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;

 A. 1617--A                         13
 
   (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

 A. 1617--A                         14
 
 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;

 A. 1617--A                         15
 
   (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.

 A. 1617--A                         16
 
   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.

 A. 1617--A                         20

   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:

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   (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;

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   (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.

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   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.

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   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

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 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1617--C
 
                        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,  DARLING, RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
   DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS, BENEDETTO,  SIMO-
   TAS,  SIMON,  KIM,  AUBRY  --  Multi-Sponsored  by -- M. of A. MOSLEY,
   SEAWRIGHT, STECK, TAYLOR -- read once and referred to the Committee on
   Codes -- committee discharged,  bill  amended,  ordered  reprinted  as
   amended  and recommitted to said committee -- again reported from said
   committee with amendments, ordered reprinted as amended and  recommit-
   ted  to  said  committee  --  recommitted to the Committee on Codes in
   accordance with Assembly Rule 3, sec. 2 -- 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07592-35-0

 A. 1617--C                          2
 
   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
   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 including mass incarceration and other complex generational
 trauma, 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
 disproportionately impacted African-American and Latinx communities.
   The intent of this act is to regulate,  control,  and  tax  marihuana,
 heretofore  known  as  cannabis,  generate significant new revenue, make
 substantial investments in communities and people most impacted by mari-
 huana criminalization to address the  collateral  consequences  of  such
 criminalization,  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,  create  new industries and increase employment and strengthen New
 York's agriculture sector.
   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

 A. 1617--C                          3
 
 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-
 ment of federal law or pose any obstacle to the federal  enforcement  of
 federal law.
   The  legislature  further  finds  and  declares that it is in the best
 interest of the state to regulate medical cannabis, adult-use  cannabis,
 cannabinoid  hemp and hemp extracts under independent entities, known as
 the cannabis control board and 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 who is a citizen of
 the United States or a person lawfully admitted for permanent  residency
 in  the  United  States  aged twenty-one years or older applying for any
 cannabis or hemp licenses or special use permits issued by the New  York
 state cannabis control board pursuant to this chapter; provided, however
 applicants for hemp licenses may be aged eighteen years or older.
   2.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
 not include synthetic cannabinoids as that term is defined  in  subdivi-
 sion (g) of schedule I of section thirty-three hundred six of the public
 health law.
   3.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
 derived from hemp, that is used for human consumption provided that when
 such product is packaged or offered for retail sale to  a  consumer,  it
 shall  not  have  a concentration of more than three tenths of a percent
 delta-9 tetrahydrocannabinol.
   4. "Cannabinoid hemp processor license" means a license granted by the
 department to process, extract, pack or manufacture cannabinoid hemp  or
 hemp  extract into products, whether in intermediate or final form, used
 for human consumption.
   5. "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, cannabinoid hemp or hemp extract as  defined  by  this
 section.
   6. "Cannabis consumer" means a person twenty-one years of age or older
 acting in accordance with any provision of this chapter.
   7.  "Cannabis control board" means the New York state cannabis control
 board created pursuant to article two of this chapter.
   8. "Cannabis flower" means the flower of a plant of the genus Cannabis
 that has been harvested, dried,  and  cured,  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.

 A. 1617--C                          4

   9. "Cannabis product" or "adult-use cannabis product" means  cannabis,
 concentrated cannabis, and cannabis-infused products for use by a canna-
 bis consumer.
   10. "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.
   11. "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.
   12.  "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.
   13. "Certification" means a certification made under this chapter.
   14.  "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.
   15. "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 board in regulation, and is certified under this chapter.
   16.  "Chief  equity  officer"  means  the  chief equity officer of the
 office of cannabis management.
   17. "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.
   18.  "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.
   19.  "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.
   20. "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.
   21.  "Delivery"  means  the  direct delivery of cannabis products by a
 retail licensee, microbusiness licensee, or delivery license holder to a
 cannabis consumer.
   22. "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

 A. 1617--C                          5
 
 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
 with  an  internal  review board; or any other facility as determined by
 the board 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.
   23.  "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.
   24. "Designated caregiver facility employee" means an  employee  of  a
 designated caregiver facility.
   25. "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.
   26. "Executive director" means the executive director of the office of
 cannabis management.
   27. "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.
   28.  "Hemp"  means  the  plant Cannabis sativa L. and any part of such
 plant, 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 (THC) of not more
 than three-tenths of a percent on a  dry  weight  basis.  It  shall  not
 include "medical cannabis" as defined in this section.
   29.  "Hemp  extract"  means  all  derivatives, extracts, cannabinoids,
 isomers, acids, salts, and salts of isomers derived from hemp,  used  or
 intended  for  human  consumption,  for  its cannabinoid content, with a
 delta-9 tetrahydrocannabinol concentration of not more  than  an  amount
 determined  by  the  department  in  regulation. For the purpose of this
 article, hemp extract excludes (a) any food,  food  ingredient  or  food
 additive  that  is generally recognized as safe pursuant to federal law;
 or (b) any hemp extract that is not used  for  human  consumption.  Such
 excluded substances shall not be regulated pursuant to the provisions of
 this  article  but  are  subject to other provisions of applicable state
 law, rules and regulations.
   30. "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.
   31. "Laboratory testing facility"  means  any  independent  laboratory
 capable  of  testing  cannabis  and  cannabis products for adult-use and
 medical-use; cannabinoid hemp and hemp extract; or for all categories of
 cannabis and cannabis products as per regulations set forth by the state
 cannabis control board.

 A. 1617--C                          6
 
   32. "License" means a written authorization  as  provided  under  this
 chapter  permitting persons to engage in a specified activity authorized
 pursuant to this chapter.
   33. "Licensee" means an individual or an entity who has been granted a
 license under this chapter.
   34.  "Medical  cannabis"  means  cannabis  as defined in this section,
 intended for a certified medical use, as  determined  by  the  board  in
 consultation with the commissioner of health.
   35.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
 producer for the cultivation of cannabis, a cannabis processor, a canna-
 bis distributor and a cannabis retailer  under  this  article;  provided
 such  licensee complies with all requirements imposed by this article on
 licensed producers, processors, distributors and retailers to the extent
 the licensee engages in such activities.
   36. "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.
   37.  "Office"  or  "office  of cannabis management" means the New York
 state office of cannabis management.
   38. "On-site consumption" means the consumption of cannabis in an area
 licensed as provided for in this chapter.
   39. "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.
   40.  "Package"  means  any  container  or  receptacle used for holding
 cannabis or cannabis products.
   41. "Permit" means a permit issued pursuant to this chapter.
   42. "Permittee" means any person to whom  a  permit  has  been  issued
 pursuant to this chapter.
   43. "Practitioner" means a practitioner who is licensed, registered or
 certified  by  New  York state to prescribe controlled substances within
 the state.  Nothing in this chapter shall be interpreted so as  to  give
 any  such  person  authority  to  act outside their scope of practice as
 defined by title eight of the education law.  Additionally,  nothing  in
 this chapter shall be interpreted to allow any unlicensed, unregistered,
 or  uncertified  person to act in a manner that would require a license,
 registration, or certification pursuant to title eight of the  education
 law.
   44.  "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.
   45. "Registered organization" means an organization  registered  under
 article three of this chapter.
   46. "Registry application" means an application properly completed and
 filed  with the board by a certified patient under article three of this
 chapter.
   47. "Registry identification card" means a document that identifies  a
 certified  patient or designated caregiver, as provided under this chap-
 ter.
   48. "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  licensed
 person, whether principal, proprietor, agent, or employee, of any canna-

 A. 1617--C                          7
 
 bis,  cannabis  product,  cannabinoid  hemp or hemp extract product to a
 cannabis consumer for any purpose other than resale.
   49. "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.
   50. "Small business" means small business as defined  in  section  one
 hundred  thirty-one of the economic development law, and shall apply for
 purposes of this chapter where any inconsistencies exist.
   51. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter or substance which contains cannabis including the  use
 of an electronic smoking device that creates an aerosol or vapor.
   52.  "Social  and economic equity applicant" means an individual or an
 entity who is eligible for priority licensing pursuant to  the  criteria
 established in article four of this chapter.
   53.  "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.
   54.  "Warehouse" means and includes a place in which cannabis products
 are securely housed or stored.
   55. "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 licensed
 person, whether principal, proprietor, agent, or employee of any  adult-
 use,  medical-use  cannabis or cannabis product, or cannabinoid hemp and
 hemp extract product for purposes of resale.
 
                                 ARTICLE 2
                   NEW YORK STATE CANNABIS CONTROL BOARD
 
 Section 7.  Establishment of the cannabis control board or "board".
         8.  Establishment of an office of cannabis management.
         9.  Executive director.
         10. Powers and duties of the cannabis control board.
         11. Functions, powers and  duties  of  the  executive  director;
               office of cannabis control.
         12. Chief equity officer.
         13. Rulemaking authority.
         14. State cannabis advisory board.
         15. Disposition of moneys received for license fees.
         16. Violations  of  cannabis  laws or regulations; penalties and
               injunctions.
         17. Formal hearings; notice and procedure.
         18. Ethics, transparency and accountability.
   § 7. Establishment of the cannabis control board or "board".   1.  The
 cannabis  control  board is hereby created and shall consist of a chair-
 person nominated by the governor and with the advice and consent of  the
 senate,  with  one vote, and four other voting board members as provided
 for in subdivision two of this section. In addition,  the  commissioners
 of  the  departments  of environmental conservation, health, agriculture
 and markets, taxation  and  finance,  the  superintendent  of  financial
 services,  and  the  director  of  the  office of addiction services and
 supports or their designees shall serve  as  ex-officio  members  in  an
 advisory capacity.
   2.  Appointments.  The governor shall have three appointments with the
 advice and consent of the senate, the temporary president of the  senate
 and  the  speaker of the assembly shall each have one appointment to the
 board. Appointments shall be for a term of three years each and shall be

 A. 1617--C                          8
 
 geographically and  demographically  representative  of  the  state  and
 communities  historically  affected  by  the war on drugs. Board members
 shall be citizens and permanent residents of this state. The chairperson
 and  the  remaining  members  of  such  board shall continue to serve as
 chairperson and members of the board until the expiration of the respec-
 tive terms for which they were appointed. Upon the  expiration  of  such
 respective terms the successors of such chairperson and members shall be
 appointed  to  serve  for  a  term  of  three years each and until their
 successors have been appointed and qualified.  The  members  shall  when
 performing  the  work  of  the  board,  be  compensated at a rate of two
 hundred sixty dollars per day, and together with an allowance for actual
 and necessary expenses incurred in the discharge  of  their  duties.  No
 member  or  member's spouse or minor child shall have any interest in an
 entity regulated by the board.
   3. Expenses. Each member of the  board  shall  be  entitled  to  their
 expenses actually and necessarily incurred by them in the performance of
 their duties.
   4. Removal. Any member of the board may be removed by the governor for
 good  cause  after notice and an opportunity to be heard. A statement of
 the good cause for their removal shall be filed by the governor  in  the
 office of the secretary of state.
   5.  Vacancies;  quorum.  (A)  In  the event of a vacancy caused by the
 death, resignation, removal or inability to perform his or her duties of
 any board member, the vacancy shall be  filled  in  the  manner  as  the
 original appointment for the remainder of the unexpired term.
   (B)(i)  In  the  event  of a vacancy caused by the death, resignation,
 removal, or inability to act of the chair, the vacancy shall  be  filled
 in  the same manner as the original appointment for the remainder of the
 unexpired term. Notwithstanding  any  other  provision  of  law  to  the
 contrary,  the  governor  shall  designate  one  of  the remaining board
 members to serve as acting chairperson for a period not  to  exceed  six
 months  or  until  a  successor  chairperson  has  been confirmed by the
 senate.  Upon the expiration of the six month term, if the governor  has
 nominated a successor chairperson, but the senate has not acted upon the
 nomination,  the  acting  chairperson  can  continue  to serve as acting
 chairperson for an  additional  ninety  days  or  until  the  governor's
 successor  chairperson  nomination is confirmed by the senate, whichever
 comes first;
   (ii) The governor shall provide immediate written notice to the tempo-
 rary president of the senate and the speaker  of  the  assembly  of  the
 designation of a board member as acting chairperson;
   (iii)  If  (a)  the governor has not nominated a successor chairperson
 upon the expiration of the six month term or (b)  the  senate  does  not
 confirm the governor's successor nomination within the additional ninety
 days,  the board member designated as acting chairperson shall no longer
 be able to serve as acting chairperson and the  governor  is  prohibited
 from extending the powers of that acting chairperson or from designating
 another board member to serve as acting chairperson; and
   (iv)  A board member serving as the acting chairperson of the cannabis
 control board shall be deemed a state officer for  purposes  of  section
 seventy-three of the public officers law.
   (C)  A majority of the voting board members of the board shall consti-
 tute a quorum for the purpose of conducting the business thereof  and  a
 majority  vote  of  all  the  members  in  office shall be necessary for
 action. Provided, however, that a board member designated as  an  acting

 A. 1617--C                          9
 
 chairperson  pursuant  to  this  chapter  shall  have  only one vote for
 purposes of conducting the business of the cannabis control board.
   6.  Officers;  employees;  offices.  (A) The board shall have power to
 appoint any necessary deputies, counsels, assistants, investigators, and
 other employees within the limits provided by appropriation.    Investi-
 gators  so  employed  by  the board shall be deemed to be peace officers
 only for the purpose of enforcing the provisions of the cannabis law  or
 judgments  or orders obtained for violation thereof, with all the powers
 set forth in section 2.20 of the criminal procedure  law.  The  counsel,
 secretary,  chief executive officer, assistant chief executive officers,
 chief equity officer, confidential  secretaries  to  board  members  and
 deputies  shall  be  in the exempt class of the civil service. The other
 assistants, investigators  and  employees  of  the  office  of  cannabis
 management  shall  all  be in the competitive class of the civil service
 and shall be considered for purposes of article fourteen  of  the  civil
 service  law  to  be public employees in the civil service of the state,
 and shall be assigned to the  appropriate  collective  bargaining  unit.
 Employees serving in positions in newly created titles shall be assigned
 to the same collective bargaining units as they would have been assigned
 to  were such titles created prior to the establishment of the office of
 cannabis management by this chapter.
   The cannabis control board and office  of  cannabis  management  shall
 have  its  principal  office  in the city of Albany, and maintain branch
 offices in the cities of New York and Buffalo and such other  places  as
 it may deem necessary.
   (B)  The  board  shall establish appropriate procedures to ensure that
 hearing officers are shielded from ex parte communications with  alleged
 violators  and their attorneys and from other employees of the office of
 cannabis management and shall take such other steps  as  it  shall  deem
 necessary  and  proper to shield its judicial processes from unwarranted
 and inappropriate communications and attempts to influence.
   7. Disqualification of members of  the  board  and  employees  of  the
 office  of  cannabis management.  No member of the board or any officer,
 deputy, assistant, inspector or employee or spouse or minor child there-
 of 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 cannabis is manufactured or sold; nor shall they have
 any  interest,  direct  or indirect, in any business wholly or partially
 devoted to the cultivation, manufacture, distribution, sale, transporta-
 tion or storage of cannabis, or own any stock in any  corporation  which
 has  any  interest, proprietary or otherwise, direct or indirect, in any
 premises where cannabis or hemp extract is cultivated  or  manufactured,
 distributed,  or sold, or in any business wholly or partially devoted to
 the cultivation,  manufacture,  distribution,  sale,  transportation  or
 storage  of cannabis or hemp extract or receive any commission or profit
 whatsoever, direct or indirect, from any person applying for or  receiv-
 ing  any  license  or  permit  provided for in this chapter, or hold any
 other public office in the state or in any political subdivision  except
 upon  the  written  permission of the board, such member of the board or
 office of cannabis management or officer, deputy,  assistant,  inspector
 or  employee  thereof  may  hold  the  public office of notary public or
 member of a community board of education in the city school district  of
 the  city of New York. Anyone who violates any of the provisions of this
 section shall be removed.
   § 8. Establishment of an office of cannabis management. There is here-
 by established, within the division of alcoholic  beverage  control,  an

 A. 1617--C                         10
 
 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.
   §  9.  Executive  director.  The  office shall exercise its authority,
 other than powers and duties specifically granted to the board,  by  and
 through an executive director nominated by the governor and confirmed by
 the  senate.    The  executive  director shall serve for a term of three
 years and once confirmed, may only be removed for good cause with appro-
 priate notice. The executive director of the state  office  of  cannabis
 management shall receive an annual salary not to exceed an amount appro-
 priated therefor by the legislature and his or her expenses actually and
 necessarily  incurred  in the performance of his or her official duties,
 unless otherwise provided by the legislature.
   § 10. Powers and duties of the cannabis control  board.  The  cannabis
 control  board or "board" shall have the following functions, powers and
 duties as provided for in this chapter:
   1. Sole discretion to issue  or  refuse  to  issue  any  registration,
 license or permit provided for in this chapter.
   2.  Sole discretion to limit, or not to limit, the number of registra-
 tions, licenses and permits of each class to be issued within the  state
 or  any  political  subdivision  thereof,  in  a manner that prioritizes
 social and economic equity applicants with the  goal  of  fifty  percent
 awarded  to  such applicants, and considers small business opportunities
 and concerns, avoids market dominance in sectors of  the  industry,  and
 reflects the demographics of the state.
   3.  Sole  discretion to revoke, cancel or suspend for cause any regis-
 tration, license, or permit issued under this chapter and/or to impose a
 civil penalty for cause, after notice and an opportunity for a  hearing,
 against any holder of a registration, license, or permit issued pursuant
 to this chapter.
   4.  To  fix  by  rule  and regulation the standards of cultivation and
 processing of medical cannabis, adult use cannabis and cannabis product,
 and cannabinoid hemp and hemp extract, including but not limited to, the
 ability to regulate potency and the types of products which may be manu-
 factured and/or processed, in order to ensure the health and  safety  of
 the public and the use of proper ingredients and methods in the manufac-
 ture  of all medical, adult-use, cannabinoid hemp and hemp extract to be
 sold or consumed in the state.
   5. To limit or prohibit, at any time of public emergency  and  without
 previous  notice or advertisement, the cultivation, processing, distrib-
 ution or sale of any or  all  cannabis  products,  medical  cannabis  or
 cannabinoid  hemp  and  hemp  extract, for and during the period of such
 emergency.
   6. To hold hearings,  subpoena  witnesses,  compel  their  attendance,
 administer  oaths,  to  examine  any person under oath and in connection
 therewith to require the production of any books or records relative  to
 the  inquiry. A subpoena issued under this section shall be regulated by
 the civil practice law and rules.
   7. To appoint any necessary directors, deputies, counsels, assistants,
 investigators, and other employees within the limits provided by  appro-
 priation.  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
 and shall be considered for purposes of article fourteen  of  the  civil
 service  law  to be public employees of the state, and shall be assigned

 A. 1617--C                         11
 
 to the appropriate bargaining unit. Investigators  so  employed  by  the
 office  shall  be  deemed  to be peace officers only for the purposes of
 enforcing the provisions of this chapter or judgments or orders obtained
 for  violation thereof, with all the powers set forth in section 2.20 of
 the criminal procedure law. Employees transferred to the office shall be
 transferred without further examination or qualification to the same  or
 similar  titles and shall remain in the same collective bargaining units
 and shall retain their respective civil service classifications,  status
 and  rights pursuant to their collective bargaining units and collective
 bargaining agreements. Employees serving in positions in  newly  created
 titles  shall  be assigned to the appropriate collective bargaining unit
 as they would have been assigned to were such titles  created  prior  to
 the  establishment  of  the  office of cannabis management.   Any action
 taken under this subdivision shall be subject to and in accordance  with
 the civil service law.
   8.  To inspect or provide authorization for the inspection at any time
 of any premises where medical cannabis, adult-use cannabis  or  cannabi-
 noid hemp and hemp extract is cultivated, processed, stored, distributed
 or sold.
   9.  To prescribe forms of applications for registrations, licenses and
 permits under this chapter and of all reports deemed  necessary  by  the
 board.
   10. To appoint such advisory groups and committees as deemed necessary
 to  provide assistance to the board to carry out the purposes and objec-
 tives of this chapter.
   11. To exercise the powers and perform the duties in relation  to  the
 administration of the board and the office of cannabis management as are
 necessary but not specifically vested by this chapter, including but not
 limited to budgetary and fiscal matters.
   12. To develop and establish minimum criteria for certifying employees
 to  work in the cannabis industry in positions requiring advanced train-
 ing and education.
   13. To enter into contracts, memoranda of  understanding,  and  agree-
 ments as deemed appropriate to effectuate the policy and purpose of this
 chapter.
   14. To advise the urban development corporation in making low interest
 or  zero-interest  loans  to qualified social and economic equity appli-
 cants as provided for in this chapter.
   15. If public health, safety, or welfare imperatively  requires  emer-
 gency  action,  and  incorporates  a finding to that effect in an order,
 summary suspension of a license may be ordered, effective  on  the  date
 specified  in  such  order  or  upon service of a certified copy of such
 order on the licensee, whichever shall be later, pending proceedings for
 revocation or other action. These proceedings shall be  promptly  insti-
 tuted  and  determined.  In addition, the board may be directed to order
 the administrative seizure of product, issue a stop order, or  take  any
 other  action necessary to effectuate and enforce the policy and purpose
 of this chapter.
   16. To draft and provide for public  comment  and  issue  regulations,
 declaratory rulings, guidance and industry advisories.
   17. To draft and provide an annual report on the effectiveness of this
 chapter no later than January first, two thousand twenty-two and annual-
 ly  thereafter.    The  annual report shall be prepared, in consultation
 with the division of the budget, the urban development corporation,  the
 department of taxation and finance, the department of health, department
 of  agriculture  and markets, office of addiction services and supports,

 A. 1617--C                         12
 
 office of mental health, New York state police and the division of crim-
 inal justice services.  The report shall provide, but not be limited to,
 the following information:
   (a)  the number of registrations, licenses, and permits applied for by
 geographic region of the state; the number of  registrations,  licenses,
 and permits approved or denied by geographic region of the state;
   (b)  the  economic  and  fiscal  impacts associated with this chapter,
 including revenue from licensing  or  other  fees,  fines  and  taxation
 related  to  the  cultivation,  distribution  and  sale  of cannabis for
 medical and adult-use and cannabinoid hemp  and  hemp  extract  in  this
 state;
   (c)  specific programs and progress made by the cannabis control board
 and the office of cannabis management in  achieving  the  goals  of  the
 social  and economic equity plan, and other social justice goals includ-
 ing, but not limited to, restorative justice, minority- and  women-owned
 businesses,  disadvantaged  farmers business and service disabled veter-
 ans;
   (d) collect demographic data on owners and employees  in  the  medical
 cannabis,  adult-use  cannabis  and  cannabinoid  hemp  and hemp extract
 industry;
   (e) impacts to public  health  and  safety,  including  substance  use
 disorder;
   (f)  impacts associated with public safety, including, but not limited
 to, traffic-related issues, law  enforcement,  under-age  prevention  in
 relation  to  accessing adult-use cannabis, and efforts to eliminate the
 illegal market for cannabis products in New York; and
   (g) any other information or data deemed significant.
   18. The board shall make  recommendations  regarding  the  appropriate
 level  of  taxation  of adult-use cannabis, as well as changes necessary
 to:  improve  registration,  licensing  and  permitting;  promoting  and
 encouraging  social  and economic equity applicants; improve and protect
 the public health and safety of New Yorkers; improve access  and  avail-
 ability  for substance abuse treatment programs; and any other recommen-
 dations deemed necessary and appropriate. Such report shall be presented
 to the governor, the majority leader of the senate and  the  speaker  of
 the  assembly,  no later than January first, two thousand twenty-two and
 annually thereafter.
   § 11. Functions, powers and duties of the executive  director;  office
 of  cannabis  management.   The executive director, as authorized by and
 through this chapter, shall have the  following  functions,  powers  and
 duties as provided for in this chapter:
   1.  To  exercise  the powers and perform the duties in relation to the
 administration of the office of cannabis management as are  not  specif-
 ically vested by this chapter in the cannabis control board.
   2.  To  keep  records  in  such form as he or she may prescribe of all
 registrations, licenses and permits issued and revoked within the state;
 such records shall be so kept as to provide ready information as to  the
 identity of all licensees including the names of the officers and direc-
 tors  of  corporate licensees and the location of all licensed premises.
 The executive director may contract to furnish copies of the records  of
 licenses  and  permits of each class and type issued within the state or
 any political subdivision thereof, for any license  or  permit  year  or
 term of years not exceeding five years.
   3.  To  inspect  or  provide  for the inspection of any premises where
 medical cannabis, adult-use cannabis, hemp cannabis are manufactured  or
 sold.

 A. 1617--C                         13
 
   4.  To  prescribe forms of applications for licenses and permits under
 this chapter and of all reports deemed necessary by the board.
   5.  As  authorized  by  the  board,  to  inspect  or  provide  for the
 inspection of any licensed or permitted premises where  medical,  adult-
 use or hemp is cultivated, processed, stored, distributed or sold.
   6.  To prescribe forms of applications for registrations, licenses and
 permits under this chapter and of all reports deemed  necessary  by  the
 board.
   7. To delegate the powers provided in this section to such other offi-
 cers  or  employees as may be deemed appropriate by the executive direc-
 tor.
   8. To exercise the powers and perform the duties as delegated  by  the
 board  in relation to the administration of the office as are necessary,
 including but not limited to budgetary and fiscal matters.
   9. To enter into contracts, memoranda of understanding, and agreements
 on the recommendation of the executive director and as authorized by the
 board to effectuate the policy and purpose of this chapter.
   10. To advise and assist the board in carrying out any  of  its  func-
 tions, powers and duties.
   §  12.  Chief  equity officer. The chief equity officer shall be nomi-
 nated by the governor and confirmed by  the  senate.  The  chief  equity
 officer shall receive an annual salary not to exceed an amount appropri-
 ated  therefor by the legislature and their expenses actually and neces-
 sarily incurred in the performance of official duties, unless  otherwise
 provided by the legislature.
   1.  The  chief  equity  officer  shall assist with the development and
 implementation of, and ensure the cannabis control board and the  office
 of  cannabis  management's  continued  compliance  with,  the social and
 economic equity plan, required to be developed pursuant to article  four
 of this chapter.
   2.  The chief equity officer shall establish public education program-
 ming dedicated to providing  communities  that  have  been  impacted  by
 cannabis  prohibition  with  information detailing the licensing process
 and informing individuals of the support and resources that  the  office
 can  provide  to individuals and entities interested in participating in
 activity licensed under this chapter.
   3. The chief equity officer shall provide a report to the legislature,
 no later than January first, two thousand twenty-two, and annually ther-
 eafter, of their activities in ensuring compliance with the  social  and
 economic  equity plan, required to be developed pursuant to article four
 of this chapter.
   § 13. Rulemaking authority.   1. The board 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  board shall, in consultation with the executive director, the
 chief equity officer and the state cannabis  advisory  board,  have  the
 authority  to  promulgate  any  and  all necessary rules and regulations
 governing  the  cultivation,  manufacture,  processing,  transportation,
 distribution, testing, delivery, and sale of medical cannabis, adult-use
 cannabis,  and  cannabinoid  hemp  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 cultiva-
 tors,  processors,  cooperatives, microbusiness, distributors, laborato-
 ries, and retailers, and the licensing  of  cannabinoid  hemp  and  hemp

 A. 1617--C                         14

 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  all  regis-
 tered 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  permit-
 tee  and  on  the  premise  of any registered organization, licensee, or
 permittee;
   (d) methods of producing, processing, and packaging cannabis,  medical
 cannabis, cannabis-infused products, concentrated cannabis, and cannabi-
 noid  hemp  and hemp extract; conditions of sanitation, and standards of
 ingredients, quality, and  identity  of  cannabis  products  cultivated,
 processed,  packaged, or sold by any registered organizations and licen-
 sees;
   (e) security requirements for medical cannabis and adult-use  cannabis
 retail dispensaries and premises where cannabis products, medical canna-
 bis,  and  cannabinoid  hemp and hemp extract, are cultivated, produced,
 processed, or stored, and safety protocols for registered organizations,
 licensees and their employees; and
   (f) hearing procedures and additional causes for cancellation, suspen-
 sion, revocation, and/or civil penalties against any person  registered,
 licensed, or permitted by the authority.
   3.  The board, in consultation with the state cannabis advisory board,
 shall promulgate rules and regulations that are designed to:
   (a) prevent the distribution of adult-use cannabis or cannabis product
 to persons under twenty-one years of age, including the modification  of
 tobacco vaping products for use with cannabis;
   (b) prevent the revenue from the sale of cannabis from going to crimi-
 nal enterprises;
   (c) prevent the diversion of cannabis from this state to other states;
   (d) prevent cannabis, hemp, cannabinoid hemp and hemp extract 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 driving while  impaired  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)  inform the public about the prohibition on the possession and use
 of cannabis on federal property.
   4. The board, 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 and best practices for water and energy conser-
 vation.
   5. Emergency rules and regulations: In adopting  any  emergency  rule,
 the board shall comply with the provisions of subdivision six of section
 two  hundred  two of the state administrative procedure act and subdivi-
 sion three of section one hundred one-a of the executive law;  provided,
 however, that notwithstanding the provisions of such laws:
   (a)  Such  emergency  rule may remain in effect for no longer than one
 hundred twenty days, unless within such time the board complies with the
 provisions of such laws and adopts the rule as a permanent rule;

 A. 1617--C                         15
 
   (b) If, prior to the expiration of a rule  adopted  pursuant  to  this
 paragraph,  the board finds that the readoption of such rule on an emer-
 gency basis or the adoption of a substantially similar rule on an  emer-
 gency  basis  is  necessary  for  the preservation of the public health,
 safety  or  general  welfare  the agency may only readopt the rule on an
 emergency basis or adopt a substantially similar rule  on  an  emergency
 basis if on or before the date of such action the board has also submit-
 ted  a  notice  of  proposed  rule making pursuant to subdivision six of
 section two hundred two of the state administrative  procedure  act  and
 subdivision  three of section one hundred one-a of the executive law. An
 emergency rule adopted pursuant to this paragraph may remain  in  effect
 for no longer than one hundred twenty days;
   (c)  An  emergency  rule  adopted  pursuant  to  this subdivision or a
 substantially similar rule may be adopted  on  an  emergency  basis  may
 remain  in  effect  for no longer than one hundred twenty days, but upon
 the  expiration  of  such  one  hundred  twenty-day  period  no  further
 readoptions or adoptions of substantially similar rules shall be permit-
 ted  for  a period of one hundred twenty days.  Nothing in this subdivi-
 sion shall preclude the adoption of such rule by submitting a notice  of
 adoption  pursuant to subdivision five of section two hundred two of the
 state administrative procedure act.
   (d) Strict compliance with the provisions of this subdivision shall be
 required, and any emergency rule or substantially similar rule that does
 not so comply shall be void and of no legal effect.
   § 14. State cannabis advisory board. 1. The  state  cannabis  advisory
 board  or  "advisory board" is established within the office of cannabis
 management and directed to  work  in  collaboration  with  the  cannabis
 control board and the executive director to regulate and control the use
 of  medical  cannabis,  adult-use cannabis and cannabinoid hemp and hemp
 extract in the state of New York.
   2. The state cannabis advisory board, shall consist of thirteen voting
 appointed members, along with the commissioners of environmental conser-
 vation, health, agriculture  and  markets  and  addiction  services  and
 supports  serving  as  ex-officio members. The governor shall have seven
 appointments, the temporary president of the senate and the  speaker  of
 the  assembly  shall  each  have  three  appointments  to the board. The
 members shall be appointed to each serve three year  terms  and  in  the
 event  of  a  vacancy,  the vacancy shall be filled in the manner of the
 original appointment for the remainder  of  the  term.    The  appointed
 members  and  commissioners  shall  receive  no  compensation  for their
 services but shall  be  allowed  their  actual  and  necessary  expenses
 incurred in the performance of their duties as board members.
   3.  Advisory  board  members shall have statewide geographic represen-
 tation that is  balanced  and  diverse  in  its  composition.  Appointed
 members  shall  have  an  expertise  in  public  and  behavioral health,
 substance use disorder treatment, effective rehabilitative treatment for
 adults and juveniles, economic development, environmental  conservation,
 job  training and placement, criminal justice, and drug policy. Further,
 the  advisory  board  shall  include  residents  from  communities  most
 impacted  by  cannabis  prohibition, people with prior drug convictions,
 the formerly incarcerated, and representatives of organizations  serving
 communities impacted by past federal and state drug policies.
   4.  The  chairperson  of  the  advisory board and the vice chairperson
 shall be elected from among the members of the  advisory  board  by  the
 members of such advisory board. The vice chairperson shall represent the

 A. 1617--C                         16
 
 advisory  board  in the absence of the chairperson at all official advi-
 sory board functions.
   5.  The  advisory  board shall work in collaboration with the cannabis
 control board and the executive director prior to the  adoption  of  any
 rules and regulations governing the medical cannabis, adult-use cannabis
 or  cannabinoid  hemp  and  hemp  extract industries. The advisory board
 shall also make recommendations  to  the  cannabis  control  board,  the
 office and the legislature on cannabis and hemp cultivation, processing,
 distribution,  transport, social and economic equity in the cannabis and
 hemp industries, criminal justice, public health  and  safety  concerns,
 law  enforcement  related  to cannabis and cannabis products, and on the
 testing and sale of cannabis and cannabis products.
   § 15. Disposition of moneys received for  license  fees.    The  board
 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 board 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 board, dependent on the size and capacity of the business and for
 social  and  economic  equity  applicants  such  fees may be assessed to
 accomplish the goals of this chapter.
   4. The board 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.
   § 16. Violations  of  cannabis  laws  or  regulations;  penalties  and
 injunctions. 1. Any person who violates, disobeys or disregards any term
 or  provision  of  this  chapter or of any lawful notice, order or regu-
 lation 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.
   2. The penalty provided for in subdivision one of this section may  be
 recovered  by  an  action brought by the board in any court of competent
 jurisdiction.
   3. Such civil penalty may be released  or  compromised  by  the  board
 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 board.
   4.  It  shall  be the duty of the attorney general upon the request of
 the board 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 thereto; 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.
   5. 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

 A. 1617--C                         17
 
 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 board, or any
 person designated by them for this  purpose,  may  issue  subpoenas  and
 administer  oaths  in connection with any hearing or investigation under
 or pursuant to this chapter, and it shall be the duty of the  board  and
 any  persons  designated  by them for such purpose to issue subpoenas at
 the request of and upon behalf of the respondent.
   2. The board and those designated by them shall not be  bound  by  the
 laws of evidence in the conduct of hearing proceedings, but the determi-
 nation shall be founded upon preponderance of evidence to sustain it.
   3. Notice and right of hearing as provided in the state administrative
 procedure  act,  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 board 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, that to the  greatest  extent  practicable  shall  be
 reasonably  near  the  respondent, 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 board may make appropriate  determinations
 and issue a final order in accordance therewith.
   7.  The  board  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 board
 or  office  or any officer, deputy, assistant, inspector or employee, or
 spouse or minor child of such member, officer, 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  cannabinoid hemp and hemp extract is cultivated, processed, distrib-
 uted or sold; nor shall he or she have any interest, direct or indirect,
 in any business wholly or partially devoted to the cultivation, process-
 ing, distribution, sale, transportation or storage of  adult-use  canna-
 bis,  medical  cannabis or cannabinoid hemp and hemp extract, or own any
 stock in any corporation which has any interest, proprietary  or  other-
 wise,  direct  or  indirect,  in  any premises where adult use cannabis,
 medical cannabis or cannabinoid hemp and  hemp  extract  is  cultivated,
 processed,  distributed  or sold, or in any business wholly or partially
 devoted to the cultivation, processing, distribution, sale,  transporta-

 A. 1617--C                         18
 
 tion  or  storage of adult-use cannabis, medical cannabis or cannabinoid
 hemp and hemp extract, 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.  After  notice and opportunity to be heard, anyone found to
 have knowingly violated any of the provisions  of  this  section  shall,
 after  notice,  be removed and shall divest 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 board.
         38. Cannabis research license.
         39. Registered organizations and adult-use cannabis.
         40. Relation to other laws.
         41. Home cultivation of medical cannabis.
         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;
   (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
 board may require by regulation that the certification  shall  be  on  a
 form  provided  by the office. The practitioner may state in the certif-
 ication 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  practitioner's
 professional opinion, the patient is terminally ill and that the certif-
 ication 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

 A. 1617--C                         19
 
 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, except as provided for in subdivision eight of this section.
   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 board shall make regulations to implement this subdivision.
   9. (a) A certification may be a special certification if, in  addition
 to  the  other requirements for a certification, the practitioner certi-
 fies in the certification that the patient's  condition  is  progressive
 and degenerative or that delay in the patient's certified medical use of
 cannabis poses a risk to the patient's life or health.
   (b)  The office shall create the form to be used for a special certif-
 ication and shall make that form available to  be  downloaded  from  the
 office's website.
   10.  Prior to issuing a certification a practitioner must complete, at
 a minimum, a two-hour course as determined by the board  in  regulation.
 For  the purposes of this article a person's status as a practitioner is
 deemed to be a  "license"  for  the  purposes  of  section  thirty-three
 hundred ninety of the public health law and shall be subject to the same
 revocation process.
   §  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-

 A. 1617--C                         20
 
 er, consistent with any guidance and regulations issued  by  the  board,
 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 board's or 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 board 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 board;

 A. 1617--C                         21
 
   (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 board; 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 board.
   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 board.
   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.

 A. 1617--C                         22
 
   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 board in  regulations;  provided,  however,
 that if the office requires certified patients to submit photographs for
 this  purpose,  there  shall  be a reasonable accommodation 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 board;
   (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 board.
   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.
   14. The board 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  board,  his  or  her
 certification  and  registry  identification  card  may  be suspended or
 revoked. This is in addition to any other penalty that may apply.
   16. The board shall make regulations for special certifications, which
 shall include expedited procedures and which may require  the  applicant
 to  submit  additional documentation establishing the clinical basis for
 the special certification. If the board has  not  established  and  made
 available  a  form for a registry application or renewal application, or
 established and made available a form  for  a  registry  application  or
 renewal  application,  then  in  the  case of a special certification, a
 registry application or renewal application that otherwise conforms with
 the requirements of this section shall not require the use of a form.
   § 33. Registration as a designated caregiver facility.  1. To  obtain,
 amend  or  renew  a registration as a designated caregiver facility, the

 A. 1617--C                         23
 
 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 board.
   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 board to test the medical cannabis produced
 by the registered organization. The board shall approve  the  laboratory
 used  by the registered organization and may require that the registered
 organization use a particular testing laboratory.  The board is  author-
 ized  to  issue  regulations requiring the laboratory 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-

 A. 1617--C                         24
 
 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 board shall require by
 regulation. When filing receipt and certification information  electron-
 ically  pursuant  to  this  paragraph,  the proprietor of the registered
 organization shall dispose of any electronically  recorded  prescription
 information in such manner as the board 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  board  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 board.
   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 board determines that  the  manager  or  employee  is
 otherwise suitable to be hired, and hiring the manager or employee would
 not  compromise public safety, the board shall conduct a thorough review
 of the nature of the crime, conviction, circumstances, and  evidence  of
 rehabilitation  of the manager or employee, and shall evaluate the suit-
 ability 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  board  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. 1617--C                         25
 
   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 board shall promul-
 gate regulations establishing requirements for such facilities.
   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 board shall promulgate regu-
 lations 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,
 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 board may make regulations consistent with  this
 article relating to contracts and parties to contracts under this subdi-
 vision.
   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 board 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 board may require, including but not limited to:

 A. 1617--C                         26

   (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 board may reasonably require.
   2. The applicant shall be under a continuing duty  to  report  to  the
 office any change in facts or circumstances reflected in the application
 or  any  newly  discovered  or  occurring  fact or circumstance which is
 required to be included in the application.
   3. (a) The board shall grant a registration or amendment to  a  regis-
 tration 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;

 A. 1617--C                         27

   (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 board.
   (b)  If the board is not satisfied that the applicant should be issued
 a registration, he or she shall notify the applicant in writing of those
 factors upon which further evidence is required. Within thirty  days  of
 the  receipt  of  such notification, the applicant may submit additional
 material to the board or demand a hearing, or both.
   (c) The fee for a registration under this section shall be  an  amount
 determined by the board in regulations; provided, however, if the regis-
 tration  is  issued for a period greater than two years the fee shall be
 increased, pro rata, for each additional month of validity.
   (d) Registrations issued under this section shall  be  effective  only
 for the registered organization and shall specify:
   (i) the name and address of the registered organization;
   (ii)  which  activities  of a registered organization are permitted by
 the registration;
   (iii) the land, buildings and facilities that  may  be  used  for  the
 permitted activities of the registered organization; and
   (iv)  such  other information as the board shall reasonably provide to
 assure compliance with this article.
   (e) Upon application of a registered organization, a registration  may
 be  amended  to allow the registered organization to relocate within the
 state or to add or delete permitted registered  organization  activities
 or  facilities.  The  fee  for such amendment shall be 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 board may upon the initial  applica-
 tion for a registration, issue some registrations which may remain valid
 for  a  period of time greater than two years but not exceeding an addi-
 tional eleven months.
   5.  (a) An application for the  renewal  of  any  registration  issued
 under  this  section  shall  be  filed  with the board not more than six
 months nor less than four months prior  to  the  expiration  thereof.  A
 late-filed  application  for  the  renewal of a registration may, in the
 discretion of the board, be treated as an  application  for  an  initial
 license.
   (b)  The  application  for  renewal  shall  include  such  information
 prepared in the manner and detail as the board  may  require,  including
 but not limited to:
   (i)  any  material  change  in  the circumstances or factors listed in
 subdivision one of this section; and

 A. 1617--C                         28

   (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 board 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 board is not satisfied  that  the  registered  organization
 applicant  is entitled to a renewal of the registration, the board shall
 within a reasonably practicable time  as  determined  by  the  executive
 director,  serve  upon  the  registered  organization or its attorney of
 record in person or by registered or certified mail an  order  directing
 the  registered  organization  to  show  cause  why  its application for
 renewal should not be denied. The order  shall  specify  in  detail  the
 respects  in  which  the  applicant has not satisfied the board that the
 registration should be renewed.
   (e) Within a reasonably practicable time as determined by the board of
 such order, the applicant may submit additional material to the board or
 demand a hearing or both; if a hearing is demanded the board shall fix a
 date as soon as reasonably practicable.
   6. (a) The board shall renew a registration unless he  or  she  deter-
 mines 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  board. 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 registered organiza-
 tion's application.
   7. The board may suspend or terminate the registration of a registered
 organization, on grounds and using procedures under this article  relat-
 ing  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.

 A. 1617--C                         29
 
   8. A registered organization that manufactures  medical  cannabis  may
 have  no  more  than  four dispensing sites wholly owned and operated by
 such registered organization. Such registered organization may  have  an
 additional  four dispensing sites; provided, however, that the first two
 additional  dispensing sites shall be located in underserved or unserved
 geographic locations, as determined by the board. The board shall ensure
 that such registered organizations and dispensing  sites  are  geograph-
 ically  distributed  across  the state and that their ownership reflects
 the demographics of the  state.  The  board  shall  register  additional
 registered organizations to provide services to unserved and underserved
 areas  of the state. Additional registered organization shall be reflec-
 tive of the demographics of the state.
   § 36. Reports of registered organizations.   1. The  board  shall,  by
 regulation,  require each registered organization to file reports by the
 registered organization during a  particular  period.  The  board  shall
 determine the information to be reported and the forms, time, and manner
 of the reporting.
   2.  The  board shall, by regulation, require each registered organiza-
 tion 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 registered organiza-
 tion, subject to regulations of the board.
   § 37. Evaluation; research programs; report by board.   1.  The  board
 may  provide  for  the  analysis and evaluation of the operation of this
 article. The board may enter into agreements with one or  more  persons,
 not-for-profit  corporations or other organizations, for the performance
 of an evaluation of the implementation and effectiveness of  this  arti-
 cle.
   2. The board may develop, seek any necessary federal approval for, and
 carry out research programs relating to medical use of cannabis. Partic-
 ipation  in  any such research program shall be voluntary on the part of
 practitioners, patients, and designated caregivers.
   3. The board shall report every two years, beginning two  years  after
 the  effective date of this article, 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 board shall establish a
 cannabis research license that permits a licensee to  produce,  process,
 purchase  and  possess  cannabis  for  the  following  limited  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 board a description of the research that
 is intended to be conducted as well as the  amount  of  cannabis  to  be
 grown  or  purchased.  The  board  shall  review an applicant's research
 project and determine whether it meets the requirements  of  subdivision
 one of this section. In addition, the board shall assess the application
 based on the following criteria:
   (a) project quality, study design, value, and impact;

 A. 1617--C                         30
 
   (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 board may revoke
 a cannabis research license for violations of this section.
   4.  A  cannabis  research licensee may contract with an institution of
 higher education, including but not limited to  a  hospital  within  the
 state  university  of  New York, to perform research in conjunction with
 such institution.   All  research  projects,  entered  into  under  this
 section  must  be  approved  by  the  board and meet the requirements of
 subdivision one of this section.
   5. In establishing a cannabis research license, the  board  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 board.
   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 board on an annual basis.
   8. Each cannabis research licensee shall issue an annual report to the
 board. The board shall review such report and make a determination as to
 whether  the  research project continues to meet the research qualifica-
 tions under this section.
   § 39. Registered organizations and adult-use cannabis. The board 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 obtain adult-use cannabis
 licenses pursuant to article four of this chapter subject to  any  fees,
 rules or conditions prescribed by the board 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. Home cultivation of medical  cannabis.  1.  Notwithstanding  the
 provisions  of  section  thirty-three  hundred  eighty-two of the public

 A. 1617--C                         31
 
 health law certified patients and their designated caregiver(s)  twenty-
 one years of age or older may:
   (a)  plant,  cultivate,  harvest, dry, process or possess no more than
 six mature cannabis plants at any one time; or
   (b) plant, cultivate, harvest, dry, process or possess, within his  or
 her  private  residence,  or  on the grounds of his or her private resi-
 dence, no more than six mature cannabis plants at any one time.
   2. Any mature cannabis plant described  in  subdivision  one  of  this
 section,  and any cannabis produced by any such cannabis plant or plants
 in excess of three ounces, cultivated, harvested,  dried,  processed  or
 possessed  pursuant  to  subdivision  one  of this section shall, unless
 otherwise authorized by law or regulation, be stored  except  for  inci-
 dental  periods  within such person's private residence or storage space
 or on the grounds of such person's private residence or  storage  space.
 Such  person  shall  take  reasonable steps designed to assure that such
 cultivated cannabis is in a secured place.
   3. A county, town, city or village may enact and  enforce  regulations
 to  reasonably regulate the actions and conduct set forth in subdivision
 one of this section; provided that:
   (a) a violation of any such a regulation, as approved by such  county,
 town,  city  or  village enacting the regulation, may constitute no more
 than an infraction and may be punishable by no more than a discretionary
 civil penalty of two hundred dollars or less; and
   (b) no county, town, city or village may enact  or  enforce  any  such
 regulation  or regulations that may completely or essentially prohibit a
 person from engaging in the action or conduct authorized by  subdivision
 one of this section.
   4.  A  violation  of  subdivision  one  or  two of this section may be
 subject to a civil penalty of up to one hundred twenty-five dollars.
   5. The board  shall  develop  rules  and  regulations  governing  this
 section within one year of the effective date of this section.
   §  42.  Protections  for  the  medical  use  of cannabis. 1. Certified
 patients, designated caregivers,  designated  caregiver  facilities  and
 employees  of designated caregiver facilities, practitioners, registered
 organizations and the employees of registered organizations, and  canna-
 bis  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 occupa-
 tional  or professional licensing board or bureau, solely for the certi-
 fied 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

 A. 1617--C                         32

 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 board  under  this  article  shall  be
 public information and shall be maintained on the board's website acces-
 sible to the public in searchable form. However, if a practitioner noti-
 fies  the  board in writing that he or she does not want his or her name
 and other information disclosed,  that  practitioner's  name  and  other
 information  shall thereafter not be public information or maintained on
 the board's website, unless the practitioner cancels the request.
   5. A person currently under parole, probation or other state or  local
 supervision,  or  released on bail awaiting trial may not be punished or
 otherwise penalized for conduct allowed under this article.
   § 43. Regulations. The board shall promulgate regulations in consulta-
 tion with the cannabis advisory board to implement this article.
   § 44. Suspend; terminate. Based upon the recommendation of the  board,
 executive  director and/or the superintendent of state police that there
 is a risk to the public health or safety, the governor  may  immediately
 suspend or terminate 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 board 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 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.
         68-a. Registered  organization  adult-use  cultivator  processor
                 distributor retail dispensary license.
         68-b. Registered organization adult-use cultivator license.
         69.   Adult-use processor license.
         70.   Small business adult-use cooperative license.
         71.   Adult-use distributor license.
         72.   Adult-use retail dispensary license.
         73.   Microbusiness license.
         74.   Delivery license.
         75.   Nursery license.
         76.   Notification to municipalities of adult-use retail dispen-
                 sary or on-site consumption license.
         77.   Adult-use  on-site consumption license; provisions govern-
                 ing on-site consumption licenses.
         78.   Record keeping and tracking.
         79.   Inspections and ongoing requirements.

 A. 1617--C                         33
 
         80.   Adult-use cultivators, processors or distributors  not  to
                 be interested in retail dispensaries.
         81.   Packaging and labeling of adult-use cannabis products.
         82.   Laboratory testing.
         83.   Provisions  governing  the  cultivation  and processing of
                 adult-use cannabis.
         84.   Provisions governing the distribution of adult-use  canna-
                 bis.
         85.   Provisions  governing adult-use cannabis retail dispensar-
                 ies.
         86.   Adult-use cannabis advertising.
         87.   Social and economic equity, minority and women-owned busi-
                 nesses,  disadvantaged  farmers   and   service-disabled
                 veterans; incubator program.
         88.   Data collection and reporting.
         89.   Regulations.
   § 61. License  application. 1. Any person may apply to the board 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  board  shall  require.  Such
 application  shall  be  accompanied  by  a check or draft for the amount
 required by this article for such license. If the  board  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,  distrib-
 ute,  deliver  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, a conviction for a violation of
 article two hundred twenty-one of the penal law, 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  board  shall have the authority to prescribe the manner and form in
 which an application must be submitted to the board for licensure  under
 this article.
   2. The board is authorized to adopt regulations, including by emergen-
 cy  rule, establishing information which must be included on an applica-
 tion for licensure under this article. Such information may include, but
 is not limited to:  information about the applicant's identity,  includ-
 ing  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 divi-
 sion of criminal justice services; information about the premises 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).

 A. 1617--C                         34
 
 Each  person  signing such application shall verify 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 board may require or authorize in
 the amount required by this article for such license or permit.
   5.  If  there  are any changes, after the filing of the application or
 the granting of a license or permit, 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 veri-
 fied  or  affirmed,  shall be filed with the board 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  board  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 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 board's final
 determination to approve or deny the license.
   § 63. Fees. 1. The board shall have the authority to charge applicants
 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  appropri-
 ate by the board to achieve the policy and purpose of this chapter.
   1-a.  The  board  shall also have the authority to assess a registered
 organization with a one-time special  licensing  fee  for  a  registered
 organization   adult-use   cultivator,  processor,  distributor,  retail
 dispensary license.   Such  fee  shall  be  assessed  at  an  amount  to
 adequately  fund  social  and  economic  equity and incubator assistance
 pursuant to this article and  paragraph  (c)  of  subdivision  three  of
 section  ninety-nine-hh  of  the state finance law.   Provided, however,
 that the board shall not  allow  registered  organizations  to  dispense
 adult-use  cannabis  from  more  than  three  of  their medical cannabis
 dispensing locations.  The timing and manner in which registered  organ-
 izations may be granted such authority shall be determined by  the board
 in regulation.
   2.  The  board 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
 board.
   3. The board shall waive or reduce fees for social and economic equity
 applicants.
   §  64. Selection criteria.  1. The board shall develop regulations for
 determining whether or not an applicant should be granted the  privilege
 of  an initial adult-use cannabis license, based on, but not limited to,
 the following criteria:
   (a) the applicant is a social and economic equity applicant;
   (b) the applicant will be able to maintain effective  control  against
 the illegal diversion of cannabis;
   (c)  the  applicant  will  be able to comply with all applicable state
 laws and regulations;

 A. 1617--C                         35
 
   (d) the applicant and its officers are ready,  willing,  and  able  to
 properly carry on the activities for which a license is sought including
 with  assistance  from  the  social  and  economic  equity and incubator
 program, if applicable;
   (e)  the  applicant possesses or has the right to use sufficient land,
 buildings, and equipment to properly carry on the activity described  in
 the  application  or  has  a plan to do so if qualifying as a social and
 economic equity applicant;
   (f) the applicant qualifies as a social and economic equity  applicant
 or  sets  out  a  plan  for benefiting communities and people dispropor-
 tionally impacted by  enforcement of cannabis laws;
   (g) 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 adult-use 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  or
 will be obtained from the state and all other relevant 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 water usage, 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;
   (h)  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;
   (i)  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;
   (j) the applicant will contribute to communities and people dispropor-
 tionately  harmed  by  enforcement  of  cannabis  laws  and report these
 contributions to the board;
   (k) if the application is for an  adult-use  cultivator  or  processor
 license,  the  environmental  and  energy  impact  of the facility to be
 licensed;
   (l) the applicant satisfies any other conditions as determined by  the
 board; and
   (m)  if the applicant is a registered organization, the organization's
 maintenance of effort in manufacturing and/or dispensing and/or research
 of medical cannabis for certified patients and caregivers.

 A. 1617--C                         36
 
   2. If the board 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 recommended by the board for denial.
   3.  The  state  cannabis  advisory  board  shall have the authority to
 recommend to the board the number of licenses issued  pursuant  to  this
 article  to ensure a competitive market where no licensee is dominant in
 the statewide marketplace or in any individual category of licensing, to
 actively promote and potentially  license  social  and  economic  equity
 applicants, and carry out the goals of this chapter.
   §  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 or cannabis
 product 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 board, on the recommendation  of  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,  distrib-
 uted 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 board 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 board to the effect that there has been no alteration
 of such premises since the original license was issued.  The  board  may
 make  such rules as it deems necessary, not inconsistent with this chap-
 ter, regarding applications for renewals of licenses and permits and the
 time for making the same.
   2. Each applicant must  submit  to  the  board  documentation  of  the
 racial,  ethnic,  and  gender diversity of the applicant's employees and
 owners prior to a license being renewed. In addition,  the  board  shall
 consult  with  the  state  cannabis  advisory board and the chief equity
 officer to create a social responsibility framework agreement  and  make
 the  adherence  to  such  agreement a conditional requirement of license
 renewal.  The board shall promote applicants that foster racial, ethnic,
 and gender diversity in their workplace.
   3. The board 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  board  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

 A. 1617--C                         37
 
 such a labor peace agreement shall be an ongoing material  condition  of
 licensure.
   6. Each applicant must provide evidence of the execution of their plan
 for  benefitting  communities  and  people disproportionally impacted by
 cannabis law enforcement 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 board to the licensee; and
   (e) such other information as the board shall deem necessary to assure
 compliance with this chapter.
   2.  Upon  application  of  a  licensee  to the board, 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  board
 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
 board.  The  board 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; 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; or
   (c)  for  a  partnership,  a  change  of eighty percent or more of the
 managing partners 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 inter-
 est in said company.
   § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
 license  shall  authorize  the  acquisition,  possession,  distribution,
 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  board  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 agricultural production practices of 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.
   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,

 A. 1617--C                         38
 
 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 or in any  registered  organ-
 ization registered pursuant to article three of this chapter.
   5.  A  person holding an adult-use cultivator's license may not hold a
 license to distribute cannabis 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.
   §  68-a.    Registered  organization  adult-use  cultivator  processor
 distributor  retail dispensary license. A registered organization culti-
 vator processor distributor retail dispensary  license  shall  have  the
 same  authorization  and  conditions  as adult-use cultivator, adult-use
 processor,  adult-use  distributor  and  adult-use   retail   dispensary
 licenses  issued  pursuant  to  this  article provided, however that the
 sales of adult-use cannabis and cannabis products cultivated,  processed
 or  distributed  by such organizations shall be limited to the organiza-
 tion's adult-use retail dispensaries and the location of such  adult-use
 dispensaries  shall  be limited to the organization's medical dispensar-
 ies' premises and facilities authorized pursuant  to  article  three  of
 this  chapter.  Provided further that such registered organization shall
 maintain its medical cannabis  license  and  continue  offering  medical
 cannabis to a degree established by regulation of the board.
   § 68-b. Registered organization adult-use cultivator license. A regis-
 tered  organization cultivator license shall have the same authorization
 and conditions as an adult-use cultivator  license,  provided,  however,
 that sales of adult-use cannabis and cannabis products by such organiza-
 tions shall be limited to licensed adult-use processors and such license
 does not qualify such organization for any other adult-use license.
   §  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 and cannabis processor, from operating  on
 the same premises and from a person holding both licenses.
   4.  No  cannabis  processor licensee may hold more than three cannabis
 processor licenses.
   5. A person holding an adult-use processor's license may  not  hold  a
 license to distribute cannabis under this article.
   6.  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 or in any registered
 organization registered pursuant to article three of this chapter.
   § 70. Small business adult-use cooperative license.  1. A  cooperative
 license  shall authorize the acquisition, possession, cultivation, proc-
 essing and sale from the licensed premises of the adult-use  cooperative
 by  such  licensee  to  duly  licensed distributors, on-site consumption

 A. 1617--C                         39
 
 sites, and/or retail dispensaries; but not directly to cannabis  consum-
 ers.
   2. To be licensed as a small business adult-use cooperative, the coop-
 erative 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 and authorized
 by the board;
   (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. A cooperative member shall be a natural person and shall not  be  a
 member  of  more  than one small business adult-use cooperative licensed
 pursuant to this section.
   4. No natural person or member of a small business  adult-use  cooper-
 ative  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 small business  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 dispen-
 sary or in any business licensed as an adult-use cannabis retail dispen-
 sary pursuant to this chapter.
   6.  The  board  shall  promulgate  regulations  governing  cooperative
 licenses,  including,  but  not  limited to, the establishment of canopy
 limits on the size and scope of cooperative licensees, and  other  meas-
 ures 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 cultivator, process-
 or, small business adult-use  cooperative  or  microbusiness  authorized
 pursuant  to  this  chapter 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  or  in  any  adult-use  cultivator  or
 processor licensed pursuant to this article, or in any registered organ-
 ization  registered  pursuant  to  article  three  of this chapter. This
 restriction shall not  prohibit  a  registered  organization  authorized
 pursuant to subdivision one of section thirty-nine of this chapter, from
 being  granted  licensure  by the board to distribute adult-use cannabis
 products cultivated and processed  by  the  registered  organization  to
 licensed adult-use retail dispensaries owned and operated by such regis-
 tered organization.
   3. Nothing in subdivision two of this section shall prevent a distrib-
 utor  from charging an appropriate fee, authorized by the board, for the
 distribution of cannabis, including based  on  the  volume  of  cannabis
 distributed.

 A. 1617--C                         40
 
   §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
 license shall authorize the acquisition, possession, sale  and  delivery
 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 adult-use 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 or be registered as  a  registered
 organization  pursuant to article three of this chapter, except for such
 organizations licensed pursuant to  sections  sixty-eight-a  and  sixty-
 eight-b of 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.
   6. No cannabis retail license shall be granted for any premises within
 five  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
 their own 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 board in consultation with the executive director and  the
 state  cannabis  advisory  board. Such licenses shall promote social and
 economic equity applicants as provided for in this chapter.
   § 74. Delivery license. A delivery license shall authorize the  deliv-
 ery of cannabis and cannabis products by licensees independent of anoth-
 er  adult-use cannabis license, provided that each delivery licensee may
 have a total of no more than twenty-five individuals, or the  equivalent
 thereof,  providing full-time paid delivery services, per week under one
 license. For the purposes of this section the  state  cannabis  advisory
 board  shall  provide  recommendations  to the board for the application
 process, license criteria, and scope of  licensed  activities  for  this
 class  of license.  No person may have a direct or indirect financial or
 controlling interest in more than one delivery  license.  Such  licenses
 shall  promote  social and economic equity applicants as provided for in
 this chapter.
   § 75. Nursery license.  1.  A  nursery  license  shall  authorize  the
 production, sale and distribution of clones, immature plants, seeds, and
 other  agricultural  products used specifically for the planting, propa-
 gation, and cultivation of cannabis. For the purposes of  this  section,
 the  office  shall provide recommendations to the board for the applica-
 tion process, license criteria and scope of licensed activities for this

 A. 1617--C                         41
 
 class of license. Such licenses shall promote social and economic equity
 applicants as provided for in this chapter.
   2. A person or entity holding a cultivators license may apply for, and
 obtain, one nursery license to sell directly to other cultivators, coop-
 eratives, or microbusinesses.
   § 76. Notification to municipalities of adult-use retail dispensary or
 on-site  consumption license. 1. Not less than thirty days nor more than
 two hundred seventy days before filing an application for  licensure  as
 an  adult-use  retail  dispensary  or  registered organization adult-use
 cultivator  processor  distributor  retail  dispensary  or  an   on-site
 consumption  licensee,  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) 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 board.
   4. When a city, town, or village, and in New  York  city  a  community
 board,  expresses  an opinion for or against the granting of such regis-
 tration, license or permit application, any such opinion shall be deemed
 part of the record upon which the office makes its recommendation to the
 board to grant or deny the application and the board  shall  respond  in
 writing  to such city, town, village or community board with an explana-
 tion of how such opinion was considered in the granting or denial of  an
 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  board shall require such notification to be on a standardized
 form that can be obtained on the internet or from  the  board  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;

 A. 1617--C                         42
 
   (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.
   §  77.  Adult-use  on-site  consumption  license; provisions governing
 on-site consumption licenses.   1. No  applicant  shall  be  granted  an
 adult-use  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 administrator of such government
 agency  provides  some form of written documentation regarding the terms
 of occupancy under which the applicant is leasing 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 occu-
 pancy  between  the  applicant and the government agency, including, but
 not limited to, any short-term leasing agreements or  written  occupancy
 agreements.
   2.  No  person  may have a direct or indirect financial or controlling
 interest in more  than  three  adult-use  on-site  consumption  licenses
 issued pursuant to this chapter.
   3. No person holding an adult-use on-site consumption license may also
 hold  an adult-use retail dispensary, cultivation, processor, microbusi-
 ness, cooperative or distributor license pursuant to this article or  be
 registered  as  a  registered  organization pursuant to article three of
 this chapter.
   4. No applicant shall be  granted  an  adult-use  on-site  consumption
 license  for  any premises within five hundred feet of school grounds as
 such term is defined in the education law.
   5. The board 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 an adult-use on-site consumption license 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.
   6. If the  board  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 board for a review of such action in a manner to
 be prescribed by the rules of the board.

 A. 1617--C                         43
 
   7. 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 board. Such containers shall have affixed thereto such
 labels as may be required by  the  rules  of  the  board.  No  adult-use
 on-site  consumption licensee shall reuse, refill, tamper with, adulter-
 ate, dilute or  fortify  the  contents  of  any  container  of  cannabis
 products as received from the manufacturer or distributor.
   8.  No  adult-use  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 a quantity or number  of  servings  more
 than authorized by the board.
   9.  No  adult-use on-site consumption licensee shall suffer, permit or
 promote activities or events on its premises wherein  any  person  shall
 use  such  premises for activities including, but not limited to, gambl-
 ing, exposing or simulating, contests, or fireworks that are  prohibited
 by  subdivision  six, six-a, six-b six-c or seven of section one hundred
 six of the alcoholic beverage control law or any  other  similar  activ-
 ities the board deems to be prohibited.
   10.  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  board of controlling access to the
 facility.
   11. Each adult-use 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  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  board  is  hereby  authorized  to
 promulgate  rules and regulations permitting an on-site licensee operat-
 ing 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 segre-
 gation 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 board.
   12. All licensed  adult-use  on-site  consumption  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  repre-
 sentatives  of  the  board,  during the hours when the said premises are
 open for the transaction of business.
   13. An adult-use on-site consumption licensee shall not provide canna-
 bis products to any person under the age of twenty-one.  No person under

 A. 1617--C                         44
 
 the age of twenty-one shall be permitted on the premises of  a  cannabis
 on-site consumption facility.
   14.  The  provisions  of  article  thirteen-E of the public health law
 restricting the smoking or vaping of cannabis shall not apply to  adult-
 use on-site consumption premises.
   §  78. Record keeping and tracking. 1. The board 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   acquiring,
 possession,   manufacture,  sale,  delivery,  transporting,  testing  or
 distributing by the licensee, subject to regulations of the board.
   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 board.
   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.
   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 board.
   5. Each  adult-use  and  registered  organization  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.
   §  79. 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
 board, 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 board 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
 board.  Such inspection may include, but is  not  limited  to,  ensuring
 compliance  by the licensee or permittee with all other applicable state
 and local building codes, fire, health,  safety,  and  other  applicable
 regulations.
   §  80.  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-

 A. 1617--C                         45
 
 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 board may influence such licensee to purchase the
 product of such cultivator or processor or distributor; or
   (d) enter into any contract with  any  retail  licensee  whereby  such
 licensee  agrees  to confine his or her sales to cannabis products manu-
 factured 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, sixty-eight-a
 or sixty-eight-b of this chapter, from cultivating, processing, or sell-
 ing 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 this chapter.
   3.  The  board  shall develop rules and regulations, in regard to this
 section and, in consultation with the state cannabis advisory board.
   § 81. Packaging and labeling of adult-use cannabis  products.  1.  The
 board is hereby authorized to promulgate rules and regulations governing
 the advertising, branding, marketing, packaging and labeling of cannabis
 products,  sold or possessed for sale in New York state, including rules
 pertaining to the accuracy of information and rules restricting  market-
 ing 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 board.
   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 in
 accordance with the provisions of this chapter.
   § 82. 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

 A. 1617--C                         46
 
 office.   The board may assign an approved testing laboratory, 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 board 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 board 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.
   § 83. Provisions governing the cultivation and processing of adult-use
 cannabis. 1. 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 originally sealed containers containing quan-
 tities  in  accordance  with size standards pursuant to rules adopted by
 the board. Such containers shall have affixed thereto such labels as may
 be required by the rules of the board.
   2. 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
 board.  The board may make such rules as it deems necessary to carry out
 the purpose and intent of this subdivision.
   3. Cultivators of adult-use cannabis shall comply  with  plant  culti-
 vation  regulations,  standards,  and  guidelines  consistent  with  the
 provisions applicable to hemp, cannabinoid hemp, and  hemp  extract  and
 issued  by  the  board,  in consultation with the department of environ-
 mental conservation and the department of agriculture and markets.  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 to those 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, used in compliance with rules, regulations, standards and
 guidelines issued by the department of  environmental  conservation  for
 pesticides.
   4.  No  cultivator  or  processor  of adult-use cannabis, including an
 adult-use cannabis cooperative or microbusiness, may  offer  any  incen-
 tive,  payment  or  other  benefit to a licensed cannabis distributor or
 retail dispensary in return  for  carrying  the  cultivator,  processor,
 cooperative or microbusiness products, or preferential shelf placement.
   5.  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 board in regulation.

 A. 1617--C                         47
 
   6. No processor of adult-use cannabis shall produce any product which,
 in the discretion of the board, is designed to appeal  to  anyone  under
 the age of twenty-one years.
   7.  The use or integration of alcohol or nicotine in cannabis products
 is strictly prohibited.
   § 84. 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 board.
   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 board, 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
 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 board.
   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 board.
   5.  No  distributor  shall  provide  any  discount, rebate or customer
 loyalty program to any licensed retailer, except as otherwise allowed by
 the board.
   6. The board 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.
   § 85. 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

 A. 1617--C                         48
 
 any person, actually or apparently, under the age  of  twenty-one  years
 or, visibly intoxicated or impaired.
   2.  Valid  proof of age is required for each transaction. 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 cannabis or cannabis
 product, any documentation other than: (a) a valid driver's  license  or
 non-driver identification card issued by the commissioner of motor vehi-
 cles,  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
 (b) a valid passport issued by the United States government or any other
 country, or (c) 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 licen-
 see or agent or employee thereof may perform a  transaction  scan  as  a
 precondition to the sale of any cannabis or cannabis product. 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 may be scanned by a device capable of deciphering  any  elec-
 tronically  readable  format.  In  instances where the information deci-
 phered 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 cannabis or canna-
 bis product shall be denied.
   3. 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.
   4. 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 board.
   5. 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 board.
   6. 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
 board, during the hours when the said premises are open for  the  trans-
 action of business.
   7.  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--C                         49
 
 who claims to be entitled to the protection and exemption afforded here-
 by.
   8. 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.
   9. 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.
   10.  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 prem-
 ises.
   11.  If  an employee of an adult-use 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. The board shall develop
 standard operating procedures and written materials to be distributed to
 cannabis retail licensees in consultation with the office  of  addiction
 services  and supports, for adult-use cannabis retail licensee employees
 to utilize when interacting and/or consulting consumers for purposes  of
 this subdivision.
   12.  The  board  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  minimum  and
 maximum  margin  for  retail  dispensary  markups of cannabis product or
 products before selling to a cannabis consumer. Any  adult-use  cannabis
 product  sold  by  a  retail dispensary for less than the minimum markup
 allowed in regulation, shall be unlawful.
   § 86. Adult-use cannabis advertising.  1. The board  shall  promulgate
 rules  and  regulations  governing  the  advertising  and  marketing  of
 licensed cannabis and any cannabis products or services.
   2. The board 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 five hundred feet of the perimeter of a school grounds,
 playground, child day care providers, public park, or library;
   (f) is in public transit vehicles and stations;
   (g) is in the form of an unsolicited internet pop-up;
   (h) is on publicly owned or operated property; or
   (i) makes medical claims or promotes adult-use cannabis for a  medical
 or wellness purpose.
   3. The board shall promulgate explicit rules prohibiting all marketing
 strategies  and  implementation including, but not limited to, branding,
 packaging, labeling, location of cannabis retailers, 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 board 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

 A. 1617--C                         50
 
   (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.
   § 87. Social and economic equity, minority and women-owned businesses,
 disadvantaged  farmers and service-disabled veterans; incubator program.
 1. The board, in consultation with the state cannabis advisory board and
 the chief equity officer, and after receiving public input shall  create
 and  implement  a  social  and economic equity plan and actively promote
 applicants from  communities  disproportionately  impacted  by  cannabis
 prohibition, and promote racial, ethnic, and gender diversity when issu-
 ing  licenses  for  adult-use  cannabis  related  activities,  including
 mentoring potential applicants, by prioritizing consideration of  appli-
 cations  by  applicants  who  are  from  communities  disproportionately
 impacted by the enforcement of cannabis prohibition or who qualify as  a
 minority  or  women-owned  business,  disadvantaged  farmers, or service
 disabled veterans.   Such qualifications  shall  be  determined  by  the
 board,  in  consultation  with the state cannabis advisory board and the
 chief equity officer, in regulation.
   2. The board's social and economic  equity  plan  shall  also  promote
 diversity  in  commerce, ownership and employment, and opportunities for
 social and economic equity in the adult-use cannabis  industry.  A  goal
 shall  be  established  to  award  fifty  percent  of adult-use cannabis
 licenses to social and economic equity applicants 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;
   (e)  disadvantaged  farmers,  as  defined  in subdivision five of this
 section; and
   (f) service-disabled veterans.
   3. The social and economic equity plan shall require the consideration
 of additional criteria in its licensing determinations. Under the social
 and economic equity plan, extra priority shall be given to  applications
 that demonstrate 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 marihuana-related offense prior to the effec-
 tive 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 marihuana-related offense.
   4. The board in consultation with the cannabis advisory board and  the
 chief  equity officer, shall also create an incubator program to encour-
 age social and economic equity applicants to apply and,  if  granted  an
 adult-use  cannabis  license,  permit or registration, the program shall
 provide direct support in the form of  counseling  services,  education,
 small  business  coaching and financial planning, and compliance assist-
 ance.
   5. For the purposes of this section, the following  definitions  shall
 apply:

 A. 1617--C                         51
 
   (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
   (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
 board.
   (f)  "Service-disabled  veterans"  shall  mean persons qualified under
 article seventeen-B of the executive law.

 A. 1617--C                         52
 
   (g) "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  board
 shall,  in  consultation  with the state cannabis advisory board and the
 chief equity officer, issue guidelines to determine how to assess  which
 communities  have  been disproportionately impacted and how to assess if
 someone is a member of a community disproportionately impacted.
   6. The board 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  transferred or sold within the first three years of issue, except to
 a qualified social and economic equity  applicant  and  with  the  prior
 written approval of the board. In the event a social and economic equity
 applicant  seeks  to  transfer  or sell their license at any point after
 issue and the transferee is to a person or entity that does not  qualify
 as  a social and economic equity applicant, the transfer agreement shall
 require the new license holder to  pay  to  the  board  any  outstanding
 amount  owed  by  the  transferor  to the board as repayment of any loan
 issued by the board as well as any other fee or assessment as determined
 by the board.
   § 88. Data collection and reporting.   The board shall  collect  demo-
 graphic  data on owners and employees in the adult-use cannabis industry
 and shall annually publish such data in its annual report.
   § 89. Regulations.  The board shall promulgate regulations in  consul-
 tation with the state cannabis advisory board to implement this article.
 
                                 ARTICLE 5
                     CANNABINOID HEMP AND HEMP EXTRACT
 
 Section 90.  Definitions.
         91.  Rulemaking authority.
         92.  Cannabinoid hemp processor license.
         93.  Cannabinoid hemp retailer license.
         94.  Cannabinoid license applications.
         95.  Information to be requested in applications for licenses.
         96.  Fees.
         97.  Selection criteria.
         98.  License renewal.
         99.  Form of license.
         100. Transferability;  amendment to license; change in ownership
                or control.
         101. Granting, suspending or revoking licenses.
         102. Record keeping and tracking.
         103. Packaging  and  labeling  of  cannabinoid  hemp  and   hemp
                extract.
         104. Processing of cannabinoid hemp and hemp extract.
         105. Laboratory testing.
         106. New York hemp product.
         107. Penalties.
         108. Hemp workgroup.
         109. Prohibitions.
         110. Special use permits.
         111. Severability.

 A. 1617--C                         53
 
   § 90. Definitions.  As used in this article, the following terms shall
 have the following meanings, unless the context clearly requires  other-
 wise:
   1.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
 not include synthetic cannabinoids as that term is defined  in  subdivi-
 sion (g) of schedule I of section thirty-three hundred six of the public
 health law.
   2.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
 derived from hemp, that is used for human consumption provided that when
 such product is packaged or offered for retail sale to  a  consumer,  it
 shall  not  have  a concentration of more than three tenths of a percent
 delta-9 tetrahydrocannabinol.
   3. "Used for human consumption" means intended by the manufacturer  or
 distributor  to  be:  (a) used for human consumption for its cannabinoid
 content; or (b) used in, on or by the human  body  for  its  cannabinoid
 content.
   4.  "Hemp"  means  the  plant  Cannabis sativa L. and any part of such
 plant, 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 (THC) of not more
 than three-tenths of a percent on a  dry  weight  basis.  It  shall  not
 include "medical cannabis" as defined in section three of this chapter.
   5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
 ers,  acids,  salts,  and  salts  of  isomers derived from hemp, used or
 intended for human consumption, for  its  cannabinoid  content,  with  a
 delta-9  tetrahydrocannabinol  concentration  of not more than an amount
 determined by the board in regulation. For the purpose of this  article,
 hemp  extract  excludes  (a)  any food, food ingredient or food additive
 that is generally recognized as safe pursuant to federal law; or (b) any
 hemp extract that is not  used  for  human  consumption.  Such  excluded
 substances  shall  not  be  regulated pursuant to the provisions of this
 article but are subject to other provisions  of  applicable  state  law,
 rules and regulations.
   6. "License" means a license issued pursuant to this article.
   7. "Cannabinoid hemp processor license" means a license granted by the
 board  to process, extract, pack or manufacture cannabinoid hemp or hemp
 extract into products, whether in intermediate or final form,  used  for
 human consumption.
   8.  "Processing"  means  extracting,  preparing,  treating, modifying,
 compounding, manufacturing or otherwise manipulating cannabinoid hemp to
 concentrate or extract its cannabinoids, or creating product, whether in
 intermediate or final form, used for human consumption. For purposes  of
 this  article,  processing  does  not include: (a) growing, cultivation,
 cloning, harvesting, drying, curing, grinding or trimming  when  author-
 ized pursuant to article twenty-nine of the agriculture and markets law;
 or
   (b)  mere  transportation, such as by common carrier or another entity
 or individual.
   § 91. Rulemaking authority. The board may make regulations pursuant to
 this article for the processing, distribution, marketing, transportation
 and sale of cannabinoid hemp and hemp extracts used for  human  consump-
 tion, which may include, but not be limited to:
   1.  Specifying  forms,  establishing  application, reasonable adminis-
 tration and renewal fees, or license duration;
   2. Establishing the qualifications  and  criteria  for  licensing,  as
 authorized by law;

 A. 1617--C                         54
 
   3. The books and records to be created and maintained by licensees and
 lawful procedures for their inspection;
   4. Any reporting requirements;
   5.  Methods  and  standards  of  processing,  labeling,  packaging and
 marketing of cannabinoid hemp, hemp extract and products derived  there-
 from;
   6.  Procedures  for how cannabinoid hemp, hemp extract or ingredients,
 additives, or products derived therefrom can be deemed as acceptable for
 sale in the state;
   7. Provisions governing the modes and forms of administration, includ-
 ing inhalation;
   8. Procedures for determining whether cannabinoid hemp,  hemp  extract
 or  ingredients,  additives,  or  products  derived  therefrom  produced
 outside the state or within the state meet the  standards  and  require-
 ments of this article and can therefore be sold within the state;
   9. Procedures for the granting, cancellation, revocation or suspension
 of licenses, consistent with the state administrative procedures act;
   10.  Restrictions  governing the advertising and marketing of cannabi-
 noid hemp, hemp extract and products derived therefrom; and
   11. Any other regulations necessary to implement this article.
   § 92. Cannabinoid hemp processor license. 1. Persons processing canna-
 binoid hemp or hemp extract  used  for  human  consumption,  whether  in
 intermediate  or  final  form, shall be required to obtain a cannabinoid
 hemp processor license from the board.
   2. A cannabinoid hemp processor license authorizes one or more specif-
 ic activities  related  to  the  processing  of  cannabinoid  hemp  into
 products  used  for  human consumption, whether in intermediate or final
 form, and the distribution or sale thereof by  the  licensee.    Nothing
 herein  shall  prevent  a  cannabinoid  hemp  processor from processing,
 extracting and processing  hemp  products  not  to  be  used  for  human
 consumption.
   3.  Persons authorized to grow hemp pursuant to article twenty-nine of
 the agriculture and markets law are not authorized to engage in process-
 ing of cannabinoid hemp or hemp extract without first being licensed  as
 a cannabinoid hemp processor under this article.
   4.  This  article  shall  not  apply  to  hemp, cannabinoid hemp, hemp
 extracts or products derived therefrom  that  are  not  used  for  human
 consumption.  This  article  also  shall  not apply to hemp, cannabinoid
 hemp, hemp extracts or products derived therefrom that have been  deemed
 generally recognized as safe pursuant to federal law.
   5.  The board shall have the authority to set reasonable fees for such
 license, to limit the activities permitted by such license, to establish
 the period during which such license is authorized, which shall  be  two
 years  or more, and to make rules and regulations necessary to implement
 this section.
   6. Any person holding an active research  partnership  agreement  with
 the  department  of  agriculture and markets, authorizing that person to
 process cannabinoid hemp, shall be awarded licensure under this section,
 provided that the  research  partner  is  actively  performing  research
 pursuant  to  such  agreement and is able to demonstrate compliance with
 this article, as determined by the board, after notice and  an  opportu-
 nity to be heard.
   § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
 noid  hemp,  in  final  form  to  consumers  within  the state, shall be
 required to obtain a cannabinoid hemp retailer license from the board.

 A. 1617--C                         55
 
   2. The board shall have the authority to set reasonable fees for  such
 license,  to  establish  the period during which such license is author-
 ized, which shall be one year or more, and to make rules and regulations
 necessary to implement this section.
   § 94. Cannabinoid  license  applications. 1. Persons shall apply for a
 license under this article by submitting  an  application  upon  a  form
 supplied by the board, providing all the relevant requested information,
 verified  by the applicant or an authorized representative of the appli-
 cant.
   2. A separate license shall be required for  each  facility  at  which
 processing  or  retail  sales  are  conducted; however, an applicant may
 submit one application for separate licensure at multiple locations.
   3. Each applicant shall remit with its application the  fee  for  each
 requested license, which shall be a reasonable fee.
   § 95. Information to be requested in applications for licenses. 1. The
 board  may  specify the manner and form in which an application shall be
 submitted to the board for licensure under this article.
   2. The board may adopt regulations establishing what relevant informa-
 tion shall be included on an application for licensure under this  arti-
 cle.  Such  information  may include, but is not limited to: information
 about the applicant's identity; ownership  and  investment  information,
 including  the  corporate  structure;  evidence of good moral character;
 financial statements; information about the  premises  to  be  licensed;
 information  about the activities to be licensed; and any other relevant
 information specified in regulation.
   3. All license applications shall be signed by  the  applicant  if  an
 individual,  by a managing partner 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 as true under the penal-
 ties of perjury.
   4.  All license applications shall be accompanied by a check, draft or
 other forms of payment as the board may  require  or  authorize  in  the
 reasonable amount required by this article for such license.
   5.  If there be any change, after the filing of the application or the
 granting, modification or renewal of a license, in any of  the  material
 facts  required  to  be  set  forth  in such application, a supplemental
 statement giving notice of such change, duly verified,  shall  be  filed
 with  the  board within ten days after such change. Failure to do so, if
 willful and deliberate, may be grounds for revocation of the license.
   § 96. Fees. The board may charge licensees a reasonable  license  fee.
 Such  fee  may  be based on the activities permitted by the license, the
 amount of cannabinoid hemp or hemp extract to be processed or  extracted
 by  the  licensee,  the  gross  annual  receipts of the licensee for the
 previous license period, or any other factors reasonably  deemed  appro-
 priate by the board.
   § 97. Selection  criteria. 1. The applicant, if an individual or indi-
 viduals, shall furnish evidence of the individual's good  moral  charac-
 ter,  and if an entity, the applicant shall furnish evidence of the good
 moral character of the individuals who have  or  will  have  substantial
 responsibility  for  the  licensed  or  authorized activity and those in
 control of the entity, including principals, officers,  or  others  with
 such control.
   2.  The applicant shall furnish evidence of the applicant's experience
 and competency, and that the applicant has or will have adequate facili-
 ties, equipment, process  controls,  and  security  to  undertake  those
 activities for which licensure is sought.

 A. 1617--C                         56
 
   3.  The applicant shall furnish evidence of his, her or its ability to
 comply with all applicable state and local laws, rules and regulations.
   4. If the board is not satisfied that the applicant should be issued a
 license, the board shall notify the applicant in writing of the specific
 reason or reasons for denial.
   5.  No license pursuant to this article may be issued to an individual
 under the age of eighteen years.
   § 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 reasonable fee for such  license  as  specified  by  this
 article.
   2.  In  the  case of applications for renewals, the board 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.
   3. The board shall provide an application for renewal of  any  license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   4.  The  board  may  only  issue a renewal license upon receipt of the
 specified renewal application and renewal fee from  a  licensee  if,  in
 addition  to  the  selection  criteria  set  out  in  this  article, the
 licensee's license is not under suspension and has not been revoked.
   § 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 board to the licensee; and
   5. Such other information as the board shall deem necessary to  assure
 compliance with this article.
   § 100. Transferability;  amendment  to license; change in ownership or
 control. 1. Licenses issued under this  article  are  not  transferable,
 absent written consent of the board.
   2.  Upon application of a licensee, a license may be amended to add or
 delete permitted activities.
   3. A license shall become void by a change in  ownership,  substantial
 corporate change or change of location without prior written approval of
 the  board. The board may make regulations allowing for certain types of
 changes in ownership without the need for prior written approval.
   § 101. Granting, suspending or revoking licenses. After due notice and
 an opportunity to be heard, established by rules  and  regulations,  the
 board  may  decline  to grant a new license, impose conditions or limits
 with respect to the grant of a license, modify an  existing  license  or
 decline  to renew a license, and may suspend or revoke a license already
 granted after due notice and an opportunity to be heard, as  established
 by rules and regulations, whenever the board finds that:
   1. A material statement contained in an application is or was false or
 misleading;
   2.  The applicant or licensee, or a person in a position of management
 and control thereof or of the licensed  activity,  does  not  have  good
 moral  character,  necessary  experience or competency, adequate facili-
 ties, equipment, process controls, or security to  process,  distribute,
 transport  or  sell  cannabinoid  hemp, hemp extract or products derived
 therefrom;
   3. After appropriate notice and opportunity, the applicant or licensee
 has failed or refused to produce any records or provide any  information

 A. 1617--C                         57
 
 required  by this article or the regulations promulgated pursuant there-
 to;
   4.  The  licensee has conducted activities outside of those activities
 permitted on its license; or
   5. The applicant or licensee, or any officer,  director,  partner,  or
 any other person exercising any position of management or control there-
 of  or  of the licensed activity has willfully failed to comply with any
 of the provisions of this article or regulations under it and other laws
 of this state applicable to the licensed activity.
   § 102. Record keeping and tracking. Every licensee shall keep, in such
 form as the board may direct, such relevant records as may  be  required
 pursuant to regulations under this article.
   § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
 Cannabinoid  hemp  processors  shall  be required to provide appropriate
 label warning to consumers, and restricted from making unapproved  label
 claims,  as  determined by the board, concerning the potential impact on
 or benefit to human health resulting from the use of  cannabinoid  hemp,
 hemp extract and products derived therefrom for human consumption, which
 labels  shall  be affixed to those products when sold, pursuant to rules
 and regulations that the board may adopt.
   2. The board may, by rules  and  regulations,  require  processors  to
 establish  a code, including, but not limited to QR code, for labels and
 establish methods and procedures for determining,  among  other  things,
 serving sizes or dosages for cannabinoid hemp, hemp extract and products
 derived  therefrom,  active  cannabinoid concentration per serving size,
 number of servings per container, and the growing region, state or coun-
 try of origin if not from the United States. Such rules and  regulations
 may  require  an appropriate fact panel that incorporates data regarding
 serving sizes and potency thereof.
   3. The packaging, sale, or possession of products derived from  canna-
 binoid  hemp  or  hemp extract used for human consumption not labeled or
 offered in conformity with  regulations  under  this  section  shall  be
 grounds  for the seizure or quarantine of the product, the imposition of
 a civil penalty against a processor or  retailer,  and  the  suspension,
 revocation  or  cancellation of a license, in accordance with this arti-
 cle.
   § 104. Processing of cannabinoid hemp and hemp extract. 1. No process-
 or shall sell or agree to sell or deliver in the state  any  cannabinoid
 hemp, hemp extract or product derived therefrom, used for human consump-
 tion,  except  in  sealed containers containing quantities in accordance
 with size standards pursuant to  rules  adopted  by  the  board.    Such
 containers  shall have affixed thereto such labels as may be required by
 the rules of the board.
   2. Processors shall take such  steps  necessary  to  ensure  that  the
 cannabinoid  hemp or hemp extract used in their processing operation has
 only been grown with 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, used in compliance with rules, regulations, standards  and
 guidelines  issued  by  the department of environmental conservation for
 pesticides.
   3. All cannabinoid hemp, hemp extract and products  derived  therefrom
 used  for  human consumption shall be extracted and processed in accord-
 ance with good manufacturing processes pursuant to Part 117 or Part  111
 of title 21 of the code of federal regulations, as may be defined, modi-
 fied and decided upon by the board in rules or regulations.

 A. 1617--C                         58
 
   4.  As  necessary  to  protect  human health, the board shall have the
 authority to: (a) regulate and prohibit specific ingredients, excipients
 or methods  used  in  processing  cannabinoid  hemp,  hemp  extract  and
 products  derived  therefrom;  and  (b)  prohibit,  or  expressly allow,
 certain  products  or  product  classes derived from cannabinoid hemp or
 hemp extract, to be processed.
   § 105. Laboratory testing.  Every  cannabinoid  hemp  processor  shall
 contract  with  an  independent  commercial  laboratory to test the hemp
 extract and products produced by the licensed processor. The board shall
 establish the necessary qualifications or  certifications  required  for
 such  laboratories  used  by licensees. The board is authorized to issue
 rules and regulations consistent  with  this  article  establishing  the
 testing  required,  the  reporting  of  testing results and the form for
 reporting such laboratory testing results. The board  has  authority  to
 require  licensees to submit any cannabinoid hemp, hemp extract or prod-
 uct derived therefrom, processed or offered for sale within  the  state,
 for  testing by the board. This section shall not obligate the board, in
 any way, to perform any testing on hemp, cannabinoid hemp, hemp  extract
 or product derived therefrom.
   § 106. New  York hemp product. The board may establish and adopt offi-
 cial grades  and  standards  for  cannabinoid  hemp,  hemp  extract  and
 products  derived  therefrom, as the board may deem advisable, which are
 produced for sale in this state and, from time to  time,  may  amend  or
 modify such grades and standards.
   § 107. Penalties.  Notwithstanding  the  provision  of  any law to the
 contrary, the failure to comply with a requirement of this article, or a
 regulation thereunder, may be punishable by a civil penalty of not  more
 than  one  thousand  dollars  for  a first violation; not more than five
 thousand dollars for a second violation within three years; and not more
 than ten thousand dollars for a  third  violation  and  each  subsequent
 violation thereafter, within three years.
   § 108. Hemp workgroup. The board, in consultation with the commission-
 er  of the department of agriculture and markets, may appoint a New York
 state hemp and hemp extract workgroup, composed of growers, researchers,
 producers, processors, manufacturers and  trade  associations,  to  make
 recommendations  for  the industrial hemp and cannabinoid hemp programs,
 state and federal policies and policy initiatives, and opportunities for
 the promotion and marketing of cannabinoid  hemp  and  hemp  extract  as
 consistent with federal and state laws, rules and regulations.
   § 109. Prohibitions. 1. Except as authorized by the United States food
 and  drug  administration,  the  processing  of cannabinoid hemp or hemp
 extract used for human consumption is prohibited within the state unless
 the processor is licensed under this article.
   2. Cannabinoid hemp and hemp extracts used for human  consumption  and
 grown or processed outside the state shall not be distributed or sold at
 retail  within the state, unless they meet all standards established for
 cannabinoid hemp under state law and regulations.
   3. The retail sale of cannabinoid hemp is  prohibited  in  this  state
 unless the retailer is licensed under this article.
   § 110. Special  use  permits.  The  board  shall have the authority to
 issue temporary permits for carrying on any activity related to cannabi-
 noid hemp, hemp extract and products derived therefrom,  licensed  under
 this  article.  The  board  may set reasonable fees for such permits, to
 establish the periods during which such permits are valid, and  to  make
 rules and regulations to implement this section.

 A. 1617--C                         59
 
   § 111. Severability.  If any provision of this article or the applica-
 tion thereof to any person or circumstances is held invalid, such  inva-
 lidity shall not affect other provisions or applications of this article
 which  can be given effect without the invalid provision or application,
 and to this end the provisions of this article are declared to be sever-
 able.
 
                                 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. Permits, registrations and licenses.
         129. Laboratory testing permits.
         130. Special use permits.
         131. Local opt-out; municipal control and preemption.
         132. Penalties for violation of this chapter.
         133. Revocation  of  registrations,  licenses  and  permits  for
                cause; procedure for revocation or cancellation.
         134. Lawful actions pursuant to this chapter.
         135. Review by courts.
         136. Illicit cannabis.
         137. Persons forbidden to traffic  cannabis;  certain  officials
                not  to  be interested in manufacture or sale of cannabis
                products.
         138. Access to criminal history information through the division
                of criminal justice services.
         139. Severability.
   § 125. General prohibitions  and  restrictions.  1.  No  person  shall
 cultivate,  process,  distribute for sale or sell at wholesale or retail
 or deliver to consumers any cannabis, cannabis product, medical cannabis
 or cannabinoid hemp or hemp extract product  within  the  state  without
 obtaining  the  appropriate  registration,  license,  or permit therefor
 required by this chapter unless otherwise authorized by law.
   2. No registered organization, licensee, or permittee or other  entity
 under  the  jurisdiction  of  the  board shall sell, or agree to sell or
 deliver in this state any cannabis or cannabinoid hemp 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 or other  entity
 under  the  jurisdiction  of  the  board  shall  employ, or permit to be
 employed, or shall allow to work, on any premises registered 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, or other entity
 under the jurisdiction of the board, 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

 A. 1617--C                         60
 
 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, or other entity
 under  the  jurisdiction  of  the board, shall cease to be operated as a
 bona fide or legitimate premises within the contemplation of the  regis-
 tration,  license,  or  permit  issued  for such premises, as determined
 within the judgment of the board.
   6. No registered organization, licensee, or permittee, or other entity
 under the jurisdiction of the board, shall refuse, nor any person  hold-
 ing a registration, license, or permit refuse, nor any officer or direc-
 tor  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 board, 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, or other entity under the  jurisdic-
 tion  of  the  board,  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, or other entity
 under  the  jurisdiction  of the board, shall engage, participate in, or
 aid or abet any violation of any provision of this chapter, or the rules
 or regulations of the board.
   8. It shall be the  responsibility  of  the  registered  organization,
 licensee  or  permittee,  or  other entity under the jurisdiction of the
 board, to exercise adequate supervision over the registered, licensed or
 permitted location.  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 or  canna-
 bis  products  on  said premises. This includes, but is not limited, to,
 cannabis or cannabis products that are either provided by  the  operator
 of the place of assembly, their agents, servants or employees, or canna-
 bis that is brought onto said premises by the person or persons assembl-
 ing  at  such  place,  unless  an  appropriate registration, license, or
 permit has first been obtained from the board by the  operator  of  said
 place of assembly.
   10.  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 board may promul-
 gate  such  rules  and  regulations as it deems necessary to protect the
 public and the policy of the state, including to prioritize and  promote
 New York cannabis.  Further, all such cannabis or cannabis products must
 be  distributed in a manner consistent with the provisions of this chap-
 ter.
   11. No registered organization, licensee or any of its  agents,  serv-
 ants  or  employees shall sell any cannabis product, or medical cannabis

 A. 1617--C                         61
 
 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.
   12. 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  board.    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
 board  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 board, the board
 shall, in the case of a license revoked due to the sale of cannabis to a
 person under the age of twenty-one  not  otherwise  authorized  by  this
 chapter, determine whether the proposed subsequent licensee has obtained
 such  premises  through an arm's length transaction, and, if such trans-
 action 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

 A. 1617--C                         62
 
 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
 board.
   6. No common carrier or person operating a transportation facility  in
 this  state,  other  than  the United States government, shall knowingly
 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  consignor,  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  law
 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  authorized  under  this
 chapter, 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.

 A. 1617--C                         63
 
   4. (a) No employer shall take adverse  employment  action  against  an
 employee  for  using  cannabis,  unless  (i)  such  employee's  usage is
 governed by state or local law  or  rule,  or  a  collective  bargaining
 agreement  that:  (1)  limits  or  prohibits the usage of cannabis while
 performing  the employee's job duties; (2) limits or prohibits the usage
 of cannabis as a  condition  of  attaining  or  maintaining  a  license,
 certification,  or  professional  status required for employment; or (3)
 governs the testing and disciplinary procedures related to  the  use  of
 cannabis  by employees; and (ii) the employee's usage is in violation of
 such state or local law or rules, or collective bargaining agreement.
   (b) Employees whose usage of medical cannabis is governed by state  or
 local  law  or  rules,  or  a  collective bargaining agreement that: (i)
 limits or prohibits the usage of cannabis while performing  the  employ-
 ee's  job  duties;  (ii)  limits or prohibits the usage of cannabis as a
 condition of attaining  or  maintaining  a  license,  certification,  or
 professional  status required for employment; or (iii) governs the test-
 ing and disciplinary procedures  related  to  the  use  of  cannabis  by
 employees, shall be afforded the same rights, procedures and protections
 that  are available and applicable to injured workers under the workers'
 compensation law, or any rules or  regulations  promulgated  thereunder,
 when  such injured workers are prescribed medications that may prohibit,
 restrict, or require  the  modification  of  the  performance  of  their
 duties.
   (c)  Employees  shall not face adverse employment actions for usage of
 cannabis, as such conduct is permitted under this chapter, prior to  the
 beginning  or after the conclusion of the employee's work hours, and off
 of the employer's premises and without use of the  employer's  equipment
 or other property.
   (d) No employer shall take adverse employment action against an appli-
 cant  for  employment,  or  otherwise  discriminate against or refuse to
 interview an applicant  for  employment,  for  using  cannabis  as  such
 conduct is permitted under this chapter.
   5.  Nothing  in  this section shall interfere with an employer's obli-
 gation 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 federal law, or that would
 result in the loss of a federal contract or federal funding.
   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.    For  the  purposes of this section, an employer may
 consider an employee's ability to perform the employee's  job  responsi-
 bilities to be impaired when the employee manifests specific articulable
 symptoms  while  working that decrease or lessen the employee's perform-
 ance of the duties or tasks of the employee's job position.
   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. No person may be denied custody of or visitation or parenting  time
 with a minor, for conduct allowed under section 222.05 of the penal law,
 unless  the  child's  physical,  mental  or emotional condition has been
 impaired, or is in imminent danger of becoming impaired as a  result  of

 A. 1617--C                         64
 
 the  person's  behavior  as  established  by a fair preponderance of the
 evidence. For the purposes of this section, this determination cannot be
 based solely on whether, when, and how  often  a  person  uses  cannabis
 without separate evidence of harm.
   §  128.  Permits, registrations and licenses.  1. No permit, registra-
 tion or license shall be transferable or assignable except that notwith-
 standing any other provision of law, the permit, 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
 permit,  registration or license as transferred and, further, the regis-
 tered organization or licensee shall transmit to the board,  within  ten
 days  of  the transfer of license allowable under this subdivision, on a
 form prescribed by the board,  notification  of  the  transfer  of  such
 license.
   2. No permit, registration or 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.
   3. Permits, registrations and licenses issued under this chapter shall
 contain,  in  addition  to  any  further  information  or material to be
 prescribed by the rules and regulations  of  the  board,  the  following
 information:
   (a) name of the person to whom the license is issued;
   (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 board shall approve and
 permit one or more independent cannabis  testing  laboratories  to  test
 medical  cannabis,  adult-use  cannabis  and/or cannabinoid hemp or hemp
 extract.
   2. To be permitted as an independent cannabis laboratory, a laboratory
 must apply to the board, on a form and in a  manner  prescribed  by  the
 office,  and  must  demonstrate the following to the satisfaction of the
 board:
   (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  cannabinoid
 hemp 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

 A. 1617--C                         65
 
   (f)  the  laboratory meets any and all requirements prescribed by this
 chapter and by the board in regulation.
   3.  The  owner of a laboratory testing permit under this section shall
 not hold a permit, registration or license in any category of this chap-
 ter and shall not have any direct or indirect ownership interest in such
 registered 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 board shall require that the permitted laboratory report test-
 ing results to the board in a manner, form and timeframe  as  determined
 by the office.
   5.  The  board  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 board 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 board 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 regu-
 lations, to implement this section.
   1. Industrial cannabis permit - to purchase cannabis from one  of  the
 entities  licensed  by  the board 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 board in regulation.
   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. 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.
   § 131.  Local  opt-out;  municipal  control  and  preemption.  1.  The
 provisions  of  article four of this chapter authorizing the retail 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 establishment  or  operation  of  retail  dispensary
 licenses contained in article four of this chapter, within the jurisdic-
 tion  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

 A. 1617--C                         66

 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  board  in
 consultation with the state cannabis advisory board.
   §  132.  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,  may be subject to prosecution in accordance
 with article two hundred twenty-two of the penal law.
   2. Any registered organization or licensee, who has received notifica-
 tion of a registration or license suspension pursuant to the  provisions
 of this chapter, who sells cannabis, cannabis products, medical cannabis
 or  cannabinoid hemp or hemp extract during the suspension period, shall
 be subject to prosecution as provided in article two hundred  twenty-two
 of  the penal law, and upon conviction thereof under this section may be
 subject to a civil penalty of not more than five thousand dollars.
   3. Any person who shall knowingly make any material false statement in
 the application for a registration, license or a permit under this chap-
 ter may be subject to a civil penalty of  not  more  than  two  thousand
 dollars.
   4. Any person under the age of twenty-one found to be in possession of
 cannabis or cannabis products who is not a certified patient pursuant 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 civil  penalty  of  not  more
 than  fifty dollars. The civil penalty 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 civil penalty 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 civil penalty, be
 provided with information related to the  dangers  of  underage  use  of
 cannabis and information related to cannabis use disorder by the office.
   (c) The issuance and subsequent payment of such civil penalty shall in
 no way qualify as a criminal accusation, admission of guilt, or a crimi-
 nal  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.
   5.  Cannabis  recovered  from  individuals  who  are  found  to  be in
 violation of this chapter may after notice and opportunity for a hearing
 be considered a nuisance and shall be disposed of or destroyed.
   § 133. 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 there shall be a rebuttable presumption of revocation for the
 following causes:
   (a) conviction of the registered organization, licensee, permittee  or
 his  or  her  agent  or employee for selling any illicit 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.

 A. 1617--C                         67
 
   2.  Notwithstanding  the issuance of a registration, license or permit
 by way of renewal, the board 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  significantly
 adversely  affects  or  tends  to  significantly  adversely  affect  the
 protection, health, welfare, safety, or repose of the inhabitants of the
 area in which the registered or licensed premises is located.
   (b) (i) As used in this section,  the  term  "for  cause"  shall  also
 include  deliberately misleading the board or office of cannabis manage-
 ment:
   (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 board.
   (ii) As used in this subdivision, the term "substantially altering the
 nature or character" of such business shall  mean  any  significant  and
 material  alteration  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 board by a law enforcement agency, or discovered by
 the board during the course of any investigation, of misconduct,  diver-
 sion or disorder on or about the premises or related to the operation 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
 board.
   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 board pursuant to
 this  chapter may be revoked, cancelled or suspended and/or be subjected
 to the imposition of a monetary penalty set forth in this chapter in the
 manner prescribed by this section.
   7. The board may on its own initiative, or on complaint of any person,
 institute proceedings to revoke, cancel or suspend any adult-use  canna-
 bis  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.

 A. 1617--C                         68
 
 Such hearing shall be held in such manner and upon such notice as may be
 prescribed in regulation by the board.
   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 board.
   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 sale of cannabis to a person under the age of twenty-one
 not otherwise authorized by this chapter. For purposes of this  subdivi-
 sion  only,  a  conviction of a licensee or an employee or agent of such
 licensee shall constitute a conviction of such licensee.
   § 134. 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 penalty, 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 board.
   (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 board.
   (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, cultivation, possession, or consumption of cannabis,
 and medical cannabis, as permitted by law, and consistent with rules and
 regulations of the board.
   §  135.  Review  by courts. An action by the board shall be subject to
 review by the supreme court in the manner provided in  article  seventy-
 eight of the civil practice law and rules including, but not limited to:
   (a)  Refusal  by  the  board  to  issue  a registration, license, or a
 permit.
   (b) The revocation, cancellation  or  suspension  of  a  registration,
 license, or permit by the board.
   (c)  The failure or refusal by the board to render a decision upon any
 application or hearing submitted to or held by the  board  within  sixty
 days after such submission or hearing.

 A. 1617--C                         69

   (d) The transfer by the board of a registration, license, or permit to
 any  other entity or premises, or the failure or refusal by the board 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.
   § 136. Illicit cannabis. 1. "Illicit cannabis" means and includes  any
 cannabis product or medical cannabis that is owned, cultivated, distrib-
 uted,  bought,  sold,  packaged, rectified, blended, treated, fortified,
 mixed, processed, warehoused, possessed or transported for which any tax
 required to have been paid under any applicable state law has  not  been
 paid.
   2.  Any  person  holding  a license, permit or registration under this
 chapter who shall knowingly possess or have under his or her control any
 cannabis known by the person to be illicit cannabis is guilty of a class
 B misdemeanor.
   3. Any person holding a license, permit or  registration  pursuant  to
 this  chapter  who  shall  knowingly  barter, exchange, give or sell, or
 offer to barter, exchange, give or sell any cannabis known by the person
 to be illicit cannabis is guilty of a misdemeanor.
   4. Any person holding a license, permit or  registration  pursuant  to
 this  chapter  who  shall  knowingly  possess  or  have under his or her
 control or transport any cannabis known by  the  person  to  be  illicit
 cannabis  with intent to barter, exchange, give or sell such cannabis is
 guilty of a class B misdemeanor.
   5. Any person who, being the owner, lessee or occupant  of  any  room,
 shed, tenement, booth, building, float, vessel or part thereof knowingly
 permits  the  same  to be used for the cultivation, processing, distrib-
 ution, purchase, sale, warehousing, transportation  or  storage  of  any
 illicit cannabis is guilty of a violation.
   § 137. 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 except  in  extraordinary
 circumstances as determined by the board:
   (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 board determines that
 the owner or licensee is otherwise suitable to be issued a license,  and
 the  board  determines  granting  the  license  is not inconsistent with
 public safety, the board shall conduct a thorough review of  the  nature
 of  the  crime, conviction, circumstances and evidence of rehabilitation
 of the owner in accordance with article twenty-three-A of the correction
 law, 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 board shall include,  but
 not be limited to, the following:
   (i)  a  felony  conviction within the past five years involving fraud,
 money laundering, forgery and other unlawful conduct related  to  owning
 and operating a business; and
   (ii)  a  felony  conviction  within  the  past  five years 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;

 A. 1617--C                         70
 
   (c) 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 a person 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 persons 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;
   (d)  A  person  who  shall have had any registration or license issued
 under this chapter revoked for cause, until the expiration of  one  year
 from the date of such revocation;
   (e)  A  person not registered or licensed under the provisions of this
 chapter, who has been convicted of a misdemeanor or felony in  violation
 of  this chapter, until the expiration of one year from the date of such
 conviction; or
   (f) 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 misdemeanor or felony in violation of this  chapter,
 or  has  had a registration or license issued under this chapter revoked
 for cause, until the expiration of up to one year from the date of  such
 conviction or revocation as determined by the board.
   2.  Except as may otherwise be provided for in regulation, it shall be
 unlawful for any chief of police, police officer or subordinate  of  any
 police  department  in  the  state,  to be either directly or indirectly
 interested in the cultivation,  processing,  distribution,  or  sale  of
 cannabis  products  or to offer for sale, or recommend to any registered
 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 or domestic partner of
 a public servant described in this section. The solicitation  or  recom-
 mendation  made  to any registered organization or licensee, to purchase
 any cannabis products by any police official or subordinate as  hereina-
 bove  described,  shall  be presumptive evidence of the interest of such
 official or subordinate in the cultivation, processing, distribution, or
 sale of cannabis products.
   3. No elected village officer shall be subject to the limitations  set
 forth  in  subdivision  two  of this section unless such elected village
 officer shall be assigned duties directly relating to the  operation  or
 management of the police department.
   §  138. Access to criminal history information through the division of
 criminal justice services.   In connection with  the  administration  of
 this  chapter,  the  board  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

 A. 1617--C                         71
 
 medical  cannabis, adult-use cannabis, cannabinoid hemp or hemp extract.
 At the board's request, each person, member, principal and/or officer of
 the applicant shall submit to the board 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 identifying criminal convictions
 and pending criminal charges 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 reasonable prescribed processing
 fees for the cost of the division's full search  and  retain  procedures
 and a national criminal history record check. The board, or their desig-
 nee,  shall submit such fingerprints and the processing fee to the divi-
 sion. The division shall forward to the board 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 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. Upon receipt of
 such criminal history information, the board shall provide  such  appli-
 cant  with  a copy of such criminal history information, together with a
 copy of article twenty-three-A of the correction law,  and  inform  such
 applicant of his or her right to seek correction of any incorrect infor-
 mation  contained in such criminal history information pursuant to regu-
 lations and procedures established by the division of  criminal  justice
 services.
   §  139.  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, 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 21 as
 amended by chapter 1 of the laws of 2020, subdivision 31 as  amended  by
 section 4 of part A of chapter 58 of the laws of 2004, subdivision 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

 A. 1617--C                         72
 
 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) 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

 A. 1617--C                         73

 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. The term
 "marihuana" shall not include:
   (a) 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;
   (b) hemp, as defined in subdivision one of section five  hundred  five
 of the agriculture and markets law;
   (c)  cannabinoid hemp as defined in subdivision two of section thirty-
 three hundred ninety-eight of this chapter; or
   (d) hemp extract as defined in subdivision  five  of  section  thirty-
 three hundred ninety-eight of this chapter.
   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

 A. 1617--C                         74
 
 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
 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-

 A. 1617--C                         75
 
 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
 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.

 A. 1617--C                         76
 
   [(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.
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.
   §  5.  Subdivision  8  of  section 1399-n of the public health law, as
 amended by chapter 131 of the laws  of  2019,  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]
 CANNABIS  as  defined  in  section  [thirty-three  hundred  two  of this
 chapter] 222.00 OF THE PENAL LAW.
   § 5-a. Section 1399-q of the public health law, as amended by  chapter
 335 of the laws of 2017, is amended to read as follows:
   §  1399-q.  Smoking  and  vaping  restrictions  inapplicable.  1. This
 article shall not apply to:
   [1.]  (A)  Private  homes[,]  AND  private  residences  [and   private
 automobiles];

 A. 1617--C                         77
 
   [2.] (B) PRIVATE AUTOMOBILES;
   (C) A hotel or motel room rented to one or more guests;
   [3.] (D) Retail tobacco businesses;
   [4.]  (E) Membership associations; provided, however, that smoking and
 vaping shall only be allowed in membership associations in which all  of
 the duties with respect to the operation of such association, including,
 but  not  limited to, the preparation of food and beverages, the service
 of food and beverages, reception and secretarial work, and the  security
 services  of the membership association are performed by members of such
 membership association who do not receive compensation of any kind  from
 the  membership  association  or any other entity for the performance of
 such duties;
   [5.] (F) Cigar bars that, in the calendar year ending  December  thir-
 ty-first,  two  thousand two, generated ten percent or more of its total
 annual gross income from the on-site sale of tobacco  products  and  the
 rental  of  on-site  humidors,  not  including  any  sales  from vending
 machines, and is registered with the appropriate enforcement officer, as
 defined in subdivision one of section thirteen hundred ninety-nine-t  of
 this  article. Such registration shall remain in effect for one year and
 shall be renewable only if: (a) in  the  preceding  calendar  year,  the
 cigar bar generated ten percent or more of its total annual gross income
 from  the  on-site  sale  of  tobacco products and the rental of on-site
 humidors, and (b) the cigar bar has not expanded its size or changed its
 location from its size or  location  since  December  thirty-first,  two
 thousand two;
   [6.]  (G)  Outdoor dining areas of food service establishments with no
 roof or other ceiling enclosure; provided,  however,  that  smoking  and
 vaping  may be permitted in a contiguous area designated for smoking and
 vaping so long as such area: (a) constitutes no  more  than  twenty-five
 percent  of the outdoor seating capacity of such food service establish-
 ment, (b) is at least three feet away from the outdoor area of such food
 service establishment not designated for smoking and vaping, and (c)  is
 clearly designated with written signage as a smoking and vaping area;
   [7.] (H) Enclosed rooms in food service establishments, bars, catering
 halls,  convention  halls,  hotel  and motel conference rooms, and other
 such similar facilities during the time such enclosed areas or rooms are
 being used exclusively for functions where the public is invited for the
 primary purpose of promoting and sampling tobacco products or electronic
 cigarettes, and the service of food and  drink  is  incidental  to  such
 purpose,  provided  that  the  sponsor  or organizer gives notice in any
 promotional material or advertisements that smoking and vaping will  not
 be  restricted,  and  prominently  posts  notice  at the entrance of the
 facility and has provided notice of such  function  to  the  appropriate
 enforcement  officer,  as defined in subdivision one of section thirteen
 hundred ninety-nine-t of this article, at least two weeks prior to  such
 function.  The  enforcement  officer  shall keep a record of all tobacco
 sampling events, and such record shall  be  made  available  for  public
 inspection.  No such facility shall permit smoking and vaping under this
 subdivision for more than two days in any calendar year; [and
   8.] (I) Retail electronic cigarette  stores,  provided  however,  that
 such stores may only permit the use of electronic cigarettes[.]; AND
   (J)  ADULT-USE  ON-SITE  CONSUMPTION  PREMISES  AUTHORIZED PURSUANT TO
 ARTICLE FOUR OF THE CANNABIS LAW, PROVIDED HOWEVER, THAT SUCH  LOCATIONS
 MAY ONLY PERMIT THE SMOKING OR VAPING OF CANNABIS.

 A. 1617--C                         78
 
   2. THE RESTRICTIONS OF THIS ARTICLE ON THE SMOKING OR VAPING OF CANNA-
 BIS  SHALL CONTINUE TO APPLY TO THOSE LOCATIONS IDENTIFIED IN PARAGRAPHS
 (B), (D), (F), (G), (H) AND (I) OF SUBDIVISION ONE OF THIS SECTION.
   § 6. Title 5-A of article 33 of the public health law is REPEALED.
   § 6-a. Article 33-B of the public health law is REPEALED.
   § 6-b. The commissioner of health and the cannabis control board shall
 work  in  conjunction  to  expeditiously  transfer  the oversight of the
 medical use of cannabis to ensure continuity of care, and the  responsi-
 bility  for  regulation  of  cannabinoid hemp and hemp extract, from the
 department of health to the  office  of  cannabis  management.  For  the
 purposes  of  this  section continuity of care shall include, but not be
 limited to, a certified  patient's  ability  to  engage  in  the  lawful
 medical  use  of  cannabis,  and  a registered organization's ability to
 conduct its lawful operations.
   § 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
 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

 A. 1617--C                         79
 
 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] SECTION 222.00 OF THE
 PENAL LAW and shall also include  tetrahydrocannabinols  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 222.00 OF THE PENAL LAW.
   §  9-a.  Subdivision 1 of section 1192 of the vehicle and traffic law,
 as added by chapter 47 of the laws  of  1988,  is  amended  to  read  as
 follows:
   1.  Driving while ability impaired. A. No person shall operate a motor
 vehicle while the person's ability to  operate  such  motor  vehicle  is
 impaired by the consumption of alcohol.
   B.  NO PERSON SHALL OPERATE A MOTOR VEHICLE WHILE THE PERSON'S ABILITY
 TO OPERATE SUCH MOTOR VEHICLE IS IMPAIRED BY  THE  USE  OF  CANNABIS  OR
 CONCENTRATED CANNABIS AS DEFINED IN SECTION 222.00 OF THE PENAL LAW.
   §  9-b.  Paragraph (a) of subdivision 2 of section 49-a of the naviga-
 tion law, as amended by chapter 239 of the laws of 2016, is  amended  to
 read as follows:
   (a)  (1) No person shall operate a vessel upon the waters of the state
 while his or her ability to operate  such  vessel  is  impaired  by  the
 consumption  of  alcohol.  (2) NO PERSON SHALL OPERATE A VESSEL UPON THE
 WATERS OF THE STATE WHILE HIS OR HER ABILITY TO OPERATE SUCH  VESSEL  IS
 IMPAIRED  BY  THE USE OF CANNABIS OR CONCENTRATED CANNABIS AS DEFINED IN
 SECTION 222.00 OF THE PENAL LAW.
   (A-1) (1) A violation of PARAGRAPH (A) OF this subdivision shall be an
 offense and shall be punishable by a fine of not less than three hundred
 dollars nor more than five hundred dollars,  or  by  imprisonment  in  a
 penitentiary  or  county jail for not more than fifteen days, or by both
 such fine and imprisonment. (2)  A  person  who  operates  a  vessel  in
 violation  of PARAGRAPH (A) OF this subdivision after being convicted of
 a violation of any subdivision of this section within the preceding five
 years shall be punished by a fine of not less than five hundred  dollars
 nor  more  than  seven  hundred fifty dollars, or by imprisonment of not
 more than thirty days in a penitentiary or county jail or by  both  such
 fine  and  imprisonment. (3) A person who operates a vessel in violation
 of PARAGRAPH (A) OF this subdivision after being convicted two  or  more
 times  of  a  violation  of  any  subdivision of this section within the
 preceding ten years shall be guilty  of  a  misdemeanor,  and  shall  be
 punished by a fine of not less than seven hundred fifty dollars nor more

 A. 1617--C                         80
 
 than  fifteen  hundred  dollars, or by imprisonment of not more than one
 hundred eighty days in a penitentiary or county jail  or  by  both  such
 fine and imprisonment.
   § 9-c. Subdivision 5-a of section 49-a of the navigation law, as added
 by chapter 239 of the laws of 2016, is amended to read as follows:
   5-a.  Sentencing; previous convictions. When sentencing a person for a
 violation of paragraph (b), (c), (d) or (e) of subdivision two  of  this
 section pursuant to subparagraph two of paragraph (f) of subdivision two
 of  this  section,  the  court  shall consider any prior convictions the
 person may have for a violation of subdivision two, two-a, three,  four,
 or  four-a of section eleven hundred ninety-two of the vehicle and traf-
 fic law within the preceding ten years. When sentencing a person  for  a
 violation  of  paragraph (b), (c), (d) or (e) of subdivision two of this
 section pursuant to subparagraph three of paragraph (f)  of  subdivision
 two  of this section, the court shall consider any prior convictions the
 person may have for a violation of subdivision two, two-a, three,  four,
 or  four-a of section eleven hundred ninety-two of the vehicle and traf-
 fic law within the preceding ten years. When sentencing a person  for  a
 violation  of  subparagraph  two of paragraph [(a)] (A-1) of subdivision
 two of this section, the court shall consider any prior convictions  the
 person  may  have  for  a violation of any subdivision of section eleven
 hundred ninety-two of the vehicle and traffic law within  the  preceding
 five  years.  When  sentencing  a person for a violation of subparagraph
 three of paragraph [(a)] (A-1) of subdivision two of this  section,  the
 court  shall  consider  any  prior convictions the person may have for a
 violation of any subdivision of section eleven hundred ninety-two of the
 vehicle and traffic law within the preceding ten years.
   § 9-d. Paragraph (a) of subdivision 1 of section 25.24 of  the  parks,
 recreation  and  historic preservation law, as amended by chapter 311 of
 the laws of 2007, is amended to read as follows:
   (a)(1) No person shall operate a snowmobile upon  a  street,  highway,
 public  trails,  lands,  bodies of water, or private property of another
 while his or her ability to operate such snowmobile is impaired  by  the
 consumption  of alcohol. (2) NO PERSON SHALL OPERATE A SNOWMOBILE UPON A
 STREET, HIGHWAY, PUBLIC TRAILS, LANDS, BODIES OF WATER, OR PRIVATE PROP-
 ERTY OF ANOTHER WHILE HIS OR HER ABILITY TO OPERATE SUCH  SNOWMOBILE  IS
 IMPAIRED  BY  THE USE OF CANNABIS OR CONCENTRATED CANNABIS AS DEFINED IN
 SECTION 222.00 OF THE PENAL LAW.  (3) A violation  of  this  subdivision
 shall  be  an offense and shall be punishable by a fine of not less than
 two hundred fifty dollars nor more than three hundred fifty dollars,  or
 by  imprisonment  in  a  penitentiary  or  county jail for not more than
 fifteen days, or by both such fine and imprisonment. A person who  oper-
 ates a snowmobile in violation of this subdivision after being convicted
 of  a  violation of any subdivision of this section within the preceding
 five years shall be punished by a fine of not  less  than  five  hundred
 dollars nor more than fifteen hundred dollars, or by imprisonment of not
 more  than  thirty days in a penitentiary or county jail or by both such
 fine and imprisonment.
   § 10. Subdivision 9 of section 220.00 of the penal law, as amended  by
 chapter 664 of the laws of 1985, is amended to read as follows:
   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.
   § 10-a. Subdivision 5 of section 220.00 of the penal law,  as  amended
 by chapter 537 of the laws of 1998, is amended to read as follows:

 A. 1617--C                         81
 
   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].
   § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED.
   § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED.
   § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED.
   § 14. Subdivision 6 of section 220.00 of the penal law is REPEALED.
   § 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 RESTRICTIONS ON CANNABIS USE.
         222.15 PERSONAL CULTIVATION OF CANNABIS.
         222.20 LICENSING  OF  CANNABIS  PRODUCTION   AND   DISTRIBUTION;
                  DEFENSE.
         222.25 UNLAWFUL POSSESSION OF CANNABIS.
         222.30 CRIMINAL POSSESSION OF CANNABIS IN THE THIRD DEGREE.
         222.35 CRIMINAL POSSESSION OF CANNABIS IN THE SECOND DEGREE.
         222.40 CRIMINAL POSSESSION OF CANNABIS IN THE FIRST DEGREE.
         222.45 UNLAWFUL SALE OF CANNABIS.
         222.50 CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE.
         222.55 CRIMINAL SALE OF CANNABIS IN THE SECOND DEGREE.
         222.60 CRIMINAL SALE OF CANNABIS IN THE FIRST DEGREE.
         222.65 AGGRAVATED CRIMINAL SALE OF CANNABIS.
 § 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 HEMP, CANNABINOID HEMP OR HEMP EXTRACT AS DEFINED IN SECTION
 THREE OF THE CANNABIS 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 TETRAHYDRO-
 CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
 DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
 NUMBERING SYSTEM.
   3. FOR THE PURPOSES OF  THIS  ARTICLE,  "SELL"  SHALL  MEAN  TO  SELL,
 EXCHANGE  OR  DISPOSE  OF FOR COMPENSATION. "SELL" SHALL NOT INCLUDE THE
 TRANSFER OF CANNABIS OR CONCENTRATED CANNABIS 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.
   4.  FOR  THE  PURPOSES  OF THIS ARTICLE, "SMOKING" SHALL HAVE THE SAME
 MEANING AS THAT TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW.

 A. 1617--C                         82
 
 § 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;
   (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;
   (C) USING, SMOKING, INGESTING, OR CONSUMING CANNABIS  OR  CONCENTRATED
 CANNABIS UNLESS OTHERWISE PROHIBITED BY STATE LAW;
   (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;
   (E)  PLANTING, CULTIVATING, HARVESTING, DRYING, PROCESSING OR POSSESS-
 ING CULTIVATED CANNABIS IN ACCORDANCE WITH SECTION 222.15 OF THIS  ARTI-
 CLE; AND
   (F)  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 (E) OF THIS SUBDIVISION.
   2.  CANNABIS, CONCENTRATED CANNABIS, CANNABIS PARAPHERNALIA OR CONCEN-
 TRATED 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 OR
 CONCENTRATED CANNABIS 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 OR TWENTY-FOUR GRAMS
 OF CONCENTRATED CANNABIS;
   (D) THE PRESENCE OF CASH OR  CURRENCY  IN  PROXIMITY  TO  CANNABIS  OR
 CONCENTRATED CANNABIS; OR
   (D)  THE  PLANTING,  CULTIVATING,  HARVESTING,  DRYING,  PROCESSING OR
 POSSESSING CULTIVATED CANNABIS IN ACCORDANCE WITH SECTION 222.15 OF THIS
 ARTICLE.
   4. SUBDIVISION THREE OF THIS  SECTION  SHALL  NOT  APPLY  WHEN  A  LAW
 ENFORCEMENT OFFICER IS INVESTIGATING: (A) AN ALLEGED OFFENSE PURSUANT TO
 THIS  ARTICLE;  OR  (B)  WHETHER  A PERSON IS OPERATING A MOTOR VEHICLE,
 VESSEL OR SNOWMOBILE WHILE IMPAIRED BY CANNABIS OR CONCENTRATED CANNABIS
 AS DEFINED IN SECTION 222.00 OF THIS ARTICLE OR DRUGS  OR  THE  COMBINED
 INFLUENCE  OF  DRUGS OR OF ALCOHOL AND ANY DRUG OR DRUGS IN VIOLATION OF
 PARAGRAPH (B) OF SUBDIVISION ONE, SUBDIVISION FOUR OR SUBDIVISION FOUR-A
 OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE AND TRAFFIC LAW,  OR
 SUBPARAGRAPH TWO OF PARAGRAPH (A) OR PARAGRAPH (E) OF SUBDIVISION TWO OF
 SECTION FORTY-NINE-A OF THE NAVIGATION LAW, OR SUBPARAGRAPH TWO OF PARA-
 GRAPH  (A)  OR  PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION 25.24 OF THE
 PARKS, RECREATION AND HISTORIC PRESERVATION LAW.
 § 222.10 RESTRICTIONS ON CANNABIS USE.

 A. 1617--C                         83
 
   UNLESS OTHERWISE AUTHORIZED BY LAW OR REGULATION, NO PERSON SHALL:
   1. SMOKE OR VAPE CANNABIS IN A LOCATION WHERE SMOKING OR VAPING CANNA-
 BIS  IS  PROHIBITED  PURSUANT TO ARTICLE THIRTEEN-E OF THE PUBLIC HEALTH
 LAW; OR
   2. POSSESS, SMOKE, VAPE OR INGEST CANNABIS OR CONCENTRATED CANNABIS IN
 OR UPON THE GROUNDS OF A  SCHOOL,  AS  DEFINED  IN  SUBDIVISION  TEN  OF
 SECTION  ELEVEN  HUNDRED  TWENTY-FIVE OF THE EDUCATION LAW OR IN OR ON A
 SCHOOL BUS, AS DEFINED IN SECTION ONE HUNDRED FORTY-TWO OF  THE  VEHICLE
 AND TRAFFIC LAW; PROVIDED, HOWEVER, PROVISIONS OF THIS SUBDIVISION SHALL
 NOT  APPLY  TO  ACTS  THAT  ARE  IN COMPLIANCE WITH ARTICLE THREE OF THE
 CANNABIS LAW.
   VIOLATIONS OF RESTRICTIONS ON CANNABIS USE  ARE  SUBJECT  TO  A  CIVIL
 PENALTY  NOT  EXCEEDING  TWENTY-FIVE  DOLLARS  OR AN AMOUNT OF COMMUNITY
 SERVICE NOT EXCEEDING TWENTY HOURS.
 § 222.15 PERSONAL CULTIVATION OF CANNABIS.
   1. NOTWITHSTANDING THE  PROVISIONS  OF  SECTION  THIRTY-THREE  HUNDRED
 EIGHTY-TWO  OF THE PUBLIC HEALTH LAW, AND UNLESS OTHERWISE AUTHORIZED BY
 LAW OR REGULATION, NO PERSON MAY:
   (A) PLANT, CULTIVATE, HARVEST, DRY, PROCESS OR POSSESS MORE  THAN  SIX
 MATURE CANNABIS PLANTS AT ANY ONE TIME; OR
   (B)  PLANT, CULTIVATE, HARVEST, DRY, PROCESS OR POSSESS, WITHIN HIS OR
 HER PRIVATE RESIDENCE, OR ON THE GROUNDS OF HIS  OR  HER  PRIVATE  RESI-
 DENCE, MORE THAN SIX MATURE CANNABIS PLANTS AT ANY ONE TIME; OR
   (C) BEING UNDER THE AGE OF TWENTY-ONE, PLANT, CULTIVATE, HARVEST, DRY,
 PROCESS OR POSSESS CANNABIS PLANTS.
   2.  ANY  MATURE  CANNABIS  PLANT  DESCRIBED IN PARAGRAPH (A) OR (B) OF
 SUBDIVISION ONE OF THIS SECTION, AND ANY CANNABIS PRODUCED BY  ANY  SUCH
 CANNABIS  PLANT  OR  PLANTS  IN  EXCESS  OF  THREE  OUNCES,  CULTIVATED,
 HARVESTED, DRIED, PROCESSED OR POSSESSED PURSUANT TO  PARAGRAPH  (A)  OR
 (B)  OF  SUBDIVISION ONE OF THIS SECTION SHALL, UNLESS OTHERWISE AUTHOR-
 IZED BY LAW OR REGULATION, BE STORED EXCEPT FOR INCIDENTAL PERIODS WITH-
 IN SUCH PERSON'S PRIVATE RESIDENCE OR STORAGE SPACE OR ON THE GROUNDS OF
 SUCH PERSON'S PRIVATE RESIDENCE OR STORAGE SPACE. SUCH PERSON SHALL TAKE
 REASONABLE STEPS DESIGNED TO ASSURE THAT SUCH CULTIVATED CANNABIS IS  IN
 A SECURED PLACE.
   3.  A  COUNTY, TOWN, CITY OR VILLAGE MAY ENACT AND ENFORCE REGULATIONS
 TO REASONABLY REGULATE THE ACTIONS AND CONDUCT SET FORTH IN  SUBDIVISION
 ONE OF THIS SECTION; PROVIDED THAT:
   (A)  A VIOLATION OF ANY SUCH A REGULATION, AS APPROVED BY SUCH COUNTY,
 TOWN, CITY OR VILLAGE ENACTING THE REGULATION, MAY  CONSTITUTE  NO  MORE
 THAN AN INFRACTION AND MAY BE PUNISHABLE BY NO MORE THAN A DISCRETIONARY
 CIVIL PENALTY OF TWO HUNDRED DOLLARS OR LESS; AND
   (B)  NO  COUNTY,  TOWN,  CITY OR VILLAGE MAY ENACT OR ENFORCE ANY SUCH
 REGULATION OR REGULATIONS THAT MAY COMPLETELY OR ESSENTIALLY PROHIBIT  A
 PERSON  FROM ENGAGING IN THE ACTION OR CONDUCT AUTHORIZED BY SUBDIVISION
 ONE OF THIS SECTION.
   A VIOLATION OF SUBDIVISION ONE OR TWO OF THIS SECTION MAY  BE  SUBJECT
 TO A CIVIL PENALTY OF UP TO ONE HUNDRED TWENTY-FIVE DOLLARS.
 § 222.20 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION; DEFENSE.
   IN  ANY PROSECUTION FOR AN OFFENSE INVOLVING CANNABIS UNDER THIS ARTI-
 CLE OR AN AUTHORIZED LOCAL LAW, IT IS A DEFENSE THAT THE  DEFENDANT  WAS
 ENGAGED IN SUCH ACTIVITY IN COMPLIANCE WITH THE CANNABIS LAW.
 § 222.25 UNLAWFUL POSSESSION OF CANNABIS.
   A  PERSON  IS GUILTY OF UNLAWFUL POSSESSION OF CANNABIS WHEN HE OR SHE
 KNOWINGLY AND UNLAWFULLY POSSESSES CANNABIS  AND  SUCH  CANNABIS  WEIGHS

 A. 1617--C                         84
 
 MORE  THAN  THREE  OUNCES OR CONCENTRATED CANNABIS AND SUCH CONCENTRATED
 CANNABIS WEIGHS MORE THAN TWENTY-FOUR GRAMS.
   UNLAWFUL POSSESSION OF CANNABIS IS A VIOLATION PUNISHABLE BY A FINE OF
 NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS.
 § 222.30 CRIMINAL POSSESSION OF CANNABIS IN THE THIRD DEGREE.
   A  PERSON  IS  GUILTY  OF CRIMINAL POSSESSION OF CANNABIS IN THE THIRD
 DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY POSSESSES:
   1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN SIXTEEN OUNCES; OR
   2. CONCENTRATED CANNABIS AND SUCH CONCENTRATED  CANNABIS  WEIGHS  MORE
 THAN FIVE OUNCES.
   CRIMINAL  POSSESSION  OF  CANNABIS  IN  THE  THIRD DEGREE IS A CLASS A
 MISDEMEANOR.
 § 222.35 CRIMINAL POSSESSION OF CANNABIS IN THE SECOND DEGREE.
   A PERSON IS GUILTY OF CRIMINAL POSSESSION OF CANNABIS  IN  THE  SECOND
 DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY POSSESSES:
   1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN FIVE POUNDS; OR
   2.  CONCENTRATED  CANNABIS  AND SUCH CONCENTRATED CANNABIS WEIGHS MORE
 THAN TWO POUNDS.
   CRIMINAL POSSESSION OF CANNABIS IN THE SECOND  DEGREE  IS  A  CLASS  E
 FELONY.
 § 222.40 CRIMINAL POSSESSION OF CANNABIS IN THE FIRST DEGREE.
   A  PERSON  IS  GUILTY  OF CRIMINAL POSSESSION OF CANNABIS IN THE FIRST
 DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY POSSESSES:
   1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN TEN POUNDS; OR
   2. CONCENTRATED CANNABIS AND SUCH CONCENTRATED  CANNABIS  WEIGHS  MORE
 THAN FOUR POUNDS.
   CRIMINAL POSSESSION OF CANNABIS IN THE FIRST DEGREE IS A CLASS D FELO-
 NY.
 § 222.45 UNLAWFUL SALE OF CANNABIS.
   A  PERSON  IS GUILTY OF UNLAWFUL SALE OF CANNABIS WHEN HE OR SHE KNOW-
 INGLY AND UNLAWFULLY SELLS CANNABIS OR CONCENTRATED CANNABIS.
   UNLAWFUL SALE OF CANNABIS IS A VIOLATION PUNISHABLE BY A FINE  OF  NOT
 MORE THAN TWO HUNDRED FIFTY DOLLARS.
 § 222.50 CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE.
   A  PERSON  IS  GUILTY OF CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE
 WHEN:
   1. HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS MORE THAN THREE OUNCES  OF
 CANNABIS OR MORE THAN TWENTY-FOUR GRAMS OF CONCENTRATED CANNABIS; OR
   2.  BEING  TWENTY-ONE  YEARS  OF AGE OR OLDER, HE OR SHE KNOWINGLY AND
 UNLAWFULLY SELLS OR GIVES, OR CAUSES TO BE GIVEN OR  SOLD,  CANNABIS  OR
 CONCENTRATED  CANNABIS  TO  A  PERSON LESS THAN TWENTY-ONE YEARS OF AGE;
 EXCEPT THAT IN ANY PROSECUTION UNDER THIS SUBDIVISION, IT IS  A  DEFENSE
 THAT THE DEFENDANT WAS LESS THAN THREE YEARS OLDER THAN THE PERSON UNDER
 THE AGE OF TWENTY-ONE AT THE TIME OF THE OFFENSE. THIS SUBDIVISION SHALL
 NOT APPLY TO DESIGNATED CAREGIVERS, PRACTITIONERS, EMPLOYEES OF A REGIS-
 TERED  ORGANIZATION  OR  EMPLOYEES  OF  A  DESIGNATED CAREGIVER FACILITY
 ACTING IN COMPLIANCE WITH ARTICLE THREE OF THE CANNABIS LAW.
   CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE IS A CLASS  A  MISDEMEA-
 NOR.
 § 222.55 CRIMINAL SALE OF CANNABIS IN THE SECOND DEGREE.
   A  PERSON  IS GUILTY OF CRIMINAL SALE OF CANNABIS IN THE SECOND DEGREE
 WHEN:
   1. HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS MORE THAN  SIXTEEN  OUNCES
 OF CANNABIS OR MORE THAN FIVE OUNCES OF CONCENTRATED CANNABIS; OR
   2.  BEING  TWENTY-ONE  YEARS  OF AGE OR OLDER, HE OR SHE KNOWINGLY AND
 UNLAWFULLY SELLS OR GIVES, OR CAUSES TO BE  GIVEN  OR  SOLD,  MORE  THAN

 A. 1617--C                         85
 
 THREE  OUNCES OF CANNABIS OR MORE THAN TWENTY-FOUR GRAMS OF CONCENTRATED
 CANNABIS TO A PERSON LESS THAN EIGHTEEN YEARS OF AGE.  THIS  SUBDIVISION
 SHALL  NOT APPLY TO DESIGNATED CAREGIVERS, PRACTITIONERS, EMPLOYEES OF A
 REGISTERED  ORGANIZATION OR EMPLOYEES OF A DESIGNATED CAREGIVER FACILITY
 ACTING IN COMPLIANCE WITH ARTICLE THREE OF THE CANNABIS LAW.
   CRIMINAL SALE OF CANNABIS IN THE SECOND DEGREE IS A CLASS E FELONY.
 § 222.60 CRIMINAL SALE OF CANNABIS IN THE FIRST DEGREE.
   A PERSON IS GUILTY OF CRIMINAL SALE OF CANNABIS IN  THE  FIRST  DEGREE
 WHEN  HE  OR SHE KNOWINGLY AND UNLAWFULLY SELLS MORE THAN FIVE POUNDS OF
 CANNABIS OR MORE THAN TWO POUNDS OF CONCENTRATED CANNABIS.
   CRIMINAL SALE OF CANNABIS IN THE FIRST DEGREE IS A CLASS D FELONY.
 § 222.65 AGGRAVATED CRIMINAL SALE OF CANNABIS.
   A PERSON IS GUILTY OF AGGRAVATED CRIMINAL SALE OF CANNABIS WHEN HE  OR
 SHE  KNOWINGLY  AND  UNLAWFULLY  SELLS CANNABIS OR CONCENTRATED CANNABIS
 WEIGHING ONE HUNDRED POUNDS OR MORE.
   AGGRAVATED CRIMINAL SALE OF CANNABIS IS A CLASS C FELONY.
   § 17. Paragraph (k) of subdivision 3 of section 160.50 of the criminal
 procedure law, as amended by chapter 132 of the laws of 2019, is amended
 to read as follows:
   (k) (i) The conviction was for a  violation  of  article  two  hundred
 twenty or section 240.36 of the penal law prior to the effective date of
 article two hundred twenty-one of the penal law, and the sole controlled
 substance  involved  was  marihuana  and  the  conviction was only for a
 MISDEMEANOR AND/OR violation [or violations]; or
   (ii) the conviction is for an offense defined  in  section  221.05  or
 221.10 of the penal law prior to the effective date of [the] chapter ONE
 HUNDRED  THIRTY-TWO  of  the laws of two thousand nineteen [that amended
 this paragraph]; or
   (iii) the conviction is for an offense  defined  in  [section]  FORMER
 SECTIONS  221.05  [or], 221.10, 221.15, 221.20, 221.35, OR 221.40 of the
 penal law; OR
   (IV) THE CONVICTION WAS FOR A VIOLATION OF SECTION 220.03 OR 220.06 OF
 THE PENAL LAW PRIOR TO THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS  OF
 TWO THOUSAND TWENTY THAT AMENDED THIS PARAGRAPH, AND THE SOLE CONTROLLED
 SUBSTANCE INVOLVED WAS CONCENTRATED CANNABIS; OR
   (V)  THE  CONVICTION  IS  FOR  AN  OFFENSE DEFINED IN SECTIONS 222.10,
 222.15, 222.25 OR 222.45 OF THE PENAL LAW.
   No defendant shall be required or permitted to waive  eligibility  for
 sealing  or  expungement  pursuant  to this section as part of a plea of
 guilty, sentence  or  any  agreement  related  to  a  conviction  for  a
 violation  of  [section  221.05]  sections  222.10,  222.15,  222.25  or
 [section 221.10] 222.45 of the penal law and any such  waiver  shall  be
 deemed void and wholly unenforceable.
   § 18. Paragraph (k) of subdivision 1 of section 440.10 of the criminal
 procedure  law,  as added by chapter 132 of the laws of 2019, is amended
 to read as follows:
   (k) The judgment occurred prior to the effective date of THE  LAWS  OF
 TWO  THOUSAND TWENTY THAT AMENDED this paragraph and is a conviction for
 an offense as defined in subparagraphs (i) [or], (ii), (III) OR (IV)  of
 paragraph  (k)  of  subdivision three of section 160.50 of this part, in
 which case the court shall presume that a conviction  by  plea  for  the
 aforementioned offenses was not knowing, voluntary and intelligent if it
 has  severe or ongoing consequences, including but not limited to poten-
 tial or actual  immigration  consequences,  and  shall  presume  that  a
 conviction  by verdict for the aforementioned offenses constitutes cruel
 and unusual punishment under section five of article one  of  the  state

 A. 1617--C                         86
 
 constitution,  based  on  those consequences. The people may rebut these
 presumptions.
   § 19. Intentionally omitted.
   § 20. Intentionally omitted.
   § 21. Intentionally omitted.
   §  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]  220.10,  222.15,
 222.25, 222.30, 222.45 OR 222.50 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  previously  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 LIMITATIONS 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 SUBDI-
 VISION, 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, INCLUDING, BUT NOT LIMITED TO,
 POTENTIAL OR ACTUAL IMMIGRATION CONSEQUENCES.
   § 23. Intentionally omitted.
   §  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. WHEN A PERSON IS SERVING A SENTENCE FOR A CONVICTION IN THIS STATE,
 WHETHER BY TRIAL VERDICT  OR  GUILTY  PLEA,  UNDER  FORMER  ARTICLE  TWO
 HUNDRED  TWENTY-ONE  OF  THE  PENAL  LAW,  AND  SUCH PERSON'S CONDUCT AS
 ALLEGED IN THE ACCUSATORY INSTRUMENT AND/OR SHOWN BY THE GUILTY PLEA  OR
 TRIAL  VERDICT  WOULD  NOT  HAVE  BEEN A CRIME UNDER ARTICLE TWO HUNDRED
 TWENTY-TWO OF THE PENAL LAW, HAD SUCH  ARTICLE  TWO  HUNDRED  TWENTY-TWO
 RATHER  THAN FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW BEEN
 IN EFFECT AT THE TIME OF SUCH CONDUCT,  THEN  THE  CHIEF  ADMINISTRATIVE
 JUDGE  OF  THE STATE OF NEW YORK SHALL, IN ACCORDANCE WITH THIS SECTION,
 AUTOMATICALLY VACATE, DISMISS AND EXPUNGE SUCH CONVICTION IN  ACCORDANCE
 WITH  SECTION  160.50  OF THIS CHAPTER, AND THE OFFICE OF COURT ADMINIS-
 TRATION SHALL IMMEDIATELY NOTIFY THE STATE DIVISION OF CRIMINAL  JUSTICE
 SERVICES,  STATE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION AND

 A. 1617--C                         87
 
 THE APPROPRIATE LOCAL  CORRECTIONAL  FACILITY  WHICH  SHALL  IMMEDIATELY
 EFFECTUATE  THE APPROPRIATE RELIEF. SUCH NOTIFICATION TO THE DIVISION OF
 CRIMINAL JUSTICE SERVICES SHALL ALSO DIRECT THAT SUCH AGENCY NOTIFY  ALL
 RELEVANT  POLICE  AND  LAW ENFORCEMENT AGENCIES OF THEIR DUTY TO DESTROY
 AND/OR MARK RECORDS RELATED TO SUCH  CASE  IN  ACCORDANCE  WITH  SECTION
 160.50  OF  THIS CHAPTER. NOTHING IN THIS SECTION SHALL PREVENT A PERSON
 WHO BELIEVES HIS OR HER SENTENCE IS  REQUIRED  BY  THIS  SECTION  TO  BE
 VACATED, DISMISSED AND/OR EXPUNGED FROM FILING A PETITION WITH THE COURT
 TO EFFECTUATE ALL APPROPRIATE RELIEF.
   2.  (A)  WHEN  A PERSON IS SERVING OR HAS COMPLETED SERVING A SENTENCE
 FOR A CONVICTION IN THIS STATE, WHETHER BY TRIAL VERDICT OR GUILTY PLEA,
 UNDER FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW,  AND  SUCH
 PERSON'S CONDUCT AS ALLEGED IN THE ACCUSATORY INSTRUMENT AND/OR SHOWN BY
 THE  GUILTY  PLEA  OR  TRIAL VERDICT, OR SHOWN BY OTHER INFORMATION: (I)
 WOULD NOT HAVE BEEN A CRIME UNDER ARTICLE TWO HUNDRED TWENTY-TWO OF  THE
 PENAL  LAW,  HAD  SUCH ARTICLE TWO HUNDRED TWENTY-TWO RATHER THAN FORMER
 ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW BEEN IN  EFFECT  AT  THE
 TIME OF SUCH CONDUCT; OR (II) UNDER SUCH CIRCUMSTANCES SUCH PERSON WOULD
 HAVE  BEEN  GUILTY OF A LESSER OR POTENTIALLY LESS ONEROUS OFFENSE UNDER
 SUCH ARTICLE TWO HUNDRED TWENTY-TWO THAN SUCH FORMER ARTICLE TWO HUNDRED
 TWENTY-ONE OF THE PENAL LAW; THEN SUCH PERSON MAY PETITION THE COURT  OF
 CONVICTION PURSUANT TO THIS ARTICLE FOR VACATUR OF SUCH CONVICTION.
   (B)  UPON  RECEIVING  A SERVED AND FILED MOTION UNDER PARAGRAPH (A) OF
 THIS SUBDIVISION, THE COURT  SHALL  PRESUME  THE  MOVANT  SATISFIES  THE
 CRITERIA IN SUCH PARAGRAPH (A) AND SHALL GRANT THE MOTION TO VACATE SUCH
 CONVICTION  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, THE COURT SHALL GRANT THE MOTION TO
 VACATE THE CONVICTION: (I) IF THE CONVICTION WAS BY PLEA OF  GUILTY,  ON
 GROUNDS  THAT SUCH PLEA WAS NOT KNOWING, VOLUNTARY AND INTELLIGENT OWING
 TO ONGOING CONSEQUENCES; AND (II) IF THE CONVICTION WAS  BY  VERDICT  OR
 OTHERWISE,  ON  GROUNDS  THAT  SUCH  CONVICTION AND SENTENCE CONSTITUTES
 CRUEL AND UNUSUAL PUNISHMENT UNDER THE STATE CONSTITUTION OWING TO  SUCH
 ONGOING  CONSEQUENCES;  AND  MAY,  IF THE PETITION MEETS THE CRITERIA IN
 SUBPARAGRAPH (I) OF PARAGRAPH (A) OF THIS SUBDIVISION,  AFTER  AFFORDING
 THE PARTIES AN OPPORTUNITY TO BE HEARD AND PRESENT EVIDENCE, SUBSTITUTE,
 UNLESS  IT IS NOT IN THE INTERESTS OF JUSTICE TO DO SO, A CONVICTION FOR
 AN APPROPRIATE LESSER OFFENSE UNDER ARTICLE TWO  HUNDRED  TWENTY-TWO  OF
 THE PENAL LAW.
   (C)  IN  THE EVENT OF ANY VACATUR AND/OR SUBSTITUTION PURSUANT TO THIS
 SUBDIVISION, THE OFFICE OF COURT ADMINISTRATION SHALL IMMEDIATELY NOTIFY
 THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES CONCERNING SUCH DETERMI-
 NATION. SUCH NOTIFICATION TO THE DIVISION OF CRIMINAL  JUSTICE  SERVICES
 SHALL  ALSO  DIRECT  THAT SUCH AGENCY NOTIFY ALL RELEVANT POLICE AND LAW
 ENFORCEMENT AGENCIES OF  THEIR  DUTY  TO  DESTROY  AND/OR  MARK  RECORDS
 RELATED  TO  SUCH CASE IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER
 OR, WHERE CONVICTION FOR A CRIME IS SUBSTITUTED PURSUANT TO THIS  SUBDI-
 VISION, UPDATE SUCH AGENCIES' RECORDS ACCORDINGLY.
   3.  UNDER  NO CIRCUMSTANCES MAY SUBSTITUTION UNDER THIS SECTION RESULT
 IN THE IMPOSITION OF A TERM OF IMPRISONMENT OR  SENTENCING  TERM,  OBLI-
 GATION  OR CONDITION THAT IS IN ANY WAY EITHER HARSHER THAN THE ORIGINAL
 SENTENCE OR HARSHER THAN THE SENTENCE  AUTHORIZED  FOR  ANY  SUBSTITUTED
 LESSER OFFENSE.
   4.  (A)  IF  THE  JUDGE  WHO  ORIGINALLY SENTENCED THE MOVANT FOR SUCH
 OFFENSE IS NOT REASONABLY AVAILABLE, THEN THE PRESIDING JUDGE  FOR  SUCH

 A. 1617--C                         88
 
 COURT SHALL DESIGNATE ANOTHER JUDGE AUTHORIZED TO ACT IN THE APPROPRIATE
 JURISDICTION TO DETERMINE THE PETITION OR APPLICATION.
   (B)  UNLESS  REQUESTED BY THE MOVANT, NO HEARING IS NECESSARY TO GRANT
 AN APPLICATION FILED UNDER SUBDIVISION TWO OF THIS SECTION.
   (C) WHEN A FELONY CONVICTION IS VACATED PURSUANT TO THIS SECTION AND A
 LESSER OFFENSE THAT IS A MISDEMEANOR OR  VIOLATION  IS  SUBSTITUTED  FOR
 SUCH  CONVICTION,  SUCH LESSER OFFENSE SHALL BE CONSIDERED A MISDEMEANOR
 OR VIOLATION, AS THE CASE MAY BE, FOR ALL PURPOSES. WHEN  A  MISDEMEANOR
 CONVICTION IS VACATED PURSUANT TO THIS SECTION AND A LESSER OFFENSE THAT
 IS  A  VIOLATION IS SUBSTITUTED FOR SUCH CONVICTION, SUCH LESSER OFFENSE
 SHALL BE CONSIDERED A VIOLATION FOR ALL PURPOSES.
   (D) NOTHING IN THIS SECTION IS INTENDED TO OR SHALL DIMINISH OR  ABRO-
 GATE  ANY  RIGHTS  OR REMEDIES OTHERWISE AVAILABLE TO A DEFENDANT, PETI-
 TIONER OR APPLICANT. RELIEF UNDER THIS  SECTION  IS  AVAILABLE  NOTWITH-
 STANDING  THAT  THE  JUDGMENT  WAS  FOR  A  VIOLATION OF FORMER SECTIONS
 221.05, 221.10, 221.15, 221.20, 221.35 OR 221.40 OF  THE  PENAL  LAW  IN
 EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH AND THAT THE UNDER-
 LYING  ACTION  OR  PROCEEDING  HAS  ALREADY  BEEN VACATED, DISMISSED AND
 EXPUNGED.
   (E) NOTHING IN THIS AND RELATED SECTIONS OF LAW IS INTENDED TO  DIMIN-
 ISH OR ABROGATE THE FINALITY OF JUDGMENTS IN ANY CASE NOT FALLING WITHIN
 THE PURVIEW OF THIS SECTION.
   (F)  THE  PROVISIONS  OF  THIS  SECTION  SHALL  BE AVAILABLE, USED AND
 APPLIED IN PARALLEL FASHION BY THE FAMILY COURT AND THE CRIMINAL  COURTS
 TO JUVENILE DELINQUENCY ADJUDICATIONS, ADOLESCENT OFFENDER ADJUDICATIONS
 AND YOUTHFUL OFFENDER ADJUDICATIONS.
   (G)  THE CHIEF ADMINISTRATOR OF THE COURTS SHALL PROMULGATE ALL NECES-
 SARY RULES 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. ALL SENTENCES
 ELIGIBLE FOR AUTOMATIC VACATUR, DISMISSAL AND  EXPUNGEMENT  PURSUANT  TO
 SUBDIVISION  ONE  OF  THIS  SECTION SHALL BE IDENTIFIED AND THE REQUIRED
 ENTITIES NOTIFIED WITHIN ONE YEAR OF 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

 A. 1617--C                         89
 
 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
 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.

 A. 1617--C                         90
 
   [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
 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,

 A. 1617--C                         91
 
 220.41, 220.43 and 220.44; criminal sale of [marijuana] CANNABIS  pursu-
 ant  to  sections [221.45, 221.50 and 221.55] 222.55, 222.60 AND 222.65;
 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
 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:

 A. 1617--C                         92
 
   (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,] SUBDI-
 VISION TWO OF SECTION 222.50, SUBDIVISION TWO OF SECTION 222.55, 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 afor-
 esaid  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:
                 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

 A. 1617--C                         93
 
 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--C                         94
 
 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. Intentionally omitted.
   §  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-

 A. 1617--C                         95

 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.
   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

 A. 1617--C                         96
 
 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] CANNABIS CONTROL BOARD, 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 proceeding
 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  article,
 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 thereby as are perti-
 nent 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 officer or employee of
 the [state department of health] CANNABIS CONTROL BOARD; 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 a registered organization or other person
 under this article; nor to prohibit the delivery to a registered  organ-
 ization,  or  a duly authorized representative of such registered organ-
 ization, a certified copy of any return or report filed by  such  regis-
 tered  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 adminis-
 tration  purposes,  to  the division of the budget and the office of the
 state comptroller, of information aggregated 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, following appropriation by the legis-
 lature, pursuant to this article and section eighty-nine-h of the  state
 finance  law,  or  the  authorized  representative  of  such officer, to
 inspect any return filed under this article,  or  may  furnish  to  such
 officer  or  the  officer's authorized representative an abstract of any
 such return or supply such officer or such representative with  informa-
 tion  concerning  an  item contained in any such return, or disclosed by
 any investigation of tax liability under this article.

 A. 1617--C                         97
 
   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" SHALL HAVE THE SAME MEANING AS IN SECTION THREE OF  THE
 CANNABIS  LAW.   FOR PURPOSES OF THIS ARTICLE, CANNABIS DOES NOT INCLUDE
 MEDICAL CANNABIS OR CANNABINOID HEMP AND  HEMP  EXTRACT  AS  DEFINED  IN
 SECTION THREE OF THE CANNABIS LAW.
   (B)  "CANNABIS PRODUCT" OR "ADULT-USE CANNABIS PRODUCT" MEANS A CANNA-
 BIS PRODUCT AS DEFINED  IN  SECTION  THREE  OF  THE  CANNABIS  LAW.  FOR
 PURPOSES  OF THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNA-
 BIS PRODUCT INCLUDE  MEDICAL  CANNABIS  OR  CANNABINOID  HEMP  AND  HEMP
 EXTRACT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW.
   (C)  "PERSON"  MEANS  EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY
 COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,

 A. 1617--C                         98
 
 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.
   (D)  "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE
 CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.
   (E) "TRANSFER" MEANS  TO  GRANT,  CONVEY,  HAND  OVER,  ASSIGN,  SELL,
 EXCHANGE  OR  BARTER,  IN  ANY  MANNER  OR BY ANY MEANS, WITH OR WITHOUT
 CONSIDERATION.
   (F) "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.
   §  493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED A TAX ON THE SALE
 OR TRANSFER OF ADULT-USE CANNABIS PRODUCTS BY ANY  PERSON  TO  A  RETAIL
 DISPENSARY  AT  THE  RATE  OF EIGHTEEN PERCENT OF THE AMOUNT  CHARGED BY
 SUCH PERSON FOR  ADULT-USE CANNABIS PRODUCTS, WHICH SHALL ACCRUE AT  THE
 TIME  OF  SUCH SALE OR TRANSFER. WHERE THE RETAIL DISPENSARY IS OPERATED
 BY A PERSON LICENSED UNDER THE CANNABIS LAW AS  A  REGISTERED  ORGANIZA-
 TION,  SUCH  TAX  SHALL  BE PAID BY THE RETAIL DISPENSARY AT THE RATE OF
 EIGHTEEN PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER  AND  SHALL
 ACCRUE AT THE TIME OF SUCH SALE.
   (B)  IN  ADDITION  TO  THE  TAXES  IMPOSED  BY SUBDIVISION (A) OF THIS
 SECTION, THERE IS HEREBY IMPOSED A  TAX  ON  THE  SALE  OR  TRANSFER  OF
 ADULT-USE  CANNABIS PRODUCTS BY ANY PERSON TO A RETAIL DISPENSARY AT THE
 RATE OF ONE PERCENT OF THE  AMOUNT  CHARGED  BY  SUCH  PERSON  FOR  SUCH
 ADULT-USE CANNABIS PRODUCTS, WHICH SHALL ACCRUE AT THE TIME OF SUCH SALE
 OR  TRANSFER.  THE TAX IMPOSED BY THIS SUBDIVISION SHALL BE IN TRUST FOR
 AND ON ACCOUNT OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE,  OR
 A  COUNTY,  OTHER  THAN A COUNTY WHOLLY WITHIN SUCH A CITY, IN WHICH THE
 RETAIL DISPENSARY IS LOCATED. WHERE THE RETAIL DISPENSARY IS OPERATED BY
 A PERSON LICENSED UNDER THE CANNABIS LAW AS A  REGISTERED  ORGANIZATION,
 SUCH  TAX  SHALL  BE  PAID  BY  THE RETAIL DISPENSARY AT THE RATE OF ONE
 PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
   (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 OF
 ADULT-USE CANNABIS PRODUCTS BY ANY PERSON TO A RETAIL DISPENSARY AT  THE
 RATE  OF  THREE  PERCENT  OF  THE AMOUNT CHARGED BY SUCH PERSON FOR SUCH
 ADULT-USE CANNABIS PRODUCTS, WHICH SHALL ACCRUE AT THE TIME OF SUCH SALE
 OR TRANSFER. THE TAX IMPOSED BY THIS SUBDIVISION SHALL BE IN  TRUST  FOR
 AND ON ACCOUNT OF THE TOWN, VILLAGE, OR CITY IN WHICH THE RETAIL DISPEN-
 SARY  IS  LOCATED.  WHERE  THE RETAIL DISPENSARY IS OPERATED BY A PERSON
 LICENSED UNDER THE CANNABIS LAW AS A REGISTERED ORGANIZATION,  SUCH  TAX
 SHALL  BE  PAID BY THE RETAIL DISPENSARY AT THE RATE OF THREE PERCENT OF
 THE PRICE CHARGED TO THE RETAIL CUSTOMER.
   (D) IT SHALL BE PRESUMED THAT ALL ADULT-USE CANNABIS  PRODUCTS  WITHIN
 THE  STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
 BURDEN OF PROOF THAT THE TAXES IMPOSED BY SUBDIVISIONS (A), (B) AND  (C)
 OF  THIS  SECTION  HAVE BEEN PAID SHALL BE UPON THE PERSON IN POSSESSION
 THEREOF WHERE SUCH PERSON HOLDS ANY  LICENSE  UNDER  THE  CANNABIS  LAW.
 EVERY  PERSON  HOLDING  A  LICENSE  UNDER THE CANNABIS LAW WHO POSSESSES
 ADULT-USE CANNABIS PRODUCTS UPON WHICH SUCH TAXES  HAVE  NOT  BEEN  PAID
 SHALL  BE  LIABLE FOR THE PAYMENT OF SUCH TAXES, AND THE FAILURE OF SUCH
 PERSON TO PRODUCE TO THE COMMISSIONER OR HIS OR HER AUTHORIZED REPRESEN-
 TATIVE UPON DEMAND AN INVOICE FOR ANY ADULT-USE CANNABIS PRODUCTS IN HIS
 OR HER POSSESSION SHALL BE PRESUMPTIVE EVIDENCE THAT THE TAX THEREON HAS

 A. 1617--C                         99
 
 NOT BEEN PAID AND THAT SUCH PERSON IS LIABLE FOR THE TAX THEREON, UNLESS
 EVIDENCE OF SUCH INVOICE OR PAYMENT IS LATER PRODUCED.
   (E)  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 PERSON TO WHOM ADULT-USE
 CANNABIS PRODUCTS ARE SOLD OR TRANSFERRED, AND EVERY PERSON LICENSED  AS
 A MICROBUSINESS, COOPERATIVE OR REGISTERED ORGANIZATION UNDER THE CANNA-
 BIS LAW 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 ELEC-
 TRONICALLY, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOM-
 PANIED 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  SPECIFIED  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 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 SUSPENDED WHERE THE SUSPENSION IS IN EFFECT  ON  THE
 DATE  THE  APPLICATION  IS  FILED  OR ENDED LESS THAN ONE YEAR FROM SUCH
 DATE; (4) HAS BEEN CONVICTED OF A CRIME PROVIDED  FOR  IN  THIS  CHAPTER
 WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED OR THE
 CERTIFICATE  WAS  ISSUED  AS  APPLICABLE;  (5) WILLFULLY FAILS TO FILE A
 REPORT OR RETURN REQUIRED BY THIS ARTICLE; (6) WILLFULLY  FILES,  CAUSES
 TO  BE  FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE
 OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; OR  (7)  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

 A. 1617--C                         100
 
 CONDITIONS  AS AN INITIAL APPLICATION, INCLUDING GROUNDS FOR REFUSAL AND
 THE PAYMENT OF THE APPLICATION FEE.
   (F) ANY PERSON WHO IS REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
 UNDER  SUBDIVISION  (A) OF THIS SECTION WHO POSSESSES ADULT-USE CANNABIS
 PRODUCTS WITHOUT SUCH CERTIFICATE SHALL BE SUBJECT TO A PENALTY OF  FIVE
 HUNDRED  DOLLARS  FOR  EACH MONTH OR PART THEREOF DURING WHICH ADULT-USE
 CANNABIS PRODUCTS ARE POSSESSED WITHOUT SUCH CERTIFICATE, NOT TO  EXCEED
 TEN THOUSAND DOLLARS IN THE AGGREGATE.
   §  495.  RETURNS  AND  PAYMENT  OF  TAX. (A) 1.   EVERY PERSON TO WHOM
 ADULT-USE CANNABIS PRODUCTS ARE SOLD OR TRANSFERRED,  AND  EVERY  PERSON
 LICENSED  AS  A  MICROBUSINESS,  COOPERATIVE  OR REGISTERED ORGANIZATION
 UNDER THE CANNABIS LAW SHALL, ON OR BEFORE  THE  TWENTIETH  DAY  OF  THE
 MONTH,  FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY
 THE COMMISSIONER, THE TOTAL AMOUNT OF TAX DUE THEREON IN  THE  PRECEDING
 CALENDAR  MONTH, AND THE TOTAL AMOUNT OF TAX DUE UNDER SUBDIVISIONS (A),
 (B) AND (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE ON  ITS
 SALES  TO A RETAIL DISPENSARY DURING THE PRECEDING CALENDAR 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. EVERY PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS ARE SOLD OR TRANS-
 FERRED, AND EVERY PERSON LICENSED AS  A  MICROBUSINESS,  COOPERATIVE  OR
 REGISTERED  ORGANIZATION  UNDER THE CANNABIS LAW SHALL MAINTAIN COMPLETE
 AND ACCURATE RECORDS IN  SUCH  FORM  AS  THE  COMMISSIONER  MAY  REQUIRE
 INCLUDING,  BUT NOT LIMITED TO, SUCH ITEMS AS THE GEOGRAPHIC LOCATION OF
 EVERY RETAIL DISPENSARY TO WHICH SUCH PERSON SOLD OR TRANSFERRED  ADULT-
 USE  CANNABIS  PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY
 THE COMMISSIONER. SUCH RECORDS MUST BE PRESERVED FOR A PERIOD  OF  THREE
 YEARS  AFTER  THE  FILING OF THE RETURN TO WHICH SUCH RECORDS RELATE AND
 MUST BE PROVIDED TO THE COMMISSIONER UPON REQUEST.
   (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-

 A. 1617--C                         101
 
 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 SUBDIVISIONS (B) AND (C)
 OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST FOR AND ON
 ACCOUNT OF EACH COUNTY AND CITY HAVING A POPULATION OF  ONE  MILLION  OR
 MORE,  OTHER  THAN  A  COUNTY  WHOLLY  WITHIN SUCH A CITY, AND THE TOWN,
 VILLAGE OR CITY IN WHICH A RETAIL DISPENSARY IS LOCATED.  ON  OR  BEFORE
 THE  TWELFTH  DAY  OF  EACH MONTH, THE COMPTROLLER, AFTER RESERVING SUCH
 FUND, SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF  EACH  SUCH  COUNTY
 AND  CITY  AND  A DESIGNATED OFFICER OF SUCH TOWN OR VILLAGE OR CITY THE
 TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED BY THE COMMISSIONER
 FOR THE PRECEDING CALENDAR MONTH.
   3. IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS ARTICLE OR OTHER-
 WISE IMPOSED BY LAW: EVERY PERSON TO WHOM  ADULT-USE  CANNABIS  PRODUCTS
 ARE  SOLD  OR TRANSFERRED, AND EVERY PERSON LICENSED AS A MICROBUSINESS,
 COOPERATIVE OR REGISTERED ORGANIZATION UNDER THE CANNABIS LAW WHO  FAILS
 TO  MAINTAIN  OR MAKE AVAILABLE TO THE COMMISSIONER THE RECORDS REQUIRED
 BY THIS SECTION IS SUBJECT TO A  PENALTY  NOT  TO  EXCEED  FIVE  HUNDRED
 DOLLARS  FOR  THE  FIRST  MONTH  OR  PART  THEREOF FOR WHICH THE FAILURE
 OCCURS. THIS PENALTY MAY NOT BE IMPOSED MORE THAN ONCE FOR FAILURES  FOR
 THE  SAME MONTHLY PERIOD OR PART THEREOF. IF THE COMMISSIONER DETERMINES
 THAT A FAILURE TO MAINTAIN OR MAKE AVAILABLE RECORDS IN  ANY  MONTH  WAS
 ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
 SIONER MUST REMIT THE PENALTY FOR THAT 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-

 A. 1617--C                         102
 
 CER  OR  EMPLOYEE OF THE CANNABIS CONTROL BOARD 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
 SUBDIVISIONS (B) AND (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  OFFICER'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.

 A. 1617--C                         103
 
   §  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 cannabis control board, in consultation with the division of
 the budget, the department of taxation and finance,  the  department  of
 health,  office  of  addiction  services  and supports, office of mental
 health, New York state police  and  the  division  of  criminal  justice
 services, shall conduct a  study of the implementation 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,  the  progress  made in achieving social and economic justice
 goals, and toward eliminating the illegal market for  cannabis  products
 in  New  York.  The  board  shall  make recommendations regarding if the
 changes to level of taxation of adult-use cannabis  is  appropriate,  as
 well  as  changes,  if  any, necessary to improve and protect the public
 health and safety of New Yorkers. Such  study  shall  be  completed  two
 years after the effective date of this act and shall be presented to the
 governor,  the  temporary president 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, AS
 DEFINED IN SECTION THREE OF THE CANNABIS LAW,  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

 A. 1617--C                         104

 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. 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 work-
 place 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

 A. 1617--C                         105
 
 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. 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

 A. 1617--C                         106
 
 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 is  a  class  A  misdemeanor]
 CANNABIS SHALL BE PUNISHABLE AS PROVIDED IN SECTION 222.25 OF THIS CHAP-
 TER.
   §  48. 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 CHARGED OR PROSECUTED FOR POSSESSION OF  CANNA-
 BIS  OR  CONCENTRATED  CANNABIS  BY A PERSON UNDER THE AGE OF TWENTY-ONE
 UNDER SECTION ONE  HUNDRED  THIRTY-TWO  OF  THE  CANNABIS  LAW,  or  for
 possession of drug paraphernalia under article thirty-nine of the gener-
 al  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

 A. 1617--C                         107
 
 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.
   § 49. 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
   § 50. 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

 A. 1617--C                         108
 
 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] ADDICTION SERVICES AND SUPPORTS, 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.
   §  51.  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  TWENTY-C
 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 AND
 THE CANNABIS CONTROL BOARD FOR IMPLEMENTING, ADMINISTERING, AND  ENFORC-
 ING THE MARIHUANA REGULATION AND TAXATION ACT.
   (C)  ACTUAL  AND  NECESSARY  COSTS  INCURRED BY THE OFFICE OF CANNABIS
 MANAGEMENT AND THE CANNABIS CONTROL BOARD RELATED TO THE  ADMINISTRATION
 OF  INCUBATORS  AND  OTHER  ASSISTANCE  TO QUALIFIED SOCIAL AND ECONOMIC
 EQUITY APPLICANTS INCLUDING LOW AND ZERO INTEREST LOANS PROVIDED TO SUCH
 APPLICANTS PURSUANT TO  SECTION  SIXTEEN-EE  OF  THE  URBAN  DEVELOPMENT

 A. 1617--C                         109
 
 CORPORATION  ACT.  SUCH  COSTS  SHALL  BE PAID OUT OF REVENUES RECEIVED,
 INCLUDING, BUT NOT LIMITED TO, FROM SPECIAL ONE-TIME FEES PAID BY REGIS-
 TERED ORGANIZATIONS PURSUANT TO SECTION SIXTY-THREE OF THE CANNABIS LAW.
   (D)  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)  REASONABLE  COSTS  INCURRED  BY 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,  INCLUDING  RACE,
 ETHNICITY,  AND  GENDER, OF APPLICANTS AND LICENSE HOLDERS. THE CANNABIS
 CONTROL BOARD SHALL PUBLISH REPORTS ON ITS FINDINGS ANNUALLY  AND  SHALL
 MAKE THE REPORTS AVAILABLE TO THE PUBLIC.
   (II)  REASONABLE  COSTS INCURRED BY 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 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) REASONABLE COSTS INCURRED BY AGENCIES OF  THE  STATE,  INCLUDING
 THE  STATE UNIVERSITY OF NEW YORK TO RESEARCH AND EVALUATE THE IMPLEMEN-
 TATION AND EFFECT OF THE CANNABIS LAW. 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
 CANNABIS  LAW.  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,  BUT  NOT
 LIMITED  TO  STUDYING  THE  EFFECTIVENESS  OF THE PACKAGING AND LABELING
 REQUIREMENTS AND ADVERTISING AND MARKETING RESTRICTIONS CONTAINED IN THE
 ACT AT PREVENTING UNDERAGE ACCESS TO AND USE OF  CANNABIS  AND  CANNABIS
 PRODUCTS, AND STUDYING 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

 A. 1617--C                         110
 
 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 INTENT AND PURPOSES OF THE ACT, AND WHETHER DIFFER-
 ENT AGENCIES MIGHT DO SO MORE EFFECTIVELY; AND
   (I)  ANY  ENVIRONMENTAL  IMPACTS  AND  HAZARDS  RELATED  TO   CANNABIS
 PRODUCTION.
   (E)  REASONABLE  COSTS  INCURRED  BY  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.
   §  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
 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 ADDICTION SERVICES AND SUPPORTS AND DISBURSED, IN CONSUL-
 TATION WITH THE COMMISSIONER OF THE DEPARTMENT OF HEALTH AND THE COMMIS-
 SIONER OF EDUCATION 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
 EDIBLE CANNABIS PRODUCTS;

 A. 1617--C                         111

   (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 ADDICTION SERVICES AND SUPPORTS 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 ALCOHOLISM AND
 DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG  ABUSE  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.
   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 ADDICTION SERVICES AND SUPPORTS.
   § 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 FIFTEEN MEMBERS, INCLUDING THE CHIEF EQUITY OFFICER  OF
 THE  OFFICE  OF CANNABIS MANAGEMENT, WHO SHALL BE THE CHAIR, A REPRESEN-
 TATIVE FROM THE OFFICE OF CHILDREN AND FAMILY SERVICES,  THE  DEPARTMENT
 OF LABOR, THE DEPARTMENT OF HEALTH, THE DIVISION OF HOUSING AND COMMUNI-
 TY  RENEWAL, AND THE OFFICE OF ADDICTION SERVICES AND SUPPORTS APPOINTED
 BY THE GOVERNOR; A REPRESENTATIVE OF THE EDUCATION DEPARTMENT  APPOINTED
 BY  THE  BOARD OF REGENTS; TWO MEMBERS APPOINTED BY THE TEMPORARY PRESI-
 DENT OF THE SENATE; TWO MEMBERS APPOINTED BY THE SPEAKER OF  THE  ASSEM-
 BLY;  ONE  MEMBER  APPOINTED  BY  THE MINORITY LEADER OF THE SENATE; ONE
 MEMBER APPOINTED BY THE MINORITY LEADER  OF  THE  ASSEMBLY;  ONE  MEMBER

 A. 1617--C                         112
 
 APPOINTED  BY  THE COMPTROLLER; AND ONE MEMBER APPOINTED BY THE ATTORNEY
 GENERAL. EVERY EFFORT SHALL BE MADE TO ENSURE  A  BALANCED  AND  DIVERSE
 COMMITTEE  REPRESENTING THE REGIONS AND DEMOGRAPHICS OF THE STATE, WHICH
 SHALL  HAVE EXPERTISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAV-
 IORAL HEALTH AND SUBSTANCE USE DISORDER TREATMENT, AND EFFECTIVE REHABI-
 LITATIVE TREATMENT FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESEN-
 TATIVES OF ORGANIZATIONS SERVING COMMUNITIES IMPACTED  BY  PAST  FEDERAL
 AND STATE DRUG POLICIES.
   4.  THE  MONEYS  IN  SUCH  FUND SHALL BE ADMINISTERED BY THE OFFICE OF
 CANNABIS MANAGEMENT AND ALLOCATED BY THE EXECUTIVE STEERING COMMITTEE TO
 PROVIDE GRANTS FOR 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. SUCH GRANTS SHALL BE USED, INCLUDING BUT NOT  LIMITED  TO,  TO
 SUPPORT  JOB  PLACEMENT,  JOB  SKILLS  SERVICES, ADULT EDUCATION, MENTAL
 HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT,  HOUSING,  FINANCIAL
 LITERACY,  COMMUNITY  BANKING,  NUTRITION  SERVICES, SERVICES TO ADDRESS
 ADVERSE CHILDHOOD EXPERIENCES,  AFTERSCHOOL  AND  CHILD  CARE  SERVICES,
 SYSTEM  NAVIGATION  SERVICES,  LEGAL  SERVICES  TO  ADDRESS  BARRIERS TO
 REENTRY, INCLUDING, BUT NOT LIMITED  TO,  PROVIDING  REPRESENTATION  AND
 RELATED  ASSISTANCE  WITH  EXPUNGEMENT, VACATUR, SUBSTITUTION AND RESEN-
 TENCING OF MARIHUANA-RELATED CONVICTIONS, 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 CANNA-
 BIS LAW AND AS ESTABLISHED BY THE CANNABIS CONTROL BOARD.
   5.  ON  OR  BEFORE  THE FIRST DAY OF FEBRUARY EACH YEAR, THE OFFICE OF
 CANNABIS MANAGEMENT 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 CHILDREN AND FAMILIES, 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 AVAILABLE AND 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  OFFICE  OF
 CANNABIS MANAGEMENT.
   §  52. Paragraphs (a), (b) and (c) of subdivision 3-a of section 390-b
 of the social services law, as added by section 9 of part H  of  chapter
 56 of the laws of 2019, are amended to read as follows:
   (a)  In  relation to child day care programs and any enrolled legally-
 exempt provider, when a clearance conducted  pursuant  to  this  section
 reveals  that any existing operator, director, caregiver, or person over

 A. 1617--C                         113
 
 the age of eighteen who is not related in any way to  all  children  for
 whom child care services are or will be provided, that resides in a home
 where  child care is provided in a home setting where the child does not
 reside has been convicted of a crime other than one set forth in subpar-
 agraph  (iv)  of paragraph (a) of subdivision three of this section, AND
 UNLESS SUCH CRIME IS ELIGIBLE FOR EXPUNGEMENT PURSUANT TO SECTION 160.50
 OF THE CRIMINAL  PROCEDURE  LAW,  the  office  of  children  and  family
 services  shall  conduct a safety assessment of the program and take all
 appropriate steps to protect the health and safety of  the  children  in
 the  program,  and  may  deny,  limit,  suspend,  revoke  or reject such
 program's license or registration or terminate or reject such  program's
 enrollment,  as  applicable,  unless  the  office of children and family
 services, determines in its discretion, that continued operation by  the
 child  day  care program or enrolled legally-exempt provider will not in
 any way jeopardize the health, safety or welfare of the  children  cared
 for in the program or by the provider.
   (b)  In  relation to child day care programs and any enrolled legally-
 exempt provider, when a clearance conducted  pursuant  to  this  section
 reveals  that  any existing employee or volunteer with the potential for
 unsupervised contact with children has been convicted of a  crime  other
 than  one set forth in subparagraph (iv) of paragraph (a) of subdivision
 three of this section, AND UNLESS SUCH CRIME IS ELIGIBLE FOR EXPUNGEMENT
 PURSUANT TO SECTION 160.50 OF THE CRIMINAL PROCEDURE LAW, the office  of
 children  of  family  services  shall conduct a safety assessment of the
 program and take all appropriate steps to protect the health and  safety
 of  the  children  in  the  program.  The  office of children and family
 services may direct the program or provider to terminate the employee or
 volunteer  based  on  such  a  conviction,   consistent   with   article
 twenty-three-A of the correction law.
   (c)  (i)  In  relation to any child day care programs and any enrolled
 legally-exempt providers, where a clearance conducted pursuant  to  this
 section  reveals  a  conviction  for a crime other than one set forth in
 subparagraph (iv) of paragraph (a) of subdivision three of this section,
 AND UNLESS SUCH CRIME IS ELIGIBLE FOR EXPUNGEMENT  PURSUANT  TO  SECTION
 160.50  OF  THE  CRIMINAL PROCEDURE LAW, for any prospective employee or
 volunteer, the office of children and family services  may  direct  that
 such  person  not  be  hired, as applicable, based on such a conviction,
 consistent with article twenty-three-A of the correction law.
   (ii) In relation to any child day care program and any enrolled legal-
 ly-exempt provider, when a clearance conducted pursuant to this  section
 reveals  a  conviction  for a crime other than one set forth in subpara-
 graph (iv) of paragraph (a) of subdivision three of  this  section,  AND
 UNLESS SUCH CRIME IS ELIGIBLE FOR EXPUNGEMENT PURSUANT TO SECTION 160.50
 OF  THE  CRIMINAL  PROCEDURE  LAW, for any prospective caregiver seeking
 enrollment, or applicant to be a director or  operator,  the  office  of
 children  and  family  services  may deny the application or enrollment,
 consistent with article twenty-three-A of the correction law.
   § 53. Subparagraph 1 of paragraph (e)  of  subdivision  2  of  section
 378-a  of the social services law, as amended by section 10 of part L of
 chapter 56 of the laws of 2015, is amended to read as follows:
   (1) Notwithstanding any other provision of law  to  the  contrary,  an
 application for certification or approval of a prospective foster parent
 or  prospective  adoptive  parent  shall  be denied and, in the event of
 death or incapacity of a relative  guardian,  an  agreement  to  provide
 payments  to  a  prospective successor guardian pursuant to title ten of
 this article shall not be approved  pursuant  to  subparagraph  (ii)  of

 A. 1617--C                         114
 
 paragraph  (b) of subdivision five of section four hundred fifty-eight-b
 of this article, as applicable, where a criminal history record  of  the
 prospective  foster  parent,  prospective adoptive parent or prospective
 successor guardian, as applicable, reveals a conviction for:
   (A)  a  felony  conviction  at  any time involving: (i) child abuse or
 neglect; (ii) spousal abuse; (iii) a crime against  a  child,  including
 child  pornography;  or (iv) a crime involving violence, including rape,
 sexual assault, or homicide,  other  than  a  crime  involving  physical
 assault or battery; or
   (B)  a  felony  conviction  within  the  past  five years for physical
 assault, battery, or a drug-related  offense,  UNLESS  SUCH  OFFENSE  IS
 ELIGIBLE  FOR  EXPUNGEMENT  PURSUANT  TO  SECTION 160.50 OF THE CRIMINAL
 PROCEDURE LAW; or
   § 54. Paragraph (b) of subdivision 4 of  section  132  of  the  social
 services  law,  as  added  by section 23 of part B of chapter 436 of the
 laws of 1997, is amended to read as follows:
   (b) When the screening process  indicates  that  there  is  reason  to
 believe  that an applicant or recipient is abusing or dependent on alco-
 hol or drugs, the social services district shall require a formal  alco-
 hol or substance abuse assessment, which may include drug testing, to be
 performed by an alcohol and/or substance abuse professional credentialed
 by  the  office  of  [alcoholism and substance abuse services] ADDICTION
 SERVICES AND SUPPORTS.  PROVIDED HOWEVER, IF THE APPLICANT OR  RECIPIENT
 TESTS  POSITIVE  FOR THE PRESENCE OF CANNABIS, THE POSITIVE RESULT ALONE
 SHALL NOT BE SUFFICIENT  TO  ESTABLISH  A  DEPENDENCE  FOR  PURPOSES  OF
 REQUIRING  AN  INDIVIDUAL TO PARTICIPATE IN A TREATMENT PROGRAM PURSUANT
 TO PARAGRAPH (C) OF THIS SUBDIVISION. The assessment  may  be  performed
 directly by the district or pursuant to contract with the district.
   §  55.  Subdivision  6  of  section 422 of the social services law, as
 amended by section 7 of part D of chapter 501 of the laws  of  2012,  is
 amended to read as follows:
   6.  In  all  other  cases,  the  record of the report to the statewide
 central register shall be expunged ten years after the eighteenth birth-
 day of the youngest child named in the report. In the case of a child in
 residential care the record of  the  report  to  the  statewide  central
 register  shall  be  expunged ten years after the reported child's eigh-
 teenth birthday. In any case and at any time, the  commissioner  of  the
 office  of  children  and family services may amend any record upon good
 cause shown and notice to the subjects of the report and  other  persons
 named  in  the  report.  PROVIDED  HOWEVER,  ANY  REPORT  INDICATED  FOR
 MALTREATMENT BASED SOLELY ON THE PURCHASE, POSSESSION OR CONSUMPTION  OF
 CANNABIS,  WITHOUT  A  SHOWING  THAT  THE  CHILD'S  PHYSICAL,  MENTAL OR
 EMOTIONAL CONDITION WAS IMPAIRED OR WAS IN IMMINENT DANGER  OF  BECOMING
 IMPAIRED ESTABLISHED BY A FAIR PREPONDERANCE OF THE EVIDENCE SHALL IMME-
 DIATELY  BE  SEALED UPON A REQUEST PURSUANT TO SUBDIVISION EIGHT OF THIS
 SECTION OR SECTION FOUR HUNDRED TWENTY-FOUR-A OF THIS TITLE.
   § 56. Intentionally omitted.
   § 57. Subdivision (a) of section 712  of  the  family  court  act,  as
 amended  by  section  1  of part K of chapter 56 of the laws of 2019, is
 amended to read as follows:
   (a) "Person in need of supervision". A person less than eighteen years
 of age: (i) who does not attend school in accordance with the provisions
 of part one of article sixty-five of the  education  law;  (ii)  who  is
 incorrigible,  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;  (iii)  who  violates  the

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 provisions of[: (1) section 221.05; or (2)] SECTION 230.00 of the  penal
 law;  (iv) 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.
   § 58. Paragraph (iii) of subdivision (a) of section 1046 of the family
 court  act, as amended by chapter 984 of the laws of 1981, is amended to
 read as follows:
   (iii) proof that a person repeatedly misuses a drug or drugs or  alco-
 holic  beverages, to the extent that it has or would ordinarily have the
 effect of producing in the user thereof a substantial state  of  stupor,
 unconsciousness,  intoxication, hallucination, disorientation, or incom-
 petence, or a substantial  impairment  of  judgment,  or  a  substantial
 manifestation  of  irrationality,  shall  be prima facie evidence that a
 child of or who  is  the  legal  responsibility  of  such  person  is  a
 neglected  child  except  that  such  drug, or alcoholic beverage misuse
 shall not be prima facie evidence of neglect when such person is  volun-
 tarily  and  regularly  participating  in  a  recognized  rehabilitative
 program. PROVIDED HOWEVER, THE SOLE FACT  THAT  AN  INDIVIDUAL  CONSUMES
 CANNABIS, WITHOUT A SEPARATE FINDING THAT THE CHILD'S PHYSICAL MENTAL OR
 EMOTIONAL  CONDITION  WAS  IMPAIRED OR IS IN IMMINENT DANGER OF BECOMING
 IMPAIRED ESTABLISHED BY A FAIR PREPONDERANCE OF THE EVIDENCE  SHALL  NOT
 BE SUFFICIENT TO ESTABLISH PRIMA FACIE EVIDENCE OF NEGLECT; and
   §  59.  Section 1 of chapter 174 of the laws of 1968, constituting the
 New York state urban development corporation act, is amended by adding a
 new section 16-ee to read as follows:
   § 16-EE. LOANS TO SOCIAL AND ECONOMIC EQUITY  APPLICANTS.  THE  CORPO-
 RATION  IS  AUTHORIZED  AND DIRECTED, ON THE RECOMMENDATION OF THE STATE
 CANNABIS CONTROL BOARD, TO PROVIDE LOW INTEREST OR  ZERO-INTEREST  LOANS
 TO  QUALIFIED  SOCIAL  AND ECONOMIC EQUITY APPLICANTS AS PROVIDED FOR IN
 ARTICLE FOUR OF THE CANNABIS LAW.
   § 60. The division of state police shall, subject to available  appro-
 priations, increase the number of trained and certified drug recognition
 experts  within the state, and provide increased drug recognition aware-
 ness training under its drug  recognition  program.  The  department  of
 health  shall,  subject  to  available  appropriations, review available
 technologies approved for utilization in the recognition of drug impair-
 ment by operators of motor vehicles, with a focus on specific technology
 to recognize acute impairment as compared to habitual cannabis usage and
 submit a report on such technologies to the governor and the legislature
 by March 1, 2021.
   § 61. The commissioner of education shall, subject to available appro-
 priations, establish  a  grant  program  to  provide  awards  to  school
 districts and boards of cooperative educational services for the purpose
 of  establishing school-based programs for initiatives such as anti-vap-
 ing programs, drug prevention and awareness programs, the use of  liquid
 cannabis in vaping products, and the over-consumption of edible products
 that contain cannabis. Provided that such grants shall be awarded by the
 commissioner  of  education to applicants based on factors including but
 not limited to: (A) community and parental engagement;  (B)  the  appli-
 cant's  program  design  to meet the specific needs of students; and (C)
 proposal quality. Provided further, that such funds shall only  be  used
 to  supplement, and not supplant, current local expenditures of federal,
 state or local funds. Provided further, that no  district  or  board  of
 cooperative  educational services shall receive a grant in excess of the
 total actual grant expenditures incurred by the school district or board

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 of cooperative educational services  in  the  current  school  year,  as
 approved by the commissioner of education.
   §  62.  The  commissioner  of  the  office  of  addiction services and
 supports, in consultation  with  the  commissioner  of  health  and  the
 commissioner  of  education, shall, subject to available appropriations,
 immediately to the extent possible execute the activities  described  in
 subdivision  3  of  section  99-ii of the state finance law, as added by
 section fifty-one of this act.
   § 63. 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.
   § 64. This act shall take effect immediately; provided, however,  that
 sections  six  and  six-a of this act shall take effect six months after
 the full cannabis control board created by article two of  the  cannabis
 law  has  been appointed and provided that the governor shall notify the
 legislative bill drafting commission upon such full appointment in order
 that the commission may maintain an accurate and timely  effective  data
 base of the official text of the laws of the state of New York in furth-
 erance  of  effectuating the provisions of section 44 of the legislative
 law and section 70-b of the public officers law; provided, further  that
 the  expungement  of  marihuana  convictions under section 160.50 of the
 criminal procedure law, added by the amendment in section  seventeen  of
 this  act,  shall occur promptly and in any event no later than one year
 after the effective date  of  this  act;  and  provided,  further,  that
 sections  thirty-nine  and  forty of this act shall take effect April 1,
 2021, and shall apply on and after such date 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
 forty-seven  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 of this act shall not affect the repeal of such section and  shall
 be deemed repealed therewith.