pursuant
 to section thirty-three hundred forty-three-a of this article.
   [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
 ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
 drug substance to create a drug with respect to an outsourcing  facility
 under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
 further defined in this section.
   [43.] 41. "Outsourcing facility" means a facility that:

 A. 1617--B                         70

   (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
 section sixty-eight hundred two of the education law;
   (b)  is  currently  registered  as an outsourcing facility pursuant to
 article one hundred thirty-seven of the education law; and
   (c) complies with all applicable requirements  of  federal  and  state
 law, including the Federal Food, Drug and Cosmetic Act.
   Notwithstanding  any  other  provision of law to the contrary, when an
 outsourcing facility distributes or dispenses any  drug  to  any  person
 pursuant to a prescription, such outsourcing facility shall be deemed to
 be  providing  pharmacy services and shall be subject to all laws, rules
 and regulations governing pharmacies and pharmacy services.
   § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
 26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
 section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
 18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
 laws of 2006, are amended to read as follows:
   (13) [Marihuana.
   (14)] Mescaline.
   [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
   [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
 fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
 not, the seeds thereof, any extract from any part  of  such  plant,  and
 every  compound, manufacture, salts, derivative, mixture, or preparation
 of such plant, its seeds or extracts.
   [(17)] (16) N-ethyl-3-piperidyl benzilate.
   [(18)] (17) N-methyl-3-piperidyl benzilate.
   [(19)] (18) Psilocybin.
   [(20)] (19) Psilocyn.
   [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
 DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
 contained  in the plant, or in the resinous extractives of cannabis, sp.
 and/or synthetic substances, derivatives, and their isomers with similar
 chemical structure and pharmacological activity such as the following:
   [/\] DELTA 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
 isomers
   [/\]  DELTA  6  cis  or  trans tetrahydrocannabinol, and their optical
 isomers
   [/\] DELTA 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
 isomers  (since  nomenclature of these substances is not internationally
 standardized, compounds of these  structures,  regardless  of  numerical
 designation of atomic positions covered).
   [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
 names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
   [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
   [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
 names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
 phencyclidine, TPCP, TCP.
   [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
   [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
 N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
 MDE, MDEA.

 A. 1617--B                         71
 
   [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
 N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
 N-hydroxy MDA.
   [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
 names: TCPY.
   [(29)] (28) Alpha-ethyltryptamine. Some trade or other names:   etryp-
 tamine;  Monase;  Alpha-ethyl-1H-indole-3-ethanamine;  3- (2-aminobutyl)
 indole; Alpha-ET or AET.
   [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
 names: DOET.
   [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
 names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
 DOB; 2C-B, Nexus.
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.
   § 5. Section 3382 of the public health law is REPEALED.
   § 6. Title 5-A of article 33 of the public health law is REPEALED.
   §  7.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
 (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
 and  rules,  paragraph (d) of subdivision 3 and subdivision 3-a as added
 by chapter 655 of the laws of 1990 and paragraphs (a) and (b) of  subdi-
 vision  11 as amended by section 47 of part A1 of chapter 56 of the laws
 of 2010, are amended to read as follows:
   (d) In a forfeiture action commenced by a claiming authority against a
 defendant, the following rebuttable presumption shall apply: all curren-
 cy or negotiable instruments payable to the bearer shall be presumed  to
 be  the proceeds of a pre-conviction forfeiture crime when such currency
 or negotiable  instruments  are  (i)  found  in  close  proximity  to  a
 controlled  substance unlawfully possessed by the defendant in an amount
 sufficient to constitute a violation of section 220.18 or 220.21 of  the
 penal  law,  or  (ii)  found  in  close  proximity  to any quantity of a
 controlled substance [or marihuana] unlawfully possessed by such defend-
 ant in a room, other than a public place, under  circumstances  evincing
 an  intent to unlawfully mix, compound, distribute, package or otherwise
 prepare for sale such controlled substance [or marihuana].
   3-a. Conviction of a person in a criminal action  upon  an  accusatory
 instrument  which  includes  one  or  more  of the felonies specified in
 subdivision four-b of section thirteen hundred ten of this  article,  of
 any  felony other than such felonies, shall not preclude a defendant, in
 any subsequent proceeding under this article where that conviction is at
 issue, from adducing evidence that the conduct underlying the conviction
 would not establish the elements of any of  the  felonies  specified  in
 such subdivision other than the one to which the criminal defendant pled
 guilty.  If the defendant does adduce such evidence, the burden shall be
 upon the claiming authority to prove, by clear and convincing  evidence,
 that  the conduct underlying the criminal conviction would establish the
 elements of the felony specified in such subdivision. Nothing  contained
 in  this  subdivision  shall  affect the validity of a settlement of any
 forfeiture action negotiated between the claiming authority and a crimi-
 nal defendant contemporaneously with the taking of a plea of guilty in a
 criminal action to any felony defined in article two hundred twenty  [or
 section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
 commit the same.
   (a)  Any  stipulation or settlement agreement between the parties to a
 forfeiture action shall be filed with the clerk of the  court  in  which
 the forfeiture action is pending. No stipulation or settlement agreement

 A. 1617--B                         72
 
 shall  be  accepted  for filing unless it is accompanied by an affidavit
 from the claiming authority that written notice of  the  stipulation  or
 settlement agreement, including the terms of such, has been given to the
 office  of  victim  services,  the  state  division  of criminal justice
 services[, and in the case of a forfeiture based on a felony defined  in
 article two hundred twenty or section 221.30 or 221.55 of the penal law,
 to the state division of substance abuse services].
   (b)  No  judgment  or order of forfeiture shall be accepted for filing
 unless it is accompanied by an affidavit  from  the  claiming  authority
 that  written  notice of judgment or order, including the terms of such,
 has been given to the office of victim services, the state  division  of
 criminal  justice  services[, and in the case of a forfeiture based on a
 felony defined in article two hundred twenty or section 221.30 or 221.55
 of the penal law, to the state division of substance abuse services].
   § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
 added by chapter 810 of the laws of 1980, is amended to read as follows:
   1.  ["Marijuana"]  "CANNABIS" means [marijuana] CANNABIS as defined in
 [section thirty-three hundred two of this chapter]  SUBDIVISION  SIX  OF
 SECTION  220.00 OF THE PENAL LAW and shall also include tetrahydrocanna-
 binols or a chemical derivative of tetrahydrocannabinol.
   § 9. Section 114-a of the vehicle and traffic law, as added by chapter
 163 of the laws of 1973, is amended to read as follows:
   § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
 includes any substance listed in section thirty-three hundred six of the
 public  health  law  AND ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT
 IMPAIR PHYSICAL AND MENTAL ABILITIES.
   § 10. Subdivisions 5, 6 and 9 of section  220.00  of  the  penal  law,
 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
 6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
 amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
 subdivisions 21 and 22 are added to read as follows:
   5.  "Controlled  substance"  means any substance listed in schedule I,
 II, III, IV or V of section  thirty-three  hundred  six  of  the  public
 health  law  other than [marihuana] CANNABIS, but including concentrated
 cannabis as defined in [paragraph (a) of  subdivision  four  of  section
 thirty-three  hundred  two  of  such law] SUBDIVISION TWENTY-ONE OF THIS
 SECTION.
   6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna-
 bis" as those terms are defined in section thirty-three hundred  two  of
 the  public  health  law]  ALL PARTS OF THE PLANT OF THE GENUS CANNABIS,
 WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
 PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
 MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.   IT DOES  NOT
 INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
 OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
 FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
 (EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
 STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
 NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   9.  "Hallucinogen"  means any controlled substance listed in [schedule
 I(d)] PARAGRAPHS (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
 (19),  (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION THIRTY-
 THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
   21. "CONCENTRATED CANNABIS" MEANS:

 A. 1617--B                         73
 
   (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED,  OBTAINED  FROM  A
 PLANT OF THE GENUS CANNABIS; OR
   (B)  A  MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND OR OTHER SUBSTANCE
 WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9  TETRAHYDRO-
 CANNABINOL,  OR  ITS  ISOMER,  DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR
 DELTA-1 TETRAHYDROCANNABINOL OR ITS  ISOMER,  DELTA  1  (6)  MONOTERPENE
 NUMBERING SYSTEM.
   22.  "CANNABIS  PRODUCTS"  MEANS  CANNABIS, CONCENTRATED CANNABIS, AND
 CANNABIS-INFUSED PRODUCTS CONTAINING  CONCENTRATED  CANNABIS  AND  OTHER
 INGREDIENTS.
   § 11.  Subdivision 4 of section 220.06 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   4.  one  or  more  preparations,  compounds,  mixtures  or  substances
 containing concentrated cannabis as defined in [paragraph (a) of  subdi-
 vision  four  of  section  thirty-three hundred two of the public health
 law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
 preparations,  compounds,  mixtures  or  substances  are of an aggregate
 weight of one-fourth ounce or more; or
   § 12. Subdivision 10 of section 220.09 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   10. one  or  more  preparations,  compounds,  mixtures  or  substances
 containing  concentrated cannabis as defined in [paragraph (a) of subdi-
 vision four of section thirty-three hundred two  of  the  public  health
 law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
 preparations, compounds, mixtures or  substances  are  of  an  aggregate
 weight of one ounce or more; or
   §  13. Subdivision 3 of section 220.34 of the penal law, as amended by
 chapter 537 of the laws of 1998, is amended to read as follows:
   3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
 four  of  section  thirty-three  hundred  two  of the public health law]
 SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
   § 14. Section 220.50 of the penal law, as amended by  chapter  627  of
 the laws of 1990, is amended to read as follows:
 § 220.50 Criminally using drug paraphernalia in the second degree.
   A  person  is  guilty  of  criminally  using drug paraphernalia in the
 second degree when he knowingly possesses or sells:
   1. Diluents, dilutants or adulterants, including but not  limited  to,
 any  of the following: quinine hydrochloride, mannitol, mannite, lactose
 or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
 under  circumstances  evincing  an intent to use, or under circumstances
 evincing knowledge that  some  person  intends  to  use,  the  same  for
 purposes  of  unlawfully mixing, compounding, or otherwise preparing any
 narcotic  drug  or  stimulant,  OTHER  THAN  CANNABIS  OR   CONCENTRATED
 CANNABIS; or
   2. Gelatine capsules, glassine envelopes, vials, capsules or any other
 material suitable for the packaging of individual quantities of narcotic
 drugs  or  stimulants  under circumstances evincing an intent to use, or
 under circumstances evincing knowledge that some person intends to  use,
 the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
 dispensing of any narcotic drug or stimulant,  OTHER  THAN  CANNABIS  OR
 CONCENTRATED CANNABIS; or
   3. Scales and balances used or designed for the purpose of weighing or
 measuring  controlled substances, under circumstances evincing an intent
 to use, or under  circumstances  evincing  knowledge  that  some  person
 intends  to use, the same for purpose of unlawfully manufacturing, pack-

 A. 1617--B                         74
 
 aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA-
 BIS OR CONCENTRATED CANNABIS.
   Criminally  using drug paraphernalia in the second degree is a class A
 misdemeanor.
   § 15. Article 221 of the penal law is REPEALED.
   § 16. The penal law is amended by adding a new article 222 to read  as
 follows:
                                ARTICLE 222
                                 CANNABIS
 SECTION 222.00 CANNABIS; DEFINITIONS.
         222.05 PERSONAL USE OF CANNABIS.
         222.10 UNLAWFUL CULTIVATION OF CANNABIS.
         222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
         222.20 UNLAWFUL POSSESSION OF CANNABIS.
         222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
         222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
         222.35 SALE  OF  CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS
                  OF AGE IN THE SECOND DEGREE.
         222.40 SALE OF CANNABIS TO A PERSON LESS THAN  TWENTY-ONE  YEARS
                  OF AGE IN THE FIRST DEGREE.
 § 222.00 CANNABIS; DEFINITIONS.
   1.  "CANNABIS"  MEANS  ALL  PARTS  OF THE PLANT OF THE GENUS CANNABIS,
 WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
 PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
 MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
 INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
 OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
 FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
 (EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
 STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION.  IT DOES
 NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   2. "CONCENTRATED CANNABIS" MEANS:
   (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED,  OBTAINED  FROM  A
 PLANT OF THE GENUS CANNABIS; OR
   (B)  A  MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND OR OTHER SUBSTANCE
 WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9  TETRAHYDRO-
 CANNABINOL,  OR  ITS  ISOMER,  DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR
 DELTA-1 TETRAHYDROCANNABINOL OR ITS  ISOMER,  DELTA  1  (6)  MONOTERPENE
 NUMBERING SYSTEM.
   3.  "CANNABIS-INFUSED PRODUCTS" MEANS PRODUCTS THAT HAVE BEEN MANUFAC-
 TURED AND CONTAIN EITHER CANNABIS OR  CONCENTRATED  CANNABIS  AND  OTHER
 INGREDIENTS THAT ARE INTENDED FOR USE OR CONSUMPTION.
   4.  "MATURE  CANNABIS  PLANT"  MEANS  A CANNABIS PLANT WITH OBSERVABLE
 FLOWERS OR BUDS.
   5. FOR THE PURPOSES OF  THIS  ARTICLE,  "SALE"  SHALL  MEAN  TO  SELL,
 EXCHANGE  OR  DISPOSE  OF FOR COMPENSATION. "SALE" SHALL NOT INCLUDE THE
 TRANSFER OF CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED  PRODUCT
 BETWEEN PERSONS TWENTY-ONE YEARS OF AGE OR OLDER WITHOUT COMPENSATION IN
 THE QUANTITIES AUTHORIZED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
 222.05 OF THIS ARTICLE.
 § 222.05 PERSONAL USE OF CANNABIS.
   NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY:
   1.  THE  FOLLOWING ACTS ARE LAWFUL FOR PERSONS TWENTY-ONE YEARS OF AGE
 OR OLDER:  (A) POSSESSING, DISPLAYING, PURCHASING, OBTAINING, OR  TRANS-

 A. 1617--B                         75
 
 PORTING  UP  TO  THREE OUNCES OF CANNABIS AND UP TO TWENTY-FOUR GRAMS OF
 CONCENTRATED  CANNABIS,  OR  EQUIVALENT   AMOUNT   OF   CANNABIS-INFUSED
 PRODUCTS;
   (B)  TRANSFERRING,  WITHOUT COMPENSATION, TO A PERSON TWENTY-ONE YEARS
 OF AGE OR OLDER, UP TO THREE OUNCES OF CANNABIS AND  UP  TO  TWENTY-FOUR
 GRAMS OF CONCENTRATED CANNABIS, OR EQUIVALENT AMOUNT OF CANNABIS-INFUSED
 PRODUCTS;
   (C)  USING,  SMOKING,  INGESTING,  OR CONSUMING CANNABIS, CONCENTRATED
 CANNABIS OR CANNABIS-INFUSED PRODUCTS  UNLESS  OTHERWISE  PROHIBITED  BY
 STATE LAW OR REGULATION;
   (D)  POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR-
 ING, TRANSPORTING OR GIVING TO ANY PERSON TWENTY-ONE  YEARS  OF  AGE  OR
 OLDER CANNABIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
   (E)  ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE OR OLDER,
 OR ALLOWING PROPERTY TO BE USED, IN ANY OF THE ACTS DESCRIBED  IN  PARA-
 GRAPHS (A) THROUGH (D) OF THIS SUBDIVISION.
   2.  CANNABIS, CONCENTRATED CANNABIS, CANNABIS-INFUSED PRODUCTS, CANNA-
 BIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA INVOLVED IN ANY
 WAY WITH CONDUCT DEEMED LAWFUL BY THIS SECTION ARE  NOT  CONTRABAND  NOR
 SUBJECT  TO  SEIZURE  OR FORFEITURE OF ASSETS UNDER ARTICLE FOUR HUNDRED
 EIGHTY OF THIS CHAPTER, SECTION THIRTEEN HUNDRED  ELEVEN  OF  THE  CIVIL
 PRACTICE  LAW  AND RULES, OR OTHER APPLICABLE LAW, AND NO CONDUCT DEEMED
 LAWFUL BY THIS SECTION SHALL CONSTITUTE THE BASIS FOR APPROACH,  SEARCH,
 SEIZURE, ARREST OR DETENTION.
   3. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, NONE OF THE
 FOLLOWING SHALL, INDIVIDUALLY OR IN COMBINATION WITH EACH OTHER, CONSTI-
 TUTE  REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE OF PROBABLE
 CAUSE IN ANY CRIMINAL PROCEEDING AGAINST A DEFENDANT TWENTY-ONE YEARS OF
 AGE OR OLDER:
   (A) THE ODOR OF CANNABIS OR OF BURNT CANNABIS;
   (B) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  CANNABIS,
 CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS  IN  THE  AMOUNTS
 AUTHORIZED IN THIS SECTION;
   (C) THE POSSESSION OF MULTIPLE CONTAINERS OF CANNABIS WITHOUT EVIDENCE
 OF POSSESSION OF MORE THAN THREE OUNCES OF CANNABIS,  TWENTY-FOUR  GRAMS
 OF  CONCENTRATED  CANNABIS  OR THE EQUIVALENT AMOUNT OF CANNABIS-INFUSED
 PRODUCTS; OR
   (D) THE PRESENCE OF CASH OR CURRENCY IN PROXIMITY TO CANNABIS, CONCEN-
 TRATED CANNABIS OR CANNABIS-INFUSED PRODUCTS.
   4. SUBDIVISION THREE OF THIS  SECTION  SHALL  NOT  APPLY  WHEN  A  LAW
 ENFORCEMENT OFFICER IS INVESTIGATING: (A) AN ALLEGED OFFENSE PURSUANT TO
 SECTION 222.20, 222.25, 222.30, 222.35 OR 222.40 OF THIS ARTICLE; OR (B)
 WHETHER  A  PERSON  IS  OPERATING OR IN PHYSICAL CONTROL OF A VEHICLE OR
 WATERCRAFT WHILE INTOXICATED, UNDER THE INFLUENCE  OF,  OR  IMPAIRED  BY
 ALCOHOL  OR  A  DRUG  OR ANY COMBINATION THEREOF IN VIOLATION OF ARTICLE
 THIRTY-ONE OF THE VEHICLE AND TRAFFIC LAW.
   5. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT ANY PERSON
 TO:
   (I) SMOKE CANNABIS IN PUBLIC;
   (II) SMOKE CANNABIS PRODUCTS IN A LOCATION WHERE  SMOKING  TOBACCO  IS
 PROHIBITED  PURSUANT  TO  SECTION  THIRTEEN HUNDRED NINETY-NINE-O OF THE
 PUBLIC HEALTH LAW;
   (III) POSSESS, SMOKE OR  INGEST  CANNABIS  PRODUCTS  IN  OR  UPON  THE
 GROUNDS  OF  ANY SCHOOL PROPERTY USED FOR SCHOOL PURPOSES WHICH IS OWNED
 BY OR LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE
 CHILDREN ARE PRESENT; OR

 A. 1617--B                         76
 
   (IV) SMOKE OR INGEST CANNABIS  PRODUCTS  WHILE  DRIVING,  OPERATING  A
 MOTOR  VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR TRANS-
 PORTATION.
   (B) FOR PURPOSES OF THIS SECTION:
   (I)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
 HEATED DEVICE OR PIPE, OR  ANY  OTHER  LIGHTED  OR  HEATED  CANNABIS  OR
 CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
 OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
   (II) "SMOKE" DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING  DEVICE
 THAT  CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES EXTEND
 PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   (C) VIOLATIONS OF THE RESTRICTIONS UNDER THIS SUBDIVISION ARE  SUBJECT
 TO  A FINE NOT EXCEEDING TWENTY-FIVE DOLLARS OR AN APPROPRIATE AMOUNT OF
 COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
 § 222.10 UNLAWFUL CULTIVATION OF CANNABIS.
   A PERSON IS GUILTY OF UNLAWFUL CULTIVATION OF CANNABIS WHEN HE OR  SHE
 KNOWINGLY  AND  UNLAWFULLY PLANTS, CULTIVATES, HARVESTS, DRIES, OR PROC-
 ESSES CANNABIS ON PUBLIC LANDS OR OTHERWISE IN VIOLATION OF ARTICLE  SIX
 OF THE CANNABIS LAW.
   UNLAWFUL CULTIVATION OF CANNABIS IS A CLASS B MISDEMEANOR.
 § 222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
   THE  CRIMINAL PENALTIES PURSUANT TO THE PROVISIONS OF THIS ARTICLE FOR
 POSSESSING, MANUFACTURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANS-
 FERRING CANNABIS, CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS
 SHALL  NOT  APPLY  TO  ANY PERSON ENGAGED IN SUCH ACTIVITY IN COMPLIANCE
 WITH THE CANNABIS LAW.
 § 222.20 UNLAWFUL POSSESSION OF CANNABIS.
   A PERSON IS GUILTY OF UNLAWFUL POSSESSION OF CANNABIS WHEN HE  OR  SHE
 KNOWINGLY AND UNLAWFULLY POSSESSES:
   1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN THREE OUNCES; OR
   2.  CONCENTRATED  CANNABIS  AND SUCH CONCENTRATED CANNABIS WEIGHS MORE
 THAN TWENTY-FOUR GRAMS; OR
   3. EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
   UNLAWFUL POSSESSION OF CANNABIS IS A VIOLATION PUNISHABLE BY A FINE OF
 NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS.
 § 222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
   1. A PERSON IS GUILTY OF UNLICENSED SALE OF  CANNABIS  IN  THE  SECOND
 DEGREE  WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS UP TO THREE OUNCES
 OF CANNABIS, OR TWENTY-FOUR GRAMS OF CONCENTRATED CANNABIS OR EQUIVALENT
 AMOUNT OF CANNABIS-INFUSED PRODUCTS.
   2. A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING  PENALTIES,
 AS APPLICABLE:
   (A)  VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
 TY-FIVE DOLLARS;
   (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE CRIME OF UNLICENSED SALE OF CANNABIS IN THE FIRST  DEGREE,  SALE  OF
 CANNABIS  TO  A  PERSON  LESS THAN TWENTY-ONE YEARS OF AGE IN THE SECOND
 DEGREE, SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS  OF  AGE
 IN  THE  FIRST  DEGREE OR THIS SECTION, THEN A VIOLATION PUNISHABLE BY A
 FINE OF NOT MORE THAN TWO  HUNDRED  FIFTY  DOLLARS  FOR  A  SECOND  SUCH
 OFFENSE; OR
   (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE  CRIME  OF  UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE, SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE

 A. 1617--B                         77
 
 IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS B MISDEMEANOR FOR SUCH
 THIRD OR SUBSEQUENT OFFENSE.
 § 222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
   1.  A  PERSON  IS  GUILTY  OF UNLICENSED SALE OF CANNABIS IN THE FIRST
 DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY  SELLS  MORE  THAN  THREE
 OUNCES OF CANNABIS, MORE THAN TWENTY-FOUR GRAMS OF CONCENTRATED CANNABIS
 OR THE EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
   2.  A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING PENALTIES,
 AS APPLICABLE:
   (A) A VIOLATION PUNISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
 FIFTY DOLLARS;
   (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
 IN THE FIRST DEGREE OR THIS SECTION, THEN A VIOLATION  PUNISHABLE  BY  A
 FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR SUCH SECOND OFFENSE; OR
   (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
 THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
 IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS A MISDEMEANOR FOR SUCH
 THIRD OR SUBSEQUENT OFFENSE.
 § 222.35 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
            IN THE SECOND DEGREE.
   A  PERSON  TWENTY-ONE  YEARS  OF AGE OR OLDER IS GUILTY OF THE SALE OF
 CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
 DEGREE WHEN, BEING TWENTY-ONE YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY
 AND UNLAWFULLY SELLS CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED
 PRODUCTS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE.
   SALE  OF  CANNABIS  TO  A  PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE
 SECOND DEGREE IS A CLASS A MISDEMEANOR.
 § 222.40 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
            IN THE FIRST DEGREE.
   A  PERSON  TWENTY-ONE  YEARS OF AGE AND OLDER IS GUILTY OF THE SALE OF
 CANNABIS TO A PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE  FIRST  DEGREE
 WHEN,  BEING  TWENTY-ONE  YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY AND
 UNLAWFULLY SELLS MORE THAN THREE OUNCES OF CANNABIS, MORE  THAN  TWENTY-
 FOUR  GRAMS  OF CONCENTRATED CANNABIS OR THE EQUIVALENT AMOUNT OF CANNA-
 BIS-INFUSED PRODUCTS.
   SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE IN  THE
 FIRST DEGREE IS A CLASS E FELONY.
   §  17.  Subdivision  8  of section 1399-n of the public health law, as
 amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
 follows:
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter  or  substance  which  contains  tobacco  OR  CANNABIS;
 PROVIDED  THAT  IT  DOES  NOT  INCLUDE  THE USE OF AN ELECTRONIC SMOKING
 DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE  STATUTES
 EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   §  18. Section 1.20 of the criminal procedure law is amended by adding
 a new subdivision 45 to read as follows:
   45. "EXPUNGE" MEANS, WHERE AN  ARREST  AND  ANY  ENFORCEMENT  ACTIVITY
 CONNECTED WITH THAT ARREST, INCLUDING PROSECUTION AND ANY DISPOSITION IN
 ANY  NEW  YORK  STATE  COURT,  IS  DEEMED  A  NULLITY AND THE ACCUSED IS
 RESTORED, IN CONTEMPLATION OF THE LAW, TO  THE  STATUS  SUCH  INDIVIDUAL

 A. 1617--B                         78
 
 OCCUPIED  BEFORE  THE  ARREST  AND/OR  PROSECUTION; THAT RECORDS OF SUCH
 ARREST, PROSECUTION AND/OR DISPOSITION SHALL BE MARKED  AS  EXPUNGED  OR
 SHALL  BE  DESTROYED  AS  SET  FORTH  IN SECTION 160.50 OF THIS CHAPTER.
 NEITHER  THE  ARREST  NOR  PROSECUTION  AND/OR DISPOSITION, IF ANY, OF A
 MATTER DEEMED A NULLITY SHALL  OPERATE  AS  A  DISQUALIFICATION  OF  ANY
 PERSON  SO  ACCUSED  TO PURSUE OR ENGAGE IN ANY LAWFUL ACTIVITY, OCCUPA-
 TION, PROFESSION OR  CALLING.  EXCEPT  WHERE  SPECIFICALLY  REQUIRED  OR
 PERMITTED BY STATUTE OR UPON SPECIFIC AUTHORIZATION OF A SUPERIOR COURT,
 NO  SUCH  PERSON  SHALL BE REQUIRED TO DIVULGE INFORMATION PERTAINING TO
 THE ARREST, PROSECUTION AND/OR DISPOSITION OF SUCH A MATTER.
   § 19. Subdivision 1 of section 160.50 of the criminal  procedure  law,
 as  amended by chapter 169 of the laws of 1994, paragraph (d) as amended
 by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
 is added to read as follows:
   1. Upon the termination of a criminal action or proceeding  against  a
 person  in favor of such person, as defined in subdivision three of this
 section, unless the district attorney upon motion  with  not  less  than
 five  days  notice to such person or his or her attorney demonstrates to
 the satisfaction of the court that  the  interests  of  justice  require
 otherwise,  or  the court on its own motion with not less than five days
 notice to such person or his or her attorney determines that the  inter-
 ests of justice require otherwise and states the reasons for such deter-
 mination  on  the record, [the record of such action or proceeding shall
 be sealed and the clerk of the court wherein  such  criminal  action  or
 proceeding  was  terminated shall immediately notify the commissioner of
 the division of criminal justice services and the heads of all appropri-
 ate police departments and  other  law  enforcement  agencies  that  the
 action has been terminated in favor of the accused, and unless the court
 has  directed  otherwise,  that  the record of such action or proceeding
 shall be sealed. Upon receipt of notification of  such  termination  and
 sealing] SUCH ACTION OR PROCEEDING SHALL BE DEEMED A NULLITY AND RECORDS
 OF SUCH ACTION OR PROCEEDING EXPUNGED, AND THE CLERK OF THE COURT WHERE-
 IN  SUCH  CRIMINAL ACTION OR PROCEEDING WAS TERMINATED SHALL IMMEDIATELY
 NOTIFY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES AND
 THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND OTHER  LAW  ENFORCE-
 MENT  AGENCIES  THAT  THE  ACTION  HAS  BEEN  TERMINATED IN FAVOR OF THE
 ACCUSED AND DEEMED A NULLITY, AND UNLESS THE COURT HAS  DIRECTED  OTHER-
 WISE,  THAT THE RECORD OF OR RELATING TO SUCH ACTION OR PROCEEDING SHALL
 BE IMMEDIATELY EXPUNGED AS FOLLOWS:
   (a) every photograph of such person and photographic plate  or  proof,
 and  all palmprints and fingerprints, RETINA SCANS OR DNA MATERIAL taken
 or made of such person pursuant to the provisions  of  this  article  in
 regard  to  the  action  or  proceeding  terminated, [except a dismissal
 pursuant to section 170.56 or 210.46 of this chapter,]  and  all  dupli-
 cates  and  copies  thereof,  except  a  digital fingerprint image where
 authorized pursuant to paragraph (e) of this subdivision,  shall  forth-
 with  be[,  at the discretion of the recipient agency, either] destroyed
 [or returned to such person, or to the  attorney  who  represented  such
 person]  at the time of the termination of the action or proceeding[, at
 the address given by such  person  or  attorney  during  the  action  or
 proceeding,]  by  the  division  of criminal justice services and by any
 police department or law enforcement agency having any such  photograph,
 photographic  plate or proof, palmprint [or], fingerprints, RETINA SCANS
 OR DNA MATERIAL in its possession or under its control;
   (b) any police department or law  enforcement  agency,  including  the
 division  of  criminal  justice services, which transmitted or otherwise

 A. 1617--B                         79
 
 forwarded to any agency of the United States or of any other state or of
 any other jurisdiction outside the state of New York copies of any  such
 photographs,  photographic  plates  or proofs, palmprints [and], finger-
 prints,  RETINA  SCANS  OR  DNA  MATERIAL,  including  those relating to
 actions or proceedings which were dismissed pursuant to  section  170.56
 or  210.46 of this [chapter] PART, shall forthwith formally [request in]
 INFORM THEM IN writing that [all such copies be destroyed or returned to
 the police department or law enforcement  agency  which  transmitted  or
 forwarded  them,  and,  if returned, such department or agency shall, at
 its discretion, either destroy or return them as provided herein, except
 that those relating to dismissals pursuant to section 170.56  or  210.46
 of this chapter shall not be destroyed or returned by such department or
 agency]  THE  MATTER  HAS  BEEN EXPUNGED AND REQUEST IN WRITING THAT ALL
 SUCH COPIES BE DESTROYED;
   (c) all official records and papers, including judgments and orders of
 a court but not including  published  court  decisions  or  opinions  or
 records  and  briefs  on  appeal, relating to the arrest or prosecution,
 including all duplicates and copies thereof, on file with  the  division
 of  criminal justice services, any court, police agency, or prosecutor's
 office shall be [sealed and not made available to any person  or  public
 or private agency] MARKED AS EXPUNGED BY CONSPICUOUSLY INDICATING ON THE
 FACE  OF  THE  RECORD  OR  AT THE BEGINNING OF THE DIGITIZED FILE OF THE
 RECORD THAT THE RECORD HAS BEEN DESIGNATED AS EXPUNGED. SUCH RECORDS AND
 PAPERS SHALL BE SEALED AND NOT BE MADE AVAILABLE TO ANY  PERSON,  EXCEPT
 THE  INDIVIDUAL WHOSE CASE HAS BEEN DEEMED A NULLITY OR THEIR DESIGNATED
 AGENT AS SET FORTH IN PARAGRAPH (D)  OF  THIS  SUBDIVISION,  OR  TO  ANY
 PUBLIC OR PRIVATE AGENCY;
   (d)  [such]  records  SET  FORTH  IN PARAGRAPH (C) OF THIS SUBDIVISION
 shall be made available to the person accused or to such person's desig-
 nated agent, and shall be made available to  (i)  a  prosecutor  in  any
 proceeding  in  which  the  accused  has  moved for an order pursuant to
 section 170.56 or 210.46 of this [chapter] PART, or (ii) a law  enforce-
 ment  agency  upon  ex  parte  motion  in  any superior court, or in any
 district court, city court or the criminal court of the city of New York
 provided that such court ORIGINALLY sealed OR EXPUNGED  the  record,  if
 such  agency  demonstrates to the satisfaction of the court that justice
 requires that such records be made available to it, or (iii)  any  state
 or  local  officer  or  agency  with  responsibility for the issuance of
 licenses to possess guns, when the accused has made application for such
 a license, or (iv) the New York  state  department  of  corrections  and
 community  supervision  when  the  accused is on parole supervision as a
 result of conditional release or a parole release  granted  by  the  New
 York  state  board of parole, and the arrest which is the subject of the
 inquiry is one which occurred while the accused was  under  such  super-
 vision,  or  (v)  any  prospective employer of a police officer or peace
 officer as those terms are  defined  in  subdivisions  thirty-three  and
 thirty-four  of section 1.20 of this chapter, in relation to an applica-
 tion for employment as a police  officer  or  peace  officer;  provided,
 however,  that  every  person  who  is  an applicant for the position of
 police officer or peace officer shall be furnished with a  copy  of  all
 records  obtained  under  this  paragraph and afforded an opportunity to
 make an explanation thereto, or (vi) the probation department  responsi-
 ble  for supervision of the accused when the arrest which is the subject
 of the inquiry is one which occurred while the accused  was  under  such
 supervision; and

 A. 1617--B                         80
 
   (e)  where fingerprints subject to the provisions of this section have
 been received by the division of criminal justice services and have been
 filed by the division as digital images, such images  may  be  retained,
 provided  that  a fingerprint card of the individual is on file with the
 division  which  was  not [sealed] DESTROYED pursuant to this section or
 section 160.55 of this article.
   (1-A) CASES PREVIOUSLY SEALED PURSUANT TO THIS SECTION SHALL BE DEEMED
 EXPUNGED, AND DIGITAL RECORDS SHALL BE SO MARKED.
   § 20. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
 of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
 ter 905 of the laws of 1977, paragraph (k) as added by  chapter  835  of
 the  laws  of  1977 and as relettered by chapter 192 of the laws of 1980
 and such subdivision as renumbered by chapter 142 of the laws  of  1991,
 are amended to read as follows:
   (i)  prior to the filing of an accusatory instrument in a local crimi-
 nal court against such person, the prosecutor elects  not  to  prosecute
 such  person.  In such event, the prosecutor shall serve a certification
 of such disposition upon the division of criminal justice  services  and
 upon  the appropriate police department or law enforcement agency which,
 upon receipt thereof, shall comply with  the  provisions  of  paragraphs
 (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
 manner as is required thereunder with respect to an  order  of  a  court
 entered pursuant to said subdivision one[.]; OR
   (j)  following the arrest of such person, the arresting police agency,
 prior to the filing of an accusatory  instrument  in  a  local  criminal
 court  but subsequent to the forwarding of a copy of the fingerprints of
 such person to the division of criminal justice services, elects not  to
 proceed  further. In such event, the head of the arresting police agency
 shall serve a certification of such disposition  upon  the  division  of
 criminal justice services which, upon receipt thereof, shall comply with
 the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
 this  section  in the same manner as is required thereunder with respect
 to an order of a court entered pursuant to said subdivision one[.]; OR
   (k) (i) The accusatory instrument alleged a violation of  article  two
 hundred  twenty  or section 240.36 of the penal law, prior to the taking
 effect of article two hundred twenty-one of the penal  law,  or  BY  THE
 CONVICTION  OF  SUCH PERSON OF a violation of [article two hundred twen-
 ty-one] SECTION 221.45 of the penal law ON OR AFTER THE  EFFECTIVE  DATE
 OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
 PARAGRAPH OR A VIOLATION OF  SECTION  221.05,  221.10,  221.15,  221.20,
 221.25, 221.30, 221.35 OR 221.40 OF THE PENAL LAW PRIOR TO THE EFFECTIVE
 DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
 THIS PARAGRAPH; AND (ii)  the  sole  controlled  substance  involved  is
 [marijuana; (iii) the conviction was only for a violation or violations;
 and  (iv)  at  least three years have passed since the offense occurred]
 MARIHUANA. NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO  WAIVE  ELIGI-
 BILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUIL-
 TY, SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR A VIOLATION OF
 SECTION  221.45  OF  THE PENAL LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID
 AND WHOLLY UNENFORCEABLE.
   § 21. Subdivision 4 of section 160.50 of the criminal procedure law is
 REPEALED, and three new subdivisions 4, 5, and 6 are added  to  read  as
 follows:
   4. WHERE A CRIMINAL ACTION OR PROCEEDING WAS TERMINATED, AS DEFINED IN
 PARAGRAPH  (K) OF SUBDIVISION THREE OF THIS SECTION, PRIOR TO THE EFFEC-
 TIVE DATE OF THIS SUBDIVISION, SUCH CRIMINAL ACTION OR PROCEEDING  SHALL

 A. 1617--B                         81
 
 BE  AUTOMATICALLY  VACATED AND DISMISSED, AND ALL RECORDS OF SUCH ACTION
 OR PROCEEDING EXPUNGED AS SET FORTH IN SUBDIVISION ONE OF THIS  SECTION,
 AND  THE MATTER TERMINATED IN FAVOR OF THE ACCUSED AND DEEMED A NULLITY,
 BECAUSE  THE PRIOR CONVICTION IS NOW LEGALLY INVALID. OCA SHALL AUTOMAT-
 ICALLY NOTIFY THE COMMISSIONER  OF  THE  DIVISION  OF  CRIMINAL  JUSTICE
 SERVICES  AND  THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND OTHER
 LAW ENFORCEMENT AGENCIES THAT THE PRIOR CONVICTION IS NOW LEGALLY INVAL-
 ID AND THAT THE ACTION HAS BEEN VACATED, DISMISSED AND EXPUNGED AND THUS
 TERMINATED IN FAVOR OF THE ACCUSED. UPON RECEIPT OF NOTIFICATION OF SUCH
 VACATUR, TERMINATION AND EXPUNGEMENT, ALL RECORDS RELATING TO THE CRIMI-
 NAL ACTION SHALL BE EXPUNGED AS DESCRIBED IN  SUBDIVISION  ONE  OF  THIS
 SECTION.
   5.  IN  SITUATIONS WHERE AUTOMATIC VACATUR, DISMISSAL, EXPUNGEMENT AND
 RECORD DESTRUCTION IS REQUIRED BY SUBDIVISION FOUR OF THIS  SECTION  BUT
 HAS NOT TAKEN PLACE, OR WHERE SUPPORTING COURT RECORDS CANNOT BE LOCATED
 OR  HAVE BEEN DESTROYED, AND AN INDIVIDUAL OR THEIR ATTORNEY PRESENTS TO
 OCA FINGERPRINT RECORDS FROM THE NEW YORK  STATE  DIVISION  OF  CRIMINAL
 JUSTICE  SERVICES  OR A COURT DISPOSITION WHICH INDICATE THAT A CRIMINAL
 ACTION  OR  PROCEEDING  AGAINST  THE  APPLICANT  WAS  TERMINATED  BY   A
 CONVICTION  FOR  SECTION  221.05, 221.10 221.15, 221.20, 221.25, 221.30,
 221.35, OR 221.40 OF THE PENAL LAW IN EFFECT PRIOR TO THE EFFECTIVE DATE
 OF THIS SUBDIVISION, WITHIN THIRTY DAYS OF NOTICE  TO  OCA,  THE  ACTION
 SHALL  FORTHWITH  BE  VACATED,  DISMISSED,  AND EXPUNGED AS SET FORTH IN
 SUBDIVISION ONE OF THIS SECTION.
   6. VACATUR, DISMISSAL AND EXPUNGEMENT AS SET FORTH IN SUBDIVISION FOUR
 OR SUBDIVISION FIVE OF THIS SECTION IS WITHOUT PREJUDICE TO AN  INDIVID-
 UAL  OR THEIR ATTORNEY SEEKING FURTHER RELIEF PURSUANT TO SECTION 440.10
 OF THIS PART. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH  OR  ABRO-
 GATE ANY RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE INDIVIDUAL.
   §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
 as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
 follows:
   1.  Upon or after arraignment in a local criminal court upon an infor-
 mation, a prosecutor's information or a misdemeanor complaint, where the
 sole  remaining  count  or  counts  charge  a violation or violations of
 section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
 law,  OR  UPON SUMMONS FOR A NUISANCE OFFENSE UNDER SECTION SIXTY-FIVE-C
 OF THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea  of
 guilty  thereto  or  commencement  of   a trial thereof, the court, upon
 motion of a defendant, may order that all proceedings be  suspended  and
 the  action  adjourned  in contemplation of dismissal, or upon a finding
 that adjournment would not be necessary or appropriate and  the  setting
 forth  in  the  record  of the reasons for such findings, may dismiss in
 furtherance of justice the  accusatory  instrument;  provided,  however,
 that  the  court  may  not  order  such  adjournment in contemplation of
 dismissal or dismiss the accusatory instrument if: (a) the defendant has
 previously been granted such adjournment in contemplation of  dismissal,
 or  (b) the defendant has previously been granted a dismissal under this
 section, or (c) the defendant  has  previously  been  convicted  of  any
 offense involving controlled substances, or (d) the defendant has previ-
 ously  been  convicted  of  a  crime  and the district attorney does not
 consent or (e) the defendant has previously been adjudicated a  youthful
 offender on the basis of any act or acts involving controlled substances
 and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
 TIONS  SET  FORTH  IN  THIS  SUBDIVISION,  THE  COURT MAY ORDER THAT ALL
 PROCEEDINGS BE SUSPENDED AND THE ACTION ADJOURNED  IN  CONTEMPLATION  OF

 A. 1617--B                         82
 
 DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
 PURPOSES OF THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES  EXIST  WHEN,
 REGARDLESS  OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A PLEA
 OF GUILTY IS LIKELY TO RESULT IN SEVERE OR ONGOING CONSEQUENCES, INCLUD-
 ING, BUT NOT LIMITED TO, POTENTIAL OR ACTUAL IMMIGRATION CONSEQUENCES.
   § 23. Paragraph (j) of subdivision 1 of section 440.10 of the criminal
 procedure  law, as amended by section 2 of part MMM of chapter 59 of the
 laws of 2019, is amended and a new paragraph (k) is  added  to  read  as
 follows:
   (j)  The judgment is a conviction for a class A or unclassified misde-
 meanor entered prior to the effective date of this paragraph and  satis-
 fies  the ground prescribed in paragraph (h) of this subdivision.  There
 shall be a rebuttable presumption that a conviction by plea to  such  an
 offense  was  not  knowing,  voluntary and intelligent, based on ongoing
 collateral  consequences,  including  potential  or  actual  immigration
 consequences,  and  there  shall  be  a  rebuttable  presumption  that a
 conviction by verdict constitutes cruel  and  unusual  punishment  under
 section  five  of  article  one  of the state constitution based on such
 consequences[.]; OR
   (K) IF PERTINENT, SUCH RELIEF IS AVAILABLE  NOTWITHSTANDING  THAT  THE
 JUDGMENT  WAS FOR A VIOLATION OF SECTION 221.05, 221.10, 221.15, 221.20,
 221.25, 221.30, 221.35, OR 221.40 OF THE PENAL LAW IN  EFFECT  PRIOR  TO
 THE  EFFECTIVE  DATE OF THIS PARAGRAPH AND THAT THE UNDERLYING ACTION OR
 PROCEEDING HAS ALREADY BEEN VACATED, DISMISSED AND EXPUNGED PURSUANT  TO
 SUBDIVISION  FOUR  OR SUBDIVISION FIVE OF SECTION 160.50 OF THIS CHAPTER
 IN WHICH CASE THE COURT SHALL PRESUME THAT A CONVICTION BY  PLEA  FOR  A
 VIOLATION  OF  THE AFOREMENTIONED SECTIONS OF THE THEN PENAL LAW WAS NOT
 KNOWING, VOLUNTARY AND INTELLIGENT,  IF  IT  HAS  ONGOING  CONSEQUENCES,
 INCLUDING  BUT  NOT  LIMITED  TO, POTENTIAL OR ACTUAL IMMIGRATION CONSE-
 QUENCES, AND SHALL PRESUME THAT A CONVICTION BY VERDICT OF THE AFOREMEN-
 TIONED SECTIONS OF THE THEN PENAL  LAW  CONSTITUTES  CRUEL  AND  UNUSUAL
 PUNISHMENT  UNDER  THE  STATE CONSTITUTION, BASED ON THOSE CONSEQUENCES.
 THE PROSECUTION MAY REBUT THESE PRESUMPTIONS.
   § 24. The criminal procedure law is amended by adding  a  new  section
 440.46-a to read as follows:
 § 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
             OFFENSES.
   1.  WHERE  A  PERSON IS CURRENTLY SERVING A SENTENCE FOR A CONVICTION,
 WHETHER BY VERDICT OR BY OPEN OR NEGOTIATED PLEA,  WHO  WOULD  NOT  HAVE
 BEEN  GUILTY  OF AN OFFENSE AFTER THE EFFECTIVE DATE OF THIS SECTION HAD
 THIS SECTION BEEN IN EFFECT AT THE TIME OF THEIR CONVICTION, THE  OFFICE
 OF  COURT ADMINISTRATION SHALL AUTOMATICALLY VACATE, DISMISS AND EXPUNGE
 SUCH CONVICTION PURSUANT TO SUBDIVISION FOUR OF SECTION 160.50  OF  THIS
 PART AND IMMEDIATELY NOTIFY THE NEW YORK STATE DEPARTMENT OF CORRECTIONS
 AND  COMMUNITY  SUPERVISION  AND LOCAL JAILS, WHICH ENTITIES SHALL IMME-
 DIATELY EFFECTUATE THE APPROPRIATE RELIEF. THE OFFICE OF COURT  ADMINIS-
 TRATION  SHALL  LIKEWISE  AUTOMATICALLY  NOTIFY THE DIVISION OF CRIMINAL
 JUSTICE SERVICES AND ANY POLICE DEPARTMENT AND LAW  ENFORCEMENT  AGENCY,
 WHICH  DIVISION, DEPARTMENT OR AGENCY MUST IMMEDIATELY DESTROY APPURTEN-
 ANT RECORDS AS SET FORTH IN SUBDIVISION FOUR OF SECTION 160.50  OF  THIS
 PART.
   2. (A) A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER
 BY  VERDICT OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY OF
 A LESSER OFFENSE AFTER THE EFFECTIVE  DATE  OF  THIS  SECTION  HAD  THIS
 SECTION  BEEN IN EFFECT AT THE TIME OF THEIR CONVICTION MAY PETITION FOR
 A RECALL OF SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT OF

 A. 1617--B                         83
 
 CONVICTION IN THEIR CASE TO  REQUEST  RESENTENCING  IN  ACCORDANCE  WITH
 ARTICLE TWO HUNDRED TWENTY-TWO OF THE PENAL LAW.
   (B)  UPON  RECEIVING A MOTION UNDER PARAGRAPH (A) OF THIS SUBDIVISION,
 THE COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUCH  PARA-
 GRAPH  (A)  UNLESS  THE  PARTY  OPPOSING  THE MOTION PROVES BY CLEAR AND
 CONVINCING EVIDENCE THAT THE MOVANT DOES NOT SATISFY  THE  CRITERIA.  IF
 THE  MOVANT SATISFIES THE CRITERIA IN PARAGRAPH (A) OF THIS SUBDIVISION,
 THE COURT SHALL GRANT THE MOTION TO RESENTENCE.
   3. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS  SECTION  RESULT
 IN  THE  IMPOSITION  OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
 REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREE-
 MENT.
   4. (A) A PERSON WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
 UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
 ER  BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY OF A
 LESSER OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD  THIS
 SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN
 APPLICATION  BEFORE  THE  TRIAL  COURT  THAT  ENTERED  THE  JUDGMENT  OF
 CONVICTION IN HIS OR HER CASE TO HAVE THE  CONVICTION  REDESIGNATED  (OR
 "RECLASSIFIED"),  IN  ACCORDANCE  WITH ARTICLE TWO HUNDRED TWENTY-TWO OF
 THE PENAL LAW.
   (B) UPON RECEIVING A MOTION UNDER PARAGRAPH (A) OF  THIS  SUBDIVISION,
 THE  COURT  SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN PARAGRAPH
 (A) OF THIS SUBDIVISION UNLESS THE PARTY OPPOSING THE MOTION  PROVES  BY
 CLEAR  AND  CONVINCING  EVIDENCE  THAT  THE  MOVANT DOES NOT SATISFY THE
 CRITERIA. IF THE MOVANT SATISFIES THE CRITERIA IN PARAGRAPH (A) OF  THIS
 SUBDIVISION,  THE  COURT  SHALL  GRANT  THE  MOTION  TO  REDESIGNATE (OR
 "RECLASSIFY") THE CONVICTION.
   5. (A) IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAIL-
 ABLE, THE PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE  ON  THE
 PETITION OR APPLICATION.
   (B)  UNLESS  REQUESTED BY THE MOVANT, NO HEARING IS NECESSARY TO GRANT
 AN APPLICATION FILED UNDER SUBDIVISION TWO OR FOUR OF THIS SECTION.
   (C) ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDI-
 VISION TWO OF THIS SECTION OR DESIGNATED AS A MISDEMEANOR  OR  VIOLATION
 UNDER SUBDIVISION FOUR OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR
 OR  VIOLATION  FOR  ALL  PURPOSES.  ANY  MISDEMEANOR  CONVICTION THAT IS
 VACATED AND RESENTENCED UNDER SUBDIVISION TWO OF THIS SECTION OR  DESIG-
 NATED  AS  A  VIOLATION  UNDER SUBDIVISION FOUR OF THIS SECTION SHALL BE
 CONSIDERED A VIOLATION FOR ALL PURPOSES.
   (D) NOTHING IN THIS SECTION IS INTENDED TO DIMINISH  OR  ABROGATE  ANY
 RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
   (E)  NOTHING  IN  THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR
 ABROGATE THE FINALITY OF JUDGMENTS IN ANY CASE NOT  FALLING  WITHIN  THE
 PURVIEW OF THIS SECTION.
   (F)  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY EQUALLY TO JUVENILE
 DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER  SECTION  FIVE  HUNDRED
 ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
 AN  OFFENSE  OR  WOULD  HAVE  BEEN GUILTY OF A LESSER OFFENSE UNDER THIS
 SECTION HAD THIS SECTION BEEN IN EFFECT  AT  THE  TIME  OF  HIS  OR  HER
 CONVICTION.
   (G)  THE  OFFICE  OF  COURT  ADMINISTRATION  SHALL PROMULGATE AND MAKE
 AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS  AND
 APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
 THE EFFECTIVE DATE OF THIS SECTION.

 A. 1617--B                         84
 
   § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
 procedure  law, as amended by chapter 37 of the laws of 2014, is amended
 to read as follows:
   (c)  Criminal  possession  of  a  controlled  substance in the seventh
 degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
 possession  of  a controlled substance in the fifth degree as defined in
 section 220.06 of the penal law, criminal  possession  of  a  controlled
 substance in the fourth degree as defined in section 220.09 of the penal
 law,  criminal  possession of a controlled substance in the third degree
 as defined in section 220.16 of the penal law, criminal possession of  a
 controlled  substance  in the second degree as defined in section 220.18
 of the penal law, criminal possession of a controlled substance  in  the
 first  degree  as  defined  in section 220.21 of the penal law, criminal
 sale of a controlled substance in the fifth degree as defined in section
 220.31 of the penal law, criminal sale of a controlled substance in  the
 fourth  degree  as  defined in section 220.34 of the penal law, criminal
 sale of a controlled substance in the third degree as defined in section
 220.39 of the penal law, criminal sale of a controlled substance in  the
 second  degree  as  defined in section 220.41 of the penal law, criminal
 sale of a controlled substance in the first degree as defined in section
 220.43 of the penal law, criminally possessing a  hypodermic  instrument
 as  defined  in  section  220.45  of  the  penal law, criminal sale of a
 prescription for a controlled substance or a controlled substance  by  a
 practitioner  or  pharmacist  as  defined in section 220.65 of the penal
 law, criminal possession of methamphetamine  manufacturing  material  in
 the  second degree as defined in section 220.70 of the penal law, crimi-
 nal possession of methamphetamine manufacturing material  in  the  first
 degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
 possession of precursors of methamphetamine as defined in section 220.72
 of the penal law, unlawful manufacture of methamphetamine in  the  third
 degree  as defined in section 220.73 of the penal law, unlawful manufac-
 ture of methamphetamine in the  second  degree  as  defined  in  section
 220.74  of the penal law, unlawful manufacture of methamphetamine in the
 first degree as defined in section 220.75 of  the  penal  law,  unlawful
 disposal  of  methamphetamine  laboratory material as defined in section
 220.76 of the penal law, operating as a major trafficker as  defined  in
 section  220.77  of  the penal law, [criminal possession of marihuana in
 the first degree as defined in section 221.30 of the penal law, criminal
 sale of marihuana in the first degree as defined in  section  221.55  of
 the  penal  law,]  promoting gambling in the second degree as defined in
 section 225.05 of the penal law, promoting gambling in the first  degree
 as  defined  in  section 225.10 of the penal law, possession of gambling
 records in the second degree as defined in section 225.15 of  the  penal
 law,  possession  of  gambling records in the first degree as defined in
 section 225.20 of the penal law, and possession of a gambling device  as
 defined in section 225.30 of the penal law;
   § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
 9  of  section  1310 of the civil practice law and rules, paragraphs (b)
 and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
 and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
 are amended to read as follows:
   (b) on three or more occasions, engaging  in  conduct  constituting  a
 violation  of  any  of  the  felonies defined in section 220.09, 220.16,
 220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or  221.55]
 of  the  penal law, which violations do not constitute a single criminal
 offense as defined in subdivision one of section 40.10 of  the  criminal

 A. 1617--B                         85
 
 procedure law, or a single criminal transaction, as defined in paragraph
 (a)  of  subdivision two of section 40.10 of the criminal procedure law,
 and at least one of which resulted in a conviction of such  offense,  or
 where  the  accusatory  instrument charges one or more of such felonies,
 conviction upon a plea of guilty to a felony  for  which  such  plea  is
 otherwise authorized by law; or
   (c)  a  conviction  of  a  person  for  a violation of section 220.09,
 220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
 nal  defendant  for  a violation of section 221.30 of the penal law,] or
 where the accusatory instrument charges any such felony, conviction upon
 a plea of guilty to a felony for which the plea is otherwise  authorized
 by  law,  together with evidence which: (i) provides substantial indicia
 that the defendant used the real property  to  engage  in  a  continual,
 ongoing  course  of  conduct involving the unlawful mixing, compounding,
 manufacturing, warehousing, or packaging of  controlled  substances  [or
 where  the  conviction is for a violation of section 221.30 of the penal
 law, marijuana,] as part of an illegal trade or business for  gain;  and
 (ii) establishes, where the conviction is for possession of a controlled
 substance  [or where the conviction is for a violation of section 221.30
 of the penal law, marijuana], that such possession was with  the  intent
 to sell it.
   [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
 article two hundred twenty or section 221.30  or  221.55  of  the  penal
 law.]
   9.  "Criminal defendant" means a person who has criminal liability for
 a crime defined in [subdivisions] SUBDIVISION five [and six  hereof]  OF
 THIS  SECTION.  For  purposes  of  this  article,  a person has criminal
 liability when [(a)] he has been convicted of a post-conviction  forfei-
 ture  crime[, or (b) the claiming authority proves by clear and convinc-
 ing evidence that such person has committed an act in violation of arti-
 cle two hundred twenty or section 221.30 or 221.55 of the penal law].
   § 27. Subdivision 13 of section 89-f of the general business  law,  as
 added by chapter 336 of the laws of 1992, is amended to read as follows:
   13.  "Serious  offense"  shall  mean any felony involving the offenses
 enumerated in the closing paragraph  of  this  subdivision;  a  criminal
 solicitation  of  or a conspiracy to commit or an attempt to commit or a
 criminal facilitation of a felony involving the offenses  enumerated  in
 the  closing paragraph of this subdivision, which criminal solicitation,
 conspiracy, attempt or criminal facilitation itself constitutes a felony
 or any offense in any other jurisdiction  which  if  committed  in  this
 state  would  constitute a felony; any offense in any other jurisdiction
 which if committed in this state would constitute a felony provided that
 for the purposes of this article, none of the following shall be consid-
 ered criminal convictions or reported as  such:  (i)  a  conviction  for
 which an executive pardon has been issued pursuant to the executive law;
 (ii)  a  conviction  which  has  been vacated and replaced by a youthful
 offender finding pursuant to article seven hundred twenty of the  crimi-
 nal  procedure  law,  or  the  applicable provisions of law of any other
 jurisdiction; or (iii) a conviction  the  records  of  which  have  been
 sealed  pursuant  to the applicable provisions of the laws of this state
 or of any other jurisdiction; and (iv)  a  conviction  for  which  other
 evidence  of successful rehabilitation to remove the disability has been
 issued.
   Felonies involving: assault, aggravated assault and reckless endanger-
 ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
 manslaughter and murder pursuant to article one hundred twenty-five; sex

 A. 1617--B                         86
 
 offenses  pursuant to article one hundred thirty; unlawful imprisonment,
 kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
 criminal  trespass  and  burglary pursuant to article one hundred forty;
 criminal  mischief,  criminal  tampering  and  tampering with a consumer
 product pursuant to article one hundred forty-five;  arson  pursuant  to
 article one hundred fifty; larceny and offenses involving theft pursuant
 to article one hundred fifty-five; offenses involving computers pursuant
 to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
 hundred sixty; criminal possession of stolen property pursuant to  arti-
 cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
 article one hundred seventy; involving false written statements pursuant
 to article one hundred seventy-five; commercial bribing  and  commercial
 bribe  receiving pursuant to article one hundred eighty; criminal imper-
 sonation and scheme to defraud pursuant to article one  hundred  ninety;
 bribery involving public servants and related offenses pursuant to arti-
 cle  two  hundred;  perjury and related offenses pursuant to article two
 hundred ten; tampering with a witness, intimidating a victim or  witness
 and  tampering  with  physical  evidence pursuant to article two hundred
 fifteen; criminal possession  of  a  controlled  substance  pursuant  to
 sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
 controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
 220.41,  220.43  and  220.44;  [criminal] UNLICENSED sale of [marijuana]
 CANNABIS IN THE FIRST DEGREE pursuant to [sections  221.45,  221.50  and
 221.55]  SECTION 222.30; riot in the first degree, aggravated harassment
 in the first degree, criminal nuisance in the first degree  and  falsely
 reporting  an incident in the second or first degree pursuant to article
 two hundred forty; and crimes against public safety pursuant to  article
 two hundred sixty-five of the penal law.
   §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
 business law is REPEALED.
   § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
 business  law, as amended by chapter 812 of the laws of 1980, is amended
 to read as follows:
   (h) Objects, used or designed for the purpose of ingesting,  inhaling,
 or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
 into the human body.
   § 30. Subdivision 7 of section 995 of the executive law, as amended by
 chapter 19 of the laws of 2012, is amended to read as follows:
   7.  "Designated  offender"  means  a  person  convicted  of any felony
 defined in any chapter of the laws  of  the  state  or  any  misdemeanor
 defined  in  the  penal  law  [except that where the person is convicted
 under section 221.10 of the penal law, only  a  person  convicted  under
 subdivision two of such section, or a person convicted under subdivision
 one  of  such  section  who  stands previously convicted of any crime as
 defined in subdivision six of section 10.00 of the penal law].
   § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
 penal law, paragraph (b) as amended by section 31 of part AAA of chapter
 56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
 laws of 1990, are amended to read as follows:
   (b) three or more violations of any of the felonies defined in section
 220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
 220.43[,] OR 220.77[, or 221.55] of this chapter,  which  violations  do
 not  constitute  a single criminal offense as defined in subdivision one
 of section 40.10 of the criminal procedure law,  or  a  single  criminal
 transaction,  as  defined in paragraph (a) of subdivision two of section
 40.10 of the criminal procedure law, and at least one of which  resulted

 A. 1617--B                         87
 
 in  a  conviction  of  such  offense, or where the accusatory instrument
 charges one or more of such felonies, conviction upon a plea  of  guilty
 to a felony for which such plea is otherwise authorized by law; or
   (c)  a  conviction  of  a  person  for  a violation of section 220.09,
 220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
 accusatory instrument charges any such felony, conviction upon a plea of
 guilty  to  a  felony for which the plea is otherwise authorized by law,
 together with evidence which: (i) provides substantial indicia that  the
 defendant  used  the  real  property  to  engage in a continual, ongoing
 course of conduct involving the unlawful mixing,  compounding,  manufac-
 turing, warehousing, or packaging of controlled substances [or where the
 conviction  is  for a violation of section 221.30 of this chapter, mari-
 juana] as part of an illegal trade or business for gain; and (ii) estab-
 lishes, where the conviction is for possession of a controlled substance
 [or where the conviction is for a violation of section  221.30  of  this
 chapter,  marijuana],  that  such possession was with the intent to sell
 it.
   § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
 and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
 amended to read as follows:
   (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
 subdivision one and subparagraph (i) of paragraph (c) of subdivision two
 of  this  section  that  result in disqualification for a period of five
 years shall include a conviction under sections 100.10, 105.13,  115.05,
 120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
 125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
 140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
 220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
 230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
 235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
 section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
 265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
 the  aforesaid  offenses  under  section 110.00 of the penal law, or any
 similar offenses committed under a former section of the penal  law,  or
 any  offenses  committed  under  a former section of the penal law which
 would constitute violations of the aforesaid sections of the penal  law,
 or  any  offenses  committed  outside  this state which would constitute
 violations of the aforesaid sections of the penal law.
   § 33. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
 section  1194  of the vehicle and traffic law, as amended by chapter 196
 of the laws of 1996, is amended to read as follows:
   When authorized. Any person who operates a motor vehicle in this state
 shall be deemed to have given consent to a chemical test of one or  more
 of  the  following:    breath,  blood[,]  OR urine[, or saliva,] for the
 purpose of determining the alcoholic and/or  drug  content,  OTHER  THAN
 CANNABIS  CONTENT  INCLUDING  BUT  NOT  LIMITED  TO TETRAHYDROCANNABINOL
 CONTENT, of the blood provided that such test is administered by  or  at
 the  direction  of  a  police officer with respect to a chemical test of
 breath, urine [or saliva] or, with respect to a chemical test of  blood,
 at the direction of a police officer:
   §  34. The article heading of article 20-B of the tax law, as added by
 chapter 90 of the laws of 2014, is amended to read as follows:
                                ARTICLE 20-B
                EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS

 A. 1617--B                         88
 
   § 35. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
 section  3  of  part XX of chapter 59 of the laws of 2019, is amended to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  twenty-B, TWENTY-C, twenty-D, twenty-one, twenty-two, twenty-four,
 twenty-six, twenty-eight (except as otherwise provided in section eleven
 hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
 nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
 hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
 chapter  shall  be  deposited daily in one account with such responsible
 banks, banking houses or trust companies as may  be  designated  by  the
 comptroller,  to  the  credit of the comptroller. Such an account may be
 established in one or more of such depositories. Such deposits shall  be
 kept  separate  and  apart from all other money in the possession of the
 comptroller. The comptroller shall require adequate  security  from  all
 such depositories. Of the total revenue collected or received under such
 articles  of  this  chapter,  the  comptroller shall retain in the comp-
 troller's hands such amount as the  commissioner  may  determine  to  be
 necessary  for  refunds  or  reimbursements  under such articles of this
 chapter out of which amount the comptroller shall  pay  any  refunds  or
 reimbursements to which taxpayers shall be entitled under the provisions
 of  such  articles of this chapter. The commissioner and the comptroller
 shall maintain a system  of  accounts  showing  the  amount  of  revenue
 collected  or  received from each of the taxes imposed by such articles.
 The comptroller, after reserving the  amount  to  pay  such  refunds  or
 reimbursements,  shall,  on  or  before the tenth day of each month, pay
 into the state treasury to the credit of the general  fund  all  revenue
 deposited  under  this  section  during the preceding calendar month and
 remaining to the comptroller's credit on the last day of such  preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two  of  this  chapter  and  the interest on such amount which is
 certified to the comptroller by the commissioner as  the  amount  to  be
 credited against past-due support pursuant to subdivision six of section
 one  hundred  seventy-one-c  of  this  article, (ii) and except that the
 comptroller shall pay to the New York state  higher  education  services
 corporation  and the state university of New York or the city university
 of New York respectively that amount of overpayments of tax  imposed  by
 article twenty-two of this chapter and the interest on such amount which
 is  certified to the comptroller by the commissioner as the amount to be
 credited against the amount  of  defaults  in  repayment  of  guaranteed
 student loans and state university loans or city university loans pursu-
 ant  to subdivision five of section one hundred seventy-one-d and subdi-
 vision six of section one hundred seventy-one-e of this  article,  (iii)
 and  except further that, notwithstanding any law, the comptroller shall
 credit  to  the  revenue  arrearage   account,   pursuant   to   section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
 or thirty-three of this chapter, and  any  interest  thereon,  which  is

 A. 1617--B                         89
 
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against a past-due legally enforceable debt  owed  to  a  state
 agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it  to the special offset fiduciary account, pursuant to section ninety-
 one-c of the state finance law, any such amount creditable as a  liabil-
 ity  as  set  forth  in  paragraph (b) of subdivision six of section one
 hundred seventy-one-f of this article, (iv) and except further that  the
 comptroller shall pay to the city of New York that amount of overpayment
 of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
 thirty-B or thirty-three of this chapter and any interest  thereon  that
 is  certified to the comptroller by the commissioner as the amount to be
 credited against city of New York tax warrant judgment debt pursuant  to
 section  one  hundred  seventy-one-l  of  this  article,  (v) and except
 further that the comptroller shall pay to a  non-obligated  spouse  that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter  and the interest on such amount which has been credited pursuant to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
 ty-one-l of this article and which is certified to  the  comptroller  by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this
 chapter;  and  (vi) the comptroller shall deduct a like amount which the
 comptroller shall pay into the treasury to the  credit  of  the  general
 fund  from  amounts  subsequently  payable  to  the department of social
 services, the state university of New York, the city university  of  New
 York,  or  the  higher  education  services  corporation, or the revenue
 arrearage account  or  special  offset  fiduciary  account  pursuant  to
 section  ninety-one-a  or  ninety-one-c of the state finance law, as the
 case may be, whichever had been credited the amount originally  withheld
 from  such  overpayment,  and  (vii)  with respect to amounts originally
 withheld from such overpayment pursuant to section one hundred  seventy-
 one-l  of this article and paid to the city of New York, the comptroller
 shall collect a like amount from the city of New York.
   § 36. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
 section  4  of  part XX of chapter 59 of the laws of 2019, is amended to
 read as follows:
   1. All taxes, interest, penalties and fees collected  or  received  by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A (except as otherwise provided in section  two  hundred  eighty-
 four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except  as otherwise provided in section four hundred eighty-two there-
 of), TWENTY-C, twenty-D, twenty-one,  twenty-two,  twenty-four,  twenty-
 six,  twenty-eight  (except  as  otherwise  provided  in  section eleven
 hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
 nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
 hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
 chapter  shall  be  deposited daily in one account with such responsible
 banks, banking houses or trust companies as may  be  designated  by  the
 comptroller,  to  the  credit of the comptroller. Such an account may be
 established in one or more of such depositories. Such deposits shall  be
 kept  separate  and  apart from all other money in the possession of the
 comptroller. The comptroller shall require adequate  security  from  all

 A. 1617--B                         90
 
 such depositories. Of the total revenue collected or received under such
 articles  of  this  chapter,  the  comptroller shall retain in the comp-
 troller's hands such amount as the  commissioner  may  determine  to  be
 necessary  for  refunds  or  reimbursements  under such articles of this
 chapter out of which amount the comptroller shall  pay  any  refunds  or
 reimbursements to which taxpayers shall be entitled under the provisions
 of  such  articles of this chapter. The commissioner and the comptroller
 shall maintain a system  of  accounts  showing  the  amount  of  revenue
 collected  or  received from each of the taxes imposed by such articles.
 The comptroller, after reserving the  amount  to  pay  such  refunds  or
 reimbursements,  shall,  on  or  before the tenth day of each month, pay
 into the state treasury to the credit of the general  fund  all  revenue
 deposited  under  this  section  during the preceding calendar month and
 remaining to the comptroller's credit on the last day of such  preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two  of  this  chapter  and  the interest on such amount which is
 certified to the comptroller by the commissioner as  the  amount  to  be
 credited against past-due support pursuant to subdivision six of section
 one  hundred  seventy-one-c  of  this  article, (ii) and except that the
 comptroller shall pay to the New York state  higher  education  services
 corporation  and the state university of New York or the city university
 of New York respectively that amount of overpayments of tax  imposed  by
 article twenty-two of this chapter and the interest on such amount which
 is  certified to the comptroller by the commissioner as the amount to be
 credited against the amount  of  defaults  in  repayment  of  guaranteed
 student loans and state university loans or city university loans pursu-
 ant  to subdivision five of section one hundred seventy-one-d and subdi-
 vision six of section one hundred seventy-one-e of this  article,  (iii)
 and  except further that, notwithstanding any law, the comptroller shall
 credit  to  the  revenue  arrearage   account,   pursuant   to   section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
 or thirty-three of this chapter, and  any  interest  thereon,  which  is
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against a past-due legally enforceable debt  owed  to  a  state
 agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it to the special offset fiduciary account, pursuant to section  ninety-
 one-c  of the state finance law, any such amount creditable as a liabil-
 ity as set forth in paragraph (b) of  subdivision  six  of  section  one
 hundred  seventy-one-f of this article, (iv) and except further that the
 comptroller shall pay to the city of New York that amount of overpayment
 of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
 thirty-B  or  thirty-three of this chapter and any interest thereon that
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against city of New York tax warrant judgment debt pursuant to
 section one hundred  seventy-one-l  of  this  article,  (v)  and  except
 further  that  the  comptroller shall pay to a non-obligated spouse that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter and the interest on such amount which has been credited pursuant  to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
 ty-one-l  of  this  article and which is certified to the comptroller by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this

 A. 1617--B                         91
 
 chapter; and (vi) the comptroller shall deduct a like amount  which  the
 comptroller  shall  pay  into  the treasury to the credit of the general
 fund from amounts subsequently  payable  to  the  department  of  social
 services,  the  state university of New York, the city university of New
 York, or the higher  education  services  corporation,  or  the  revenue
 arrearage  account  or  special  offset  fiduciary  account  pursuant to
 section ninety-one-a or ninety-one-c of the state finance  law,  as  the
 case  may be, whichever had been credited the amount originally withheld
 from such overpayment, and (vii)  with  respect  to  amounts  originally
 withheld  from such overpayment pursuant to section one hundred seventy-
 one-l of this article and paid to the city of New York, the  comptroller
 shall collect a like amount from the city of New York.
   §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
 of 2014, is amended to read as follows:
   § 490. [Definitions] EXCISE TAX ON MEDICAL  CANNABIS.    1.  (a)  [All
 definitions  of terms applicable to title five-A of article thirty-three
 of the public health law shall apply to this article.] FOR  PURPOSES  OF
 THIS  ARTICLE,  THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION,"
 "CERTIFIED PATIENT," AND "DESIGNATED  CAREGIVER"  SHALL  HAVE  THE  SAME
 DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW.
   (b)  As used in this section, where not otherwise specifically defined
 and unless a different meaning is clearly required "gross receipt" means
 the amount received in or by reason of any sale, conditional  or  other-
 wise, of medical [marihuana] CANNABIS or in or by reason of the furnish-
 ing of medical [marihuana] CANNABIS from the sale of medical [marihuana]
 CANNABIS provided by a registered organization to a certified patient or
 designated caregiver.  Gross receipt is expressed in money, whether paid
 in  cash,  credit or property of any kind or nature, and shall be deter-
 mined without any deduction therefrom on account  of  the  cost  of  the
 service  sold  or the cost of materials, labor or services used or other
 costs, interest or discount paid,  or  any  other  expenses  whatsoever.
 "Amount received" for the purpose of the definition of gross receipt, as
 the term gross receipt is used throughout this article, means the amount
 charged for the provision of medical [marihuana] CANNABIS.
   2.  There  is  hereby imposed an excise tax on the gross receipts from
 the sale of medical [marihuana] CANNABIS by a registered organization to
 a certified patient or designated caregiver, to be paid  by  the  regis-
 tered  organization,  at  the  rate of seven percent. The tax imposed by
 this article shall be charged against and  be  paid  by  the  registered
 organization and shall not be added as a separate charge or line item on
 any sales slip, invoice, receipt or other statement or memorandum of the
 price given to the retail customer.
   3.  The  commissioner  may  make,  adopt and amend rules, regulations,
 procedures and forms necessary for the  proper  administration  of  this
 article.
   4. Every registered organization that makes sales of medical [marihua-
 na]  CANNABIS  subject  to  the tax imposed by this article shall, on or
 before the twentieth date of each month, file with  the  commissioner  a
 return  on  forms  to  be  prescribed  by  the commissioner, showing its
 receipts from the retail sale of medical [marihuana] CANNABIS during the
 preceding calendar month and the amount of tax due thereon. Such returns
 shall contain such further information as the commissioner may  require.
 Every  registered  organization  required  to  file  a return under this
 section shall, at the time of filing such return, pay to the commission-
 er the total amount of tax due on its retail sales of medical  [marihua-
 na]  CANNABIS  for the period covered by such return. If a return is not

 A. 1617--B                         92
 
 filed when due, the tax shall be due on the day on which the  return  is
 required to be filed.
   5.  Whenever the commissioner shall determine that any moneys received
 under the provisions of this article were paid in error,  he  may  cause
 the  same  to  be refunded, with interest, in accordance with such rules
 and regulations as he may prescribe, except that no  interest  shall  be
 allowed  or  paid  if  the amount thereof would be less than one dollar.
 Such interest shall be at the overpayment rate set by  the  commissioner
 pursuant  to subdivision twenty-sixth of section one hundred seventy-one
 of this chapter, or if no rate is set, at the rate of  six  percent  per
 annum,  from  the  date when the tax, penalty or interest to be refunded
 was paid to a date preceding the date of the refund check  by  not  more
 than  thirty  days.  Provided,  however,  that  for the purposes of this
 subdivision, any tax paid before the last day prescribed for its payment
 shall be deemed to have been paid on such last day. Such moneys received
 under the provisions of this article which the commissioner shall deter-
 mine were paid in error, may be refunded out of funds in the custody  of
 the  comptroller  to  the  credit  of such taxes provided an application
 therefor is filed with the commissioner within two years from  the  time
 the erroneous payment was made.
   6.  The provisions of article twenty-seven of this chapter shall apply
 to the tax imposed by this article in the same manner and with the  same
 force  and  effect  as if the language of such article had been incorpo-
 rated in full into this section and had expressly referred  to  the  tax
 imposed by this article, except to the extent that any provision of such
 article  is  either  inconsistent with a provision of this article or is
 not relevant to this article.
   7. All taxes, interest and penalties  collected  or  received  by  the
 commissioner  under  this  article  shall  be  deposited and disposed of
 pursuant to the provisions of section one hundred seventy-one-a of  this
 chapter,  provided that an amount equal to one hundred percent collected
 under this article less any amount determined by the commissioner to  be
 reserved  by the comptroller for refunds or reimbursements shall be paid
 by the comptroller to the credit of  the  medical  [marihuana]  CANNABIS
 trust  fund  established  by  section eighty-nine-h of the state finance
 law.
   8. A registered organization that dispenses medical [marihuana] CANNA-
 BIS shall provide to the department information  on  where  the  medical
 [marihuana]  CANNABIS  was  dispensed  and where the medical [marihuana]
 CANNABIS was manufactured. A registered organization that obtains [mari-
 huana] CANNABIS from another registered organization shall  obtain  from
 such  registered organization information on where the medical [marihua-
 na] CANNABIS was manufactured.
   § 38. Section 491 of the tax law, as added by chapter 90 of  the  laws
 of  2014, subdivision 1 as amended by section 1 of part II of chapter 60
 of the laws of 2016, is amended to read as follows:
   § 491. Returns to be secret. 1. Except in accordance with proper judi-
 cial order or as in this section or otherwise provided by law, it  shall
 be unlawful for the commissioner, any officer or employee of the depart-
 ment, or any officer or person who, pursuant to this section, is permit-
 ted  to inspect any return or report or to whom a copy, an abstract or a
 portion of any return or report is furnished, or to whom any information
 contained in any return or report is furnished, or any person engaged or
 retained by such department on an  independent  contract  basis  or  any
 person  who  in  any  manner  may acquire knowledge of the contents of a
 return or report filed pursuant to this article to divulge or make known

 A. 1617--B                         93
 
 in any manner the contents or any  other  information  relating  to  the
 business of a distributor, owner or other person contained in any return
 or  report  required  under  this article. The officers charged with the
 custody  of such returns or reports shall not be required to produce any
 of them or evidence of anything contained  in  them  in  any  action  or
 proceeding  in  any  court,  except  on  behalf of the state, [the state
 department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner
 in an action or proceeding under the provisions of this  chapter  or  on
 behalf  of the state or the commissioner in any other action or proceed-
 ing involving the collection of a tax due under this  chapter  to  which
 the  state  or the commissioner is a party or a claimant or on behalf of
 any party to any action or proceeding under the provisions of this arti-
 cle, when the returns or the reports or  the  facts  shown  thereby  are
 directly  involved  in  such  action  or  proceeding, or in an action or
 proceeding relating to the regulation or taxation of medical [marihuana]
 CANNABIS on behalf of officers  to  whom  information  shall  have  been
 supplied as provided in subdivision two of this section, in any of which
 events  the  court  may  require  the  production  of,  and may admit in
 evidence so much of said returns or reports or of the facts shown there-
 by as are pertinent to the action or proceeding  and  no  more.  Nothing
 herein  shall  be  construed to prohibit the commissioner, in his or her
 discretion, from allowing the inspection or delivery of a certified copy
 of any return or report filed under this article or of  any  information
 contained  in any such return or report by or to a duly authorized offi-
 cer or employee of the [state department of health] OFFICE  OF  CANNABIS
 MANAGEMENT;  or  by  or to the attorney general or other legal represen-
 tatives of the state when an  action  shall  have  been  recommended  or
 commenced  pursuant  to this chapter in which such returns or reports or
 the facts shown thereby are directly involved; or the inspection of  the
 returns  or  reports  required  under this article by the comptroller or
 duly designated officer or employee of the state department of audit and
 control, for purposes of the audit of a refund of  any  tax  paid  by  a
 registered  organization  or  other  person  under  this article; nor to
 prohibit the delivery to a registered organization, or a duly authorized
 representative of such registered organization, a certified copy of  any
 return  or report filed by such registered organization pursuant to this
 article, nor to prohibit the publication of statistics so classified  as
 to  prevent  the identification of particular returns or reports and the
 items thereof. This section shall also not be construed to prohibit  the
 disclosure,  for  tax  administration  purposes,  to the division of the
 budget and the office of the state comptroller,  of  information  aggre-
 gated  from the returns filed by all the registered organizations making
 sales of, or manufacturing, medical [marihuana] CANNABIS in a  specified
 county,  whether  the  number of such registered organizations is one or
 more. Provided further that,  notwithstanding  the  provisions  of  this
 subdivision,  the commissioner may, in his or her discretion, permit the
 proper officer of any county entitled to receive an allocation,  follow-
 ing  appropriation  by  the  legislature,  pursuant  to this article and
 section eighty-nine-h of the state finance law, or the authorized repre-
 sentative of such officer, to inspect any return filed under this  arti-
 cle,  or  may furnish to such officer or the officer's authorized repre-
 sentative an abstract of any such return or supply such officer or  such
 representative with information concerning an item contained in any such
 return,  or  disclosed  by any investigation of tax liability under this
 article.

 A. 1617--B                         94
 
   2. The commissioner, in his or her discretion  and  pursuant  to  such
 rules  and  regulations  as he or she may adopt, may permit [the commis-
 sioner of internal revenue of the United  States,  or]  the  appropriate
 officers of any other state which regulates or taxes medical [marihuana]
 CANNABIS,  or  the duly authorized representatives of such [commissioner
 or of any such] officers, to inspect returns or reports made pursuant to
 this article, or may furnish to such [commissioner or]  other  officers,
 or  duly authorized representatives, a copy of any such return or report
 or an abstract of the information  therein  contained,  or  any  portion
 thereof,  or may supply [such commissioner or] any such officers or such
 representatives with information relating to the business  of  a  regis-
 tered organization making returns or reports hereunder. The commissioner
 may  refuse  to  supply information pursuant to this subdivision [to the
 commissioner of internal revenue of the United States or] to  the  offi-
 cers  of  any  other state if the statutes [of the United States, or] of
 the state represented by such officers, do not grant substantially simi-
 lar privileges to the commissioner, but such refusal shall not be manda-
 tory. Information shall not be supplied to [the commissioner of internal
 revenue of the United States or] the appropriate officers of  any  other
 state which regulates or taxes medical [marihuana] CANNABIS, or the duly
 authorized  representatives  [of  such  commissioner  or] of any of such
 officers, unless such [commissioner,] officer or  other  representatives
 shall  agree  not to divulge or make known in any manner the information
 so supplied, but such officers may transmit such  information  to  their
 employees  or legal representatives when necessary, who in turn shall be
 subject to the same restrictions  as  those  hereby  imposed  upon  such
 [commissioner,] officer or other representatives.
   3. (a) Any officer or employee of the state who willfully violates the
 provisions  of subdivision one or two of this section shall be dismissed
 from office and be incapable of holding any public office in this  state
 for a period of five years thereafter.
   (b)  Cross-reference: For criminal penalties, see article thirty-seven
 of this chapter.
   § 39. The tax law is amended by adding a new article 20-C to  read  as
 follows:
 
                               ARTICLE 20-C
                    TAX ON ADULT-USE CANNABIS PRODUCTS
 SECTION 492. DEFINITIONS.
         493. TAX ON CANNABIS.
         494. REGISTRATION AND RENEWAL.
         495. RETURNS AND PAYMENT OF TAX.
         496. RETURNS TO BE KEPT SECRET.
   §  492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
 NITIONS SHALL APPLY:
   (A) "CANNABIS" MEANS ALL PARTS OF  A  PLANT  OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES
 OF THIS ARTICLE, CANNABIS DOES NOT  INCLUDE  MEDICAL  CANNABIS  OR  HEMP
 EXTRACT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW.
   (B)  "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
 BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS-
 ING WHEREBY THE  PLANT  MATERIAL  IS  TRANSFORMED  INTO  A  CONCENTRATE,
 INCLUDING,  BUT  NOT  LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR

 A. 1617--B                         95
 
 TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS  AND  OTHER
 INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
   (C)  "CANNABIS  TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS
 OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND  CURED,
 AND  PRIOR  TO  ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED
 INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO,  CONCENTRATED  CANNA-
 BIS,  OR  AN  EDIBLE  OR  TOPICAL  PRODUCT CONTAINING CANNABIS AND OTHER
 INGREDIENTS.
   (D) "CANNABIS PRODUCT" OR "ADULT USE CANNABIS" MEANS A CANNABIS  PROD-
 UCT  AS  DEFINED  IN  SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF
 THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL  ADULT-USE  CANNABIS  PRODUCT
 INCLUDE  MEDICAL CANNABIS OR HEMP EXTRACT AS DEFINED IN SECTION THREE OF
 THE CANNABIS LAW.
   (E) "PERSON" MEANS EVERY INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
 COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
 RECEIVER,  TRUSTEE,  ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
 FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
 OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
   (F)  "WHOLESALER"  MEANS  ANY PERSON THAT SELLS OR TRANSFERS ADULT-USE
 CANNABIS PRODUCTS TO A RETAIL DISPENSARY LICENSED  PURSUANT  TO  SECTION
 SEVENTY-TWO  OF  THE  CANNABIS LAW. WHERE THE CULTIVATOR OR PROCESSOR IS
 ALSO THE RETAIL DISPENSARY, THE RETAIL DISPENSARY SHALL  BE  THE  WHOLE-
 SALER FOR PURPOSES OF THIS ARTICLE.
   (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
 OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
   (H)  "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE
 CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.
   (I) "TRANSFER" MEANS  TO  GRANT,  CONVEY,  HAND  OVER,  ASSIGN,  SELL,
 EXCHANGE  OR  BARTER,  IN  ANY  MANNER  OR BY ANY MEANS, WITH OR WITHOUT
 CONSIDERATION.
   (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR  BOTH,  EXCHANGE
 OR  BARTER,  RENTAL,  LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR
 OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A  CONSIDERATION
 OR ANY AGREEMENT THEREFOR.
   (K)  "PROCESSOR"  HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
 OF SECTION SIXTY-NINE OF THE CANNABIS LAW.
   § 493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE  PAID
 A  TAX  ON  THE  CULTIVATION OF CANNABIS FLOWER AND CANNABIS TRIM AT THE
 RATE OF ONE DOLLAR PER DRY-WEIGHT GRAM OF CANNABIS  FLOWER  AND  TWENTY-
 FIVE CENTS PER DRY-WEIGHT GRAM OF CANNABIS TRIM. WHERE THE WHOLESALER IS
 NOT  THE  CULTIVATOR, SUCH TAX SHALL BE COLLECTED FROM THE CULTIVATOR BY
 THE WHOLESALER AT THE TIME SUCH FLOWER OR TRIM  IS  TRANSFERRED  TO  THE
 WHOLESALER.  WHERE  THE  WHOLESALER IS THE CULTIVATOR, SUCH TAX SHALL BE
 PAID BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SALE OR  TRANSFER
 TO A RETAIL DISPENSARY.  WHERE THE CULTIVATOR IS ALSO THE RETAIL DISPEN-
 SARY,  SUCH  TAX  SHALL  ACCRUE  AT  THE  TIME OF THE SALE TO THE RETAIL
 CUSTOMER.
   (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION,
 THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO
 A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID  BY  SUCH
 WHOLESALER.  WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH TAX
 SHALL BE AT THE RATE OF EIGHTEEN PERCENT OF THE INVOICE PRICE CHARGED BY
 THE WHOLESALER TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE  TIME  OF
 SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL
 BE  AT  THE  RATE OF EIGHTEEN PERCENT OF THE PRICE CHARGED TO THE RETAIL
 CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE.

 A. 1617--B                         96
 
   (C) IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS (A)  AND  (B)  OF
 THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A
 WHOLESALER  TO  A  RETAIL  DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, IN
 TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS
 LOCATED.  SUCH  TAX  SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT
 THE TIME OF SUCH SALE.  WHERE THE WHOLESALER IS NOT THE  RETAIL  DISPEN-
 SARY, SUCH TAX SHALL BE AT THE RATE OF FOUR PERCENT OF THE INVOICE PRICE
 CHARGED  BY  THE WHOLESALER TO A RETAIL DISPENSARY. WHERE THE WHOLESALER
 IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF FOUR  PERCENT
 OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
   (D)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, THE
 TAXES IMPOSED BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY  TO  ANY
 PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE.
   §  494.  REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST FILE WITH
 THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A  CERTIFICATE  OF
 REGISTRATION  BEFORE  ENGAGING  IN  BUSINESS. IN ORDER TO APPLY FOR SUCH
 CERTIFICATE OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION  OF
 A  VALID  LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. AN APPLICATION
 FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A
 FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY  A  NON-
 REFUNDABLE  APPLICATION  FEE  OF  SIX  HUNDRED DOLLARS. A CERTIFICATE OF
 REGISTRATION SHALL NOT  BE  ASSIGNABLE  OR  TRANSFERABLE  AND  SHALL  BE
 DESTROYED  IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS SPECI-
 FIED IN SUCH CERTIFICATE, OR IN  THE  EVENT  THAT  SUCH  BUSINESS  NEVER
 COMMENCED.
   (B)  THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRA-
 TION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE  OF  REGISTRATION
 OF  ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE OFFICE
 OF CANNABIS MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE  A  CERTIF-
 ICATE  OF  REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1) HAS A
 PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN-
 TY-ONE-V OF THIS CHAPTER; (2) HAS  HAD  A  CERTIFICATE  OF  REGISTRATION
 UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR
 ANY  LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN
 ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN
 CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE  YEAR  FROM
 THE  DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S ISSU-
 ANCE; (4) WILLFULLY FAILS TO FILE A REPORT OR RETURN  REQUIRED  BY  THIS
 ARTICLE;  (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE
 GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS  ARTI-
 CLE  WHICH  IS  FALSE;  OR  (6) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY
 ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE.
   (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
 FIED THEREON, UNLESS EARLIER SUSPENDED OR REVOKED. UPON  THE  EXPIRATION
 OF  THE  TERM  STATED ON A CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE
 SHALL BE NULL AND VOID.
   (D) EVERY HOLDER OF A CERTIFICATE  OF  REGISTRATION  MUST  NOTIFY  THE
 COMMISSIONER  OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF-
 ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
 THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE  MADE  ON  OR
 BEFORE  THE  LAST  DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE
 MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
   (E) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION UNDER  THIS  ARTICLE
 SHALL  BE  REQUIRED  TO  REAPPLY PRIOR TO SUCH CERTIFICATE'S EXPIRATION,
 DURING A REAPPLICATION PERIOD  ESTABLISHED  BY  THE  COMMISSIONER.  SUCH
 REAPPLICATION  PERIOD  SHALL  NOT  OCCUR  MORE FREQUENTLY THAN EVERY TWO

 A. 1617--B                         97
 
 YEARS. SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS  AND
 CONDITIONS,  INCLUDING  GROUNDS  FOR REFUSAL, AS AN INITIAL APPLICATION,
 INCLUDING THE PAYMENT OF THE APPLICATION FEE.
   (F)  PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN
 TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS  PRODUCTS  WITHOUT  A  VALID
 CERTIFICATE  OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION
 SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH  OR
 PART  THEREOF  DURING  WHICH  SUCH PERSON CONTINUES TO POSSESS ADULT-USE
 CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS
 SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER  WHICH  SUCH
 PERSON  OPERATES  WITHOUT  A  VALID  CERTIFICATE OF REGISTRATION, NOT TO
 EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE.
   § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER  SHALL,  ON
 OR  BEFORE  THE TWENTIETH DAY OF THE MONTH, FILE WITH THE COMMISSIONER A
 RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE  TOTAL
 WEIGHT  OF  CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO
 SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND
 THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND
 THE TOTAL AMOUNT OF TAX DUE UNDER  SUBDIVISIONS  (B)  AND  (C)  OF  SUCH
 SECTION  ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN-
 DAR MONTH, ALONG WITH SUCH OTHER INFORMATION  AS  THE  COMMISSIONER  MAY
 REQUIRE.  EVERY  PERSON  REQUIRED  TO  FILE  A RETURN UNDER THIS SECTION
 SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO  THE  COMMISSIONER  THE
 TOTAL  AMOUNT  OF  TAX  DUE  FOR THE PERIOD COVERED BY SUCH RETURN. IF A
 RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY  ON  WHICH
 THE RETURN IS REQUIRED TO BE FILED.
   2.  THE  WHOLESALER  SHALL  MAINTAIN  SUCH RECORDS IN SUCH FORM AS THE
 COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE  THE  WHOLESALER
 IS  NOT  THE  CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS
 TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER  IS  THE
 CULTIVATOR,  THE  WEIGHT  OF  SUCH  FLOWER  AND TRIM PRODUCED BY IT; THE
 GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT  SOLD  ADULT-
 USE  CANNABIS  PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY
 THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY  SUCH  PERSON  FOR  A
 PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED.
   (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO  THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE  HAD  BEEN  INCORPO-
 RATED  IN  FULL  INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
 IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
 ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS  ARTICLE  OR  IS
 NOT RELEVANT TO THIS ARTICLE.
   (C) 1. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
 COMMISSIONER  UNDER  THIS  ARTICLE  SHALL  BE  DEPOSITED AND DISPOSED OF
 PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF  THIS
 CHAPTER,  PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
 UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO  BE
 RESERVED  BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
 BY THE COMPTROLLER TO THE CREDIT OF THE  CANNABIS  REVENUE  FUND  ESTAB-
 LISHED  BY SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW. OF THE TOTAL
 REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER  SHALL
 RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
 REFUNDS.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
 REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED  NINETY-
 FOUR  OF  THIS  ARTICLE,  BEFORE  DEPOSIT INTO THE CANNABIS REVENUE FUND
 DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-

 A. 1617--B                         98
 
 ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
 MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND  DISTRIBUTE  THE
 TAXES IMPOSED BY THIS ARTICLE.
   2.  NOTWITHSTANDING  THE  FOREGOING, THE COMMISSIONER SHALL CERTIFY TO
 THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND  INTEREST  RECEIVED
 BY  HIM  OR  HER  ON  ACCOUNT  OF  THE TAX IMPOSED BY SUBDIVISION (C) OF
 SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST  FOR  AND  ON
 ACCOUNT  OF  EACH  COUNTY IN WHICH A RETAIL DISPENSARY IS LOCATED. ON OR
 BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMPTROLLER,  AFTER  RESERVING
 SUCH  REFUND  FUND,  SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF EACH
 SUCH COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED  BY
 THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH.
   § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER
 JUDICIAL  ORDER  OR  AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT
 SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE  OF  THE
 DEPARTMENT,  OR  ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS
 PERMITTED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT
 OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFOR-
 MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON WHO
 IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF  THE  CONTENTS  OF  A  RETURN  OR
 REPORT  FILED  PURSUANT  TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY
 MANNER THE CONTENT OR ANY OTHER INFORMATION RELATED TO THE  BUSINESS  OF
 THE  WHOLESALER  CONTAINED  IN  ANY RETURN OR REPORT REQUIRED UNDER THIS
 ARTICLE. THE OFFICERS CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  OR
 REPORTS  SHALL  NOT  BE  REQUIRED  TO PRODUCE ANY OF THEM OR EVIDENCE OF
 ANYTHING CONTAINED IN THEM IN ANY ACTION OR  PROCEEDING  IN  ANY  COURT,
 EXCEPT ON BEHALF OF THE STATE, THE OFFICE OF CANNABIS MANAGEMENT, OR THE
 COMMISSIONER  IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF TAX
 DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY
 OR A CLAIMANT OR ON BEHALF OF ANY PARTY  TO  ANY  ACTION  OR  PROCEEDING
 UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR
 THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEED-
 ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION
 OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION
 SHALL  HAVE  BEEN  SUPPLIED AS PROVIDED IN THIS SECTION, IN ANY OF WHICH
 EVENTS THE COURTS MAY REQUIRE  THE  PRODUCTION  OF,  AND  MAY  ADMIT  IN
 EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
 BY  AS  ARE  PERTINENT  TO THE ACTION OR PROCEEDING AND NO MORE. NOTHING
 HEREIN SHALL BE CONSTRUED TO PROHIBIT THE COMMISSIONER, IN  HIS  OR  HER
 DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
 OF  ANY  RETURN OR REPORT FILED UNDER THIS ARTICLE OR OF ANY INFORMATION
 CONTAINED IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED  OFFI-
 CER  OR  EMPLOYEE  OF  THE OFFICE OF CANNABIS MANAGEMENT OR BY OR TO THE
 ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF  THE  STATE  WHEN  AN
 ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
 IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED;  OR  THE  INSPECTION  OF THE RETURNS OR REPORTS REQUIRED UNDER
 THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER  OR  EMPLOYEE
 OF  THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT
 OF A REFUND OF ANY TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO
 PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE
 OF SUCH PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED  BY  SUCH
 PERSON  PURSUANT  TO  THIS  ARTICLE,  NOR TO PROHIBIT THE PUBLICATION OF
 STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF  PARTICULAR
 RETURNS OR REPORTS AND THE ITEMS THEREOF. THIS SECTION SHALL ALSO NOT BE
 CONSTRUED  TO  PROHIBIT THE DISCLOSURE, FOR TAX ADMINISTRATION PURPOSES,

 A. 1617--B                         99
 
 TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE  STATE  COMPTROLLER,
 OF  INFORMATION  AGGREGATED  FROM  THE  RETURNS FILED BY ALL WHOLESALERS
 PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF
 SUCH  PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE
 PROVISIONS OF THIS SUBDIVISION, THE  COMMISSIONER  MAY  IN  HIS  OR  HER
 DISCRETION,  PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE
 ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY
 SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR
 THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER,  TO  INSPECT  ANY  RETURN
 FILED  UNDER  THIS  ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI-
 CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY
 SUCH OFFICER OR  REPRESENTATIVE  WITH  INFORMATION  CONCERNING  AN  ITEM
 CONTAINED  IN  ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX
 LIABILITY UNDER THIS ARTICLE.
   (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE  APPRO-
 PRIATE  OFFICERS  OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR
 THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY  SUCH
 OFFICERS,  TO  INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE,
 OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY  AUTHORIZED
 REPRESENTATIVES,  A  COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF
 THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY
 SUCH COMMISSIONER OR ANY SUCH  OFFICERS  OR  SUCH  REPRESENTATIVES  WITH
 INFORMATION  RELATING  TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR
 REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS-
 SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION  TO
 THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED
 BY  SUCH  OFFICERS  DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE
 COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL
 NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT  REGULATES
 OR  TAXES  CANNABIS,  OR  THE  DULY  AUTHORIZED  REPRESENTATIVES OF SUCH
 COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER,
 OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY
 MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT  SUCH
 INFORMATION  TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY,
 WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS  AS  THOSE  HEREBY
 IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES.
   (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF SUBDIVISION (A) OR (B) OF THIS SECTION SHALL BE DISMISSED
 FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN  THE  STATE
 FOR A PERIOD OF FIVE YEARS THEREAFTER.
   2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   §  40.  Subdivision  (a)  of section 1115 of the tax law is amended by
 adding a new paragraph 3-b to read as follows:
   (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY  ARTICLE  TWENTY-C  OF
 THIS CHAPTER.
   § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
 health  law,  the  tax  law, the state finance law, the general business
 law, the penal law and the criminal procedure law  relating  to  medical
 use of marihuana, is amended to read as follows:
   §  12. This act shall take effect immediately [and]; PROVIDED, HOWEVER
 THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV-
 EN OF THIS ACT shall expire and be deemed  repealed  seven  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

 A. 1617--B                         100
 
 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.
   §  42.  The  office  of  cannabis management, in consultation with the
 division of the budget, the department  of  taxation  and  finance,  the
 department of health, office of alcoholism and substance abuse services,
 office of mental health, New York state police and the division of crim-
 inal  justice  services,  shall conduct a  study of the effectiveness of
 this act. Such study shall examine all aspects of  this  act,  including
 economic  and fiscal impacts, the impact on the public health and safety
 of New York residents and the progress made in achieving social  justice
 goals and toward eliminating the illegal market for cannabis products in
 New  York. The office shall make recommendations regarding the appropri-
 ate level of taxation of adult-use cannabis, as well as changes, if any,
 necessary to improve and protect the public health  and  safety  of  New
 Yorkers.  Such  study  shall  be conducted two years after the effective
 date of this act and shall be presented to the  governor,  the  majority
 leader  of  the  senate  and  the speaker of the assembly, no later than
 October 1, 2022.
   § 43. Section 102 of the alcoholic beverage control law is amended  by
 adding a new subdivision 8 to read as follows:
   8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
 OR  POSSESS  A  LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES
 WHERE ALCOHOLIC BEVERAGES ARE SOLD.
   § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
 general  obligations  law,  as added by chapter 406 of the laws of 2000,
 are amended to read as follows:
   1. "Illegal drug" means any controlled substance  [or  marijuana]  the
 possession  of  which  is  an offense under the public health law or the
 penal law.
   4. "Grade one violation" means  possession  of  one-quarter  ounce  or
 more,  but less than four ounces, or distribution of less than one ounce
 of an illegal drug [other than marijuana, or possession of one pound  or
 twenty-five  plants  or more, but less than four pounds or fifty plants,
 or distribution of less than one pound of marijuana].
   5. "Grade two violation" means possession of four ounces or more,  but
 less  than  eight ounces, or distribution of one ounce or more, but less
 than two ounces, of an illegal drug [other than marijuana, or possession
 of four pounds or more or fifty plants or distribution of more than  one
 pound but less than ten pounds of marijuana].
   6.  "Grade  three violation" means possession of eight ounces or more,
 but less than sixteen ounces, or distribution of two ounces or more, but
 less than four ounces, of a specified illegal  drug  [or  possession  of
 eight  pounds  or  more  or  seventy-five  plants or more, but less than
 sixteen pounds or one hundred plants, or distribution of more than  five
 pounds but less than ten pounds of marijuana].
   7.  "Grade  four violation" means possession of sixteen ounces or more
 or distribution of four ounces or more of a specified illegal  drug  [or
 possession  of  sixteen  pounds or more or one hundred plants or more or
 distribution of ten pounds or more of marijuana].
   13. "Drug trafficker" means a person convicted of a class A or class B
 felony controlled substance [or marijuana offense]  who,  in  connection
 with  the  criminal  conduct  for  which  he  or  she  stands convicted,
 possessed, distributed, sold or conspired to sell a controlled substance
 [or marijuana] which, by virtue of its quantity, the person's  prominent

 A. 1617--B                         101
 
 role  in the enterprise responsible for the sale or distribution of such
 controlled substance and other circumstances related  to  such  criminal
 conduct  indicate  that  such  person's  criminal  possession,  sale  or
 conspiracy to sell such substance was not an isolated occurrence and was
 part  of  an ongoing pattern of criminal activity from which such person
 derived substantial income or resources and in which such person  played
 a leadership role.
   §  45.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
 services law, as added by section 1 of part B of chapter 501 of the laws
 of 2012, is amended to read as follows:
   (g) "Unlawful use or administration of a controlled substance,"  which
 shall  mean any administration by a custodian to a service recipient of:
 a controlled substance as defined by article thirty-three of the  public
 health law, without a prescription; or other medication not approved for
 any  use  by  the  federal  food and drug administration, EXCEPT FOR THE
 ADMINISTRATION OF  MEDICAL  CANNABIS  WHEN  SUCH  ADMINISTRATION  IS  IN
 ACCORDANCE  WITH  ARTICLE  THREE OF THE CANNABIS LAW AND ANY REGULATIONS
 PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS,  POLICIES,  OR
 PROCEDURES  OF  THE  STATE  OVERSIGHT  AGENCY OR AGENCIES GOVERNING SUCH
 CUSTODIANS. It also  shall  include  a  custodian  unlawfully  using  or
 distributing  a  controlled substance as defined by article thirty-three
 of the public health law, at the workplace or while on duty.
   § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
 social  services  law, as added by section 1 of part B of chapter 501 of
 the laws of 2012, are amended and a new paragraph (g) is added  to  read
 as follows:
   (e)  information  regarding  individual reportable incidents, incident
 patterns and trends, and  patterns  and  trends  in  the  reporting  and
 response  to  reportable incidents is shared, consistent with applicable
 law, with the justice center, in the form and  manner  required  by  the
 justice  center  and,  for  facilities or provider agencies that are not
 state operated, with the applicable state oversight agency  which  shall
 provide such information to the justice center; [and]
   (f)  incident  review  committees  are established; provided, however,
 that the regulations may authorize an exemption from  this  requirement,
 when  appropriate,  based on the size of the facility or provider agency
 or other relevant factors. Such committees shall be composed of  members
 of  the  governing  body  of  the  facility or provider agency and other
 persons identified by the director of the facility or  provider  agency,
 including  some members of the following: direct support staff, licensed
 health care practitioners, service  recipients  and  representatives  of
 family,  consumer and other advocacy organizations, but not the director
 of the facility or provider agency. Such committee shall meet  regularly
 to:  (i)  review the timeliness, thoroughness and appropriateness of the
 facility or provider agency's responses to  reportable  incidents;  (ii)
 recommend  additional  opportunities  for improvement to the director of
 the facility or provider agency, if appropriate; (iii)  review  incident
 trends  and  patterns  concerning  reportable  incidents;  and (iv) make
 recommendations to the director of the facility or  provider  agency  to
 assist  in reducing reportable incidents. Members of the committee shall
 be trained in confidentiality laws and  regulations,  and  shall  comply
 with section seventy-four of the public officers law[.]; AND
   (G)  SAFE  STORAGE,  ADMINISTRATION, AND DIVERSION PREVENTION POLICIES
 REGARDING CONTROLLED SUBSTANCES AND MEDICAL CANNABIS.

 A. 1617--B                         102
 
   § 47. Subdivision 1 of section 505 of the agriculture and markets law,
 as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
 follows:
   1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
 of  such  plant,  INCLUDING  THE  SEEDS  THEREOF  AND  ALL  DERIVATIVES,
 EXTRACTS,  CANNABINOIDS,  ISOMERS,  ACIDS,  SALTS, AND SALTS OF ISOMERS,
 whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
 tration of not more than 0.3 percent on a dry weight basis.
   §  48.  Section  506 of the agriculture and markets law, as amended by
 section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
 read as follows:
   §  506.  Growth,  sale, distribution, transportation and processing of
 industrial  hemp  and  products  derived  from  such   hemp   permitted.
 [Notwithstanding  any  provision  of law to the contrary, industrial] 1.
 INDUSTRIAL hemp and products derived from  such  hemp  are  agricultural
 products  which  may  be grown, produced [and], possessed [in the state,
 and], sold, distributed, transported [or] AND/OR processed  [either]  in
 [or  out  of]  state [as part of agricultural pilot programs pursuant to
 authorization under federal law  and  the  provisions  of  this  article
 PURSUANT  TO  AUTHORIZATION  UNDER  FEDERAL LAW AND/OR THE PROVISIONS OF
 THIS ARTICLE.
   [Notwithstanding any provision of law to the contrary restricting  the
 growing or cultivating, sale, distribution, transportation or processing
 of  industrial  hemp and products derived from such hemp, and subject to
 authorization under federal law, the]
   2. THE commissioner may authorize the growing or cultivating of indus-
 trial hemp as part of  agricultural  pilot  programs  conducted  by  the
 department and/or an institution of higher education to study the growth
 and  cultivation,  sale,  distribution, transportation and processing of
 such hemp and products derived from such hemp provided  that  the  sites
 and  programs used for growing or cultivating industrial hemp are certi-
 fied by, and registered with, the department.
   3. THE INDUSTRIAL HEMP USED FOR  RESEARCH  PURSUANT  TO  THIS  SECTION
 SHALL  BE SOURCED FROM AUTHORIZED NEW YORK STATE INDUSTRIAL HEMP PRODUC-
 ERS. THE RESEARCH PARTNER MAY OBTAIN AN  EXEMPTION  FOR  ONLY  GRAIN  OR
 FIBER  FROM  THIS REQUIREMENT UPON A SATISFACTORY SHOWING TO THE DEPART-
 MENT THAT A SUITABLE VARIETY OF INDUSTRIAL HEMP FOR THE RESEARCH PROJECT
 IS NOT GROWN IN NEW YORK AND/OR THE USE OF NEW YORK SOURCED HEMP IS  NOT
 PRACTICABLE FOR THE PROJECT.  HEMP FOR EXTRACTS CAN ONLY BE SOURCED FROM
 AUTHORIZED NEW YORK STATE INDUSTRIAL HEMP PRODUCERS.
   4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART-
 MENT UNDER ANY OTHER ARTICLE OF THIS CHAPTER.
   § 49. Section 507 of the agriculture and markets law is REPEALED and a
 new section 507 is added to read as follows:
   §  507.  LICENSING;  FEES.  1. NO PERSON SHALL GROW, PROCESS, PRODUCE,
 DISTRIBUTE AND/OR SELL INDUSTRIAL HEMP OR PRODUCTS DERIVED  FROM  INDUS-
 TRIAL  HEMP  IN  THE STATE UNLESS (A) LICENSED BIENNIALLY BY THE COMMIS-
 SIONER OR (B) AUTHORIZED BY THE COMMISSIONER AS PART OF AN  AGRICULTURAL
 RESEARCH PILOT PROGRAM ESTABLISHED UNDER THIS ARTICLE.
   2.  APPLICATION  FOR  A  LICENSE TO GROW INDUSTRIAL HEMP SHALL BE MADE
 UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED  BY  A  PER-ACRE
 LICENSE  FEE  AND  A  NON-REFUNDABLE  APPLICATION  FEE  OF  FIVE HUNDRED
 DOLLARS.
   3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD  CHARACTER,
 EXPERIENCE  AND  COMPETENCY, THAT THE APPLICANT HAS ADEQUATE FACILITIES,

 A. 1617--B                         103
 
 EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY  AND  SECURITY  TO  GROW
 HEMP.
   4.  GROWERS  WHO  INTEND  TO  CULTIVATE HEMP FOR CANNABINOIDS SHALL BE
 REQUIRED TO OBTAIN LICENSURE FROM THE  DEPARTMENT  PURSUANT  TO  ARTICLE
 TWENTY-NINE-A OF THIS CHAPTER.
   5.  A  RENEWAL  APPLICATION  SHALL BE SUBMITTED TO THE COMMISSIONER AT
 LEAST SIXTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD.
   § 50. Section 508 of the agriculture and markets law is REPEALED and a
 new section 508 is added to read as follows:
   § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER  DETERMINES,  AFTER
 NOTICE  AND  AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY
 VIOLATED A PROVISION OF AND/OR A REGULATION PROMULGATED PURSUANT TO THIS
 ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO  COMPLY  WITH  A  CORRECTIVE
 ACTION  PLAN ESTABLISHED BY THE COMMISSIONER TO CORRECT THE VIOLATION BY
 A REASONABLE DATE AND TO PERIODICALLY REPORT TO  THE  COMMISSIONER  WITH
 RESPECT  TO  THE LICENSEE'S COMPLIANCE WITH THIS ARTICLE FOR A PERIOD OF
 NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOWING THE COMMENCEMENT DATE
 OF THE COMPLIANCE ACTION PLAN. THE PROVISIONS OF THIS SECTION SHALL  NOT
 BE  APPLICABLE TO RESEARCH PARTNERS CONDUCTING HEMP RESEARCH PURSUANT TO
 A RESEARCH PARTNER AGREEMENT, THE TERMS OF WHICH SHALL CONTROL.
   § 51. Section 509 of the agriculture and markets law is REPEALED and a
 new section 509 is added to read as follows:
   § 509. GRANTING, SUSPENDING OR REVOKING LICENSES.    THE  COMMISSIONER
 MAY  DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE, MAY
 SUSPEND OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND  OPPOR-
 TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT:
   1.  ANY  STATEMENT  CONTAINED  IN  AN  APPLICATION FOR AN APPLICANT OR
 LICENSEE IS OR WAS FALSE OR MISLEADING;
   2. THE APPLICANT  OR  LICENSEE  DOES  NOT  HAVE  GOOD  CHARACTER,  THE
 REQUIRED  EXPERIENCE  AND/OR COMPETENCY, ADEQUATE FACILITIES, EQUIPMENT,
 PROCESS CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP  OR
 PRODUCTS DERIVED FROM HEMP;
   3.  THE  APPLICANT  OR  LICENSEE  HAS FAILED OR REFUSED TO PRODUCE ANY
 RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER  REASON-
 ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR
   4. THE APPLICANT OR LICENSEE, OR ANY OFFICER, DIRECTOR, PARTNER, HOLD-
 ER  OF  TEN  PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON EXERCISING
 ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH  ANY  OF
 THE  PROVISIONS  OF  THIS  ARTICLE  OR RULES AND REGULATIONS PROMULGATED
 PURSUANT THERETO.
   § 52. Section 510 of the agriculture and markets law is REPEALED and a
 new section 510 is added to read as follows:
   § 510. REGULATIONS.  THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST-
 ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION,
 SALE, DISTRIBUTION, AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN  IN  THE
 STATE, INCLUDING:
   1.  THE  AUTHORIZATION  OR LICENSING OF ANY PERSON WHO MAY: ACQUIRE OR
 POSSESS INDUSTRIAL HEMP PLANTS OR SEEDS; GROW  OR  CULTIVATE  INDUSTRIAL
 HEMP PLANTS; AND/OR SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH INDUS-
 TRIAL HEMP PLANTS, PLANT PARTS, OR SEEDS;
   2. MAINTAINING RELEVANT INFORMATION REGARDING LAND ON WHICH INDUSTRIAL
 HEMP  IS  PRODUCED  WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION OF
 THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS;
   3. THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE  STATE
 FOR  DELTA-9-TETRAHYDROCANNABINOL LEVELS, USING A REPRESENTATIVE NON-DE-

 A. 1617--B                         104
 
 CARBOXYLATED SAMPLE OF FLOWERS AND LEAVES FROM THE WHOLE PLANT OR  OTHER
 SIMILARLY RELIABLE METHODS;
   4.  THE  PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR
 PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS  ARTI-
 CLE;
   5.  A  PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL
 HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF  THIS
 ARTICLE;
   6. ANY REQUIRED SECURITY MEASURES; AND
   7.  SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO-
 PRIATE OR NECESSARY.
   § 53. Section 511 of the agriculture and markets law is REPEALED and a
 new section 511 is added to read as follows:
   § 511. PROHIBITIONS.  EXCEPT AS AUTHORIZED BY  STATE  LAW,  AND  REGU-
 LATIONS  PROMULGATED  THEREUNDER,  THE  GROWTH, CULTIVATION, PROCESSING,
 SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
   § 54. Section 512 of the agriculture and markets law is REPEALED and a
 new section 512 is added to read as follows:
   § 512. INDUSTRIAL HEMP DATA COLLECTION  AND  BEST  FARMING  PRACTICES.
 THE  COMMISSIONER  SHALL  HAVE THE POWER TO COLLECT AND PUBLISH DATA AND
 RESEARCH  CONCERNING,  AMONG  OTHER  THINGS,  THE  GROWTH,  CULTIVATION,
 PRODUCTION  AND  PROCESSING  METHODS  OF  INDUSTRIAL  HEMP  AND PRODUCTS
 DERIVED FROM INDUSTRIAL HEMP AND WORK WITH THE NEW YORK STATE COLLEGE OF
 AGRICULTURE AND LIFE SCIENCE AT CORNELL PURSUANT TO SECTION  FIFTY-SEVEN
 HUNDRED  TWELVE  OF THE EDUCATION LAW AND THE CORNELL COOPERATIVE EXTEN-
 SION PURSUANT TO SECTION TWO HUNDRED TWENTY-FOUR OF THE  COUNTY  LAW  TO
 PROMOTE  BEST FARMING PRACTICES FOR INDUSTRIAL HEMP WHICH ARE COMPATIBLE
 WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJECTIVES.
   § 55. Sections 513 and 514 of the  agriculture  and  markets  law  are
 REPEALED and two new sections 513 and 514 are added to read as follows:
   §  513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF
 CRIMINAL JUSTICE SERVICES.   IN CONNECTION WITH  THE  ADMINISTRATION  OF
 THIS  ARTICLE,  THE  COMMISSIONER  IS AUTHORIZED TO REQUEST, RECEIVE AND
 REVIEW CRIMINAL HISTORY INFORMATION THROUGH  THE  DIVISION  OF  CRIMINAL
 JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE
 OR  AUTHORIZATION  TO UNDERTAKE A HEMP PILOT PROJECT. AT THE COMMISSION-
 ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT
 SHALL SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM  AND
 IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT-
 ING  A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN ACCORD-
 ANCE WITH THE PROCEDURES AND REQUIREMENTS ESTABLISHED  BY  THE  DIVISION
 PURSUANT  TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE LAW,
 WHICH SHALL INCLUDE THE PAYMENT OF THE PRESCRIBED  PROCESSING  FEES  FOR
 THE  COST  OF  THE  DIVISION'S  FULL  SEARCH AND RETAIN PROCEDURES AND A
 NATIONAL CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR  HER
 DESIGNEE,  SHALL  SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE TO THE
 DIVISION.  THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT  WITH
 RESPECT  TO  THE  APPLICANT'S  PREVIOUS  CRIMINAL  HISTORY, IF ANY, OR A
 STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY  ACCORDING
 TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
 SERVICES  PURSUANT  TO THIS SECTION MAY ALSO BE SUBMITTED TO THE FEDERAL
 BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK. IF
 ADDITIONAL COPIES OF FINGERPRINTS  ARE  REQUIRED,  THE  APPLICANT  SHALL
 FURNISH THEM UPON REQUEST.
   § 514. AIDS TO ENFORCEMENT. 1. THE COMMISSIONER SHALL HAVE FULL ACCESS
 TO  ALL  PREMISES,  BUILDINGS,  FACTORIES, FARMS, VEHICLES, CARS, BOATS,

 A. 1617--B                         105
 
 AIRPLANES, VESSELS, CONTAINERS, PACKAGES, BARRELS,  BOXES,  AND/OR  CANS
 FOR THE PURPOSE OF ENFORCING THE PROVISIONS OF THIS ARTICLE. THE COMMIS-
 SIONER MAY, AT SUCH LOCATIONS, EXAMINE INDUSTRIAL HEMP AND HEMP PRODUCTS
 AND MAY OPEN ANY PACKAGE AND/OR CONTAINER REASONABLY BELIEVED TO CONTAIN
 INDUSTRIAL  HEMP  OR HEMP PRODUCTS, TO DETERMINE WHETHER SUCH INDUSTRIAL
 HEMP OR HEMP PRODUCTS FOLLOW APPLICABLE LAW OR REGULATION.
   2. A SEARCH WARRANT SHALL BE ISSUED BY ANY COURT TO WHICH  APPLICATION
 IS MADE THEREFOR, WHENEVER IT SHALL BE MADE TO APPEAR TO SUCH COURT THAT
 A LICENSEE HAS: REFUSED TO PERMIT ANY INDUSTRIAL HEMP TO BE INSPECTED OR
 SAMPLES  TAKEN  THEREFROM;  REFUSED TO PERMIT ACCESS TO ANY PREMISES, OR
 PLACE  WHERE  LICENSED  ACTIVITIES  ARE  CONDUCTED;  AND/OR  REFUSED  OR
 PREVENTED  ACCESS  THERETO  BY  ANY INSPECTOR OF THE DEPARTMENT AND THAT
 SUCH INSPECTOR HAS REASONABLE GROUNDS TO BELIEVE THAT  SUCH  PERSON  HAS
 ANY  INDUSTRIAL  HEMP  IN  HIS  OR  HER  POSSESSION, OR UNDER HIS OR HER
 CONTROL AND/OR IS IN VIOLATION OF THE PROVISIONS OR REGULATIONS OF  THIS
 ARTICLE.  IN  SUCH  A CASE, A WARRANT SHALL BE ISSUED IN THE NAME OF THE
 PEOPLE, DIRECTED TO A POLICE OFFICER, COMMANDING  HIM  OR  HER  TO:  (A)
 SEARCH ANY PLACE OF BUSINESS, FACTORY, BUILDING, PREMISES, OR FARM WHERE
 LICENSED  ACTIVITIES  HAVE  OCCURRED  AND  ANY  VEHICLE,  BOAT,  VESSEL,
 CONTAINER, PACKAGE, BARREL, BOX, TUB OR CAN, CONTAINING, OR BELIEVED  TO
 CONTAIN  INDUSTRIAL  HEMP  IN THE POSSESSION OR UNDER THE CONTROL OF ANY
 PERSON WHO SHALL REFUSE TO ALLOW ACCESS TO SUCH HEMP FOR  INSPECTION  OR
 SAMPLING,  (B) PERMIT THE INSPECTION AND SAMPLING OF ANY INDUSTRIAL HEMP
 FOUND IN THE EXECUTION OF THE WARRANT, AS THE OFFICER APPLYING  FOR  THE
 SEARCH  WARRANT  SHALL DESIGNATE WHEN THE SAME IS FOUND, BY AN INSPECTOR
 OR A DEPARTMENT OFFICIAL AUTHORIZED BY THE COMMISSIONER OR BY THIS CHAP-
 TER, AND/OR (C) PERMIT ACCESS TO ANY PLACE WHERE ACCESS  IS  REFUSED  OR
 PREVENTED,  AND  TO  ALLOW  AND  ENABLE  A DEPARTMENT INSPECTOR OR OTHER
 DEPARTMENT OFFICIAL  TO  CONDUCT  AN  INSPECTION  OF  THE  PLACE.    THE
 PROVISIONS  OF  ARTICLE SIX HUNDRED NINETY OF THE CRIMINAL PROCEDURE LAW
 SHALL APPLY TO SUCH WARRANT AS FAR AS APPLICABLE THERETO. THE OFFICER TO
 WHOM THE WARRANT IS DELIVERED SHALL MAKE A RETURN IN WRITING OF  HIS  OR
 HER PROCEEDINGS THEREUNTO TO THE COURT WHICH ISSUED THE SAME.
   3.  THE COMMISSIONER MAY QUARANTINE INDUSTRIAL HEMP WHEN HE OR SHE HAS
 REASON TO BELIEVE THAT SUCH COMMODITY DOES NOT MEET THE DEFINITION THER-
 EOF, SET FORTH IN SUBDIVISION ONE OF SECTION FIVE HUNDRED FIVE  OF  THIS
 ARTICLE, OR IS OTHERWISE IN VIOLATION OF OR DOES NOT MEET A STANDARD SET
 FORTH  IN, APPLICABLE LAW OR REGULATION. THE QUARANTINE MAY BY THE ISSU-
 ANCE OF AN ORDER DIRECTING THE OWNER OR CUSTODIAN OF INDUSTRIAL HEMP NOT
 TO DISTRIBUTE, DISPOSE OF, OR MOVE THAT COMMODITY  WITHOUT  THE  WRITTEN
 PERMISSION  OF  THE COMMISSIONER. THE COMMISSIONER MAY ALSO QUARANTINE A
 PRODUCT BY PLACING A TAG OR OTHER APPROPRIATE MARKING THEREON  OR  ADJA-
 CENT  THERETO  THAT  PROVIDES AND REQUIRES THAT SUCH PRODUCT MUST NOT BE
 DISTRIBUTED, DISPOSED OF, OR MOVED WITHOUT HIS OR  HER  WRITTEN  PERMIS-
 SION,  OR  MAY  QUARANTINE A PRODUCT BY OTHERWISE INFORMING THE OWNER OR
 CUSTODIAN THEREOF THAT SUCH CONDITION MUST BE COMPLIED WITH.
   4. THE COMMISSIONER MAY  SEIZE  INDUSTRIAL  HEMP  BY  TAKING  PHYSICAL
 POSSESSION OF INDUSTRIAL HEMP WHEN HE OR SHE HAS SUBSTANTIAL EVIDENCE TO
 BELIEVE  THAT  SUCH  COMMODITY DOES NOT MEET THE DEFINITION THEREOF, SET
 FORTH IN SUBDIVISION ONE OF SECTION FIVE HUNDRED FIVE OF  THIS  ARTICLE,
 OR  IS  OTHERWISE IN VIOLATION OF, OR DOES NOT MEET A STANDARD SET FORTH
 IN, APPLICABLE LAW OR REGULATION.
   5. SUBSEQUENT TO QUARANTINING OR SEIZING INDUSTRIAL HEMP,  AS  AUTHOR-
 IZED  IN  SUBDIVISIONS  THREE AND FOUR OF THIS SECTION, THE COMMISSIONER
 SHALL PROMPTLY GIVE THE OWNER OR CUSTODIAN THEREOF AN OPPORTUNITY TO  BE
 HEARD  TO  SHOW  CAUSE  WHY  SUCH  INDUSTRIAL HEMP SHOULD NOT BE ORDERED

 A. 1617--B                         106
 
 DESTROYED. THE COMMISSIONER SHALL, THEREAFTER, CONSIDER ALL THE RELEVANT
 EVIDENCE AND INFORMATION PRESENTED AND SHALL MAKE A DETERMINATION WHETH-
 ER SUCH INDUSTRIAL HEMP SHOULD BE ORDERED TO BE DESTROYED; THAT DETERMI-
 NATION  MAY  BE REVIEWED AS PROVIDED FOR IN ARTICLE SEVENTY-EIGHT OF THE
 CIVIL PRACTICE LAW AND RULES.
   § 56. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
 law,  as added by chapter 90 of the laws of 2014, are amended to read as
 follows:
 § 179.00 Criminal  diversion  of  medical  [marihuana]  CANNABIS;  defi-
            nitions.
   The following definitions are applicable to this article:
   1.  "Medical  [marihuana] CANNABIS" means medical [marihuana] CANNABIS
 as defined in [subdivision eight of section thirty-three  hundred  sixty
 of the public health law] SECTION THREE OF THE CANNABIS LAW.
   2.  "Certification" means a certification, made under section [thirty-
 three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS
 LAW.
 § 179.05 Criminal diversion of  medical  [marihuana]  CANNABIS;  limita-
            tions.
   The provisions of this article shall not apply to:
   1.  a  practitioner  authorized  to issue a certification who acted in
 good faith in the lawful course of his or her profession; or
   2. a registered organization as that term is defined  in  [subdivision
 nine  of  section  thirty-three  hundred sixty of the public health law]
 SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith  in  the
 lawful course of the practice of pharmacy; or
   3.  a  person  who acted in good faith seeking treatment for A medical
 condition or assisting another person to obtain treatment for a  medical
 condition.
 § 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first
            degree.
   A person is guilty of criminal diversion of medical [marihuana] CANNA-
 BIS  in  the first degree when he or she is a practitioner, as that term
 is defined in [subdivision twelve of section thirty-three hundred  sixty
 of  the public health law] SECTION THREE OF THE CANNABIS LAW, who issues
 a certification with knowledge of reasonable grounds to  know  that  (i)
 the  recipient  has  no medical need for it, or (ii) it is for a purpose
 other than to treat a [serious] condition  as  defined  in  [subdivision
 seven  of  section  thirty-three hundred sixty of the public health law]
 SECTION THREE OF THE CANNABIS LAW.
   Criminal diversion of medical [marihuana] CANNABIS in the first degree
 is a class E felony.
 § 179.11 Criminal diversion  of  medical  [marihuana]  CANNABIS  in  the
            second degree.
   A person is guilty of criminal diversion of medical [marihuana] CANNA-
 BIS  in  the  second  degree  when he or she sells, trades, delivers, or
 otherwise provides medical [marihuana] CANNABIS to  another  with  know-
 ledge or reasonable grounds to know that the recipient is not registered
 under  [title  five-A  of article thirty-three of the public health law]
 ARTICLE THREE OF THE CANNABIS LAW.
   Criminal diversion of  medical  [marihuana]  CANNABIS  in  the  second
 degree is a class B misdemeanor.
 § 179.15 Criminal retention of medical [marihuana] CANNABIS.
   A person is guilty of criminal retention of medical [marihuana] CANNA-
 BIS  when,  being  a certified patient or designated caregiver, as those
 terms are defined in [subdivisions three and  five  of  section  thirty-

 A. 1617--B                         107

 three  hundred  sixty  of  the  public health law, respectively] SECTION
 THREE OF THE CANNABIS LAW,  he  or  she  knowingly  obtains,  possesses,
 stores  or  maintains an amount of [marihuana] CANNABIS in excess of the
 amount he or she is authorized to possess under the provisions of [title
 five-A  of  article thirty-three of the public health law] ARTICLE THREE
 OF THE CANNABIS LAW.
   Criminal retention of medical [marihuana] CANNABIS is a class A misde-
 meanor.
   § 57. Section 220.78 of the penal law, as added by chapter 154 of  the
 laws of 2011, is amended to read as follows:
 § 220.78 Witness or victim of drug or alcohol overdose.
   1.  A  person who, in good faith, seeks health care for someone who is
 experiencing a drug  or  alcohol  overdose  or  other  life  threatening
 medical  emergency  shall  not be charged or prosecuted for a controlled
 substance offense under THIS article [two hundred twenty] or a [marihua-
 na] CANNABIS offense under article two hundred  [twenty-one]  TWENTY-TWO
 of this title, other than an offense involving sale for consideration or
 other  benefit or gain, or charged or prosecuted for possession of alco-
 hol by a person under age twenty-one years under section sixty-five-c of
 the alcoholic beverage control law, or for possession of drug  parapher-
 nalia  under  article  thirty-nine  of  the  general  business law, with
 respect to any controlled substance, [marihuana]  CANNABIS,  alcohol  or
 paraphernalia that was obtained as a result of such seeking or receiving
 of health care.
   2.  A  person  who is experiencing a drug or alcohol overdose or other
 life threatening medical emergency and, in good faith, seeks health care
 for himself or herself or is the subject of such a  good  faith  request
 for  health  care,  shall  not be charged or prosecuted for a controlled
 substance offense under this article or a [marihuana]  CANNABIS  offense
 under  article  two hundred [twenty-one] TWENTY-TWO of this title, other
 than an offense involving sale for consideration  or  other  benefit  or
 gain,  or  charged  or  prosecuted for possession of alcohol by a person
 under age twenty-one years under section sixty-five-c of  the  alcoholic
 beverage  control  law,  or  for  possession of drug paraphernalia under
 article thirty-nine of the general business law,  with  respect  to  any
 substance,  [marihuana]  CANNABIS,  alcohol  or  paraphernalia  that was
 obtained as a result of such seeking or receiving of health care.
   3. Definitions. As used in this section the following terms shall have
 the following meanings:
   (a) "Drug or alcohol overdose" or "overdose" means an acute  condition
 including,  but  not limited to, physical illness, coma, mania, hysteria
 or death, which is the result of consumption  or  use  of  a  controlled
 substance  or alcohol and relates to an adverse reaction to or the quan-
 tity of the controlled substance or alcohol or a  substance  with  which
 the  controlled  substance  or  alcohol  was  combined;  provided that a
 patient's condition shall be deemed to be a drug or alcohol overdose  if
 a  prudent  layperson,  possessing  an average knowledge of medicine and
 health, could reasonably believe that the condition is in fact a drug or
 alcohol overdose and (except as to death) requires health care.
   (b) "Health care" means the professional services provided to a person
 experiencing a drug or alcohol overdose by a  health  care  professional
 licensed, registered or certified under title eight of the education law
 or article thirty of the public health law who, acting within his or her
 lawful  scope of practice, may provide diagnosis, treatment or emergency
 services for a person experiencing a drug or alcohol overdose.

 A. 1617--B                         108
 
   4. It shall be an affirmative defense to a  criminal  sale  controlled
 substance  offense  under this article or a criminal sale of [marihuana]
 CANNABIS offense under article two hundred  [twenty-one]  TWENTY-TWO  of
 this  title, not covered by subdivision one or two of this section, with
 respect  to  any  controlled substance or [marihuana] CANNABIS which was
 obtained as a result of such seeking or receiving of health care, that:
   (a) the defendant, in good faith, seeks health care for someone or for
 him or herself who is experiencing a drug or alcohol overdose  or  other
 life threatening medical emergency; and
   (b)  the  defendant  has  no  prior  conviction  for the commission or
 attempted commission of a class A-I, A-II or B felony under  this  arti-
 cle.
   5. Nothing in this section shall be construed to bar the admissibility
 of  any evidence in connection with the investigation and prosecution of
 a crime with regard to another  defendant  who  does  not  independently
 qualify  for  the bar to prosecution or for the affirmative defense; nor
 with regard to other crimes committed by a person who  otherwise  quali-
 fies under this section; nor shall anything in this section be construed
 to  bar any seizure pursuant to law, including but not limited to pursu-
 ant to section thirty-three hundred eighty-seven of  the  public  health
 law.
   6.  The  bar  to  prosecution described in subdivisions one and two of
 this section shall not apply to the prosecution of a  class  A-I  felony
 under this article, and the affirmative defense described in subdivision
 four  of  this section shall not apply to the prosecution of a class A-I
 or A-II felony under this article.
   § 58. Subdivision 1 of section 260.20 of the penal law, as amended  by
 chapter 362 of the laws of 1992, is amended as follows:
   1.  He knowingly permits a child less than eighteen years old to enter
 or remain in or upon a place, premises  or  establishment  where  sexual
 activity as defined by article one hundred thirty, two hundred thirty or
 two  hundred  sixty-three  of  this [chapter] PART or activity involving
 controlled substances as defined by article two hundred twenty  of  this
 [chapter  or involving marihuana as defined by article two hundred twen-
 ty-one of this chapter] PART is maintained or conducted, and he knows or
 has reason to know that such activity is being maintained or  conducted;
 or
   § 59. Section 89-h of the state finance law, as added by chapter 90 of
 the laws of 2014, is amended to read as follows:
   §  89-h.  Medical  [marihuana] CANNABIS trust fund. 1. There is hereby
 established in the joint  custody  of  the  state  comptroller  and  the
 commissioner  of  taxation and finance a special fund to be known as the
 "medical [marihuana] CANNABIS trust fund."
   2. The medical [marihuana] CANNABIS trust fund shall  consist  of  all
 moneys  required  to  be  deposited  in the medical [marihuana] CANNABIS
 trust fund pursuant to the provisions of section four hundred ninety  of
 the tax law.
   3.  The moneys in the medical [marihuana] CANNABIS trust fund shall be
 kept separate and shall not be commingled with any other moneys  in  the
 custody  of the commissioner of taxation and finance and the state comp-
 troller.
   4. The moneys of the medical [marihuana] CANNABIS trust fund,  follow-
 ing  appropriation by the legislature, shall be allocated upon a certif-
 icate of approval of availability by  the  director  of  the  budget  as
 follows:   (a) Twenty-two and five-tenths percent of the monies shall be
 transferred to the counties in New  York  state  in  which  the  medical

 A. 1617--B                         109
 
 [marihuana] CANNABIS was manufactured and allocated in proportion to the
 gross  sales  originating from medical [marihuana] CANNABIS manufactured
 in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
 moneys  shall  be transferred to the counties in New York state in which
 the medical [marihuana] CANNABIS was dispensed and allocated in  propor-
 tion  to the gross sales occurring in each such county; (c) five percent
 of the monies shall be transferred  to  the  office  of  alcoholism  and
 substance  abuse  services,  which shall use that revenue for additional
 drug abuse prevention, counseling and treatment services; and  (d)  five
 percent  of  the revenue received by the department shall be transferred
 to the division of criminal  justice  services,  which  shall  use  that
 revenue  for  a  program  of discretionary grants to state and local law
 enforcement agencies that demonstrate a need relating to  [title  five-A
 of  article  thirty-three of the public health law] ARTICLE THREE OF THE
 CANNABIS LAW; said grants could be used for personnel costs of state and
 local law enforcement agencies. For purposes of  this  subdivision,  the
 city of New York shall be deemed to be a county.
   §  60.  The  state finance law is amended by adding three new sections
 99-hh, 99-ii and 99-jj to read as follows:
   § 99-HH. NEW YORK STATE CANNABIS REVENUE  FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "NEW YORK STATE CANNABIS REVENUE FUND".
   2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
 OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  ARTICLE  EIGH-
 TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
 OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
 PURPOSES:
   (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
 PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
 REVENUES RECEIVED.
   (B) REASONABLE COSTS INCURRED BY THE OFFICE OF CANNABIS MANAGEMENT FOR
 IMPLEMENTING, ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION  AND
 TAXATION  ACT  TO  THE EXTENT THOSE COSTS ARE NOT REIMBURSED PURSUANT TO
 THE CANNABIS LAW. THIS PARAGRAPH SHALL REMAIN OPERATIVE THROUGH THE  TWO
 THOUSAND TWENTY-FOUR--TWO THOUSAND TWENTY-FIVE FISCAL YEAR.
   (C)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-
 TWO FISCAL YEAR AND CONTINUING  THROUGH  THE  TWO  THOUSAND  THIRTY--TWO
 THOUSAND  THIRTY-ONE  FISCAL  YEAR,  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE SHALL ANNUALLY DISBURSE THE FOLLOWING SUMS FOR THE  PURPOSES  OF
 DATA COLLECTION AND REPORTING:
   (I)  SEVEN  HUNDRED  FIFTY  THOUSAND DOLLARS TO THE OFFICE OF CANNABIS
 MANAGEMENT POLICY TO TRACK AND REPORT DATA RELATED TO THE  LICENSING  OF
 CANNABIS  BUSINESSES,  INCLUDING THE GEOGRAPHIC LOCATION, STRUCTURE, AND
 FUNCTION OF LICENSED CANNABIS BUSINESSES, AND DEMOGRAPHIC DATA,  INCLUD-
 ING  RACE,  ETHNICITY,  AND  GENDER,  OF  LICENSE HOLDERS. THE OFFICE OF
 CANNABIS MANAGEMENT SHALL PUBLISH REPORTS ON ITS FINDINGS  ANNUALLY  AND
 SHALL MAKE THE REPORTS AVAILABLE TO THE PUBLIC.
   (II)  SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMI-
 NAL JUSTICE SERVICES TO TRACK AND REPORT DATA  RELATED  TO  ANY  INFRAC-
 TIONS,  VIOLATIONS,  OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE

 A. 1617--B                         110
 
 REMAINING  CANNABIS  STATUTES.    THE  DEPARTMENT  OF  CRIMINAL  JUSTICE
 SERVICES  SHALL  PUBLISH REPORTS ON ITS FINDINGS ANNUALLY AND SHALL MAKE
 THE REPORTS AVAILABLE TO THE PUBLIC.
   (III)  ONE  MILLION  DOLLARS  TO  THE  STATE UNIVERSITY OF NEW YORK TO
 RESEARCH AND EVALUATE THE IMPLEMENTATION AND  EFFECT  OF  THE  MARIHUANA
 REGULATION  AND TAXATION ACT.  NO MORE THAN FOUR PERCENT OF THESE MONIES
 MAY BE USED FOR EXPENSES RELATED TO ADMINISTRATIVE COSTS  OF  CONDUCTING
 SUCH  RESEARCH,  AND  TO,  IF  APPROPRIATE,  MAKE RECOMMENDATIONS TO THE
 LEGISLATURE AND GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE  MARIHUANA
 REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS SHALL PUBLISH
 REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS AND SHALL MAKE
 THE  REPORTS  AVAILABLE  TO  THE PUBLIC. THE RESEARCH FUNDED PURSUANT TO
 THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:
   (A) THE IMPACT ON PUBLIC HEALTH,  INCLUDING  HEALTH  COSTS  ASSOCIATED
 WITH CANNABIS USE, AS WELL AS WHETHER CANNABIS USE IS ASSOCIATED WITH AN
 INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
   (B)  THE  IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND THE EFFEC-
 TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
   (C) PUBLIC SAFETY ISSUES RELATED TO CANNABIS USE,  INCLUDING  STUDYING
 THE  EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND ADVER-
 TISING AND MARKETING RESTRICTIONS CONTAINED IN  THE  ACT  AT  PREVENTING
 UNDERAGE ACCESS TO AND USE OF CANNABIS AND CANNABIS PRODUCTS, AND STUDY-
 ING  THE HEALTH-RELATED EFFECTS AMONG USERS OF VARYING POTENCY LEVELS OF
 CANNABIS AND CANNABIS PRODUCTS;
   (D) CANNABIS USE RATES, MALADAPTIVE USE RATES FOR  ADULTS  AND  YOUTH,
 AND DIAGNOSIS RATES OF CANNABIS-RELATED SUBSTANCE USE DISORDERS;
   (E)  CANNABIS MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES AND
 RATES, INCLUDING AN EVALUATION OF HOW TO  BEST  TAX  CANNABIS  BASED  ON
 POTENCY, AND THE STRUCTURE AND FUNCTION OF LICENSED CANNABIS BUSINESSES;
   (F)  WHETHER  ADDITIONAL  PROTECTIONS  ARE  NEEDED TO PREVENT UNLAWFUL
 MONOPOLIES OR ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN  THE  CANNABIS
 INDUSTRY  AND,  IF SO, RECOMMENDATIONS AS TO THE MOST EFFECTIVE MEASURES
 FOR PREVENTING SUCH BEHAVIOR;
   (G) THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS,  INCLUDING
 BUT  NOT  NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE SAFETY, REVEN-
 UES, TAXES GENERATED FOR STATE AND LOCAL BUDGETS, AND  CRIMINAL  JUSTICE
 IMPACTS,  INCLUDING,  BUT  NOT  NECESSARILY  LIMITED  TO, IMPACTS ON LAW
 ENFORCEMENT AND PUBLIC RESOURCES, SHORT AND LONG  TERM  CONSEQUENCES  OF
 INVOLVEMENT  IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL GOVERN-
 MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
   (H) WHETHER THE  REGULATORY  AGENCIES  TASKED  WITH  IMPLEMENTING  AND
 ENFORCING  THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING SO
 CONSISTENT WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT  AGENCIES
 MIGHT DO SO MORE EFFECTIVELY; AND
   (I)  ANY  ENVIRONMENTAL  ISSUES RELATED TO CANNABIS PRODUCTION AND THE
 CRIMINAL PROHIBITION OF CANNABIS PRODUCTION.
   (D) ONE MILLION DOLLARS ANNUALLY, FOR A PERIOD OF  THREE  YEARS  AFTER
 THE  EFFECTIVE  DATE  OF THIS SECTION, TO THE STATE POLICE TO EXPAND AND
 ENHANCE THE DRUG RECOGNITION EXPERT TRAINING  PROGRAM  AND  TECHNOLOGIES
 UTILIZED IN THE PROCESS OF MAINTAINING ROAD SAFETY.
   (I)  THE  STATE  POLICE,  IN  ASSOCIATION  WITH THE OFFICE OF CANNABIS
 MANAGEMENT, ARE AUTHORIZED TO ESTABLISH A PILOT PROGRAM FOR THE  TESTING
 AND  DEVELOPMENT  OF  NEW TECHNOLOGIES TO DETECT DRIVERS WHO ARE DRIVING
 UNDER THE INFLUENCE OF CANNABIS.
   (II) PURSUANT TO SUCH PILOT PROGRAM, A LAW  ENFORCEMENT  OFFICER,  WHO
 UPON  REASONABLE  SUSPICION  AND  BELIEF,  IDENTIFIES  AN INDIVIDUAL WHO

 A. 1617--B                         111
 
 APPEARS TO BE DRIVING UNDER THE  INFLUENCE  OF  A  DRUG  AS  DEFINED  BY
 SECTION ONE HUNDRED FOURTEEN-A OF THE VEHICLE AND TRAFFIC LAW, MAY, WITH
 THE KNOWING AND INTELLIGENT PERMISSION OF THE DRIVER, UTILIZE DEVELOPING
 TECHNOLOGIES  FOR THE PURPOSE OF IDENTIFYING SAID DRUG WITHIN THE SYSTEM
 OF THE DRIVER.
   (III) THE OBJECTION TO, COMPLIANCE WITH, OR RESULTS  OF  THE  ADMINIS-
 TRATION  OF  SAID  DEVELOPING  TECHNOLOGIES  MAY NOT BE USED AGAINST ANY
 DRIVER FOR THE PURPOSE OF ADVANCING  A  CRIMINAL  ACTION.  ADDITIONALLY,
 SALIVA,  OR OTHER BIOLOGICAL MATERIAL OBTAINED FROM THE DRIVER SHALL NOT
 BE ADMISSIBLE AGAINST THE DRIVER IN ANY CRIMINAL PROCEEDING, OR RETAINED
 FOR ANY REASON.
   (IV) THE DRIVER SHALL BE NOTIFIED OF THE RESULTS OF ANY ADMINISTRATION
 OF SAID DEVELOPING TECHNOLOGIES AND PROVIDED WITH DOCUMENTATION OF  SAID
 RESULTS.
   (V)  THE  PILOT  PROGRAM ESTABLISHED BY SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH SHALL BE IN EFFECT FOR ONE YEAR AFTER THE EFFECTIVE DATE  OF  THIS
 SECTION.
   4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
 SECTION,  THE  REMAINING  MONEYS  IN THE FUND DEPOSITED DURING THE PRIOR
 FISCAL YEAR SHALL BE DISBURSED INTO THE STATE LOTTERY FUND AND TWO ADDI-
 TIONAL SUB-FUNDS CREATED WITHIN THE CANNABIS REVENUE FUND KNOWN  AS  THE
 DRUG  TREATMENT AND PUBLIC EDUCATION FUND AND THE COMMUNITY GRANTS REIN-
 VESTMENT FUND, AS FOLLOWS:
   (A) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE STATE  LOTTERY  FUND
 ESTABLISHED  BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT SUCH
 MONEYS SHALL BE DISTRIBUTED TO THE DEPARTMENT OF EDUCATION IN ACCORDANCE
 WITH SUBDIVISIONS TWO AND FOUR OF SECTION NINETY-TWO-C OF  THIS  ARTICLE
 AND  SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF SUCH
 SECTION. MONIES ALLOCATED BY THIS ARTICLE MAY  ENHANCE,  BUT  SHALL  NOT
 SUPPLANT, EXISTING DEDICATED FUNDS TO THE DEPARTMENT OF EDUCATION;
   (B)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE DRUG TREATMENT AND
 PUBLIC EDUCATION FUND ESTABLISHED  BY  SECTION  NINETY-NINE-II  OF  THIS
 ARTICLE; AND
   (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
 MENT FUND ESTABLISHED BY SECTION NINETY-NINE-JJ OF THIS ARTICLE.
   5.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE  TEMPORARY
 PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE
 FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS AND MEANS  COMMITTEE,  THE
 STATE  COMPTROLLER  AND  THE  PUBLIC.  SUCH  REPORT SHALL DETAIL HOW THE
 MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
 SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE  PROCESS  USED
 FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   6. MONEYS SHALL BE PAYABLE DIRECTLY FROM THE CANNABIS REVENUE FUND  TO
 THE DEPARTMENT OF EDUCATION.
   §  99-II.  NEW YORK STATE DRUG TREATMENT AND PUBLIC EDUCATION FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-

 A. 1617--B                         112

 TROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO
 BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
   2.  SUCH  FUND  SHALL  CONSIST  OF  REVENUES  RECEIVED PURSUANT TO THE
 PROVISIONS OF SECTION NINETY-NINE-HH  OF  THIS  ARTICLE  AND  ALL  OTHER
 MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
 LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
 RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
 DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
 LAW.
   3.  THE  MONEYS  IN SUCH FUND SHALL BE EXPENDED TO THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE AND DISBURSED IN  CONSULTA-
 TION WITH THE COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
   (A)  TO  DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC HEALTH EDUCATION
 AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
 VENTION, AND HEALTH CARE SERVICES AND PROGRAMS TO  REDUCE  THE  RISK  OF
 CANNABIS AND OTHER SUBSTANCE USE BY SCHOOL-AGED CHILDREN;
   (B)  TO  DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC HEALTH CAMPAIGN
 FOCUSED ON THE HEALTH EFFECTS OF CANNABIS AND LEGAL  USE,  INCLUDING  AN
 ONGOING  EDUCATION  AND  PREVENTION  CAMPAIGN  THAT EDUCATES THE GENERAL
 PUBLIC, INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE  OF
 CANNABIS,  THE  IMPORTANCE OF PREVENTING YOUTH ACCESS, THE IMPORTANCE OF
 SAFE STORAGE AND PREVENTING SECONDHAND CANNABIS SMOKE EXPOSURE, INFORMA-
 TION FOR PREGNANT OR BREASTFEEDING WOMEN,  AND  THE  OVERCONSUMPTION  OF
 EDIBLES;
   (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
 ADULTS,  WITH  AN  EMPHASIS  ON  PROGRAMS THAT ARE CULTURALLY AND GENDER
 COMPETENT, TRAUMA-INFORMED, EVIDENCE-BASED AND PROVIDE  A  CONTINUUM  OF
 CARE  THAT  INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE DISORDER AS
 WELL AS MENTAL HEALTH), EARLY  INTERVENTION,  ACTIVE  TREATMENT,  FAMILY
 INVOLVEMENT,  CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF COMMU-
 NICABLE DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT  FOR
 SUBSTANCE  USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS, VOCA-
 TIONAL SERVICES, LITERACY SERVICES, PARENTING  CLASSES,  FAMILY  THERAPY
 AND  COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS, PSYCHIATRIC
 MEDICATION AND PSYCHOTHERAPY; AND
   (D) TO EVALUATE THE PROGRAMS BEING FUNDED TO  DETERMINE  THEIR  EFFEC-
 TIVENESS.
   4.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
 WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE
 ASSEMBLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY
 WAYS AND MEANS COMMITTEE, CHAIR OF THE SENATE  COMMITTEE  ON  ALCOHOLISM
 AND  DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE COMMIT-
 TEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL  HOW
 THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
 AND SHALL INCLUDE:
   (A)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
 YEAR.

 A. 1617--B                         113
 
   5.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF EDUCATION.
   §  99-JJ.  NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND. 1. THERE
 IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER  AND
 THE  COMMISSIONER  OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS
 THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
   2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED  PURSUANT  TO  THE
 PROVISIONS  OF  SECTION  NINETY-NINE-HH  OF  THIS  ARTICLE AND ALL OTHER
 MONEYS APPROPRIATED THERETO FROM ANY OTHER FUND OR  SOURCE  PURSUANT  TO
 LAW.  NOTHING  CONTAINED  IN  THIS  SECTION SHALL PREVENT THE STATE FROM
 RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE  PURPOSES  OF  THE  FUND  AS
 DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
 LAW.
   3. THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE  STEER-
 ING  COMMITTEE  OF THIRTEEN MEMBERS, INCLUDING A REPRESENTATIVE FROM THE
 OFFICE OF CHILDREN AND FAMILY SERVICES, THE LABOR  DEPARTMENT,  AND  THE
 HEALTH DEPARTMENT APPOINTED BY THE GOVERNOR, AND A REPRESENTATIVE OF THE
 EDUCATION DEPARTMENT APPOINTED BY THE BOARD OF REGENTS. IN ADDITION, THE
 MAJORITY  AND  MINORITY  LEADERS  OF  THE SENATE AND ASSEMBLY SHALL EACH
 APPOINT ONE MEMBER TO THE EXECUTIVE STEERING COMMITTEE, THE  COMPTROLLER
 SHALL  APPOINT  THREE ADDITIONAL MEMBERS, AND THE ATTORNEY GENERAL SHALL
 APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL  GOVERNMENT  ENTITIES
 AND  COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHALL BE MADE TO ENSURE
 A BALANCED AND DIVERSE COMMITTEE REPRESENTING THE REGIONS AND DEMOGRAPH-
 ICS OF THE STATE, WHICH SHALL HAVE EXPERTISE IN JOB PLACEMENT, HOMELESS-
 NESS AND HOUSING, BEHAVIORAL HEALTH AND SUBSTANCE  USE  DISORDER  TREAT-
 MENT,  AND  EFFECTIVE REHABILITATIVE TREATMENT FOR ADULTS AND JUVENILES,
 AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZATIONS  SERVING  COMMUNITIES
 IMPACTED BY PAST FEDERAL AND STATE DRUG POLICIES.
   4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
 COMMITTEE  TO  QUALIFIED  COMMUNITY-BASED  NONPROFIT  ORGANIZATIONS  AND
 APPROVED LOCAL GOVERNMENT ENTITIES FOR THE  PURPOSE  OF  REINVESTING  IN
 COMMUNITIES  DISPROPORTIONATELY  AFFECTED BY PAST FEDERAL AND STATE DRUG
 POLICIES. THE GRANTS FROM THIS PROGRAM SHALL BE USED, INCLUDING BUT  NOT
 LIMITED  TO, TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT EDUCA-
 TION, MENTAL HEALTH TREATMENT, SUBSTANCE USE DISORDER  TREATMENT,  HOUS-
 ING,  COMMUNITY  BANKING, NUTRITION SERVICES, AFTERSCHOOL AND CHILD CARE
 SERVICES, SYSTEM NAVIGATION SERVICES, LEGAL SERVICES TO ADDRESS BARRIERS
 TO REENTRY, AND LINKAGES TO MEDICAL CARE, WOMEN'S  HEALTH  SERVICES  AND
 OTHER COMMUNITY-BASED SUPPORTIVE SERVICES.  THE GRANTS FROM THIS PROGRAM
 MAY  ALSO  BE  USED  TO  FURTHER  SUPPORT THE SOCIAL AND ECONOMIC EQUITY
 PROGRAM CREATED BY ARTICLE FOUR OF  THE  CANNABIS  LAW  AND  DISTRIBUTED
 THROUGH THE OFFICE OF CANNABIS MANAGEMENT.
   5.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL  PROVIDE  A  WRITTEN
 REPORT  TO  THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEM-
 BLY, CHAIR OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE  ASSEMBLY  WAYS
 AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
 LIES,  CHAIR  OF  THE ASSEMBLY CHILDREN AND FAMILIES COMMITTEE, CHAIR OF
 THE SENATE COMMITTEE ON LABOR, CHAIR OF THE  ASSEMBLY  LABOR  COMMITTEE,
 CHAIR  OF  THE  SENATE COMMITTEE ON HEALTH, CHAIR OF THE ASSEMBLY HEALTH
 COMMITTEE, CHAIR OF THE SENATE COMMITTEE  ON  EDUCATION,  CHAIR  OF  THE
 ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
 REPORT  SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE
 PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:

 A. 1617--B                         114
 
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   6. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON  VOUCHERS  APPROVED  AND CERTIFIED BY THE EXECUTIVE
 STEERING COMMITTEE.
   § 61. Severability. If any provision or term of this act  is  for  any
 reason declared unconstitutional or invalid or ineffective by any compe-
 tent  jurisdiction,  such  decision shall not affect the validity of the
 effectiveness of the remaining portions of this act or any part thereof.
   § 62. This act shall take effect immediately; provided,  however  that
 if section 3 of part XX of chapter 59 of the laws of 2019 shall not have
 taken effect on or before such date then section thirty-five of this act
 shall  take effect on the same date and in the same manner as such chap-
 ter of the laws of 2019 takes effect; provided, further,  that  sections
 thirty-nine  and  forty of this act shall take effect April 1, 2020, and
 shall apply on and after such date: (a) to the cultivation  of  cannabis
 flower and cannabis trim transferred by a cultivator who is not a whole-
 saler;  (b) to the cultivation of cannabis flower and cannabis trim sold
 or transferred to a retail dispensary by a cultivator who  is  a  whole-
 saler; and (c) to the sale or transfer of adult use cannabis products to
 a  retail  dispensary; provided, further, that the amendments to article
 179 of the penal law made by section fifty-six of  this  act  shall  not
 affect  the  repeal  of  such article and shall be deemed to be repealed
 therewith; provided, further, that the amendments to section 89-h of the
 state finance law made by section  fifty-nine  of  this  act  shall  not
 affect  the  repeal  of such section and shall be deemed repealed there-
 with; and provided, further, that the amendments to   subdivision  1  of
 section  171-a  of  the  tax law made by section thirty-five of this act
 shall not affect the expiration of such  subdivision  and  shall  expire
 therewith,  when  upon such date the provisions of section thirty-six of
 this act shall take effect.