S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1527
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 Introduced by Sens. KRUEGER, BAILEY, COMRIE, GIANARIS, HOYLMAN, MONTGOM-
   ERY,  PARKER,  RAMOS,  RIVERA,  SEPULVEDA,  SERRANO  -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Finance
 
 AN ACT to amend the public health law, in relation to the description of
   marihuana,  and the growing of and use of marihuana by persons twenty-
   one years of age or older; to amend the civil practice law and  rules,
   in  relation  to  removing certain references to marihuana relating to
   forfeiture actions; to amend the vehicle and traffic law, in  relation
   to  making technical changes regarding the definition of marihuana; to
   amend the penal law, in  relation  to  the  qualification  of  certain
   offenses involving marihuana and to exempt certain persons from prose-
   cution  for  the use, consumption, display, production or distribution
   of marihuana; to amend the public health law in relation to the  defi-
   nition  of  smoking;  to  amend the alcoholic beverage control law, in
   relation to providing for  the  licensure  of  persons  authorized  to
   produce,  process  and sell marihuana; to amend the state finance law,
   in relation to establishing the New York state marihuana revenue fund,
   the New York state drug treatment education  fund  and  the  New  York
   state  community  grants  reinvestment  fund; to amend the tax law, in
   relation to providing for the levying of  an  excise  tax  on  certain
   sales  of  marihuana;  to  amend the criminal procedure law, the civil
   practice law and rules, the general business law,  the  state  finance
   law,  the  executive  law, the penal law, the vehicle and traffic law,
   and the family court act in relation to making conforming changes;  to
   amend  the  alcoholic  beverage control law, in relation to alcohol or
   substance use disorder training awareness programs; to amend the state
   finance law, in relation to a revolving loan fund; to repeal  sections
   221.05,  221.10,  221.15, 221.20, 221.25, 221.30, 221.35 and 221.40 of
   the penal law relating to the criminal possession and sale of marihua-
   na; to repeal paragraph (f) of subdivision 2 of  section  850  of  the
   general business law relating to drug related paraphernalia; to repeal
   section  150.75  of  the criminal procedure law relating to appearance
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07592-01-9

 S. 1527                             2
 
   tickets for certain marihuana offenses; and  making  an  appropriation
   therefor
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "marihuana
 regulation and taxation act".
   §  2.  Legislative  findings  and intent.   The legislature finds that
 existing marihuana laws have not been beneficial to the welfare  of  the
 general public. Existing laws have been ineffective in reducing or curb-
 ing  marihuana  use  and have instead resulted in devastating collateral
 consequences that inhibit an otherwise law-abiding citizen's ability  to
 access  housing,  employment  opportunities,  and  other vital services.
 Existing laws have also created an illicit  market  which  represents  a
 threat  to  public  health and reduces the ability of the legislature to
 deter the accessing of marihuana by minors. Existing marihuana laws have
 also disproportionately impacted African-American  and  Latino  communi-
 ties.
   The intent of this act is to regulate, control, and tax marihuana in a
 manner  similar to alcohol, generate millions of dollars in new revenue,
 prevent access to marihuana by those under the age of twenty-one  years,
 reduce  the illegal drug market and reduce violent crime, reduce partic-
 ipation of otherwise law-abiding citizens in the illicit market, end the
 racially disparate impact of existing  marihuana  laws  and  create  new
 industries and increase employment.
   Nothing in this act is intended to limit the authority of any district
 government  agency  or office or employers to enact and enforce policies
 pertaining to marihuana in the workplace, to  allow  driving  under  the
 influence  of  marihuana, to allow individuals to engage in conduct that
 endangers others, to allow smoking marihuana in any location where smok-
 ing tobacco is prohibited, or to require any individual to engage in any
 conduct that violates federal law or to exempt anyone from any  require-
 ment  of  federal law or pose any obstacle to the federal enforcement of
 federal law.
   Nothing in this act is intended to limit any privileges or rights of a
 medical marihuana patient or medical marihuana caregiver under  the  New
 York Compassionate Care Act.
   It  is  the intent of this act that no child shall be the subject of a
 child neglect or abuse investigation or proceeding  based  solely  on  a
 parent's alleged use of marihuana. A newborn child's positive toxicology
 result  for marihuana, is not sufficient on its own to support a finding
 of child neglect or abuse. Enactment of this act  shall  provide  suffi-
 cient  basis for New York state to favorably resolve open investigations
 and to amend and seal individuals' family court records and  records  of
 indicated  child  abuse  or  neglect  reports currently in the statewide
 central register of child abuse and maltreatment based solely on the use
 of marihuana or where the reporter of suspected abuse or neglect  was  a
 law  enforcement  agency or staff person and the report was based solely
 upon the presence of a child during a marihuana-related arrest.
   § 3. Section 3302 of the public health law, as added by chapter 878 of
 the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
 subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39

 S. 1527                             3
 
 and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
 subdivision 20, the opening paragraph of subdivision 22 and  subdivision
 29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
 vision  41 as added by section 6 of part A of chapter 447 of the laws of
 2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   §  3302.  Definitions  of terms of general use in this article. Except
 where  different  meanings  are  expressly   specified   in   subsequent
 provisions of this article, the following terms have the following mean-
 ings:
   1.  "Addict" means a person who habitually uses a controlled substance
 for a non-legitimate or unlawful use, and who by reason of such  use  is
 dependent thereon.
   2.   "Administer"   means  the  direct  application  of  a  controlled
 substance, whether by injection, inhalation,  ingestion,  or  any  other
 means, to the body of a patient or research subject.
   3.  "Agent" means an authorized person who acts on behalf of or at the
 direction of a manufacturer, distributor, or dispenser. No person may be
 authorized to so act if under title  VIII  of  the  education  law  such
 person  would  not  be  permitted to engage in such conduct. It does not
 include a common or contract carrier, public warehouseman,  or  employee
 of  the  carrier  or  warehouseman  when  acting in the usual and lawful
 course of the carrier's or warehouseman's business.
   4. ["Concentrated Cannabis" means
   (a) the separated resin, whether crude or purified,  obtained  from  a
 plant of the genus Cannabis; or
   (b)  a  material,  preparation,  mixture,  compound or other substance
 which contains more than two and one-half percent by weight  of  delta-9
 tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
 terpene numbering system.
   5.] "Controlled substance" means a substance or substances  listed  in
 section thirty-three hundred six of this [chapter] TITLE.
   [6.]  5.  "Commissioner"  means commissioner of health of the state of
 New York.
   [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
 attempted transfer from one person to another of a controlled substance,
 whether or not there is an agency relationship.
   [8.]  7.  "Department"  means the department of health of the state of
 New York.
   [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
 mate user or research subject by lawful means, including by means of the
 internet, and includes the packaging, labeling, or compounding necessary
 to prepare the substance for such delivery.
   [10.] 9. "Distribute" means to deliver a controlled substance, includ-
 ing by means of the internet, other than by administering or dispensing.
   [11.] 10. "Distributor" means a person who  distributes  a  controlled
 substance.
   [12.]  11.  "Diversion" means manufacture, possession, delivery or use
 of a controlled substance by a person or in a  manner  not  specifically
 authorized by law.
   [13.] 12. "Drug" means
   (a) 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;

 S. 1527                             4
 
   (b) substances intended for use in the  diagnosis,  cure,  mitigation,
 treatment, or prevention of disease in man or animals; and
   (c) substances (other than food) intended to affect the structure or a
 function  of  the  body of man or animal. It does not include devices or
 their components, parts, or accessories.
   [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
 United States Department of Justice, or its successor agency.
   [15.]  14. "Federal controlled substances act" means the Comprehensive
 Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
 any  act  or  acts  amendatory  or  supplemental  thereto or regulations
 promulgated thereunder.
   [16.] 15. "Federal registration number" means such number assigned  by
 the  Federal agency to any person authorized to manufacture, distribute,
 sell, dispense or administer controlled substances.
   [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
 repeated  use of any controlled substance for non-legitimate or unlawful
 use is in danger of becoming, dependent upon such substance.
   [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
 hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental
 hospital or similar facility approved and certified by the department as
 authorized to  obtain  controlled  substances  by  distribution  and  to
 dispense and administer such substances pursuant to the order of a prac-
 titioner.
   [19.]  18.  "License"  means  a  written  authorization  issued by the
 department or the New York  state  department  of  education  permitting
 persons  to  engage  in  a specified activity with respect to controlled
 substances.
   [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
 gation,   compounding,   cultivation,  conversion  or  processing  of  a
 controlled substance, either directly or  indirectly  or  by  extraction
 from substances of natural origin, or independently by means of chemical
 synthesis, or by a combination of extraction and chemical synthesis, and
 includes  any  packaging  or repackaging of the substance or labeling or
 relabeling of its container, except that this term does not include  the
 preparation,   compounding,   packaging  or  labeling  of  a  controlled
 substance:
   (a) by a practitioner as an incident to his administering or  dispens-
 ing  of  a  controlled substance in the course of his professional prac-
 tice; or
   (b) by a practitioner, or by his authorized  agent  under  his  super-
 vision, for the purpose of, or as an incident to, research, teaching, or
 chemical analysis and not for sale; or
   (c)  by  a pharmacist as an incident to his dispensing of a controlled
 substance in the course of his professional practice.
   [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
 whether  growing or not; the seeds thereof; the resin extracted from any
 part of the plant; and every compound,  manufacture,  salt,  derivative,
 mixture,  or  preparation  of the plant, its seeds or resin. It does not
 include the mature stalks of the plant, fiber produced from the  stalks,
 oil  or cake made from the seeds of the plant, any other compound, manu-
 facture, salt, derivative, mixture, or preparation of the mature  stalks
 (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
 sterilized seed of the plant which is incapable of germination.
   22.] 20. "Narcotic drug" means any of the following, whether  produced
 directly  or  indirectly  by  extraction  from  substances  of vegetable

 S. 1527                             5
 
 origin, or independently by means of chemical synthesis, or by a  combi-
 nation of extraction and chemical synthesis:
   (a)  opium and opiate, and any salt, compound, derivative, or prepara-
 tion of opium or opiate;
   (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
 which  is  chemically equivalent or identical with any of the substances
 referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
 including the isoquinoline alkaloids of opium;
   (c) opium poppy and poppy straw.
   [23.]  21. "Opiate" means any substance having an addiction-forming or
 addiction-sustaining liability similar to morphine or being  capable  of
 conversion  into a drug having addiction-forming or addiction-sustaining
 liability. It  does  not  include,  unless  specifically  designated  as
 controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
 cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
 its salts (dextromethorphan). It does include its racemic and  levorota-
 tory forms.
   [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
 somniferum L., except its seeds.
   [25.] 23. "Person" means individual, institution, corporation, govern-
 ment or governmental subdivision  or  agency,  business  trust,  estate,
 trust, partnership or association, or any other legal entity.
   [26.]  24. "Pharmacist" means any person licensed by the state depart-
 ment of education to practice pharmacy.
   [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
 York  state  board  of  pharmacy  and registered with the Federal agency
 pursuant to the federal controlled substances act.
   [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
 opium poppy, after mowing.
   [29.] 27. "Practitioner" means:
   A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
 gator, or other person licensed, or  otherwise  permitted  to  dispense,
 administer or conduct research with respect to a controlled substance in
 the  course  of  a  licensed  professional practice or research licensed
 pursuant to this article. Such person shall be deemed  a  "practitioner"
 only  as  to such substances, or conduct relating to such substances, as
 is permitted by his license, permit or otherwise permitted by law.
   [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
 prescription,  permitting an ultimate user lawfully to obtain controlled
 substances  from  any  person  authorized  by  law  to   dispense   such
 substances.
   [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
 prescription, an electronic prescription, an oral prescription[,] OR  an
 out-of-state prescription[, or any one].
   [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
 er, or offer or agree to do the same.
   [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
 possesses a controlled substance for his own use or the use by a  member
 of  his  household  or  for an animal owned by him or in his custody. It
 shall also mean and include a person designated, by a practitioner on  a
 prescription, to obtain such substance on behalf of the patient for whom
 such substance is intended.
   [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
 cations facilities which comprise the worldwide network of networks that
 employ a set of industry standards and protocols, or any predecessor  or
 successor  protocol  to  such  protocol,  to exchange information of all

 S. 1527                             6
 
 kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
 networks,  whether  private  or  public, used to transmit information by
 electronic means.
   [35.]  33.  "By  means  of  the  internet"  means  any sale, delivery,
 distribution, or dispensing of a  controlled  substance  that  uses  the
 internet,  is initiated by use of the internet or causes the internet to
 be used.
   [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
 in the United States that sells, delivers or  dispenses,  or  offers  to
 sell,  deliver,  or  dispense,  a  controlled  substance by means of the
 internet.
   [37.] 35. "Electronic prescription" means a prescription  issued  with
 an  electronic  signature and transmitted by electronic means in accord-
 ance with regulations of the commissioner and the commissioner of educa-
 tion and consistent with federal requirements. A prescription  generated
 on an electronic system that is printed out or transmitted via facsimile
 is  not  considered  an  electronic  prescription  and  must be manually
 signed.
   [38.] 36. "Electronic" means of or relating to technology having elec-
 trical, digital, magnetic, wireless, optical, electromagnetic or similar
 capabilities. "Electronic" shall not include facsimile.
   [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
 created,  generated,  transmitted,  communicated,  received or stored by
 means of electronic equipment and includes the preservation,  retrieval,
 use  and  disposition in accordance with regulations of the commissioner
 and the commissioner of education and in compliance with federal law and
 regulations.
   [40.] 38. "Electronic signature" means an electronic sound, symbol, or
 process, attached to or logically associated with an  electronic  record
 and  executed or adopted by a person with the intent to sign the record,
 in accordance with regulations of the commissioner and the  commissioner
 of education.
   [41.]  39.  "Registry"  or  "prescription monitoring program registry"
 means the prescription monitoring program registry established  pursuant
 to section thirty-three hundred forty-three-a of this article.
   [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
 ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
 drug  substance to create a drug with respect to an outsourcing facility
 under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
 further defined in this section.
   [43.] 41. "Outsourcing facility" means a facility that:
   (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
 section sixty-eight hundred two of the education law;
   (b) is currently registered as an  outsourcing  facility  pursuant  to
 article one hundred thirty-seven of the education law; and
   (c)  complies  with  all  applicable requirements of federal and state
 law, including the Federal Food, Drug and Cosmetic Act.
   Notwithstanding any other provision of law to the  contrary,  when  an
 outsourcing  facility  distributes  or  dispenses any drug to any person
 pursuant to a prescription, such outsourcing facility shall be deemed to
 be providing pharmacy services and shall be subject to all  laws,  rules
 and regulations governing pharmacies and pharmacy services.
   §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
 26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
 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

 S. 1527                             7
 
 1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
 laws of 2006, are amended to read as follows:
   (13) [Marihuana.
   (14)] Mescaline.
   [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
   [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
 fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
 not, the seeds thereof, any extract from any part  of  such  plant,  and
 every  compound, manufacture, salts, derivative, mixture, or preparation
 of such plant, its seeds or extracts.
   [(17)] (16) N-ethyl-3-piperidyl benzilate.
   [(18)] (17) N-methyl-3-piperidyl benzilate.
   [(19)] (18) Psilocybin.
   [(20)] (19) Psilocyn.
   [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
 DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
 contained  in the plant, or in the resinous extractives of cannabis, sp.
 and/or synthetic substances, derivatives, and their isomers with similar
 chemical structure and pharmacological activity such as the following:
   [/\] DELTA 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
 isomers
   [/\]  DELTA  6  cis  or  trans tetrahydrocannabinol, and their optical
 isomers
   [/\] DELTA 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
 isomers  (since  nomenclature of these substances is not internationally
 standardized, compounds of these  structures,  regardless  of  numerical
 designation of atomic positions covered).
   [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
 names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
   [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
   [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
 names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
 phencyclidine, TPCP, TCP.
   [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
   [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
 N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
 MDE, MDEA.
   [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
 N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
 N-hydroxy MDA.
   [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
 names: TCPY.
   [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
 etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
 3- (2-aminobutyl) indole; Alpha-ET or AET.
   [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
 names: DOET.
   [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
 names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
 DOB; 2C-B, Nexus.
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.

 S. 1527                             8

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

 S. 1527                             9
 
 that written notice of judgment or order, including the terms  of  such,
 has  been  given to the office of victim services, the state division of
 criminal justice services[, and in the case of a forfeiture based  on  a
 felony defined in article two hundred twenty or section 221.30 or 221.55
 of the penal law, to the state division of substance abuse services].
   §  7.  Subdivision  1  of  section 3397-b of the public health law, as
 added by chapter 810 of the laws of 1980, is amended to read as follows:
   1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in
 [section thirty-three hundred two of this chapter]  SUBDIVISION  SIX  OF
 SECTION  220.00 OF THE PENAL LAW and shall also include tetrahydrocanna-
 binols or a chemical derivative of tetrahydrocannabinol.
   § 8. Section 114-a of the vehicle and traffic law, as added by chapter
 163 of the laws of 1973, is amended to read as follows:
   § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
 includes any substance listed in section thirty-three hundred six of the
 public  health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED IN
 SECTION 220.00 OF THE PENAL LAW.
   § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
 6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
 amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
 subdivisions 21 and 22 are added to read as follows:
   5.  "Controlled  substance"  means any substance listed in schedule I,
 II, III, IV or V of section  thirty-three  hundred  six  of  the  public
 health  law other than marihuana, but including concentrated cannabis as
 defined in [paragraph (a) of subdivision four  of  section  thirty-three
 hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
   6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
 terms are defined in section thirty-three  hundred  two  of  the  public
 health  law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROW-
 ING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF  THE
 PLANT;  AND  EVERY  COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR
 PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT  INCLUDE  THE
 MATURE  STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE
 MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT,
 DERIVATIVE, MIXTURE, OR PREPARATION OF THE  MATURE  STALKS  (EXCEPT  THE
 RESIN  EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED SEED
 OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE  ALL
 PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
 MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
   9.  "Hallucinogen"  means any controlled substance listed in [schedule
 I(d)] PARAGRAPHS (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
 (19),  (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION THIRTY-
 THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
   21. "CONCENTRATED CANNABIS" MEANS:
   (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED,  OBTAINED  FROM  A
 PLANT OF THE GENUS CANNABIS; OR
   (B)  A  MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND OR OTHER SUBSTANCE
 WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9  TETRAHYDRO-
 CANNABINOL,  OR  ITS  ISOMER,  DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR
 DELTA-1 TETRAHYDROCANNABINOL OR ITS  ISOMER,  DELTA  1  (6)  MONOTERPENE
 NUMBERING SYSTEM.
   22.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS CONTAINING CONCENTRATED MARIHUANA OR CANNABIS
 AND OTHER INGREDIENTS.

 S. 1527                            10

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

 S. 1527                            11
 
   1.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE FOLLOWING
 ACTS ARE LAWFUL UNDER STATE AND LOCAL LAW FOR PERSONS  TWENTY-ONE  YEARS
 OF AGE AND OLDER:
   (A) POSSESSING, USING, BEING UNDER THE INFLUENCE, DISPLAYING, PURCHAS-
 ING,  OBTAINING,  OR TRANSPORTING UP TO TWO POUNDS OF MARIHUANA AND FOUR
 AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS;
   (B) TRANSFERRING, WITHOUT REMUNERATION, TO A PERSON  TWENTY-ONE  YEARS
 OF  AGE  AND  OLDER  UP TO TWO POUNDS OF MARIHUANA AND FOUR AND ONE-HALF
 OUNCES OF CONCENTRATED CANNABIS;
   (C) POSSESSING, PLANTING, CULTIVATING, HARVESTING, DRYING,  PROCESSING
 OR TRANSPORTING NOT MORE THAN SIX LIVING MARIHUANA PLANTS AND POSSESSING
 THE MARIHUANA AND CONCENTRATED CANNABIS PRODUCED BY THE PLANTS;
   (D) SMOKING, INGESTING OR OTHERWISE CONSUMING MARIHUANA PRODUCTS;
   (E)  POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR-
 ING, TRANSPORTING OR GIVING AWAY TO PERSONS TWENTY-ONE YEARS OF AGE  AND
 OLDER MARIHUANA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
   (F)  ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE AND OLDER
 OR ALLOW PROPERTY TO BE USED IN ANY OF THE ACTS DESCRIBED IN  PARAGRAPHS
 (A) THROUGH (E) OF THIS SUBDIVISION.
   2.  PARAGRAPH  (E)  OF  SUBDIVISION ONE OF THIS SECTION IS INTENDED TO
 MEET THE REQUIREMENTS OF SUBSECTION (F) OF SECTION 863 OF TITLE  TWENTY-
 ONE  OF  THE  UNITED  STATES  CODE (21 U.S.C. § 863 (F)) BY AUTHORIZING,
 UNDER STATE LAW, ANY PERSON IN COMPLIANCE WITH THIS SECTION TO  MANUFAC-
 TURE, POSSESS, OR DISTRIBUTE MARIHUANA PARAPHERNALIA.
   3.  MARIHUANA  PRODUCTS INVOLVED IN ANY WAY WITH CONDUCT DEEMED LAWFUL
 BY THIS SECTION ARE NOT CONTRABAND NOR SUBJECT TO SEIZURE OR  FORFEITURE
 OF  ASSETS  UNDER  ARTICLE  FOUR HUNDRED EIGHTY OF THIS CHAPTER, SECTION
 THIRTEEN HUNDRED ELEVEN OF THE CIVIL PRACTICE LAW AND  RULES,  OR  OTHER
 APPLICABLE  LAW,  AND  NO  CONDUCT  DEEMED  LAWFUL BY THIS SECTION SHALL
 CONSTITUTE THE BASIS  FOR  APPROACH,  SEARCH,  SEIZURE,  ARREST,  AND/OR
 DETENTION.
   4. (A) EXCEPT AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, NONE OF
 THE  FOLLOWING  SHALL,  INDIVIDUALLY  OR IN COMBINATION WITH EACH OTHER,
 CONSTITUTE REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE IN ANY
 CRIMINAL PROCEEDING:
   (1) THE ODOR OF MARIHUANA OR OF BURNT MARIHUANA;
   (2) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  MARIHUANA
 PRODUCTS;
   (3)  THE  POSSESSION  OF  MULTIPLE  CONTAINERS  OF  MARIHUANA  WITHOUT
 EVIDENCE OF MARIHUANA QUANTITY IN EXCESS OF SIXTEEN  OUNCES  OR  CONCEN-
 TRATED CANNABIS QUANTITY IN EXCESS OF FOUR AND ONE-HALF OUNCES; OR
   (4) THE PRESENCE OF CASH OR CURRENCY CANNOT BE USED AS EVIDENCE IN ANY
 CASES INVOLVING UNLICENSED SALE OF MARIHUANA.
   (B)  THE  POSSESSION  OF  NOT MORE THAN TWO POUNDS OF MARIHUANA OR NOT
 MORE THAN FOUR AND ONE-HALF OUNCES OF CONCENTRATED  CANNABIS  CANNOT  BE
 USED AS EVIDENCE IN ANY CASES INVOLVING UNLICENSED SALE OF MARIHUANA.
   5.  SUBDIVISION  FOUR  OF  THIS  SECTION  SHALL  NOT  APPLY WHEN A LAW
 ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON IS OPERATING OR IN
 PHYSICAL CONTROL OF A VEHICLE OR WATERCRAFT WHILE INTOXICATED, UNDER THE
 INFLUENCE OF, OR IMPAIRED BY ALCOHOL OR A DRUG OR ANY COMBINATION THERE-
 OF IN VIOLATION OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE  AND
 TRAFFIC LAW.
   6. POSSESSION OF GREATER THAN TWO POUNDS OF MARIHUANA AND GREATER THAN
 FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS IS A VIOLATION PUNISH-
 ABLE  BY  A  FINE  OF  NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER
 OFFENSE.

 S. 1527                            12
 
 § 221.05-A PERSONAL CULTIVATION OF MARIHUANA.
   1.  PERSONAL  CULTIVATION OF MARIHUANA UNDER PARAGRAPH (C) OF SUBDIVI-
 SION ONE OF SECTION 221.05 OF THIS ARTICLE IS SUBJECT TO  THE  FOLLOWING
 RESTRICTIONS:
   (A)  A  PERSON SHALL PLANT, CULTIVATE, HARVEST, DRY, OR PROCESS PLANTS
 IN ACCORDANCE WITH LOCAL ORDINANCES, IF ANY, ADOPTED IN ACCORDANCE  WITH
 SUBDIVISION TWO OF THIS SECTION;
   (B)  THE  LIVING  PLANTS  AND  ANY MARIHUANA PRODUCED BY THE PLANTS IN
 EXCESS OF TWO POUNDS ARE KEPT WITHIN THE PERSON'S PRIVATE RESIDENCE,  OR
 UPON  THE  GROUNDS OF THAT PRIVATE RESIDENCE (E.G., IN AN OUTDOOR GARDEN
 AREA), ARE IN A LOCKED SPACE, AND ARE  NOT  VISIBLE  BY  NORMAL  UNAIDED
 VISION FROM A PUBLIC PLACE; AND
   (C)  NOT  MORE  THAN  SIX  LIVING  PLANTS  MAY BE PLANTED, CULTIVATED,
 HARVESTED, DRIED, OR PROCESSED WITHIN A  SINGLE  PRIVATE  RESIDENCE,  OR
 UPON THE GROUNDS OF THAT PRIVATE RESIDENCE, AT ONE TIME.
   2.  (A) A TOWN, CITY OR VILLAGE MAY ENACT AND ENFORCE REASONABLE REGU-
 LATIONS TO REASONABLY REGULATE THE ACTIONS AND CONDUCT IN PARAGRAPH  (C)
 OF  SUBDIVISION  ONE  OF SECTION 221.05 OF THIS ARTICLE, PROVIDED THAT A
 VIOLATION OF SUCH A REGULATION IS ONLY  SUBJECT  TO  AN  INFRACTION  AND
 FINE.
   (B)  NOTWITHSTANDING  PARAGRAPH (A) OF THIS SUBDIVISION, NO TOWN, CITY
 OR VILLAGE MAY COMPLETELY PROHIBIT PERSONS ENGAGING IN THE  ACTIONS  AND
 CONDUCT UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS
 ARTICLE.
   3.  A  VIOLATION  OF  SUBDIVISION  ONE  OR  TWO  OF  THIS SECTION IS A
 VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED  TWENTY-FIVE
 DOLLARS PER OFFENSE.
   §  16.  Section  221.45 of the penal law, as amended by chapter 265 of
 the laws of 1979, the opening paragraph as amended by chapter 75 of  the
 laws of 1995, is amended to read as follows:
 § 221.45 [Criminal] UNLICENSED sale of marihuana in the third degree.
   A  person  is guilty of [criminal] UNLICENSED sale of marihuana in the
 third degree when he knowingly and unlawfully sells [one or more  prepa-
 rations,  compounds, mixtures or substances containing marihuana and the
 preparations, compounds, mixtures or  substances  are  of  an  aggregate
 weight  of  more than twenty-five grams] WITH REMUNERATION NOT MORE THAN
 TWO POUNDS OF MARIHUANA OR NOT MORE THAN FOUR  AND  ONE-HALF  OUNCES  OF
 CONCENTRATED  CANNABIS, NOT INCLUDING THE WEIGHT OF ANY OTHER INGREDIENT
 COMBINED WITH MARIHUANA TO  PREPARE  TOPICAL  OR  ORAL  ADMINISTRATIONS,
 FOOD, DRINK, OR OTHER PRODUCT.
   [Criminal]  UNLICENSED  sale  of  marihuana  in the third degree is [a
 class E felony] SUBJECT TO THE FOLLOWING:
   1. A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
 TY-FIVE DOLLARS, FOR A FIRST OFFENSE;
   2. A VIOLATION PUBLISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
 FIFTY DOLLARS FOR A SECOND OFFENSE;
   3.  A  CLASS  B  MISDEMEANOR  AND A FINE OF NOT MORE THAN FIVE HUNDRED
 DOLLARS FOR A THIRD OR SUBSEQUENT OFFENSE.
   § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
 the  laws of 1979, the opening paragraph as amended by chapter 75 of the
 laws of 1995, is amended to read as follows:
 § 221.50 [Criminal] UNLICENSED sale of marihuana in the second degree.
   A person TWENTY-ONE YEARS OF AGE AND OLDER  is  guilty  of  [criminal]
 UNLICENSED  sale of marihuana in the second degree when he knowingly and
 unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
 substances   containing   marihuana  and  the  preparations,  compounds,

 S. 1527                            13
 
 mixtures or substances are of an aggregate  weight  of  more  than  four
 ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
 compounds, mixtures [or substances containing  marihuana]  to  a  person
 less than [eighteen] TWENTY-ONE years of age.
   [Criminal]  UNLICENSED  sale  of  marihuana  in the second degree is a
 class [D] E felony.
   § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
 the  laws of 1979, the opening paragraph as amended by chapter 75 of the
 laws of 1995, is amended to read as follows:
 § 221.55 [Criminal] UNLICENSED sale of marihuana in the first degree.
   A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
 first  degree  when  he  knowingly and unlawfully sells TO A PERSON LESS
 THAN TWENTY-ONE YEARS  OF  AGE  one  or  more  preparations,  compounds,
 mixtures  or  substances  containing  marihuana  and  the  preparations,
 compounds, mixtures or substances are of an  aggregate  weight  of  more
 than sixteen ounces.
   [Criminal] UNLICENSED sale of marihuana in the first degree is a class
 [C] E felony.
   §  19. The penal law is amended by adding a new section 221.60 to read
 as follows:
 § 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION.
   THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO  HUNDRED  TWENTY  OF
 THIS  TITLE  SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL-
 TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING,  MANUFAC-
 TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR
 CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
 ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
   §  20.  Subdivision  8  of section 1399-n of the public health law, as
 amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
 follows:
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter or  substance  which  contains  tobacco  OR  MARIHUANA;
 PROVIDED  THAT  IT  DOES  NOT  INCLUDE  THE USE OF AN ELECTRONIC SMOKING
 DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE  STATUTES
 EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   §  21.  Section 2 of the alcoholic beverage control law, as amended by
 chapter 406 of the laws of 2014, is amended to read as follows:
   § 2. Policy of state and purpose of chapter. It is hereby declared  as
 the policy of the state that it is necessary to regulate and control the
 manufacture,  sale and distribution within the state of alcoholic bever-
 ages AND MARIHUANA PRODUCTS for the purpose of fostering  and  promoting
 temperance  in  their  consumption and respect for and obedience to law;
 for the primary purpose of promoting the health, welfare and  safety  of
 the  people  of  the  state,  promoting temperance in the consumption of
 alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible,
 supporting economic growth, job development, and the  state's  alcoholic
 beverage  production industries, MARIHUANA PRODUCTION INDUSTRIES and its
 tourism and recreation industry; and which promotes the conservation and
 enhancement of state agricultural lands; provided that  such  activities
 do  not conflict with the primary regulatory objectives of this chapter.
 It is hereby declared that such policies will best  be  carried  out  by
 empowering the liquor authority of the state to determine whether public
 convenience  and  advantage will be promoted by the issuance of licenses
 to traffic in alcoholic beverages AND MARIHUANA PRODUCTS,  the  increase
 or  decrease in the number thereof and the location of premises licensed
 thereby, subject only to the right of judicial review  provided  for  in

 S. 1527                            14
 
 this chapter. It is the purpose of this chapter to carry out these poli-
 cies in the public interest.
   §  22.  Subdivisions  20-a,  20-b, 20-c, 20-d, 20-e, 20-f, and 20-g of
 section 3 of the alcoholic beverage control law are renumbered  subdivi-
 sions  20-j, 20-k, 20-l, 20-m, 20-n, 20-o, and 20-p and ten new subdivi-
 sions 7-e, 20-a, 20-b, 20-c, 20-d, 20-e, 20-f, 20-g, 20-h and  20-i  are
 added to read as follows:
   7-E.  "CONCENTRATED  CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
 CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR
   (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
 WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
 CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
 DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
 NUMBERING SYSTEM.
   20-A. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
 INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
 OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
 FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
 (EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
 STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
 NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   20-B. "MARIHUANA CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF  AGE  OR
 OLDER  WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY
 PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
   20-C. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY THE  BUREAU  TO
 PURCHASE  MARIHUANA  AND CONCENTRATED CANNABIS FROM MARIHUANA PRODUCERS,
 TO PROCESS  MARIHUANA,  CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED
 PRODUCTS,  PACKAGE  AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND MARI-
 HUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND  SELL  MARIHUANA,
 CONCENTRATED  CANNABIS  AND  MARIHUANA  INFUSED PRODUCTS AT WHOLESALE TO
 MARIHUANA RETAILERS.
   20-D. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY  THE  BUREAU  TO
 PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE-
 SALE  TO  MARIHUANA  PROCESSORS, MARIHUANA RETAILERS, OR OTHER MARIHUANA
 PRODUCERS, BUT NOT TO CONSUMERS.
   20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS.
   20-F. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT  CONTAIN  MARI-
 HUANA,  OR  CONCENTRATED  CANNABIS  AND  ARE  INTENDED  FOR HUMAN USE OR
 CONSUMPTION, SUCH AS, BUT NOT LIMITED TO,  EDIBLE  PRODUCTS,  OINTMENTS,
 AND TINCTURES.
   20-G.  "MARIHUANA  RETAILER"  MEANS A PERSON LICENSED BY THE BUREAU TO
 PURCHASE  MARIHUANA,  CONCENTRATED   CANNABIS,   AND   MARIHUANA-INFUSED
 PRODUCTS  FROM  MARIHUANA  PRODUCERS  AND  MARIHUANA PROCESSORS AND SELL
 MARIHUANA, MARIHUANA INFUSED PRODUCTS, AND CONCENTRATED  CANNABIS  IN  A
 RETAIL OUTLET.
   20-H.  "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
 LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA INFUSED PRODUCTS FROM MARIHUANA PRODUCERS,  MARIHUANA  RETAIL-
 ERS, AND MARIHUANA PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A CUSTOMER
 TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY.

 S. 1527                            15
 
   20-I.  "UNREASONABLY  IMPRACTICABLE" MEANS THAT THE MEASURES NECESSARY
 TO COMPLY WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT  OF  RISK,
 MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA
 ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT
 BUSINESSPERSON.
   §  23.  Section 65-b of the alcoholic beverage control law, as amended
 by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
 sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
 paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
 2000, is amended to read as follows:
   §  65-b.  Offense for one under age of twenty-one years to purchase or
 attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS  through
 fraudulent  means. 1.  As used in this section: (a) "A device capable of
 deciphering any electronically readable format" or "device"  shall  mean
 any  commercial device or combination of devices used at a point of sale
 or entry that is capable of  reading  the  information  encoded  on  the
 magnetic strip or bar code of a driver's license or non-driver identifi-
 cation card issued by the commissioner of motor vehicles;
   (b)  "Card  holder"  means any person presenting a driver's license or
 non-driver identification card to a licensee, or to the agent or employ-
 ee of such licensee under this chapter; and
   (c) "Transaction scan" means the process involving a device capable of
 deciphering any electronically readable format by which a  licensee,  or
 agent  or  employee  of a licensee under this chapter reviews a driver's
 license or non-driver identification card presented  as  a  precondition
 for  the  purchase  of  an  alcoholic  beverage OR MARIHUANA PRODUCTS as
 required by subdivision two of this section or  as  a  precondition  for
 admission to an establishment licensed for the on-premises sale of alco-
 holic  beverages  OR MARIHUANA PRODUCTS where admission is restricted to
 persons twenty-one years or older.
   2. (a) No person under the age of twenty-one years  shall  present  or
 offer to any licensee under this chapter, or to the agent or employee of
 such licensee, any written evidence of age which is false, fraudulent or
 not actually his OR HER own, for the purpose of purchasing or attempting
 to purchase any alcoholic beverage OR MARIHUANA PRODUCTS.
   (b) No licensee, or agent or employee of such licensee shall accept as
 written evidence of age by any such person for the purchase of any alco-
 holic  beverage OR MARIHUANA PRODUCTS, any documentation other than: (i)
 a valid driver's license or non-driver identification card issued by the
 commissioner of motor  vehicles,  the  federal  government,  any  United
 States  territory, commonwealth or possession, the District of Columbia,
 a state government within the United States or a  provincial  government
 of the dominion of Canada, or (ii) a valid passport issued by the United
 States  government or any other country, or (iii) an identification card
 issued by the armed forces of the United States. Upon  the  presentation
 of  such  driver's license or non-driver identification card issued by a
 governmental entity, such licensee or  agent  or  employee  thereof  may
 perform a transaction scan as a precondition to the sale of any alcohol-
 ic  beverage. Nothing in this section shall prohibit a licensee or agent
 or employee from performing such a transaction scan on any of the  other
 documents  listed  in  this  subdivision if such documents include a bar
 code or magnetic strip that [that] may be scanned by a device capable of
 deciphering any electronically readable format.
   (c) In instances where the information deciphered by  the  transaction
 scan  fails  to match the information printed on the driver's license or
 non-driver identification card presented by the card holder, or  if  the

 S. 1527                            16
 
 transaction  scan indicates that the information is false or fraudulent,
 the attempted purchase of the alcoholic beverage OR  MARIHUANA  PRODUCTS
 shall be denied.
   3.  A  person violating the provisions of paragraph (a) of subdivision
 two of this section  shall  be  guilty  of  a  violation  and  shall  be
 sentenced in accordance with the following:
   (a)  For a first violation, the court shall order payment of a fine of
 not more than one hundred dollars and/or an appropriate amount of commu-
 nity service not to exceed thirty hours.  In  addition,  the  court  may
 order completion of an alcohol awareness program established pursuant to
 section  19.25  of  the  mental  hygiene law OR OF A MARIHUANA AWARENESS
 PROGRAM.
   (b) For a second violation, the court shall order payment of a fine of
 not less than fifty dollars nor more than three  hundred  fifty  dollars
 and/or  an  appropriate  amount of community service not to exceed sixty
 hours. The court also shall order completion of an alcohol OR  MARIHUANA
 awareness  program as referenced in paragraph (a) of this subdivision if
 such program has not previously been completed by the  offender,  unless
 the court determines that attendance at such program is not feasible due
 to  the  lack  of availability of such program within a reasonably close
 proximity to the locality in which the offender resides or matriculates,
 as appropriate.
   (c) For third and subsequent violations, the court shall order payment
 of a fine of not less than fifty dollars nor  more  than  seven  hundred
 fifty  dollars  and/or an appropriate amount of community service not to
 exceed ninety hours. The court also shall order that such person  submit
 to  an  evaluation by an appropriate agency certified or licensed by the
 office of alcoholism and substance abuse services to  determine  whether
 the  person  suffers from [the disease of alcoholism or] alcohol [abuse]
 USE DISORDER OR CANNABIS USE DISORDER, unless the court determines  that
 under  the  circumstances presented such an evaluation is not necessary,
 in which case the court shall state on the record  the  basis  for  such
 determination. Payment for such evaluation shall be made by such person.
 If,  based  on  such evaluation, a need for treatment is indicated, such
 person may choose to participate in a treatment  plan  developed  by  an
 agency  certified  or licensed by the office of alcoholism and substance
 abuse services. If such person  elects  to  participate  in  recommended
 treatment, the court shall order that payment of such fine and community
 service be suspended pending the completion of such treatment.
   (d)  Evaluation  procedures.  For  purposes  of  this subdivision, the
 following shall apply:
   (i) The contents of an evaluation pursuant to paragraph  (c)  of  this
 subdivision  shall  be used for the sole purpose of [determining if such
 person suffers from the disease of alcoholism or alcohol  abuse]  DETER-
 MINING  IF SUCH PERSON MEETS THE CRITERIA FOR AN ALCOHOL USE DISORDER OR
 CANNABIS USE DISORDER.
   (ii) The agency designated by the court  to  perform  such  evaluation
 shall  conduct the evaluation and return the results to the court within
 thirty days, subject to any state or federal confidentiality  law,  rule
 or  regulation  governing  the  confidentiality of alcohol and substance
 [abuse] USE DISORDER treatment records.
   (iii) The office of alcoholism and substance abuse services shall make
 available to each supreme court law library in this  state,  or,  if  no
 supreme court law library is available in a certain county, to the coun-
 ty  court  law  library  of such county, a list of agencies certified to

 S. 1527                            17
 
 perform evaluations as required by subdivision (f) of section  19.07  of
 the mental hygiene law.
   (iv) All evaluations required under this subdivision shall be in writ-
 ing  and  the  person so evaluated or his or her counsel shall receive a
 copy of such evaluation prior to its use by the court.
   (v) A minor evaluated under this subdivision shall have, and shall  be
 informed by the court of, the right to obtain a second opinion regarding
 his  or  her  need  for  [alcoholism]  treatment  OF AN ALCOHOL OR OTHER
 SUBSTANCE USE DISORDER.
   4. A person violating the provisions of paragraph (b)  of  subdivision
 two  of this section shall be guilty of a violation punishable by a fine
 of not more than one hundred dollars, and/or an  appropriate  amount  of
 community service not to exceed thirty hours. In addition, the court may
 order completion of an alcohol OR SUBSTANCE USE DISORDER training aware-
 ness  program  established  pursuant  to  subdivision  twelve of section
 seventeen of this chapter where such program is located within a reason-
 ably close proximity to the locality in which the offender  is  employed
 or resides.
   5. No determination of guilt pursuant to this section shall operate as
 a  disqualification  of  any  such  person  subsequently  to hold public
 office, public employment, or as a forfeiture of any right or  privilege
 or  to  receive  any  license  granted  by public authority; and no such
 person shall be denominated a criminal by reason of such determination.
   6. In addition to the  penalties  otherwise  provided  in  subdivision
 three of this section, if a determination is made sustaining a charge of
 illegally  purchasing  or  attempting to illegally purchase an alcoholic
 beverage OR MARIHUANA PRODUCTS, the  court  may  suspend  such  person's
 license  to  drive  a  motor  vehicle and the privilege of an unlicensed
 person of obtaining such license, in accordance with the  following  and
 for  the  following  periods, if it is found that a driver's license was
 used for the purpose of such illegal purchase or  attempt  to  illegally
 purchase;  provided,  however, that where a person is sentenced pursuant
 to paragraph (b) or (c) of subdivision three of this section, the  court
 shall  impose  such  license  suspension  if it is found that a driver's
 license was used for the purpose of such illegal purchase or attempt  to
 illegally purchase:
   (a)  For a first violation of paragraph (a) of subdivision two of this
 section, a three month suspension.
   (b) For a second violation of paragraph (a) of subdivision two of this
 section, a six month suspension.
   (c) For a third or subsequent violation of paragraph (a)  of  subdivi-
 sion  two of this section, a suspension for one year or until the holder
 reaches the age of twenty-one, whichever is the greater period of time.
   Such person may thereafter apply for and be issued  a  restricted  use
 license in accordance with the provisions of section five hundred thirty
 of the vehicle and traffic law.
   7.  (a)  In  any  proceeding  pursuant  to  subdivision one of section
 sixty-five of this article, it shall be an affirmative defense that such
 person had produced a driver's license or non-driver identification card
 apparently issued by a governmental entity, successfully  completed  the
 transaction  scan, and that the alcoholic beverage OR MARIHUANA PRODUCTS
 had been sold, delivered or given to such person in reasonable  reliance
 upon  such identification and transaction scan. In evaluating the appli-
 cability of such affirmative defense, the liquor  authority  shall  take
 into  consideration  any  written  policy adopted and implemented by the
 seller to carry out the provisions of this chapter. Use of a transaction

 S. 1527                            18
 
 scan shall not excuse any licensee  under  this  chapter,  or  agent  or
 employee  of  such  licensee,  from the exercise of reasonable diligence
 otherwise  required  by  this   section.   Notwithstanding   the   above
 provisions,  any such affirmative defense shall not be applicable in any
 other civil or criminal proceeding, or in any other forum.
   (b) A licensee or agent or employee of a licensee  may  electronically
 or  mechanically  record and maintain only the information from a trans-
 action scan necessary to effectuate the purposes of this  section.  Such
 information  shall  be  limited to the following: (i) name, (ii) date of
 birth, (iii) driver's license or non-driver identification  number,  and
 (iv) expiration date. The liquor authority and the state commissioner of
 motor  vehicles  shall  jointly  promulgate  any regulation necessary to
 govern the recording and maintenance of  these  records  by  a  licensee
 under  this chapter. The liquor authority and the commissioner of health
 shall jointly promulgate any regulations  necessary  to  ensure  quality
 control in the use of transaction scan devices.
   8. A licensee or agent or employee of such licensee shall only use the
 information  recorded and maintained through the use of such devices for
 the purposes contained in paragraph (a) of  subdivision  seven  of  this
 section,  and  shall only use such devices for the purposes contained in
 subdivision two of this section. No licensee or agent or employee  of  a
 licensee  shall  resell  or  disseminate the information recorded during
 such scan to any third person. Such prohibited resale  or  dissemination
 includes,  but  is  not limited to, any advertising, marketing or promo-
 tional activities. Notwithstanding  the  restrictions  imposed  by  this
 subdivision,  such  records  may be released pursuant to a court ordered
 subpoena or pursuant to any other statute that  specifically  authorizes
 the  release  of  such  information.  Each violation of this subdivision
 shall be punishable by a civil penalty of not  more  than  one  thousand
 dollars.
   §  24. Section 65-c of the alcoholic beverage control law, as added by
 chapter 592 of the laws of 1989,  paragraph  (a)  of  subdivision  2  as
 amended  by chapter 409 of the laws of 2016 and subdivision 3 as amended
 by chapter 137 of the laws of 2001, is amended to read as follows:
   § 65-c. Unlawful possession of  an  alcoholic  beverage  OR  MARIHUANA
 PRODUCT  with  the intent to consume by persons under the age of twenty-
 one years. 1. Except as hereinafter provided, no person under the age of
 twenty-one years shall possess any alcoholic beverage OR MARIHUANA PROD-
 UCT, as defined in this chapter, with the intent to consume such  bever-
 age OR MARIHUANA PRODUCT.
   2. A person under the age of twenty-one years may possess any alcohol-
 ic beverage OR MARIHUANA PRODUCT with intent to consume if the alcoholic
 beverage OR MARIHUANA PRODUCT is given:
   (a)  to  a  person who is a student in a curriculum licensed or regis-
 tered by the state education department and the student is  required  to
 taste  or  imbibe alcoholic beverages OR MARIHUANA PRODUCTS in on-campus
 or off-campus courses which are  a  part  of  the  required  curriculum,
 provided  such  alcoholic  beverages OR MARIHUANA PRODUCTS are used only
 for instructional purposes  during  class  conducted  pursuant  to  such
 curriculum; or
   (b)  to  the  person  under  twenty-one  years of age by that person's
 parent or guardian.
   3. Any person who unlawfully possesses an alcoholic beverage OR  MARI-
 HUANA PRODUCT with intent to consume may be summoned before and examined
 by  a  court having jurisdiction of that charge; provided, however, that
 nothing contained herein shall authorize, or be construed to  authorize,

 S. 1527                            19
 
 a  peace  officer as defined in subdivision thirty-three of section 1.20
 of the criminal procedure law or a police officer as defined in subdivi-
 sion thirty-four of section 1.20 of such law  to  arrest  a  person  who
 unlawfully  possesses  an  alcoholic  beverage OR MARIHUANA PRODUCT with
 intent to consume. If a determination is made sustaining such charge the
 court may impose a fine not exceeding fifty dollars and/or completion of
 an alcohol OR DRUG awareness program  established  pursuant  to  section
 19.25 of the mental hygiene law and/or an appropriate amount of communi-
 ty service not to exceed thirty hours.
   4.  No  such  determination shall operate as a disqualification of any
 such person subsequently to hold public office, public employment, or as
 a forfeiture of any right or privilege or to receive any license granted
 by public authority; and no such person shall be denominated a  criminal
 by  reason of such determination, nor shall such determination be deemed
 a conviction.
   5. Whenever a peace officer as defined in subdivision thirty-three  of
 section  1.20 of the criminal procedure law or police officer as defined
 in subdivision thirty-four of section 1.20 of the criminal procedure law
 shall  observe  a  person  under  twenty-one  years  of  age  openly  in
 possession  of  an alcoholic beverage OR MARIHUANA PRODUCT as defined in
 this chapter, with the intent to consume such  beverage  OR  PRODUCT  in
 violation  of this section, said officer may seize the beverage OR PROD-
 UCT, and shall deliver it to the custody of his or her department.
   6. Any alcoholic beverage OR MARIHUANA PRODUCT seized in violation  of
 this  section  is  hereby  declared a nuisance. The official to whom the
 beverage OR PRODUCT has been delivered shall, no earlier than three days
 following the return date for initial appearance on the summons, dispose
 of or destroy the alcoholic beverage  OR  MARIHUANA  PRODUCT  seized  or
 cause  it to be disposed of or destroyed.  Any person claiming ownership
 of an alcoholic beverage OR MARIHUANA PRODUCT seized under this  section
 may,  on  the initial return date of the summons or earlier on five days
 notice to the official or department in possession of  the  beverage  OR
 PRODUCT,  apply  to the court for an order preventing the destruction or
 disposal of the alcoholic  beverage  OR  MARIHUANA  PRODUCT  seized  and
 ordering  the  return  of that beverage OR PRODUCT.  The court may order
 the beverage OR PRODUCT returned if it is determined that return of  the
 beverage  OR  PRODUCT  would  be  in the interest of justice or that the
 beverage OR PRODUCT was improperly seized.
   § 25. The alcoholic beverage control law is amended by  adding  a  new
 section 65-e to read as follows:
   § 65-E. RESTRICTIONS ON PERSONAL CONSUMPTION OF MARIHUANA. 1.  NOTHING
 IN  SECTIONS  221.05 AND 221.05-A OF THE PENAL LAW SHALL BE CONSTRUED TO
 PERMIT ANY PERSON TO:
   (A) SMOKE MARIHUANA IN PUBLIC;
   (B) SMOKE MARIHUANA PRODUCTS IN A LOCATION WHERE  SMOKING  TOBACCO  IS
 PROHIBITED  PURSUANT  TO  SECTION  THIRTEEN HUNDRED NINETY-NINE-O OF THE
 PUBLIC HEALTH LAW;
   (C) POSSESS, SMOKE OR INGEST MARIHUANA PRODUCTS IN OR UPON THE GROUNDS
 OF ANY SCHOOL PROPERTY USED FOR SCHOOL PURPOSES WHICH  IS  OWNED  BY  OR
 LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE CHIL-
 DREN ARE PRESENT; OR
   (D)  SMOKE  OR  INGEST  MARIHUANA  PRODUCTS WHILE DRIVING, OPERATING A
 MOTOR VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR  TRANS-
 PORTATION.
   2. FOR PURPOSES OF THIS SECTION:

 S. 1527                            20
 
   (A)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
 HEATED DEVICE OR PIPE, OR ANY  OTHER  LIGHTED  OR  HEATED  MARIHUANA  OR
 CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
 OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
   (B)  "SMOKE"  DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING DEVICE
 THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES  EXTEND
 PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
   3.  VIOLATIONS OF THE RESTRICTIONS UNDER THIS SECTION ARE SUBJECT TO A
 FINE NOT EXCEEDING TWENTY-FIVE  DOLLARS  OR  AN  APPROPRIATE  AMOUNT  OF
 COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
   § 26. Section 140 of the alcoholic beverage control law, as amended by
 chapter 810 of the laws of 1981, is amended to read as follows:
   § 140. Applicability  of chapter before local option.  Until such time
 as it shall become unlawful to sell  alcoholic  beverages  OR  MARIHUANA
 PRODUCTS  in  any town or city by the vote of the voters in such town or
 city in the manner provided in this article, all of  the  provisions  of
 this chapter shall apply throughout the entire state. This article shall
 not  apply  to the Whiteface mountain ski center, owned by the state and
 located in the town of Wilmington, county of Essex.
   § 27. Section 141 of the alcoholic beverage control law, as amended by
 chapter 319 of the laws of 2007, is amended to read as follows:
   § 141. Local option for towns. 1. Not less than sixty  days  nor  more
 than  seventy-five days before the general election in any town at which
 the submission of the questions hereinafter stated is authorized by this
 article, a petition signed by electors of the town to a number amounting
 to twenty-five per centum of the votes cast in the town for governor  at
 the  then  last  preceding  gubernatorial  election, acknowledged by the
 signers or authenticated by witnesses as provided in the election law in
 respect of a nominating petition,  requesting  the  submission  at  such
 election  to  the  electors  of the town of one or more of the following
 questions, may be filed with the town clerk:
   Question 1. Tavern alcoholic  beverage  license.  Shall  a  person  be
 allowed  to  obtain a license to operate a tavern with a limited-service
 menu (sandwiches, salads, soups, etc.) which permits the tavern operator
 to sell alcoholic beverages for a customer to drink while  the  customer
 is  within the tavern. In addition, unopened containers of beer (such as
 six-packs and kegs) may be sold "to go" for the  customer  to  open  and
 drink at another location (such as, for example, at his home)?
   Question  2. Restaurant alcoholic beverage license. Shall the operator
 of a full-service restaurant  be  allowed  to  obtain  a  license  which
 permits  the  restaurant  operator  to  sell  alcoholic  beverages for a
 customer to drink while the customer is within the restaurant. In  addi-
 tion,  unopened  containers  of beer (such as six-packs and kegs) may be
 sold "to go" for the customer to open  and  drink  at  another  location
 (such as, for example, at his home)?
   Question  3.  Year-round  hotel  alcoholic beverage license. Shall the
 operator of a year-round hotel with a full-service restaurant be allowed
 to obtain a license which permits the year-round hotel to sell alcoholic
 beverages for a customer to drink  while  the  customer  is  within  the
 hotel.  In  addition, unopened containers of beer (such as six-packs and
 kegs) may be sold "to go" for the customer to open and drink at  another
 location (such as, for example, at his home)?
   Question  4. Summer hotel alcoholic beverage license. Shall the opera-
 tor of a summer hotel with a full-service restaurant, open for  business
 only  within  the  period from May first to October thirty-first in each
 year, be allowed to obtain a license which permits the summer  hotel  to

 S. 1527                            21
 
 sell  alcoholic  beverages for a customer to drink while the customer is
 within the hotel. In addition, unopened  containers  of  beer  (such  as
 six-packs  and  kegs)  may  be sold "to go" for the customer to open and
 drink at another location (such as, for example, at his home)?
   Question  5.  Retail  package  liquor  or  wine store license. Shall a
 person be allowed to obtain  a  license  to  operate  a  retail  package
 liquor-and-wine  or  wine-without-liquor store, to sell "to go" unopened
 bottles of liquor or wine to a customer to be taken from the  store  for
 the  customer  to open and drink at another location (such as, for exam-
 ple, at his home)?
   Question 6. Off-premises beer and wine cooler license. Shall the oper-
 ator of a grocery store, drugstore  or  supply  ship  operating  in  the
 harbors  of  Lake  Erie be allowed to obtain a license which permits the
 operator to sell "to go" unopened containers of beer (such as  six-packs
 and  kegs)  and wine coolers with not more than 6% alcohol to a customer
 to be taken from the store for the customer to open and drink at another
 location (such as, for example, at his home)?
   Question 7.  Baseball  park,  racetrack,  athletic  field  or  stadium
 license.    Shall  a person be allowed to obtain a license which permits
 the sale of beer for a patron's consumption while the patron is within a
 baseball park, racetrack, or  other  athletic  field  or  stadium  where
 admission fees are charged?
   QUESTION  8.  MARIHUANA RETAILER LICENSE. SHALL A PERSON BE ALLOWED TO
 OBTAIN A LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO  SELL  UNOPENED
 MARIHUANA  PRODUCTS  TO  A  CUSTOMER  TO BE TAKEN FROM THE STORE FOR THE
 CUSTOMER TO OPEN AND CONSUME AT ANOTHER LOCATION (SUCH AS, FOR  EXAMPLE,
 AT HIS HOME)?
   QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSES. SHALL A PERSON BE
 ALLOWED  TO  OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE SERVICE OF
 FOOD IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL  MARI-
 HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
 THE FACILITY?
   2. Upon the due filing of such petition complying with  the  foregoing
 provisions, such questions shall be submitted in accordance therewith.
   3.  The  town  clerk  shall,  within five days from the filing of such
 petition in his office, prepare and file in the office of the  board  of
 elections,  as  defined  by the election law, of the county, a certified
 copy of such petition. Such questions may be submitted only at the  time
 of  a  general election. At least ten days before such general election,
 the board of elections shall cause to be printed and posted in at  least
 four  public  places  in such town, a notice of the fact that all of the
 local option questions will be voted on at such  general  election;  and
 the  said  notice  shall also be published at least five days before the
 vote is to be taken once in a newspaper published in the county in which
 such town is situated, which shall be a newspaper published in the town,
 if there be one. Whenever such questions are to be submitted  under  the
 provisions of this article the board of elections shall cause the proper
 ballot  labels  to  be printed and placed on all voting machines used in
 the town in which such questions  are  to  be  submitted,  in  the  form
 prescribed by the election law in respect of other propositions or ques-
 tions,  upon  the  face of which shall be printed in full the said ques-
 tions. Any elector qualified to vote for state officers shall  be  enti-
 tled  to  vote upon such local option questions. As soon as the election
 shall be held, a return of the votes cast and counted shall be  made  as
 provided by law and the returns canvassed by the inspectors of election.
 If  a  majority of the votes cast shall be in the negative on all or any

 S. 1527                            22
 
 of the questions, no person shall, after such election,  sell  alcoholic
 beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to
 the  provisions  of  this chapter; provided, however, that the result of
 such vote shall not shorten the term for which any license may have been
 lawfully  issued under this chapter or affect the rights of the licensee
 thereunder; and no person shall after such vote apply for or  receive  a
 license  to  sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in
 such town contrary to such vote, until,  by  referendum  as  hereinafter
 provided for, such sale shall again become lawful.
   §  28.  Subdivision 3 of section 142 of the alcoholic beverage control
 law is amended to read as follows:
   3. If a majority of the votes cast shall be in the negative on any  or
 all  of  the questions, no person shall, after such election, sell alco-
 holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote
 or to the provisions of this chapter; provided, however, that the result
 of such vote shall not shorten the term for which any license  may  have
 been  lawfully  issued  under  this  chapter or affect the rights of the
 licensee thereunder; and no person shall after such vote  apply  for  or
 receive  a  license to sell alcoholic beverages OR MARIHUANA PRODUCTS at
 retail in such city contrary to such vote, until, by referendum as here-
 inafter provided for, such sale shall again become lawful.
   § 29. Subdivision 2 of section 147 of the alcoholic  beverage  control
 law is amended to read as follows:
   2.  If  at  the time of any subsequent submission of such questions it
 shall be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and  a
 majority  of  the votes cast shall be in the negative on such questions,
 then all of the provisions of  this  article  applicable  thereto  shall
 become effective.
   §  30. Article 11 and sections 160, 161, 162, 163 and 164 of the alco-
 holic beverage control law, article 11 and sections 160,  161,  162  and
 163  as  renumbered  by  chapter 725 of the laws of 1954, are renumbered
 article 12 and sections 200, 201, 202, 203, and 204.
   § 31. The alcoholic beverage control law is amended by  adding  a  new
 article 11 to read as follows:
                                ARTICLE 11
                     PROVISIONS RELATING TO MARIHUANA
 SECTION 165. DEFINITIONS.
         166. BUREAU OF MARIHUANA POLICY.
         167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY.
         168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS.
         169. LICENSES ISSUED.
         170. LICENSING LIMITS.
         171. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL.
         172. GENERAL PROHIBITIONS AND RESTRICTIONS.
         173. CERTAIN  OFFICIALS  NOT TO BE INTERESTED IN THE MANUFACTURE
                OR SALE OF MARIHUANA.
         174. PROVISIONS GOVERNING INITIAL RULEMAKING.
         175. PROVISIONS GOVERNING MARIHUANA PRODUCERS.
         176. PROVISIONS GOVERNING PROCESSORS.
         177. PROVISIONS GOVERNING MARIHUANA RETAILERS.
         178. PROVISIONS   GOVERNING   MARIHUANA   ON-SITE    CONSUMPTION
                LICENSES.
         179. ADVERTISING AND FORMS FOR THE ISSUANCE OF LICENSES.
         180. PACKAGING OF MARIHUANA PRODUCTS.
         181. LABELING OF MARIHUANA PRODUCTS.
         182. SEED TO SALE TRACKING.

 S. 1527                            23
 
         183. RENEWALS OF LICENSES AND PERMITS.
         184. INFORMATION TO BE PROVIDED BY APPLICANTS.
         185. NOTIFICATION TO TOWNS, CITIES OR VILLAGES.
         186. LICENSES, PUBLICATION, GENERAL PROVISIONS.
         187. REVOCATION OF LICENSES FOR CAUSE.
         188. PROCEDURE FOR REVOCATION OR CANCELLATION.
         189. DECISIONS  OF  THE BUREAU OF MARIHUANA POLICY AND REVIEW BY
                THE COURTS.
         190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM.
         191. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES.
         192. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA.
         193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS.
         194. PROTECTIONS FOR THE USE OF MARIHUANA.
         195. DISCRIMINATION PROTECTIONS FOR  THE  USE  OF  MARIHUANA  OR
                MEDICAL MARIHUANA.
         196. EMPLOYMENT PROTECTIONS.
         197. PROTECTIONS FOR PERSONS UNDER STATE SUPERVISION.
         198. PROFESSIONAL AND MEDICAL RECORD KEEPING.
   §  165. DEFINITIONS. WHENEVER USED IN THIS CHAPTER, UNLESS THE CONTEXT
 REQUIRES OTHERWISE:
   1. "APPLICANT" MEANS AN OWNER APPLYING FOR A LICENSE PURSUANT TO  THIS
 ARTICLE.
   2."BUREAU" MEANS THE BUREAU OF MARIHUANA POLICY WITHIN THE AUTHORITY.
   3.  "COMMERCIAL  MARIHUANA ACTIVITY" MEANS THE PRODUCTION, PROCESSING,
 POSSESSION, STORING, LABORATORY TESTING, PACKAGING, LABELING,  TRANSPOR-
 TATION,  DELIVERY,  OR  SALE  OF  MARIHUANA  AND  MARIHUANA  PRODUCTS AS
 PROVIDED FOR IN THIS ARTICLE.
   4. "CUSTOMER" MEANS A NATURAL PERSON TWENTY-ONE YEARS OF AGE OR OLDER.
   5. "DELIVERY" MEANS A LICENSEE  THAT  DELIVERS  RETAIL  MARIHUANA  AND
 MARIHUANA  PRODUCTS  TO  CUSTOMERS. RETAILER LICENSEES AND MICROBUSINESS
 LICENSEES ARE  PERMITTED  TO  DELIVER  RETAIL  MARIHUANA  AND  MARIHUANA
 PRODUCTS  TO  CUSTOMERS  WITHOUT  OBTAINING  AN  ADDITIONAL  DISTRIBUTOR
 LICENSE.
   6. "DISTRIBUTION" MEANS THE PROCUREMENT, SALE, AND TRANSPORT OF  MARI-
 HUANA  AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS
 ARTICLE.
   7. "DISTRIBUTOR" MEANS A LICENSEE FOR THE  DISTRIBUTION  OF  MARIHUANA
 AND  MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTI-
 CLE.  PRODUCER LICENSEES, PROCESSOR LICENSEES, AND MICROBUSINESS  LICEN-
 SEES  ARE  PERMITTED  TO  DISTRIBUTE  MARIHUANA  AND  MARIHUANA PRODUCTS
 BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTICLE WITHOUT OBTAINING  AN
 ADDITIONAL DISTRIBUTOR LICENSE.
   8.  "LABELING"  MEANS  ANY LABEL OR OTHER WRITTEN, PRINTED, OR GRAPHIC
 MATTER UPON A MARIHUANA PRODUCT, OR UPON ITS CONTAINER  OR  WRAPPER,  OR
 THAT ACCOMPANIES ANY MARIHUANA PRODUCT.
   9.  "LICENSE"  MEANS  A  STATE LICENSE ISSUED UNDER THIS ARTICLE. EACH
 LICENSE ISSUED PURSUANT TO THIS ARTICLE CORRESPONDS TO A SINGLE PLACE OF
 BUSINESS.
   10. "LICENSEE" MEANS ANY PERSON OR ENTITY HOLDING A LICENSE UNDER THIS
 ARTICLE.
   11. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
 INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
 OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-

 S. 1527                            24
 
 FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
 (EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
 STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
 NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA I., WHETHER GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   12. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED  CANNABIS,  AND
 MARIHUANA-INFUSED PRODUCTS.
   13.  "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARIHUA-
 NA, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR  CONSUMP-
 TION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINC-
 TURES.
   14.  "MICROBUSINESS"  MEANS  A  LICENSEE  THAT  MAY ACT AS A MARIHUANA
 PRODUCER FOR THE CULTIVATION OF MARIHUANA ON AN AREA LESS THAN TEN THOU-
 SAND SQUARE FEET, A MARIHUANA PROCESSOR, AND A MARIHUANA RETAILER  UNDER
 THIS  ARTICLE,  PROVIDED  SUCH  LICENSEE  COMPLIES WITH ALL REQUIREMENTS
 IMPOSED BY THIS ARTICLE ON LICENSED PRODUCERS, PROCESSORS, AND RETAILERS
 TO THE EXTENT THE LICENSEE ENGAGES IN SUCH ACTIVITIES. A "MICROBUSINESS"
 MAY DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED  MARI-
 HUANA  BUSINESSES  AND  MAY  DELIVER MARIHUANA AND MARIHUANA PRODUCTS TO
 CUSTOMERS.
   15. "NURSERY" MEANS A LICENSEE THAT  PRODUCES  ONLY  CLONES,  IMMATURE
 PLANTS, SEEDS, AND OTHER AGRICULTURAL PRODUCTS USED SPECIFICALLY FOR THE
 PLANTING, PROPAGATION, AND CULTIVATION OF MARIHUANA.
   16.  "ONSITE CONSUMPTION" MEANS A MARIHUANA RETAIL LICENSEE OR A MARI-
 HUANA MICROBUSINESS THAT PERMITS THE CONSUMPTION OF MARIHUANA AND  MARI-
 HUANA PRODUCTS AT THE LICENSEE'S PLACE OF BUSINESS.
   17.  "OWNER"  MEANS AN INDIVIDUAL WITH AN AGGREGATE OWNERSHIP INTEREST
 OF TWENTY PERCENT OR MORE IN A MARIHUANA BUSINESS LICENSED  PURSUANT  TO
 THIS ARTICLE, UNLESS SUCH INTEREST IS SOLELY A SECURITY, LIEN, OR ENCUM-
 BRANCE,  OR  AN  INDIVIDUAL THAT WILL BE PARTICIPATING IN THE DIRECTION,
 CONTROL, OR MANAGEMENT OF THE LICENSED MARIHUANA BUSINESS.
   18. "PACKAGE" MEANS ANY CONTAINER OR RECEPTACLE USED FOR HOLDING MARI-
 HUANA OR MARIHUANA PRODUCTS.
   19. "PROCESSOR" MEANS A LICENSEE  THAT  COMPOUNDS,  BLENDS,  EXTRACTS,
 INFUSES,  OR OTHERWISE MAKES OR PREPARES MARIHUANA PRODUCTS, BUT NOT THE
 PRODUCTION OF THE  MARIHUANA  CONTAINED  IN  THE  MARIHUANA  PRODUCT.  A
 "PROCESSOR"  MAY  ALSO  DISTRIBUTE  MARIHUANA  AND MARIHUANA PRODUCTS TO
 OTHER LICENSED MARIHUANA BUSINESSES.
   20. "PRODUCER" MEANS A LICENSEE THAT PLANTS, GROWS,  HARVESTS,  DRIES,
 CURES,  GRADES,  OR  TRIMS  MARIHUANA.  A "PRODUCER" MAY ALSO DISTRIBUTE
 MARIHUANA TO OTHER LICENSED MARIHUANA BUSINESSES.
   21. "RETAILER" MEANS A LICENSEE  THAT  SELLS  MARIHUANA  OR  MARIHUANA
 PRODUCTS  DIRECTLY  TO CUSTOMERS. A "RETAILER" MAY DELIVER MARIHUANA AND
 MARIHUANA PRODUCTS TO CUSTOMERS.
   22. "TESTING FACILITY" MEANS A LICENSEE THAT TESTS MARIHUANA AND MARI-
 HUANA PRODUCTS.
   § 166. BUREAU OF MARIHUANA POLICY. THERE IS HEREBY ESTABLISHED IN  THE
 AUTHORITY  A  BUREAU  OF  MARIHUANA  POLICY. THE BUREAU SHALL CONSIST OF
 THREE MEMBERS. THE MEMBERS OF THE  BUREAU  SHALL  BE  APPOINTED  BY  THE
 GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. NOT MORE THAN
 TWO  MEMBERS OF THE BUREAU SHALL BELONG TO THE SAME POLITICAL PARTY. THE
 CHAIRMAN OF THE BUREAU OF  MARIHUANA  POLICY  HERETOFORE  APPOINTED  AND
 DESIGNATED BY THE GOVERNOR AND THE REMAINING MEMBERS OF SUCH BOARD HERE-
 TOFORE APPOINTED BY THE GOVERNOR SHALL CONTINUE TO SERVE AS CHAIRMAN AND
 MEMBERS  OF  THE BUREAU UNTIL THE EXPIRATION OF THE RESPECTIVE TERMS FOR

 S. 1527                            25
 
 WHICH THEY WERE APPOINTED. UPON THE EXPIRATION OF SUCH RESPECTIVE  TERMS
 THE  SUCCESSORS OF SUCH CHAIRMAN AND MEMBERS SHALL BE APPOINTED TO SERVE
 FOR A TERM OF THREE YEARS EACH AND  UNTIL  THEIR  SUCCESSORS  HAVE  BEEN
 APPOINTED  AND  QUALIFIED.  THE COMMISSIONERS SHALL, WHEN PERFORMING THE
 WORK OF THE BUREAU, BE COMPENSATED  AT  A  RATE  OF  TWO  HUNDRED  SIXTY
 DOLLARS  PER  DAY,  TOGETHER  WITH AN ALLOWANCE FOR ACTUAL AND NECESSARY
 EXPENSES INCURRED IN THE DISCHARGE OF THEIR DUTIES.
   § 167. ADMINISTRATION OF THE BUREAU  OF  MARIHUANA  POLICY.    1.  THE
 BUREAU  ESTABLISHED  IN  SECTION  ONE  HUNDRED SIXTY-SIX OF THIS ARTICLE
 SHALL HERETOFORE HAVE THE  POWER,  DUTY,  PURPOSE,  RESPONSIBILITY,  AND
 JURISDICTION  TO  REGULATE  COMMERCIAL MARIHUANA ACTIVITY AS PROVIDED IN
 THE MARIHUANA REGULATION AND TAXATION ACT.
   2. THE BUREAU SHALL HAVE THE EXCLUSIVE  AUTHORITY  TO  CREATE,  ISSUE,
 RENEW,  DISCIPLINE, SUSPEND, OR REVOKE LICENSES FOR COMMERCIAL MARIHUANA
 ACTIVITIES IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT.
   (A) THE BUREAU SHALL CONSULT WITH THE DEPARTMENT  OF  AGRICULTURE  AND
 MARKETS  REGARDING  RULES, REGULATIONS, AND LICENSES FOR THE CULTIVATION
 OF MARIHUANA.
   (B) THE BUREAU SHALL NOTIFY THE PUBLIC  OF  ALL  LICENSING  RULES  AND
 REGULATIONS  PROMULGATED  PURSUANT TO THE MARIHUANA REGULATION AND TAXA-
 TION ACT, WHICH SHALL INCLUDE INSTRUCTIONAL MATERIALS. IN ADDITION,  THE
 BUREAU  SHALL  HOLD PUBLIC FORUMS IN ALL REGIONS OF THE STATE, AS DETER-
 MINED BY THE DEPARTMENT OF ECONOMIC  DEVELOPMENT,  TO  HELP  THE  PUBLIC
 UNDERSTAND AND NAVIGATE THE LICENSING PROCESS.
   (C)  THE  BUREAU  SHALL BEGIN ISSUING LICENSES NOT LATER THAN EIGHTEEN
 MONTHS FOLLOWING THE EFFECTIVE DATE  OF  THE  MARIHUANA  REGULATION  AND
 TAXATION ACT.
   (I) THE BUREAU SHALL BEGIN ACCEPTING APPLICATIONS NO MORE THAN FIFTEEN
 MONTHS  FOLLOWING  THE  EFFECTIVE  DATE  OF THE MARIHUANA REGULATION AND
 TAXATION ACT.
   (II) PURSUANT TO SECTION ONE HUNDRED EIGHTY-FIVE OF THIS ARTICLE,  THE
 BUREAU  SHALL  NOTIFY  ANY TOWN, CITY OR VILLAGE OF ANY APPLICATIONS FOR
 LICENSE.
   (III) THE BUREAU SHALL  ISSUE  AN  ANNUAL  LICENSE  TO  THE  APPLICANT
 BETWEEN  FORTY-FIVE  AND  NINETY  DAYS  AFTER  RECEIPT OF AN APPLICATION
 UNLESS THE BUREAU FINDS THE APPLICANT IS NOT IN  COMPLIANCE  WITH  REGU-
 LATIONS  ENACTED  PURSUANT  TO  SECTION ONE HUNDRED SEVENTY-FOUR OF THIS
 ARTICLE OR THE DEPARTMENT IS NOTIFIED BY  THE  RELEVANT  TOWN,  CITY  OR
 VILLAGE THAT THE APPLICANT IS NOT IN COMPLIANCE WITH SUCH REGULATIONS.
   (D)  THE BUREAU SHALL HAVE THE AUTHORITY TO COLLECT FEES IN CONNECTION
 WITH ACTIVITIES THEY REGULATE CONCERNING MARIHUANA PURSUANT  TO  SECTION
 ONE HUNDRED NINETY-ONE OF THIS ARTICLE.
   3. (A) NOT LATER THAN TEN MONTHS FOLLOWING THE ENACTMENT OF THIS ARTI-
 CLE,  EACH  TOWN,  CITY  OR VILLAGE MAY ENACT AN ORDINANCE OR REGULATION
 SPECIFYING THE ENTITY WITHIN THE TOWN, CITY OR VILLAGE THAT IS RESPONSI-
 BLE FOR PROCESSING APPLICATIONS SUBMITTED FOR A  LICENSE  TO  OPERATE  A
 MARIHUANA  ESTABLISHMENT  WITHIN  THE  BOUNDARIES  OF  THE TOWN, CITY OR
 VILLAGE AND FOR THE ISSUANCE OF SUCH LICENSES SHOULD THE ISSUANCE BY THE
 TOWN, CITY OR VILLAGE BECOME NECESSARY  BECAUSE  OF  A  FAILURE  BY  THE
 BUREAU TO ADOPT REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR
 OF  THIS  ARTICLE  OR  BECAUSE OF A FAILURE BY THE BUREAU TO PROCESS AND
 ISSUE LICENSES AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION.
   (B) A TOWN, CITY OR VILLAGE MAY ENACT ORDINANCES OR  REGULATIONS,  NOT
 IN CONFLICT WITH THIS SECTION OR WITH REGULATIONS OR LEGISLATION ENACTED
 PURSUANT  TO  THIS SECTION, GOVERNING THE TIME, PLACE, MANNER AND NUMBER
 OF MARIHUANA ESTABLISHMENT OPERATIONS; ESTABLISHING PROCEDURES  FOR  THE

 S. 1527                            26
 
 ISSUANCE,  SUSPENSION, AND REVOCATION OF A LICENSE ISSUED BY THE MUNICI-
 PALITY IN ACCORDANCE WITH PARAGRAPHS (C) AND (D)  OF  THIS  SUBDIVISION,
 SUCH  PROCEDURES TO BE SUBJECT TO ALL REQUIREMENTS OF THE STATE ADMINIS-
 TRATIVE  PROCEDURE ACT OR ANY SUCCESSOR PROVISION, ESTABLISHING A SCHED-
 ULE OF ANNUAL OPERATING, LICENSING, AND APPLICATION FEES  FOR  MARIHUANA
 ESTABLISHMENTS,  PROVIDED,  THE  APPLICATION FEE SHALL ONLY BE DUE IF AN
 APPLICATION IS SUBMITTED TO A TOWN, CITY OR VILLAGE IN  ACCORDANCE  WITH
 PARAGRAPH  (D) OF THIS SUBDIVISION AND A LICENSING FEE SHALL ONLY BE DUE
 IF A LICENSE IS ISSUED BY A MUNICIPALITY IN  ACCORDANCE  WITH  PARAGRAPH
 (C)  OR  (D)  OF  THIS SUBDIVISION; AND ESTABLISHING CIVIL PENALTIES FOR
 VIOLATION OF AN ORDINANCE OR REGULATION GOVERNING THE TIME,  PLACE,  AND
 MANNER  OF  A  MARIHUANA  ESTABLISHMENT THAT MAY OPERATE IN SUCH A TOWN,
 CITY OR VILLAGE. A TOWN, CITY OR VILLAGE MAY PROHIBIT THE  OPERATION  OF
 MARIHUANA  PRODUCTION FACILITIES, MARIHUANA PROCESSING FACILITIES, MARI-
 HUANA RETAIL STORES, MARIHUANA  MICROBUSINESSES,  OR  MARIHUANA  TESTING
 FACILITIES THROUGH THE ENACTMENT OF AN ORDINANCE.
   (C)  IF  THE  BUREAU  DOES  NOT ISSUE A LICENSE TO AN APPLICANT WITHIN
 NINETY DAYS OF RECEIPT OF  THE  APPLICATION  FILED  IN  ACCORDANCE  WITH
 SUBDIVISION TWO AND DOES NOT NOTIFY THE APPLICANT OF THE SPECIFIC REASON
 FOR ITS DENIAL, IN WRITING AND WITHIN SUCH TIME PERIOD, OR IF THE BUREAU
 HAS  ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF
 THIS ARTICLE BUT HAS NOT ISSUED ANY LICENSES WITHIN EIGHTEEN  MONTHS  OF
 THE EFFECTIVE DATE OF THIS ARTICLE, FOR ANY TOWN, CITY OR VILLAGE ENACT-
 ING  AN  ORDINANCE  PROVIDING  FOR LOCAL PROCESSING OF APPLICATIONS, THE
 APPLICANT MAY RESUBMIT ITS APPLICATION DIRECTLY TO  THE  TOWN,  CITY  OR
 VILLAGE  PURSUANT  TO  PARAGRAPH  (A) OF THIS SUBDIVISION, AND THE TOWN,
 CITY OR VILLAGE MAY ISSUE AN ANNUAL LICENSE TO THE  APPLICANT.  A  TOWN,
 CITY  OR  VILLAGE  ISSUING  A LICENSE TO AN APPLICANT SHALL DO SO WITHIN
 NINETY DAYS OF RECEIPT OF THE RESUBMITTED APPLICATION UNLESS  THE  TOWN,
 CITY  OR  VILLAGE FINDS AND NOTIFIES THE APPLICANT THAT THE APPLICANT IS
 NOT IN COMPLIANCE WITH THE ORDINANCES AND REGULATIONS MADE  PURSUANT  TO
 PARAGRAPH  (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME THE APPLICATION
 IS RESUBMITTED AND THE TOWN, CITY OR VILLAGE SHALL NOTIFY THE BUREAU  IF
 AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. IF AN APPLICATION IS
 SUBMITTED  TO  A  TOWN, CITY OR VILLAGE UNDER THIS PARAGRAPH, THE BUREAU
 SHALL FORWARD TO THE TOWN, CITY OR VILLAGE THE APPLICATION FEE  PAID  BY
 THE APPLICANT TO THE BUREAU UPON REQUEST BY THE TOWN, CITY OR VILLAGE. A
 LICENSE  ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH THIS PARA-
 GRAPH SHALL HAVE THE SAME FORCE AND EFFECT AS A LICENSE  ISSUED  BY  THE
 BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION AND THE HOLDER
 OF SUCH LICENSE SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY THE
 BUREAU  DURING THE TERM OF THAT LICENSE. A SUBSEQUENT OR RENEWED LICENSE
 MAY BE ISSUED UNDER THIS PARAGRAPH ON AN ANNUAL BASIS ONLY  UPON  RESUB-
 MISSION  TO  THE TOWN, CITY OR VILLAGE OF A NEW APPLICATION SUBMITTED TO
 THE BUREAU PURSUANT TO SUBDIVISION TWO OF THIS SECTION.  NOTHING IN THIS
 PARAGRAPH SHALL LIMIT SUCH RELIEF AS MAY BE AVAILABLE  TO  AN  AGGRIEVED
 PARTY  UNDER SECTION FOUR HUNDRED ONE OF THE STATE ADMINISTRATIVE PROCE-
 DURE ACT OR ANY SUCCESSOR PROVISION.
   (D) IF THE BUREAU DOES NOT ADOPT REGULATIONS REQUIRED BY  SECTION  ONE
 HUNDRED  SEVENTY-FOUR OF THIS ARTICLE, AN APPLICANT MAY SUBMIT AN APPLI-
 CATION DIRECTLY TO A TOWN, CITY OR VILLAGE FIFTEEN MONTHS FOLLOWING  THE
 EFFECTIVE  DATE  OF THIS ARTICLE AND THE TOWN, CITY OR VILLAGE MAY ISSUE
 AN ANNUAL LICENSE TO THE APPLICANT. A TOWN, CITY OR  VILLAGE  ISSUING  A
 LICENSE TO AN APPLICANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE
 APPLICATION  UNLESS  IT FINDS AND NOTIFIES THE APPLICANT THAT THE APPLI-
 CANT IS NOT IN COMPLIANCE WITH ORDINANCES AND REGULATIONS MADE  PURSUANT

 S. 1527                            27
 
 TO  PARAGRAPH  (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME OF APPLICA-
 TION AND SHALL NOTIFY THE BUREAU IF AN ANNUAL LICENSE HAS BEEN ISSUED TO
 THE APPLICANT. A LICENSE ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE
 WITH  THIS  PARAGRAPH  SHALL HAVE THE SAME FORCE AND EFFECT AS A LICENSE
 ISSUED BY THE BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS  SECTION
 AND  THE  LICENSEE  SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY
 THE BUREAU DURING THE TERM OF THAT  LICENSE.  A  SUBSEQUENT  OR  RENEWED
 LICENSE  MAY  BE  ISSUED  UNDER THIS PARAGRAPH ON AN ANNUAL BASIS IF THE
 BUREAU HAS NOT ADOPTED  REGULATIONS  REQUIRED  BY  SECTION  ONE  HUNDRED
 SEVENTY-FOUR OF THIS ARTICLE AT LEAST NINETY DAYS PRIOR TO THE DATE UPON
 WHICH  SUCH  SUBSEQUENT  OR RENEWED LICENSE WOULD BE EFFECTIVE OR IF THE
 DEPARTMENT HAS ADOPTED  REGULATIONS  PURSUANT  TO  SECTION  ONE  HUNDRED
 SEVENTY-FOUR OF THIS ARTICLE BUT HAS NOT, AT LEAST NINETY DAYS AFTER THE
 ADOPTION  OF  SUCH  REGULATIONS, ISSUED LICENSES PURSUANT TO SUBDIVISION
 TWO OF THIS SECTION.
   4. THE BUREAU MAY LIMIT THE TOTAL AMOUNT OF MARIHUANA PRODUCED IN  NEW
 YORK  BASED ON THE DEMAND FOR MARIHUANA AND MARIHUANA PRODUCTS AND IN AN
 EFFORT TO REDUCE ILLICIT MARIHUANA MARKETS.
   § 168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. THE BUREAU SHALL
 PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT DEEMS NECESSARY
 TO CARRY OUT THE REQUIREMENTS, PURPOSE AND INTENT OF THIS ARTICLE.
   § 169. LICENSES ISSUED. THE  FOLLOWING  KINDS  OF  LICENSES  SHALL  BE
 ISSUED  BY THE BUREAU FOR THE MANUFACTURE, PRODUCTION, PROCESSING, TEST-
 ING, RETAIL SALE AND DELIVERY OF MARIHUANA:
   1. MARIHUANA NURSERY LICENSE;
   2. MARIHUANA PRODUCER LICENSE;
   3. MARIHUANA PROCESSOR LICENSE;
   4. MARIHUANA DISTRIBUTOR LICENSE;
   5. MARIHUANA RETAILER LICENSE;
   6. MARIHUANA MICROBUSINESS LICENSE;
   7. MARIHUANA ON-SITE CONSUMPTION LICENSE;
   8. MARIHUANA DELIVERY LICENSE;
   9. MARIHUANA TESTING LICENSE; AND
   10. ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
   § 170. LICENSING LIMITS. 1. ALL LICENSES  ISSUED  UNDER  THIS  ARTICLE
 SHALL  BEAR  A  CLEAR  DESIGNATION  INDICATING  THAT  THE LICENSE IS FOR
 COMMERCIAL MARIHUANA ACTIVITY AS DISTINCT FROM MEDICAL  MARIHUANA  MANU-
 FACTURED,  PRODUCED AND SOLD FOR MEDICAL USE PURSUANT TO TITLE FIVE-A OF
 ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   2. AN OWNER OF A MARIHUANA RETAIL STORE SHALL NOT HOLD  A  LICENSE  IN
 ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI-
 CLE,  SHALL  NOT  OWN  OR  HAVE OWNERSHIP INTEREST IN AN ENTITY LICENSED
 PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF  THE  PUBLIC  HEALTH
 LAW, AND SHALL HOLD NOT MORE THAN THREE RETAIL LICENSES.
   3.  AN  OWNER OF A MARIHUANA MICROBUSINESS SHALL NOT HOLD A LICENSE IN
 ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI-
 CLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST  IN  A  FACILITY  LICENSED
 PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH
 LAW, AND SHALL HOLD NOT MORE THAN ONE MICROBUSINESS LICENSE.
   4. AN OWNER OF A MARIHUANA TESTING FACILITY SHALL NOT HOLD  A  LICENSE
 IN  ANOTHER  LICENSE  CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS
 ARTICLE AND SHALL NOT OWN OR  HAVE  OWNERSHIP  INTEREST  IN  A  FACILITY
 LICENSED  PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
 HEALTH LAW.
   5. ONLY A MARIHUANA RETAIL LICENSEE MAY BE ISSUED AN ON-SITE  CONSUMP-
 TION LICENSE.

 S. 1527                            28
 
   6. ONLY A MARIHUANA RETAIL LICENSEE, MARIHUANA MICROBUSINESS LICENSEE,
 OR  MARIHUANA  DELIVERY  LICENSEE  MAY BE PERMITTED TO DELIVER MARIHUANA
 DIRECTLY TO CUSTOMERS.
   7.  ONLY  A MARIHUANA PRODUCER LICENSEE, MARIHUANA PROCESSOR LICENSEE,
 MARIHUANA MICROBUSINESS LICENSEE, OR MARIHUANA DISTRIBUTOR LICENSEE  MAY
 DISTRIBUTE  MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARIHUANA
 BUSINESSES.
   8. NO MARIHUANA DELIVERY OWNER MAY HOLD MORE THAN ONE MARIHUANA DELIV-
 ERY LICENSE.
   9. NO MARIHUANA DISTRIBUTOR OWNER MAY HOLD  MORE  THAN  ONE  MARIHUANA
 DISTRIBUTOR LICENSE.
   10. THE BUREAU SHALL ISSUE A SERIES OF PRODUCER LICENSES DISTINGUISHED
 BY  CANOPY SIZE AND TYPE OF LIGHTING USED, NATURAL/OUTDOOR LIGHT, INDOOR
 LIGHT, OR MIXED-LIGHT.
   11. NO MARIHUANA PRODUCER OWNER  MAY  HOLD  MORE  THAN  ONE  MARIHUANA
 PRODUCER AND ONE MARIHUANA PROCESSOR LICENSE.
   12.  NO  MARIHUANA  PROCESSOR OWNER MAY HOLD MORE THAN THREE MARIHUANA
 PROCESSOR LICENSES.
   13. AN OWNER OF A MARIHUANA NURSERY MAY HOLD A MARIHUANA  PRODUCER  OR
 MARIHUANA  PROCESSOR LICENSE BUT SHALL NOT HOLD ANOTHER LICENSE CATEGORY
 OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTICLE, SHALL NOT OWN OR HAVE
 OWNERSHIP INTEREST IN A FACILITY LICENSED PURSUANT TO  TITLE  FIVE-A  OF
 ARTICLE  THIRTY-THREE  OF THE PUBLIC HEALTH LAW, AND SHALL HOLD NOT MORE
 THAN ONE NURSERY LICENSE. LICENSING LIMITS IMPOSED BY SUBDIVISIONS ELEV-
 EN AND TWELVE OF THIS SECTION SHALL APPLY.
   § 171. ACTIONS TAKEN PURSUANT  TO  A  VALID  LICENSE  ARE  LAWFUL.  NO
 CONTRACTS  RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER SHALL
 BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT
 TO THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS  ARE
 NOT  UNLAWFUL  AS  PROVIDED  UNDER THIS CHAPTER, SHALL NOT BE AN OFFENSE
 UNDER ANY STATE OR LOCAL LAW, AND SHALL NOT RESULT IN  ANY  CIVIL  FINE,
 SEIZURE, OR FORFEITURE OF ASSETS AGAINST ANY PERSON ACTING IN ACCORDANCE
 WITH THIS CHAPTER:
   1.  ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS PERMITTED
 BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
 PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU.
   2. ACTIONS OF THOSE WHO ALLOW PROPERTY TO BE USED BY A  LICENSEE,  ITS
 EMPLOYEES,  AND  ITS AGENTS, AS PERMITTED BY THIS CHAPTER AND CONSISTENT
 WITH RULES AND REGULATIONS OF THE BUREAU, PURSUANT TO  A  VALID  LICENSE
 ISSUED BY THE BUREAU.
   3.  ACTIONS  OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR THEIR AGENTS
 PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY
 THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS  OF  THE  BUREAU,
 RELATING TO THE FORMATION OF A BUSINESS.
   4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED
 BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
 OBTAINED FROM A VALIDLY LICENSED RETAILER.
   § 172. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS
 MAY BE IMPORTED INTO OR EXPORTED FROM NEW YORK STATE.
   2.  NO PERSON MAY BE ISSUED A LICENSE UNDER SECTION ONE HUNDRED SIXTY-
 NINE OF THIS ARTICLE IF THEY HAVE BEEN CONVICTED OF AN  OFFENSE  RELATED
 TO  THE  FUNCTIONS,  OR DUTIES OF OWNING AND OPERATING A BUSINESS WITHIN
 THREE YEARS OF THE APPLICATION DATE, EXCEPT THAT IF  THE  BUREAU  DETER-
 MINES  THAT  THE  OWNER OR LICENSEE IS OTHERWISE SUITABLE TO BE ISSUED A
 LICENSE, AND GRANTING THE LICENSE WOULD NOT  COMPROMISE  PUBLIC  SAFETY,
 THE  BUREAU  SHALL CONDUCT A THOROUGH REVIEW OF THE NATURE OF THE CRIME,

 S. 1527                            29
 
 CONVICTION, CIRCUMSTANCES, AND EVIDENCE OF REHABILITATION OF THE  OWNER,
 AND SHALL EVALUATE THE SUITABILITY OF THE OWNER OR LICENSEE TO BE ISSUED
 A LICENSE BASED ON THE EVIDENCE FOUND THROUGH THE REVIEW. IN DETERMINING
 WHICH  OFFENSES  ARE SUBSTANTIALLY RELATED TO THE FUNCTIONS OR DUTIES OF
 OWNING AND OPERATING A BUSINESS, THE BUREAU SHALL INCLUDE,  BUT  NOT  BE
 LIMITED TO, THE FOLLOWING:
   (A) A FELONY CONVICTION INVOLVING FRAUD, MONEY LAUNDERING, FORGERY AND
 OTHER UNLAWFUL CONDUCT RELATED TO OWNING AND OPERATING A BUSINESS.
   (B)  A  FELONY  CONVICTION  FOR HIRING, EMPLOYING, OR USING A MINOR IN
 TRANSPORTING, CARRYING, SELLING, GIVING AWAY,  PREPARING  FOR  SALE,  OR
 PEDDLING,  ANY  CONTROLLED SUBSTANCE TO A MINOR; OR SELLING, OFFERING TO
 SELL, FURNISHING, OFFERING TO  FURNISH,  ADMINISTERING,  OR  GIVING  ANY
 CONTROLLED SUBSTANCE TO A MINOR.
   3.  NO  LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE AGE OF
 TWENTY-ONE YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE  OF
 TWENTY-ONE YEARS.
   §  173.  CERTAIN  OFFICIALS NOT TO BE INTERESTED IN THE MANUFACTURE OR
 SALE OF MARIHUANA. 1.  EXCEPT  AS  OTHERWISE  PROVIDED  IN  SECTION  ONE
 HUNDRED  TWENTY-EIGHT-A  OF  THIS  CHAPTER, IT SHALL BE UNLAWFUL FOR ANY
 POLICE COMMISSIONER, POLICE  INSPECTOR,  CAPTAIN,  SERGEANT,  ROUNDSMAN,
 PATROLMAN  OR OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE DEPART-
 MENT IN THE STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE
 MANUFACTURE OR SALE OF MARIHUANA OR TO OFFER FOR SALE, OR  RECOMMEND  TO
 ANY  LICENSEE  ANY  MARIHUANA.  A  PERSON  MAY NOT BE DENIED ANY LICENSE
 GRANTED UNDER THE PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE,  FIFTY-
 NINE,  SIXTY-THREE,  SIXTY-FOUR,  SEVENTY-NINE,  EIGHTY-ONE,  OR ARTICLE
 SEVEN OF THIS CHAPTER SOLELY ON THE GROUNDS OF BEING  THE  SPOUSE  OF  A
 PUBLIC SERVANT DESCRIBED IN THIS SUBDIVISION. THE SOLICITATION OR RECOM-
 MENDATION  MADE TO ANY LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY POLICE
 OFFICIAL OR SUBORDINATE AS  DESCRIBED  IN  THIS  SUBDIVISION,  SHALL  BE
 PRESUMPTIVE  EVIDENCE OF THE INTEREST OF SUCH OFFICIAL OR SUBORDINATE IN
 THE MANUFACTURE OR SALE OF MARIHUANA.
   2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET
 FORTH IN SUBDIVISION ONE OF THIS SECTION UNLESS  SUCH  ELECTIVE  VILLAGE
 OFFICER  SHALL  BE ASSIGNED DUTIES DIRECTLY RELATING TO THE OPERATION OR
 MANAGEMENT OF THE POLICE DEPARTMENT.
   § 174. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO  HUNDRED
 FORTY  DAYS  AFTER  THE EFFECTIVE DATE OF THIS ARTICLE, THE BUREAU SHALL
 PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS
 AND ORDERS AS IT MAY DEEM NECESSARY OR PROPER TO  FULLY  EFFECTUATE  THE
 PROVISIONS OF THIS ARTICLE.
   2. THE BUREAU SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERN-
 ING THE LICENSING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARIHUA-
 NA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON-SITE, INCLUDING:
   (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
 RENEWAL FEES;
   (B) THE QUALIFICATIONS FOR LICENSURE;
   (C)  THE  BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES,
 THE REPORTS TO BE MADE THEREON TO THE  BUREAU,  AND  INSPECTION  OF  THE
 BOOKS AND RECORDS;
   (D)  METHODS  OF PRODUCING, PROCESSING, AND PACKAGING MARIHUANA, MARI-
 HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA-
 TION, AND STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY  OF  MARIHUANA
 PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND

 S. 1527                            30
 
   (E)  SECURITY  REQUIREMENTS FOR MARIHUANA RETAILERS AND PREMISES WHERE
 MARIHUANA PRODUCTS ARE PRODUCED OR PROCESSED, AND SAFETY  PROTOCOLS  FOR
 LICENSEES AND THEIR EMPLOYEES.
   3.  THE  BUREAU SHALL PROMULGATE RULES AND REGULATIONS THAT ARE CALCU-
 LATED TO:
   (A) PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER  TWENTY-ONE
 YEARS OF AGE;
   (B)  PREVENT  THE  REVENUE  FROM  THE  SALE OF MARIHUANA FROM GOING TO
 ORGANIZED CRIMINAL ENTERPRISES AND CARTELS;
   (C) PREVENT THE DIVERSION  OF  MARIHUANA  FROM  THIS  STATE  TO  OTHER
 STATES;
   (D)  PREVENT  MARIHUANA  ACTIVITY  THAT  IS LEGAL UNDER STATE LAW FROM
 BEING USED AS A COVER OR PRETEXT FOR THE TRAFFICKING  OF  OTHER  ILLEGAL
 DRUGS OR OTHER ILLEGAL ACTIVITY;
   (E)  PREVENT  VIOLENCE  AND THE USE OF FIREARMS IN THE CULTIVATION AND
 DISTRIBUTION OF MARIHUANA;
   (F) PREVENT IMPAIRED DRIVING AND THE  EXACERBATION  OF  OTHER  ADVERSE
 PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA;
   (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT
 PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON
 PUBLIC LANDS; AND
   (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY.
   4.  RULES AND REGULATIONS PROMULGATED BY THE BUREAU PURSUANT TO SUBDI-
 VISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION  OF  MARI-
 HUANA  ESTABLISHMENTS  EITHER EXPRESSLY OR THROUGH REGULATIONS THAT MAKE
 THEIR OPERATION UNREASONABLY IMPRACTICABLE.
   5. THE BUREAU, IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE  AND
 MARKETS  AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, SHALL PROMUL-
 GATE NECESSARY RULES AND REGULATIONS GOVERNING THE  SAFE  PRODUCTION  OF
 MARIHUANA, INCLUDING RESTRICTIONS ON THE USE OF PESTICIDES, INSECTICIDES
 AND HERBICIDES.
   §  175. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER SHALL
 SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY  MARIHUANA  PRODUCTS,
 AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
 ACCORDANCE  WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE BUREAU.
 SUCH CONTAINERS SHALL  HAVE  AFFIXED  THERETO  SUCH  LABELS  AS  MAY  BE
 REQUIRED  BY  THE  RULES  OF THE BUREAU, TOGETHER WITH ALL NECESSARY NEW
 YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
   2. NO PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT  IN  VEHI-
 CLES  OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY SUCH
 PRODUCER FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH  THE
 BUREAU,  AND  SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE
 PURCHASER.
   3. EACH PRODUCER SHALL KEEP AND MAINTAIN UPON THE  LICENSED  PREMISES,
 ADEQUATE  BOOKS  AND  RECORDS OF ALL TRANSACTIONS INVOLVING THE PRODUCER
 AND SALE OF HIS OR ITS PRODUCTS, WHICH  SHALL  INCLUDE  ALL  INFORMATION
 REQUIRED BY RULES PROMULGATED BY THE BUREAU. EACH SALE SHALL BE RECORDED
 SEPARATELY  ON  A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED THEREON THE
 NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE LICENSED  PREMISES,
 AND  THE  CURRENT  LICENSE  NUMBER.  SUCH  PRODUCER SHALL DELIVER TO THE
 PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND ADDRESS  OF  THE
 PURCHASER,  THE  QUANTITY  PURCHASED,  DESCRIPTION  AND THE PRICE OF THE
 PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF  THE  TERMS  AND
 CONDITIONS  ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND INVOICES
 SHALL BE KEPT FOR A PERIOD OF TWO  YEARS  AND  SHALL  BE  AVAILABLE  FOR
 INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.

 S. 1527                            31
 
   4. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
 ANY  EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR OTHERWISE,
 EXCEPT AS AUTHORIZED BY THE BUREAU. THE BUREAU MAY MAKE SUCH RULES AS IT
 DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS SUBDIVISION.
   §  176.  PROVISIONS  GOVERNING  PROCESSORS.  1.  NO PROCESSOR SHALL BE
 ENGAGED IN ANY OTHER BUSINESS ON THE PREMISES  TO  BE  LICENSED;  EXCEPT
 THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
 ER  AND  A  MARIHUANA  PROCESSOR FROM OPERATING ON THE SAME PREMISES AND
 FROM A PERSON HOLDING BOTH LICENSES.
   2. NO PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN  THE  STATE
 ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE CONTAINING QUANTITIES
 IN  ACCORDANCE  WITH  SIZE  STANDARDS  PURSUANT  TO RULES ADOPTED BY THE
 BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE
 REQUIRED BY THE RULES OF THE BUREAU, TOGETHER  WITH  ALL  NECESSARY  NEW
 YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
   3.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
 AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
 FROM  A  TRUCKING  OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU,
 AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE  PURCHAS-
 ER.
   4.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
 ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
 TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
 PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE
 NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
 PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
 AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
 NAMES, ADDRESSES, AND LICENSE NUMBERS  OF  SUCH  PURCHASERS.  EACH  SALE
 SHALL  BE  RECORDED  SEPARATELY  ON A NUMBERED INVOICE, WHICH SHALL HAVE
 PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
 LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR  SHALL
 DELIVER  TO  THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND
 ADDRESS OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE  PRICE
 OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
 AND  CONDITIONS  ON  WHICH  SUCH  SALE  IS MADE. SUCH BOOKS, RECORDS AND
 INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
 FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
   §  177. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL LICENSE
 SHALL BE GRANTED FOR ANY PREMISES, UNLESS THE  APPLICANT  SHALL  BE  THE
 OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
 MANAGEMENT  AGREEMENT  OR  OTHER  AGREEMENT GIVING THE APPLICANT CONTROL
 OVER THE PREMISES, IN WRITING, FOR A TERM  NOT  LESS  THAN  THE  LICENSE
 PERIOD.
   2.  NO  PREMISES  SHALL BE LICENSED TO SELL MARIHUANA PRODUCTS, UNLESS
 SAID PREMISES SHALL BE LOCATED IN A STORE,  THE  PRINCIPAL  ENTRANCE  TO
 WHICH  SHALL  BE FROM THE STREET LEVEL AND LOCATED ON A PUBLIC THOROUGH-
 FARE IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR  BUSI-
 NESS,  TRADE  OR  INDUSTRY  OR  ON AN ARCADE OR SUB-SURFACE THOROUGHFARE
 LEADING TO A RAILROAD TERMINAL. THERE MAY BE NOT  MORE  THAN  ONE  ADDI-
 TIONAL  ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON AND
 GIVING ACCESS TO AND FROM A PUBLIC OR PRIVATE  PARKING  LOT  OR  PARKING
 AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
   3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
 A  LICENSE  WOULD  NOT  BE  ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF
 ALCOHOL OFF THE PREMISES BASED ON ITS PROXIMITY TO A  BUILDING  OCCUPIED

 S. 1527                            32
 
 EXCLUSIVELY  AS  A  SCHOOL,  CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP
 PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   4.  NO  MARIHUANA  RETAIL  LICENSEE SHALL OFFER FOR SALE ANY MARIHUANA
 PRODUCTS IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED  PACKAGE,
 AS RECEIVED FROM THE PRODUCER, DISTRIBUTOR OR PROCESSOR. SUCH CONTAINERS
 SHALL  HAVE  AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY THE RULES
 OF THE BUREAU, TOGETHER WITH ALL NEW YORK STATE EXCISE  TAX  STAMPS,  AS
 REQUIRED  BY  LAW.  SUCH CONTAINERS SHALL NOT BE OPENED NOR ITS CONTENTS
 CONSUMED ON THE PREMISES WHERE SOLD.
   5. NO MARIHUANA RETAIL  LICENSEE  SHALL  SELL  OR  TRANSFER  MARIHUANA
 PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
   6.  NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON THE
 SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
   7. NO SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC,  ADVERTISING  ANY
 BRAND  SHALL  BE PERMITTED ON THE EXTERIOR OR INTERIOR OF SUCH PREMISES,
 EXCEPT BY PERMISSION OF THE BUREAU.
   8. NO RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS  EXCEPT  IN
 VEHICLES  OWNED  AND OPERATED BY SUCH LICENSEE, OR HIRED AND OPERATED BY
 SUCH LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH
 THE  BUREAU,  AND SHALL ONLY MAKE SUCH DELIVERIES AT THE PREMISES OF THE
 PURCHASER.
   9. NO RETAIL LICENSEE SHALL  KEEP  OR  PERMIT  TO  BE  KEPT  UPON  THE
 LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
   10. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
 REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
 WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
 ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   11.  EACH  MARIHUANA  RETAIL LICENSEE SHALL KEEP AND MAINTAIN UPON THE
 LICENSED PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL  TRANSACTIONS
 INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
 AMOUNT  OF  MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE TOGETHER WITH
 THE NAMES, LICENSE NUMBERS AND PLACES OF BUSINESS OF  THE  PERSONS  FROM
 WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
 AS  WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE, AND
 THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
 ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
   12. ALL PREMISES LICENSED UNDER  THIS  SECTION  SHALL  BE  SUBJECT  TO
 INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
 2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
 DUTIES,  OR  POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE OF THE
 BUREAU, DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE  TRANS-
 ACTION OF BUSINESS.
   § 178. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 1.
 NO  MARIHUANA  RETAILER  OR  MICROBUSINESS  SHALL BE GRANTED A MARIHUANA
 ON-SITE CONSUMPTION LICENSE FOR A PREMISES LOCATED IN WHOLE OR  IN  PART
 INSIDE  THE  BOUNDARIES  OF  ANY CITY, VILLAGE OR TOWN, UNLESS THE LOCAL
 LEGISLATIVE BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY
 AUTHORIZES THE LICENSING OF SUCH FACILITIES IN  SUCH  CITY,  VILLAGE  OR
 TOWN.  THE  LOCAL  LEGISLATIVE  BODY  MAY DIRECT AN APPROPRIATE OFFICER,
 BOARD OR BODY OF SUCH CITY, VILLAGE  OR  TOWN  AS  THE  LOCAL  LICENSING
 AUTHORITY  TO  AUTHORIZE  INDIVIDUAL MARIHUANA FACILITY LICENSE APPLICA-
 TIONS. IN CITIES OF ONE MILLION OR  MORE  RESIDENTS,  SHOULD  THE  LOCAL
 LEGISLATIVE  BODY  AUTHORIZE SUCH LICENSE, NO MARIHUANA RETAILER LICENSE
 FOR CONSUMPTION ON-SITE SHALL BE  GRANTED  UNLESS  THE  COMMUNITY  BOARD
 ESTABLISHED  PURSUANT  TO  SECTION  TWENTY-EIGHT HUNDRED OF THE NEW YORK

 S. 1527                            33
 
 CITY CHARTER WITH JURISDICTION OVER THE AREA IN WHICH THE PREMISES  WILL
 BE LOCATED SHALL ALSO AUTHORIZE SUCH LICENSE.
   2. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
 ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES, UNLESS THE APPLICANT SHALL
 BE THE OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A
 LEASE,  IN  WRITING, FOR A TERM NOT LESS THAN THE LICENSE PERIOD EXCEPT,
 HOWEVER, THAT  SUCH  LICENSE  MAY  THEREAFTER  BE  RENEWED  WITHOUT  THE
 REQUIREMENT  OF  A  LEASE AS HEREIN PROVIDED. THIS SUBDIVISION SHALL NOT
 APPLY TO PREMISES LEASED FROM  GOVERNMENT  AGENCIES,  AS  DEFINED  UNDER
 SUBDIVISION  TWELVE-C OF SECTION THREE OF THIS CHAPTER; PROVIDED, HOWEV-
 ER,  THAT  THE  APPROPRIATE  ADMINISTRATOR  OF  SUCH  GOVERNMENT  AGENCY
 PROVIDES SOME FORM OF WRITTEN DOCUMENTATION REGARDING THE TERMS OF OCCU-
 PANCY  UNDER  WHICH  THE  APPLICANT  IS  LEASING  SAID PREMISES FROM THE
 GOVERNMENT AGENCY FOR PRESENTATION TO THE BUREAU  AT  THE  TIME  OF  THE
 LICENSE APPLICATION. SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCU-
 PANCY  BETWEEN  THE  APPLICANT AND THE GOVERNMENT AGENCY, INCLUDING, BUT
 NOT LIMITED TO, ANY SHORT-TERM LEASING AGREEMENTS OR  WRITTEN  OCCUPANCY
 AGREEMENTS.
   3. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
 ON-SITE  CONSUMPTION  LICENSE FOR ANY PREMISES WHERE A LICENSE WOULD NOT
 BE ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF ALCOHOL ON THE  PREMISES
 BASED  ON  ITS PROXIMITY TO A BUILDING OCCUPIED EXCLUSIVELY AS A SCHOOL,
 CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP PURSUANT TO  THE  PROVISIONS
 OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   4.  THE BUREAU MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN DETERMINING
 WHETHER PUBLIC CONVENIENCE AND ADVANTAGE AND THE PUBLIC INTEREST WILL BE
 PROMOTED BY THE GRANTING OF LICENSES AND PERMITS FOR A MARIHUANA ON-SITE
 CONSUMPTION LICENSE AT A PARTICULAR UNLICENSED LOCATION:
   (A) THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO  THE
 LOCATION  AND  IN  THE  PARTICULAR  TOWN, CITY OR VILLAGE OR SUBDIVISION
 THEREOF.
   (B) EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE  BEEN
 OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
   (C)  EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND PARK-
 ING IN PROXIMITY TO THE LOCATION.
   (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
 LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
   (E) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
 TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
 THE COMMUNITY.
   5. IF THE BUREAU SHALL DISAPPROVE AN  APPLICATION  FOR  A  LICENSE  OR
 PERMIT,  IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR AND
 SHALL NOTIFY THE APPLICANT THEREOF. SUCH APPLICANT MAY  THEREUPON  APPLY
 TO  THE  BUREAU FOR A REVIEW OF SUCH ACTION IN A MANNER TO BE PRESCRIBED
 BY THE RULES OF THE BUREAU. A HEARING UPON NOTICE TO THE APPLICANT SHALL
 THEREUPON BE HELD BY THE BUREAU OR BY ONE OF ITS MEMBERS AT  ITS  OFFICE
 MOST  CONVENIENTLY  SITUATED TO THE OFFICE OF ITS DULY AUTHORIZED REPRE-
 SENTATIVE IN A MANNER TO BE PRESCRIBED IN ITS RULES; AND ON SUCH HEARING
 PROOF MAY BE TAKEN BY ORAL TESTIMONY OR BY AFFIDAVIT  RELATIVE  THERETO.
 AFTER  SUCH  HEARING,  IF THE BUREAU CONFIRMS SUCH DISAPPROVAL, IT SHALL
 ENDORSE SUCH APPLICATION ACCORDINGLY AND SHALL SEND NOTICE TO THE APPLI-
 CANT OF ITS ACTION IN SUCH FORM AS THE  BUREAU  MAY  PRESCRIBE.  IF  THE
 BUREAU  DOES NOT CONFIRM THE DISAPPROVAL ACTION IT MAY GRANT SUCH APPLI-
 CATION AND ISSUE SUCH LICENSE.
   6. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE, EXCEPT PERSONS OR CORPO-
 RATIONS OPERATING A HOTEL, AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION

 S. 1527                            34
 
 THREE OF THIS CHAPTER, FOR EXCLUSIVE  USE  IN  THE  FURNISHING  OF  ROOM
 SERVICE  IN  THE  MANNER PRESCRIBED BY RULE OR REGULATION OF THE BUREAU,
 SHALL KEEP UPON THE LICENSED PREMISES  ANY  MARIHUANA  PRODUCTS,  EXCEPT
 THOSE  PURCHASED FROM A LICENSED PRODUCER, AND IN CONTAINERS APPROVED BY
 THE BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO  SUCH  LABELS  AS
 MAY  BE REQUIRED BY THE RULES OF THE BUREAU, TOGETHER WITH ALL NECESSARY
 EXCISE STAMPS AS REQUIRED BY  LAW.  NO  MARIHUANA  RETAIL  LICENSEE  FOR
 ON-SITE CONSUMPTION SHALL REUSE, REFILL, TAMPER WITH, ADULTERATE, DILUTE
 OR  FORTIFY  THE  CONTENTS  OF  ANY  CONTAINER  OF MARIHUANA PRODUCTS AS
 RECEIVED FROM THE MANUFACTURER OR WHOLESALER.
   7. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL  SELL,  DELIVER  OR
 GIVE  AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD, DELIVERED OR GIVEN
 AWAY ANY MARIHUANA FOR CONSUMPTION ON  THE  PREMISES  WHERE  SOLD  IN  A
 CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF MARIHUANA.
   8.  EXCEPT  WHERE  A  PERMIT  TO DO SO IS OBTAINED PURSUANT TO SECTION
 405.10 OF THE PENAL LAW, NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL
 SUFFER, PERMIT, OR PROMOTE AN EVENT ON ITS PREMISES WHEREIN  ANY  PERSON
 SHALL  USE,  EXPLODE,  OR CAUSE TO EXPLODE, ANY FIREWORKS OR OTHER PYRO-
 TECHNICS IN A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION  ONE  OF
 SECTION  405.10  OF  THE  PENAL  LAW, THAT IS COVERED BY SUCH LICENSE OR
 POSSESS SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION  TO
 ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
 CONSTITUTE  AN  ADEQUATE GROUND FOR INSTITUTING A PROCEEDING TO SUSPEND,
 CANCEL, OR REVOKE THE LICENSE OF THE VIOLATOR  IN  ACCORDANCE  WITH  THE
 APPLICABLE  PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF THIS
 CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
 A SINGLE EVENT, UPON APPROVAL BY THE  BUREAU,  ONLY  ONE  LICENSEE  MUST
 OBTAIN SUCH PERMIT.
   9.  NO  RESTAURANT AND NO PREMISES LICENSED TO SELL MARIHUANA PRODUCTS
 FOR ON-SITE CONSUMPTION  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION  SIX  OF
 SECTION  SIXTY-FOUR-A  OF  THIS  CHAPTER  SHALL BE PERMITTED TO HAVE ANY
 OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
 THE LICENSED PREMISES AND ANY  OTHER  ROOM  OR  PLACE  IN  THE  BUILDING
 CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
 UNLESS  INGRESS  AND  EGRESS  IS RESTRICTED BY AN EMPLOYEE, AGENT OF THE
 LICENSEE, OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE  FACILI-
 TY,  OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH ACCESS
 FOR PATRONS AND GUESTS FROM ANY PART OF SUCH BUILDING  OR  ADJOINING  OR
 ABUTTING  PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE AND
 SUITABLE MANNER; OR UNLESS SUCH LICENSED  PREMISES  ARE  IN  A  BUILDING
 OWNED  OR  OPERATED  BY  ANY  TOWN, CITY, VILLAGE OR PUBLIC AUTHORITY OR
 AGENCY, IN A PARK OR OTHER SIMILAR PLACE OF  PUBLIC  ACCOMMODATION.  ALL
 GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
 SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.
   10.  A VESSEL LICENSED TO SELL MARIHUANA PRODUCTS FOR ON-SITE CONSUMP-
 TION SHALL NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS,  WHILE  SAID
 VESSEL  IS  MOORED  TO  A  PIER  OR DOCK, EXCEPT THAT VESSELS SAILING ON
 ESTABLISHED SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS  FOR
 A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
   11.  EACH  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL KEEP AND MAIN-
 TAIN UPON THE LICENSED PREMISES, ADEQUATE RECORDS  OF  ALL  TRANSACTIONS
 INVOLVING  THE BUSINESS TRANSACTED BY SUCH LICENSEE WHICH SHALL SHOW THE
 AMOUNT OF MARIHUANA  PRODUCTS,  IN  AN  APPLICABLE  METRIC  MEASUREMENT,
 PURCHASED  BY SUCH LICENSEE TOGETHER WITH THE NAMES, LICENSE NUMBERS AND
 PLACES OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE PURCHASED, THE
 AMOUNT INVOLVED IN SUCH PURCHASES, AS WELL AS  THE  SALES  OF  MARIHUANA

 S. 1527                            35
 
 PRODUCTS  MADE  BY  SUCH  LICENSEE.  THE  BUREAU IS HEREBY AUTHORIZED TO
 PROMULGATE RULES AND REGULATIONS PERMITTING AN ON-SITE LICENSEE  OPERAT-
 ING  TWO OR MORE PREMISES SEPARATELY LICENSED TO SELL MARIHUANA PRODUCTS
 FOR ON-SITE CONSUMPTION TO INAUGURATE OR RETAIN IN THIS STATE METHODS OR
 PRACTICES  OF  CENTRALIZED  ACCOUNTING,  BOOKKEEPING,  CONTROL  RECORDS,
 REPORTING, BILLING, INVOICING OR PAYMENT RESPECTING PURCHASES, SALES  OR
 DELIVERIES  OF  MARIHUANA PRODUCTS, OR METHODS AND PRACTICES OF CENTRAL-
 IZED RECEIPT OR STORAGE OF MARIHUANA PRODUCTS WITHIN THIS STATE  WITHOUT
 SEGREGATION  OR  EARMARKING  FOR  ANY SUCH SEPARATELY LICENSED PREMISES,
 WHEREVER SUCH METHODS AND PRACTICES ASSURE  THE  AVAILABILITY,  AT  SUCH
 LICENSEE'S  CENTRAL  OR  MAIN  OFFICE  IN THIS STATE, OF DATA REASONABLY
 NEEDED FOR THE ENFORCEMENT OF THIS CHAPTER. SUCH RECORDS SHALL BE AVAIL-
 ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
   12. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
 PEACE OFFICER, ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES,  OR  POLICE
 OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE BUREAU, DURING
 THE  HOURS  WHEN THE SAID PREMISES ARE OPEN FOR THE TRANSACTION OF BUSI-
 NESS.
   13. A MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL NOT  PROVIDE  MARI-
 HUANA PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE.
   §  179.  ADVERTISING  AND  FORMS  FOR THE ISSUANCE OF LICENSES. 1. THE
 BUREAU IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGULATIONS  GOVERN-
 ING  THE ADVERTISING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARI-
 HUANA RETAILERS, AND ANY MARIHUANA RELATED PRODUCTS OR SERVICES.
   2. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING  ADVERTISING
 THAT:
   (A) IS FALSE, DECEPTIVE, OR MISLEADING;
   (B) PROMOTES OVERCONSUMPTION;
   (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;
   (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
   (E) IS WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A PLAYGROUND, CHILD
 CARE CENTER, PUBLIC PARK, LIBRARY OR SCHOOL GROUNDS;
   (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
   (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
   (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
   3.  THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING ALL MARKET-
 ING STRATEGIES AND IMPLEMENTATION INCLUDING, BUT NOT LIMITED TO,  BRAND-
 ING,  PACKAGING, LABELING, LOCATION OF MARIHUANA RETAILERS AND MARIHUANA
 MICROBUSINESSES, AND ADVERTISEMENTS THAT ARE DESIGNED TO:
   (A) APPEAL TO PERSONS LESS THEN TWENTY-ONE YEARS OF AGE; OR
   (B) DISSEMINATE FALSE OR MISLEADING INFORMATION TO CUSTOMERS.
   4. THE BUREAU SHALL PROMULGATE EXPLICIT RULES REQUIRING THAT:
   (A) ALL ADVERTISEMENTS AND MARKETING ACCURATELY AND  LEGIBLY  IDENTIFY
 THE LICENSEE RESPONSIBLE FOR ITS CONTENT; AND
   (B)  ANY  BROADCAST,  CABLE,  RADIO,  PRINT AND DIGITAL COMMUNICATIONS
 ADVERTISEMENTS ONLY BE PLACED WHERE THE AUDIENCE IS REASONABLY  EXPECTED
 TO  BE  TWENTY-ONE  YEARS  OF  AGE  OR OLDER, AS DETERMINED BY RELIABLE,
 UP-TO-DATE AUDIENCE COMPOSITION DATA.
   § 180. PACKAGING OF  MARIHUANA  PRODUCTS.  1.  THE  BUREAU  IS  HEREBY
 AUTHORIZED  TO  PROMULGATE RULES AND REGULATIONS GOVERNING THE PACKAGING
 OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.
   2. SUCH REGULATIONS SHALL INCLUDE REQUIRING THAT:
   (A) PACKAGING  MEETS  REQUIREMENTS  SIMILAR  TO  THE  FEDERAL  "POISON
 PREVENTION PACKAGING ACT OF 1970," 15 U.S.C. SEC 1471 ET SEQ.;
   (B) ALL MARIHUANA-INFUSED PRODUCTS SHALL HAVE A SEPARATE PACKAGING FOR
 EACH SERVING;

 S. 1527                            36
 
   (C)  PRIOR  TO DELIVERY OR SALE AT A RETAILER, MARIHUANA AND MARIHUANA
 PRODUCTS SHALL BE LABELED AND PLACED IN  A  RESEALABLE,  CHILD-RESISTANT
 PACKAGE; AND
   (D)  PACKAGES  AND  LABELS SHALL NOT BE MADE TO BE ATTRACTIVE TO CHIL-
 DREN.
   § 181. LABELING OF MARIHUANA PRODUCTS. 1. THE BUREAU IS HEREBY AUTHOR-
 IZED TO PROMULGATE RULES AND  REGULATIONS  GOVERNING  THE  LABELING  AND
 OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
   2.  SUCH  RULES  AND  REGULATIONS SHALL BE CALCULATED TO: (A) PROHIBIT
 DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
 AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
 BUSINESS.
   3. THE BUREAU MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF HEALTH WHEN
 NECESSARY BEFORE PROMULGATING RULES AND REGULATIONS UNDER THIS SECTION.
   4. SUCH REGULATIONS SHALL INCLUDE REQUIRING LABELS  WARNING  CONSUMERS
 OF  ANY  POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM THE CONSUMPTION
 OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
 IF SUCH LABELS ARE DEEMED WARRANTED BY  THE  BUREAU  AFTER  CONSULTATION
 WITH THE DEPARTMENT OF HEALTH.
   5.  ALL  MARIHUANA  AND  MARIHUANA  PRODUCT  LABELS  AND INSERTS SHALL
 INCLUDE THE FOLLOWING INFORMATION PROMINENTLY DISPLAYED IN A  CLEAR  AND
 LEGIBLE  FASHION  IN  ACCORDANCE  WITH  THE REQUIREMENTS, INCLUDING FONT
 SIZE, PRESCRIBED BY THE BUREAU OR THE DEPARTMENT  OF  HEALTH:  NOT  LESS
 THAN 8 POINT FONT:
   (A) MANUFACTURE DATE AND SOURCE;
   (B) FOR PACKAGES CONTAINING ONLY DRIED FLOWER, THE NET WEIGHT OF MARI-
 HUANA IN THE PACKAGE;
   (C)  IDENTIFICATION OF THE SOURCE AND DATE OF CULTIVATION, THE TYPE OF
 MARIHUANA OR MARIHUANA PRODUCT AND THE DATE OF MANUFACTURING AND PACKAG-
 ING;
   (D) LIST OF PHARMACOLOGICALLY ACTIVE INGREDIENTS, INCLUDING,  BUT  NOT
 LIMITED  TO,  TETRAHYDROCANNABINOL  (THC),  CANNABIDIOL (CBD), AND OTHER
 CANNABINOID CONTENT, THE THC AND OTHER CANNABINOID AMOUNT IN  MILLIGRAMS
 PER  SERVING,  SERVINGS  PER  PACKAGE, AND THE THC AND OTHER CANNABINOID
 AMOUNT IN MILLIGRAMS FOR THE PACKAGE TOTAL, AND THE POTENCY OF THE MARI-
 HUANA OR MARIHUANA PRODUCT BY REFERENCE TO THE AMOUNT OF  TETRAHYDROCAN-
 NABINOL AND CANNABIDIOL IN EACH SERVING;
   (E)  FOR  MARIHUANA PRODUCTS, A LIST OF ALL INGREDIENTS AND DISCLOSURE
 OF NUTRITIONAL INFORMATION IN THE SAME MANNER AS THE FEDERAL NUTRITIONAL
 LABELING REQUIREMENTS IN 21 C.F.R. SECTION 101.9;
   (F) A LIST OF ANY SOLVENTS,  NONORGANIC  PESTICIDES,  HERBICIDES,  AND
 FERTILIZERS  THAT WERE USED IN THE CULTIVATION, PRODUCTION, AND MANUFAC-
 TURE OF SUCH MARIHUANA OR MARIHUANA PRODUCT;
   (G) A WARNING IF NUTS OR OTHER KNOWN ALLERGENS ARE USED;
   (H) INFORMATION ASSOCIATED WITH THE UNIQUE IDENTIFIER  ISSUED  BY  THE
 BUREAU OF MARIHUANA POLICY; AND
   (I) ANY OTHER REQUIREMENTS SET BY THE BUREAU OF MARIHUANA POLICY.
   6.  ONLY GENERIC FOOD NAMES MAY BE USED TO DESCRIBE THE INGREDIENTS IN
 EDIBLE MARIHUANA PRODUCTS.
   7. SUCH RULES AND REGULATIONS SHALL ESTABLISH METHODS  AND  PROCEDURES
 FOR  DETERMINING  SERVING  SIZES  FOR MARIHUANA-INFUSED PRODUCTS, ACTIVE
 CANNABIS CONCENTRATION PER SERVING SIZE,  AND  NUMBER  OF  SERVINGS  PER
 CONTAINER.  SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT PANEL
 THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.

 S. 1527                            37
 
   8. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
 LICENSE NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES  WHERE
 THE MARIHUANA WAS GROWN AND PROCESSED.
   9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
 PRODUCT  NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND REGULATIONS
 PROMULGATED IN ACCORDANCE WITH THIS SECTION SHALL  BE  GROUNDS  FOR  THE
 IMPOSITION  OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR CANCELLATION
 OF THE LICENSE.
   § 182. SEED TO SALE TRACKING. 1. NO LATER THAN FIFTEEN MONTHS  FOLLOW-
 ING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT, THE
 BUREAU SHALL ESTABLISH A SEED TO SALE TRACKING PROGRAM FOR REPORTING THE
 MOVEMENT OF MARIHUANA AND MARIHUANA PRODUCTS THROUGHOUT THE DISTRIBUTION
 CHAIN  THAT  UTILIZES  A  UNIQUE  IDENTIFIER AND SECURE PACKAGING AND IS
 CAPABLE OF PROVIDING INFORMATION THAT CAPTURES, AT A MINIMUM, ALL OF THE
 FOLLOWING:
   (A) THE LICENSEE RECEIVING THE PRODUCT;
   (B) THE TRANSACTION DATE; AND
   (C) THE PRODUCER FROM WHICH  THE  PRODUCT  ORIGINATES,  INCLUDING  THE
 ASSOCIATED UNIQUE IDENTIFIER.
   2.  (A)  THE BUREAU SHALL CREATE AN ELECTRONIC DATABASE CONTAINING THE
 ELECTRONIC SHIPPING MANIFESTS TO FACILITATE THE  ADMINISTRATION  OF  THE
 SEED  TO  SALE PROGRAM TRACKING, WHICH SHALL INCLUDE, BUT NOT BE LIMITED
 TO, THE FOLLOWING INFORMATION:
   (B) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS SHIPPED;
   (C) THE ESTIMATED TIMES OF DEPARTURE AND ARRIVAL;
   (D) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS RECEIVED;
   (E) THE ACTUAL TIME OF DEPARTURE AND ARRIVAL;
   (F) A CATEGORIZATION OF THE PRODUCT; AND
   (G) THE LICENSE NUMBER AND UNIQUE IDENTIFIER ISSUED BY THE BUREAU  FOR
 ALL  LICENSEES  INVOLVED  IN  THE  SHIPPING  PROCESS, INCLUDING, BUT NOT
 LIMITED TO, PRODUCER, PROCESSOR, RETAILER, AND DELIVERY LICENSEES.
   3. THE DATABASE SHALL BE  DESIGNED  TO  FLAG  IRREGULARITIES  FOR  THE
 BUREAU TO INVESTIGATE.
   §  183.  RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE AND PERMIT,
 ISSUED PURSUANT TO THIS ARTICLE MAY BE RENEWED UPON APPLICATION THEREFOR
 BY THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR  SUCH
 LICENSE OR PERMIT AS PRESCRIBED BY THIS ARTICLE. IN THE CASE OF APPLICA-
 TIONS  FOR  RENEWALS,  THE  BUREAU MAY DISPENSE WITH THE REQUIREMENTS OF
 SUCH STATEMENTS AS IT DEEMS UNNECESSARY IN VIEW OF  THOSE  CONTAINED  IN
 THE  APPLICATION  MADE  FOR  THE  ORIGINAL LICENSE OR PERMIT, BUT IN ANY
 EVENT THE SUBMISSION OF PHOTOGRAPHS OF THE LICENSED  PREMISES  SHALL  BE
 DISPENSED  WITH,  PROVIDED  THE  APPLICANT FOR SUCH RENEWAL SHALL FILE A
 STATEMENT WITH SUCH BUREAU TO THE EFFECT THAT THERE HAS BEEN  NO  ALTER-
 ATION  OF  SUCH  PREMISES  SINCE  THE ORIGINAL LICENSE WAS ISSUED.   THE
 BUREAU MAY MAKE SUCH RULES AS MAY BE  NECESSARY  NOT  INCONSISTENT  WITH
 THIS CHAPTER REGARDING APPLICATIONS FOR RENEWALS OF LICENSES AND PERMITS
 AND  THE  TIME  FOR MAKING THE SAME.   EACH APPLICANT MUST SUBMIT TO THE
 BUREAU DOCUMENTATION OF THE RACIAL, ETHNIC, AND GENDER DIVERSITY OF  THE
 APPLICANT'S  EMPLOYEES  AND  OWNERS  PRIOR  TO A LICENSE OR PERMIT BEING
 RENEWED.
   2. THE BUREAU SHALL PROVIDE AN APPLICATION FOR RENEWAL  OF  A  LICENSE
 ISSUED  UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE EXPIRA-
 TION OF THE CURRENT LICENSE.
   § 184. INFORMATION TO BE PROVIDED BY APPLICANTS.    1.  THE  FOLLOWING
 SHALL  BE  THE  INFORMATION  REQUIRED ON AN APPLICATION FOR A LICENSE OR
 PERMIT:

 S. 1527                            38
 
   (A) A STATEMENT OF IDENTITY AS FOLLOWS:
   (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
 OF  BIRTH,  CITIZENSHIP,  PERMANENT  HOME  ADDRESS, TELEPHONE NUMBER AND
 SOCIAL SECURITY NUMBER, AS WELL AS ANY OTHER NAMES BY WHICH  HE  OR  SHE
 HAS CONDUCTED A BUSINESS AT ANY TIME.
   (II)  IF  THE APPLICANT IS A CORPORATION OR A LIMITED LIABILITY CORPO-
 RATION, THE CORPORATE NAME OF THE APPLICANT, ITS PLACE OF INCORPORATION,
 ITS MAIN BUSINESS ADDRESS (AND IF SUCH  MAIN  BUSINESS  ADDRESS  IS  NOT
 WITHIN  THE  STATE, THE ADDRESS OF ITS MAIN PLACE OF BUSINESS WITHIN THE
 STATE), OTHER NAMES BY WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS
 AT ANY TIME, ITS TELEPHONE NUMBER, ITS FEDERAL  EMPLOYER  IDENTIFICATION
 NUMBER,  AND  THE NAMES, AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES
 OF ITS DIRECTORS, OFFICERS AND ITS SHAREHOLDERS (EXCEPT THAT IF THERE BE
 MORE THAN TEN SHAREHOLDERS THEN THOSE SHAREHOLDERS HOLDING  TEN  PERCENT
 OR MORE OF ANY CLASS OF ITS SHARES).
   (III)  IF  THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS MAIN BUSINESS
 ADDRESS (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE,  THE
 ADDRESS  OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES BY
 WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
 PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
 AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
   (B) A STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE  PREMISES  TO
 BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
 DESCRIPTION AS WILL REASONABLY INDICATE THE TOWN, CITY OR VILLAGE THERE-
 OF;  PHOTOGRAPHS,  DRAWINGS  OR OTHER ITEMS RELATED TO THE APPEARANCE OF
 THE INTERIOR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTE-
 RIOR, SHALL BE REQUIRED. THE APPLICANT SHALL ALSO STATE  THE  NATURE  OF
 HIS  OR  HER  INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON
 INTERESTED AS A PARTNER, JOINT VENTURER, INVESTOR  OR  LENDER  WITH  THE
 APPLICANT EITHER IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.
   (C)  A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER THIS
 ARTICLE, WITHIN THE PAST TEN YEARS, THE APPLICANT (INCLUDING  ANY  OFFI-
 CERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS LISTED IN THE STATEMENT OF
 IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE  SPOUSE  OF  ANY
 SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
   (D)  A  DESCRIPTION  OF THE APPLICANT'S PLAN TO ENSURE DIVERSITY AMONG
 THE APPLICANT'S EMPLOYEES, INCLUDING STRATEGIES FOR ENSURING:
   (I) GENDER DIVERSITY;
   (II) RACIAL AND ETHNIC DIVERSITY THAT REFLECTS THE DEMOGRAPHICS WITHIN
 THE TOWN, CITY OR VILLAGE IN WHICH  THE  APPLICANT'S  PROPOSED  BUSINESS
 WILL BE LOCATED; AND
   (III) THAT PERSONS WITH PRIOR CRIMINAL CONVICTIONS ARE NOT BARRED FROM
 EMPLOYMENT.
   (E) FOR AN APPLICANT WITH MORE THAN TWENTY-FIVE EMPLOYEES, A STATEMENT
 THAT THE APPLICANT HAS ENTERED INTO A LABOR PEACE AGREEMENT WITH A BONA-
 FIDE  LABOR  ORGANIZATION  THAT  IS  ACTIVELY ENGAGED IN REPRESENTING OR
 ATTEMPTING TO REPRESENT THE APPLICANT'S EMPLOYEES.  THE  MAINTENANCE  OF
 SUCH  A  LABOR PEACE AGREEMENT SHALL BE AN ONGOING MATERIAL CONDITION OF
 CERTIFICATION.
   (F) A STATEMENT THAT THE LOCATION AND LAYOUT OF  THE  PREMISES  TO  BE
 LICENSED  DOES  NOT  VIOLATE ANY REQUIREMENT OF THIS CHAPTER RELATING TO
 LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
 OF OCCUPANCY FOR THE PREMISES.
   (G) A STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES  TO  BE
 LICENSED  BY  OWNERSHIP OF A FEE INTEREST OR VIA A LEASEHOLD, MANAGEMENT
 AGREEMENT, OR OTHER AGREEMENT GIVING  THE  APPLICANT  CONTROL  OVER  THE

 S. 1527                            39
 
 PREMISES,  WITH  A  TERM  AT  LEAST AS LONG AS THE LICENSE FOR WHICH THE
 APPLICATION IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE  SAME
 AND  A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION FOR
 THE  LESSOR  OF  ANY  LEASEHOLD, MANAGER OF ANY MANAGEMENT AGREEMENT, OR
 OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE PREMISES,  WITH  A
 COPY  OF  THE  LEASE, CONTRACT, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
 GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
 OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
   (H) A FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS  WHO,  DIRECTLY
 OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
 TION  OF  THE  BUSINESS  FOR  WHICH THE LICENSE OR PERMIT APPLICATION IS
 BEING MADE, TO IDENTIFY THE SOURCES OF  FUNDS  TO  BE  APPLIED  IN  SUCH
 ESTABLISHMENT  OR  ACQUISITION, AND TO DESCRIBE THE TERMS AND CONDITIONS
 GOVERNING SUCH ESTABLISHMENT WITH COPIES OF SUCH FINANCIAL DOCUMENTS  AS
 THE BUREAU MAY REASONABLY REQUIRE.
   (I)  THE FINGERPRINTS OF THE APPLICANTS. FINGERPRINTS SUBMITTED BY THE
 APPLICANTS SHALL BE TRANSMITTED TO  THE  DIVISION  OF  CRIMINAL  JUSTICE
 SERVICES AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR
 STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS.
   2. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE SIGNED BY THE APPLICANT
 (IF AN INDIVIDUAL), BY A MANAGING PARTNER (IF A LIMITED LIABILITY CORPO-
 RATION),  BY  AN  OFFICER  (IF  A CORPORATION), OR BY ALL PARTNERS (IF A
 PARTNERSHIP). EACH PERSON SIGNING SUCH APPLICATION SHALL  VERIFY  IT  OR
 AFFIRM IT AS TRUE UNDER THE PENALTIES OF PERJURY.
   3. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
 DRAFT  OR  OTHER FORMS OF PAYMENT AS THE BUREAU MAY REQUIRE OR AUTHORIZE
 IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
   4. IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR  THE
 GRANTING  OF  A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET FORTH IN
 SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
 COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
 FILED WITH THE BUREAU WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE  TO  DO
 SO  SHALL,  IF  WILLFUL  AND  DELIBERATE, BE CAUSE FOR REVOCATION OF THE
 LICENSE.
   5. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
 SEE OF A LICENSED PREMISES, THE BUREAU MAY  RELY  UPON  THE  INFORMATION
 FURNISHED   IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL  STATEMENT
 CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
 AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
 ALL INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR  SUPPLE-
 MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
 RY,  ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN THE
 BUREAU'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
   6. THE BUREAU MAY IN ITS DISCRETION WAIVE THE SUBMISSION OF ANY  CATE-
 GORY  OF  INFORMATION  DESCRIBED  IN  THIS  SECTION  FOR ANY CATEGORY OF
 LICENSE OR PERMIT, PROVIDED THAT IT SHALL NOT BE, EXCEPT FOR  PARAGRAPHS
 (A)  AND  (D) OF SUBDIVISION ONE OF THIS SECTION, PERMITTED TO WAIVE THE
 REQUIREMENT FOR SUBMISSION OF ANY SUCH CATEGORY  OF  INFORMATION  SOLELY
 FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
   §  185.  NOTIFICATION  TO  TOWNS, CITIES OR VILLAGES. 1. NOT LESS THAN
 THIRTY DAYS BEFORE FILING ANY OF THE FOLLOWING APPLICATIONS,  AN  APPLI-
 CANT  SHALL  NOTIFY  THE  TOWN, CITY OR VILLAGE IN WHICH THE PREMISES IS
 LOCATED OF SUCH APPLICANT'S INTENT TO FILE SUCH AN APPLICATION FOR A:
   (A) MARIHUANA PRODUCER LICENSE;
   (B) MARIHUANA PROCESSOR LICENSE;
   (C) MARIHUANA MICROBUSINESS LICENSE;

 S. 1527                            40
 
   (D) MARIHUANA RETAILER LICENSE;
   (E) MARIHUANA RETAILER LICENSE FOR ON-SITE CONSUMPTION;
   (F) MARIHUANA DELIVERY LICENSE;
   (G) MARIHUANA TESTING LICENSE; AND/OR
   (H) ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
   2.  SUCH  NOTIFICATION SHALL BE MADE TO THE CLERK OF THE VILLAGE, TOWN
 OR CITY, AS THE CASE MAY  BE,  WHEREIN  THE  PREMISES  IS  LOCATED.  FOR
 PURPOSES OF THIS SECTION:
   (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE
 PREMISES  IS LOCATED WITHIN THE BOUNDARIES OF THE TOWN, CITY OR VILLAGE;
 AND
   (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED  PURSUANT
 TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS-
 DICTION  OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID-
 ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN.
   3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
 MEAN:
   (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
 CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
 OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
 OR MORE OF THE STOCK OF SUCH CORPORATION;
   (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
 MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
 PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
 MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
 INTEREST IN SAID COMPANY; AND
   (C) FOR A PARTNERSHIP, A CHANGE OF EIGHTY PERCENT OR MORE OF THE PART-
 NERS,  OR  A TRANSFER OF EIGHTY PERCENT OR MORE OF OWNERSHIP INTEREST IN
 SAID PARTNERSHIP, OR AN  EXISTING  PARTNER  OBTAINING  A  CUMULATIVE  OF
 EIGHTY PERCENT OR MORE OF THE OWNERSHIP INTEREST IN SAID COMPANY.
   4. SUCH NOTIFICATION SHALL BE MADE IN SUCH FORM AS SHALL BE PRESCRIBED
 BY THE RULES OF THE BUREAU.
   5.  A  TOWN, CITY OR VILLAGE MAY EXPRESS AN OPINION FOR OR AGAINST THE
 GRANTING OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED  PART  OF
 THE  RECORD  UPON  WHICH  THE BUREAU MAKES ITS DETERMINATION TO GRANT OR
 DENY THE APPLICATION.
   6. SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN  RECEIPT
 REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL
 SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD.
   7.  THE BUREAU SHALL REQUIRE SUCH NOTIFICATION TO BE ON A STANDARDIZED
 FORM THAT CAN BE OBTAINED ON THE INTERNET OR FROM THE  BUREAU  AND  SUCH
 NOTIFICATION TO INCLUDE:
   (A)  THE TRADE NAME OR "DOING BUSINESS AS" NAME, IF ANY, OF THE ESTAB-
 LISHMENT;
   (B) THE FULL NAME OF THE APPLICANT;
   (C) THE STREET ADDRESS  OF  THE  ESTABLISHMENT,  INCLUDING  THE  FLOOR
 LOCATION OR ROOM NUMBER, IF APPLICABLE;
   (D)  THE  MAILING  ADDRESS OF THE ESTABLISHMENT, IF DIFFERENT THAN THE
 STREET ADDRESS;
   (E) THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE ATTORNEY  OR  REPRE-
 SENTATIVE OF THE APPLICANT, IF ANY;
   (F) A STATEMENT INDICATING WHETHER THE APPLICATION IS FOR:
   (I) A NEW ESTABLISHMENT;
   (II) A TRANSFER OF AN EXISTING LICENSED BUSINESS;
   (III) A RENEWAL OF AN EXISTING LICENSE; OR
   (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES;

 S. 1527                            41
 
   (G)  IF  THE  ESTABLISHMENT IS A TRANSFER OR PREVIOUSLY LICENSED PREM-
 ISES, THE NAME OF THE OLD ESTABLISHMENT AND SUCH ESTABLISHMENT'S LICENSE
 SERIAL NUMBER;
   (H)  IN  THE  CASE OF A RENEWAL OR ALTERATION APPLICATION, THE LICENSE
 SERIAL NUMBER OF THE APPLICANT; AND
   (I) THE TYPE OF LICENSE.
   § 186. LICENSES, PUBLICATION, GENERAL PROVISIONS. 1. THE VARIOUS TYPES
 OF LICENSES ISSUED PURSUANT TO THIS  ARTICLE  SHALL  BE  DISTINCTIVE  IN
 COLOR AND DESIGN SO AS TO BE READILY DISTINGUISHABLE FROM EACH OTHER.
   2. NO LICENSE SHALL BE TRANSFERABLE OR ASSIGNABLE EXCEPT THAT NOTWITH-
 STANDING  ANY  OTHER  PROVISION OF LAW, THE LICENSE OF A SOLE PROPRIETOR
 CONVERTING TO CORPORATE FORM, WHERE SUCH  PROPRIETOR  BECOMES  THE  SOLE
 STOCKHOLDER  AND  ONLY OFFICER AND DIRECTOR OF SUCH NEW CORPORATION, MAY
 BE TRANSFERRED TO THE SUBJECT CORPORATION IF ALL  REQUIREMENTS  OF  THIS
 CHAPTER REMAIN THE SAME WITH RESPECT TO SUCH LICENSE AS TRANSFERRED AND,
 FURTHER,  THE  LICENSEE SHALL TRANSMIT TO THE BUREAU, WITHIN TEN DAYS OF
 THE TRANSFER OF LICENSE ALLOWABLE UNDER  THIS  SUBDIVISION,  ON  A  FORM
 PRESCRIBED BY THE BUREAU, NOTIFICATION OF THE TRANSFER OF SUCH LICENSE.
   3. NO LICENSE SHALL BE PLEDGED OR DEPOSITED AS COLLATERAL SECURITY FOR
 ANY  LOAN  OR  UPON ANY OTHER CONDITION; AND ANY SUCH PLEDGE OR DEPOSIT,
 AND ANY CONTRACT PROVIDING THEREFOR, SHALL BE VOID.
   4. LICENSES ISSUED UNDER THIS ARTICLE SHALL CONTAIN,  IN  ADDITION  TO
 ANY FURTHER INFORMATION OR MATERIAL TO BE PRESCRIBED BY THE RULES OF THE
 BUREAU, THE FOLLOWING INFORMATION: (A) NAME OF PERSON TO WHOM LICENSE IS
 ISSUED;  (B)  KIND  OF  LICENSE AND WHAT KIND OF TRAFFIC IN MARIHUANA IS
 THEREBY PERMITTED; (C) DESCRIPTION BY STREET AND NUMBER,  OR  OTHERWISE,
 OF LICENSED PREMISES; AND (D) A STATEMENT IN SUBSTANCE THAT SUCH LICENSE
 SHALL  NOT  BE  DEEMED  A  PROPERTY  OR VESTED RIGHT, AND THAT IT MAY BE
 REVOKED AT ANY TIME PURSUANT TO LAW.
   5. THERE SHALL BE PRINTED AND FURNISHED BY THE BUREAU TO EACH LICENSEE
 A STATEMENT OF THE CAUSES FOR WHICH LICENSES MAY BE REVOKED. SUCH STATE-
 MENT SHALL BE PREPARED BY THE BUREAU AND DELIVERED TO THE LICENSEE  WITH
 HIS  OR  HER  LICENSE  OR  AS SOON THEREAFTER AS MAY BE PRACTICABLE. ANY
 AMENDMENTS THERETO SHALL ALSO BE SENT BY THE BUREAU TO ALL LICENSEES  AS
 SOON  AS  MAY BE PRACTICABLE AFTER SUCH AMENDMENTS. FAILURE TO SEND SUCH
 STATEMENTS OR CHANGES THEREIN, OR FAILURE TO RECEIVE THE  SAME,  OR  ANY
 MISSTATEMENT  OR ERROR CONTAINED IN SUCH STATEMENTS OR AMENDMENTS SHALL,
 HOWEVER, NOT BE AN EXCUSE OR JUSTIFICATION FOR ANY VIOLATION OF LAW,  OR
 PREVENT, OR REMIT, OR DECREASE ANY PENALTY OR FORFEITURE THEREFOR.
   6.  BEFORE  COMMENCING  OR DOING ANY BUSINESS FOR THE TIME FOR WHICH A
 LICENSE HAS BEEN ISSUED SAID LICENSE SHALL BE  ENCLOSED  IN  A  SUITABLE
 WOOD OR METAL FRAME HAVING A CLEAR GLASS SPACE AND A SUBSTANTIAL WOOD OR
 METAL  BACK  SO  THAT THE WHOLE OF SAID LICENSE MAY BE SEEN THEREIN, AND
 SHALL BE POSTED UP AND AT ALL TIMES DISPLAYED IN A CONSPICUOUS PLACE  IN
 THE ROOM WHERE SUCH BUSINESS IS CARRIED ON, SO THAT ALL PERSONS VISITING
 SUCH PLACE MAY READILY SEE THE SAME. IT SHALL BE UNLAWFUL FOR ANY PERSON
 HOLDING  A  LICENSE TO POST SUCH LICENSE OR TO PERMIT SUCH LICENSE TO BE
 POSTED UPON PREMISES OTHER THAN THE PREMISES LICENSED, OR UPON  PREMISES
 WHERE  TRAFFIC IN MARIHUANA IS BEING CARRIED ON BY ANY PERSON OTHER THAN
 THE LICENSEE, OR KNOWINGLY TO DEFACE, DESTROY OR ALTER ANY SUCH  LICENSE
 IN  ANY  RESPECT.  WHENEVER A LICENSE SHALL BE LOST OR DESTROYED WITHOUT
 FAULT ON THE PART OF THE LICENSEE OR HIS OR HER AGENTS OR  EMPLOYEES,  A
 DUPLICATE  LICENSE  IN  LIEU  THEREOF MAY BE ISSUED BY THE BUREAU IN ITS
 DISCRETION AND IN ACCORDANCE WITH SUCH RULES  AND  REGULATIONS  AND  THE
 PAYMENT OF SUCH FEES, NOT EXCEEDING FIVE DOLLARS, AS IT MAY PRESCRIBE.

 S. 1527                            42
 
   §  187.  REVOCATION  OF  LICENSES  FOR CAUSE. 1. ANY LICENSE OR PERMIT
 ISSUED PURSUANT TO THIS ARTICLE MAY  BE  REVOKED,  CANCELLED,  SUSPENDED
 AND/OR  SUBJECTED  TO  THE  IMPOSITION OF A CIVIL PENALTY FOR CAUSE, AND
 MUST BE REVOKED FOR THE FOLLOWING CAUSES:
   (A)  CONVICTION  OF  THE  LICENSEE,  PERMITTEE  OR HIS OR HER AGENT OR
 EMPLOYEE FOR SELLING ANY ILLEGAL MARIHUANA OR MARIHUANA PRODUCTS ON  THE
 PREMISES LICENSED.
   (B) FOR TRANSFERRING, ASSIGNING OR HYPOTHECATING A LICENSE OR PERMIT.
   2.  NOTWITHSTANDING  THE  ISSUANCE  OF  A  LICENSE OR PERMIT BY WAY OF
 RENEWAL, THE BUREAU MAY REVOKE, CANCEL OR SUSPEND SUCH LICENSE OR PERMIT
 AND/OR MAY IMPOSE A CIVIL PENALTY AGAINST ANY HOLDER OF SUCH LICENSE  OR
 PERMIT,  AS  PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED NINETEEN
 OF THIS CHAPTER, FOR CAUSES OR VIOLATIONS OCCURRING DURING  THE  LICENSE
 PERIOD IMMEDIATELY PRECEDING THE ISSUANCE OF SUCH LICENSE OR PERMIT, AND
 MAY  RECOVER, AS PROVIDED IN SECTION ONE HUNDRED TWELVE OF THIS CHAPTER,
 THE PENAL SUM OF THE BOND ON FILE DURING SAID PERIOD.
   3. AS USED IN THIS SECTION, THE TERM "FOR CAUSE"  SHALL  ALSO  INCLUDE
 THE  EXISTENCE  OF A SUSTAINED AND CONTINUING PATTERN OF NOISE, DISTURB-
 ANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES, RELATED
 TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF  ITS  PATRONS,  WHICH
 ADVERSELY  AFFECTS  THE  HEALTH, WELFARE OR SAFETY OF THE INHABITANTS OF
 THE AREA IN WHICH SUCH LICENSED PREMISES ARE LOCATED.
   4. THE EXISTENCE OF A  SUSTAINED  AND  CONTINUING  PATTERN  OF  NOISE,
 DISTURBANCE,  MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES,
 RELATED TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF ITS  PATRONS,
 WILL BE PRESUMED UPON THE SIXTH INCIDENT REPORTED TO THE BUREAU BY A LAW
 ENFORCEMENT  AGENCY OF NOISE OR DISTURBANCE OR MISCONDUCT OR DISORDER ON
 OR ABOUT THE LICENSED PREMISES OR RELATED TO THE OPERATION OF THE  PREM-
 ISES  OR  THE  CONDUCT  OF  ITS PATRONS, IN ANY SIXTY DAY PERIOD, ABSENT
 CLEAR AND CONVINCING EVIDENCE OF EITHER FRAUDULENT INTENT ON THE PART OF
 ANY COMPLAINANT OR A FACTUAL ERROR WITH RESPECT TO THE  CONTENT  OF  ANY
 REPORT CONCERNING SUCH COMPLAINT RELIED UPON BY THE BUREAU.
   §  188.  PROCEDURE  FOR  REVOCATION OR CANCELLATION. 1. ANY LICENSE OR
 PERMIT ISSUED BY THE BUREAU PURSUANT TO THIS  ARTICLE  MAY  BE  REVOKED,
 CANCELLED  OR SUSPENDED AND/OR BE SUBJECTED TO THE IMPOSITION OF A MONE-
 TARY PENALTY IN THE MANNER PRESCRIBED BY THIS SECTION.
   2. THE BUREAU MAY ON ITS OWN INITIATIVE OR ON COMPLAINT OF ANY  PERSON
 INSTITUTE  PROCEEDINGS  TO  REVOKE, CANCEL OR SUSPEND ANY RETAIL LICENSE
 AND MAY IMPOSE A CIVIL PENALTY AGAINST THE LICENSEE AFTER A  HEARING  AT
 WHICH THE LICENSEE SHALL BE GIVEN AN OPPORTUNITY TO BE HEARD. SUCH HEAR-
 ING  SHALL  BE  HELD  IN  SUCH  MANNER  AND  UPON  SUCH NOTICE AS MAY BE
 PRESCRIBED BY THE RULES OF THE BUREAU.
   § 189. DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND REVIEW  BY  THE
 COURTS.   PROVISIONS OF SECTIONS ONE HUNDRED TWENTY, ONE HUNDRED TWENTY-
 ONE AND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER SHALL APPLY TO MARIHUANA
 LICENSES ISSUED UNDER THIS ARTICLE.
   § 190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM.  THE
 BUREAU SHALL:
   1. IMPLEMENT A SOCIAL EQUITY PLAN AND ACTIVELY PROMOTE RACIAL, ETHNIC,
 AND  GENDER DIVERSITY WHEN ISSUING LICENSES FOR MARIHUANA RELATED ACTIV-
 ITIES, INCLUDING BY PRIORITIZING CONSIDERATION OF APPLICATIONS BY APPLI-
 CANTS WHO QUALIFY AS A MINORITY AND WOMEN-OWNED  BUSINESS.  SUCH  QUALI-
 FICATIONS SHALL BE DETERMINED BY THE BUREAU.
   2.  THE  BUREAU SHALL CREATE A SOCIAL EQUITY PLAN TO PROMOTE DIVERSITY
 IN OWNERSHIP AND EMPLOYMENT IN THE MARIHUANA INDUSTRY AND ENSURE  INCLU-
 SION  OF: (A) MINORITY-OWNED BUSINESSES; (B) WOMEN-OWNED BUSINESSES; AND

 S. 1527                            43
 
 (C) MINORITY AND WOMEN-OWNED BUSINESSES, AS DEFINED IN SUBDIVISION  FIVE
 OF THIS SECTION.
   3.  THE  SOCIAL  EQUITY PLAN SHALL CONSIDER ADDITIONAL CRITERIA IN ITS
 LICENSING DETERMINATIONS. UNDER THE SOCIAL  EQUITY  PLAN,  EXTRA  WEIGHT
 SHALL BE GIVEN TO APPLICATIONS THAT DEMONSTRATE THAT AN APPLICANT:
   (A)  IS A MEMBER OF A COMMUNITY GROUP THAT HAS BEEN DISPROPORTIONATELY
 IMPACTED BY THE ENFORCEMENT OF MARIHUANA PROHIBITION;
   (B) HAS AN INCOME LOWER THAN EIGHTY PERCENT OF THE  MEDIAN  INCOME  OF
 THE COUNTY IN WHICH THE APPLICANT RESIDES; AND
   (C)  WAS  CONVICTED OF A MARIHUANA-RELATED OFFENSE PRIOR TO THE EFFEC-
 TIVE DATE OF THIS BILL.
   4. THE BUREAU SHALL ALSO CREATE AN INCUBATOR PROGRAM TO PROVIDE DIRECT
 SUPPORT TO  SOCIAL  EQUITY  APPLICANTS  AFTER  THEY  HAVE  BEEN  GRANTED
 LICENSES.  THE PROGRAM SHALL PROVIDE DIRECT SUPPORT IN THE FORM OF COUN-
 SELING SERVICES, EDUCATION,  SMALL  BUSINESS  COACHING,  AND  COMPLIANCE
 ASSISTANCE.
   5.  FOR  THE PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (A)  "MINORITY-OWNED  BUSINESS"  SHALL  MEAN  A  BUSINESS  ENTERPRISE,
 INCLUDING  A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY
 OR CORPORATION THAT IS:
   (I) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE  OR  MORE  MINORITY  GROUP
 MEMBERS;
   (II)  AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS REAL, SUBSTAN-
 TIAL AND CONTINUING;
   (III) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS AND EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
   (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED;
   (V) AN ENTERPRISE THAT IS A SMALL BUSINESS.
   (B)  "MINORITY  GROUP  MEMBER"  SHALL  MEAN A UNITED STATES CITIZEN OR
 PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
 THE FOLLOWING GROUPS:
   (I) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
 GROUPS;
   (II)  HISPANIC  PERSONS  OF  MEXICAN,  PUERTO RICAN, DOMINICAN, CUBAN,
 CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC  ORIGIN,  REGARD-
 LESS OF RACE;
   (III)  NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY
 OF THE ORIGINAL PEOPLES OF NORTH AMERICA;
   (IV) ASIAN AND PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY  OF  THE
 FAR  EAST  COUNTRIES,  SOUTH  EAST  ASIA, THE INDIAN SUBCONTINENT OR THE
 PACIFIC ISLANDS.
   (C) "WOMEN-OWNED BUSINESS" SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING
 A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY OR  CORPO-
 RATION THAT IS:
   (I)  AT  LEAST  FIFTY-ONE  PERCENT  OWNED BY ONE OR MORE UNITED STATES
 CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE WOMEN;
   (II) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST OF  SUCH  WOMEN  IS
 REAL, SUBSTANTIAL AND CONTINUING;
   (III)  AN  ENTERPRISE  IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES
 THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
 OF THE ENTERPRISE;
   (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AND  INDE-
 PENDENTLY OWNED AND OPERATED;

 S. 1527                            44
 
   (V)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
 TWENTY OF THIS SECTION.
   (D) A FIRM OWNED BY A MINORITY GROUP MEMBER WHO IS ALSO A WOMAN MAY BE
 DEFINED AS A MINORITY-OWNED BUSINESS, A WOMEN-OWNED BUSINESS, OR BOTH.
   6.  THE  BUREAU  SHALL ACTIVELY PROMOTE APPLICANTS THAT FOSTER RACIAL,
 ETHNIC, AND GENDER DIVERSITY IN THEIR WORKFORCE.
   7. LICENSES ISSUED TO MINORITY AND WOMEN-OWNED BUSINESSES OR UNDER THE
 SOCIAL EQUITY PLAN SHALL NOT BE TRANSFERABLE EXCEPT TO QUALIFIED MINORI-
 TY AND WOMEN-OWNED BUSINESSES OR SOCIAL EQUITY APPLICANTS.
   8. THE BUREAU SHALL COLLECT DEMOGRAPHIC DATA ON OWNERS  AND  EMPLOYEES
 IN THE MARIHUANA INDUSTRY AND SHALL ANNUALLY PUBLISH SUCH DATA.
   §  191.  DISPOSITION  OF  MONEYS RECEIVED FOR LICENSE FEES. THE BUREAU
 SHALL ESTABLISH A SCALE OF APPLICATION,  LICENSING,  AND  RENEWAL  FEES,
 BASED  UPON THE COST OF ENFORCING THIS ARTICLE AND THE SIZE OF THE MARI-
 HUANA BUSINESS BEING LICENSED, AS FOLLOWS:
   1. EACH LICENSING AUTHORITY SHALL CHARGE EACH LICENSEE A LICENSURE AND
 RENEWAL FEE, AS APPLICABLE. THE  LICENSURE  AND  RENEWAL  FEE  SHALL  BE
 CALCULATED  TO COVER THE COSTS OF ADMINISTERING THIS ARTICLE. THE LICEN-
 SURE FEE MAY VARY DEPENDING  UPON  THE  VARYING  COSTS  ASSOCIATED  WITH
 ADMINISTERING  THE  VARIOUS  REGULATORY  REQUIREMENTS OF THIS ARTICLE AS
 THEY RELATE TO THE NATURE AND SCOPE OF THE  DIFFERENT  LICENSURE  ACTIV-
 ITIES,  BUT  SHALL  NOT  EXCEED  THE  REASONABLE REGULATORY COSTS TO THE
 LICENSING AUTHORITY.
   2. THE TOTAL FEES ASSESSED PURSUANT TO THIS ARTICLE SHALL BE SET AT AN
 AMOUNT THAT WILL FAIRLY AND PROPORTIONATELY  GENERATE  SUFFICIENT  TOTAL
 REVENUE TO FULLY COVER THE TOTAL COSTS OF ADMINISTERING THIS ARTICLE.
   3.  ALL  LICENSE  FEES  SHALL  BE SET ON A SCALED BASIS BY THE BUREAU,
 DEPENDENT ON THE SIZE OF THE BUSINESS.
   4. THE BUREAU SHALL DEPOSIT ALL FEES COLLECTED IN THE NEW  YORK  STATE
 MARIHUANA REVENUE FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-FF OF
 THE STATE FINANCE LAW.
   §  192.  PERSONS  FORBIDDEN  TO TRAFFIC IN MARIHUANA. 1. THE FOLLOWING
 PERSONS ARE FORBIDDEN TO TRAFFIC IN MARIHUANA:
   (A) A PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
   (B) A PERSON WHO IS NOT A CITIZEN OF THE UNITED  STATES  OR  AN  ALIEN
 LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED STATES.
   (C) A CO-PARTNERSHIP OR A CORPORATION, UNLESS EACH MEMBER OF THE PART-
 NERSHIP,  OR  EACH OF THE PRINCIPAL OFFICERS AND DIRECTORS OF THE CORPO-
 RATION, IS A CITIZEN OF THE UNITED STATES OR AN ALIEN LAWFULLY  ADMITTED
 FOR  PERMANENT  RESIDENCE IN THE UNITED STATES, NOT LESS THAN TWENTY-ONE
 YEARS OF AGE.
   (D) (I) A PERSON WHO SHALL HAVE HAD  ANY  LICENSE  ISSUED  UNDER  THIS
 CHAPTER  REVOKED  FOR  CAUSE, UNTIL THE EXPIRATION OF TWO YEARS FROM THE
 DATE OF SUCH REVOCATION.
   (II) A PERSON NOT LICENSED UNDER THE PROVISIONS OF THIS  CHAPTER,  WHO
 HAS  BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, UNTIL THE EXPIRATION
 OF TWO YEARS FROM THE DATE OF SUCH CONVICTION.
   (E) A CORPORATION OR CO-PARTNERSHIP, IF ANY OFFICER  AND  DIRECTOR  OR
 ANY  PARTNER,  WHILE  NOT LICENSED UNDER THE PROVISIONS OF THIS CHAPTER,
 HAS BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, OR HAS HAD A  LICENSE
 ISSUED UNDER THIS CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO
 YEARS FROM THE DATE OF SUCH CONVICTION OR REVOCATION.
   2. AN APPLICANT SHALL NOT BE DENIED A LICENSE UNDER THIS ARTICLE BASED
 SOLELY  ON A CONVICTION FOR A VIOLATION OF ARTICLE TWO HUNDRED TWENTY OR
 SECTION 240.36 OF THE PENAL LAW, PRIOR TO THE DATE ARTICLE  TWO  HUNDRED
 TWENTY-ONE OF THE PENAL LAW TOOK EFFECT, OR A CONVICTION FOR A VIOLATION

 S. 1527                            45
 
 OF  ARTICLE  TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AFTER THE EFFECTIVE
 DATE OF THIS ARTICLE.
   §  193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. WITHIN THREE
 DAYS AFTER A LICENSE SHALL HAVE BEEN REVOKED PURSUANT TO  THIS  ARTICLE,
 NOTICE  THEREOF  SHALL  BE  GIVEN TO THE LICENSEE BY MAILING SUCH NOTICE
 ADDRESSED TO HIM AT THE PREMISES LICENSED. NOTICE SHALL ALSO  BE  MAILED
 TO  THE OWNER OF THE PREMISES LICENSED. THE HOLDER OF SUCH LICENSE SHALL
 THEREUPON SURRENDER SAME TO THE  BUREAU.  THE  MAILING  THEREOF  BY  THE
 LICENSEE  TO  THE BUREAU BY REGISTERED MAIL OR INSURED PARCEL POST SHALL
 BE DEEMED SUFFICIENT COMPLIANCE WITH THIS  SECTION.  THE  BUREAU,  IMME-
 DIATELY  UPON  GIVING NOTICE OF REVOCATION, SHALL SERVE A WRITTEN NOTICE
 THEREOF UPON THE COMMISSIONER OF POLICE, CHIEF OF POLICE OR CHIEF POLICE
 OFFICER OF THE CITY OR VILLAGE IN  WHICH  THE  PREMISES  FOR  WHICH  THE
 REVOKED LICENSE WAS ISSUED IS SITUATED, OR UPON THE SHERIFF OF THE COUN-
 TY  OR  A CONSTABLE OF THE TOWN IN CASE THE LICENSE WAS ISSUED FOR PREM-
 ISES SITUATED IN A TOWN AND NOT WITHIN ANY CITY OR VILLAGE.  SUCH NOTICE
 SHALL INCLUDE A STATEMENT OF THE NUMBER OF SUCH LICENSE,  THE  NAME  AND
 PLACE  OF  RESIDENCE OF THE HOLDER THEREOF, THE LOCATION OF THE LICENSED
 PREMISES, AND THE DATE WHEN SUCH  LICENSE  WAS  REVOKED.  IN  CASE  SUCH
 LICENSE  BE  NOT FORTHWITH SURRENDERED, THE BUREAU SHALL ISSUE A WRITTEN
 DEMAND FOR THE SURRENDER OF SUCH LICENSE AND DELIVER SAID DEMAND TO  THE
 SHERIFF  OF THE COUNTY IN WHICH THE LICENSED PREMISES ARE LOCATED, OR TO
 ANY REPRESENTATIVE OF THE BUREAU, AND  SAID  SHERIFF  OR  REPRESENTATIVE
 SHALL IMMEDIATELY TAKE POSSESSION OF SUCH LICENSE AND RETURN THE SAME TO
 THE BUREAU.
   §  194. PROTECTIONS FOR THE USE OF MARIHUANA. INDIVIDUALS AND LICENSED
 ENTITIES SHALL NOT BE SUBJECT TO ARREST, PROSECUTION, OR PENALTY IN  ANY
 MANNER,  OR  DENIED ANY RIGHT OR PRIVILEGE, INCLUDING BUT NOT LIMITED TO
 CIVIL LIABILITY OR DISCIPLINARY ACTION BY A BUSINESS OR OCCUPATIONAL  OR
 PROFESSIONAL  LICENSING  BOARD  OR  BUREAU, SOLELY FOR CONDUCT PERMITTED
 UNDER THIS ARTICLE. FOR THE AVOIDANCE OF DOUBT, THE  APPELLATE  DIVISION
 OF  THE  SUPREME COURT OF THE STATE OF NEW YORK, AND ANY DISCIPLINARY OR
 CHARACTER AND FITNESS COMMITTEES ESTABLISHED BY  THEM  ARE  OCCUPATIONAL
 AND  PROFESSIONAL  LICENSING  BOARDS WITHIN THE MEANING OF THIS SECTION.
 STATE OR LOCAL LAW ENFORCEMENT AGENCIES  SHALL  NOT  COOPERATE  WITH  OR
 PROVIDE  ASSISTANCE TO THE GOVERNMENT OF THE UNITED STATES OR ANY AGENCY
 THEREOF IN ENFORCING THE FEDERAL CONTROLLED SUBSTANCES ACT,  21,  U.S.C.
 ET  SEQ.,  SOLELY  FOR  ACTIONS  CONSISTENT WITH THIS CHAPTER, EXCEPT AS
 PURSUANT TO A VALID COURT ORDER.
   § 195. DISCRIMINATION PROTECTIONS FOR THE USE OF MARIHUANA OR  MEDICAL
 MARIHUANA. 1. NO SCHOOL OR LANDLORD MAY REFUSE TO ENROLL OR LEASE TO AND
 MAY  NOT  OTHERWISE  PENALIZE  A PERSON SOLELY FOR CONDUCT ALLOWED UNDER
 SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW OR TITLE FIVE-A OF ARTICLE
 THIRTY-THREE OF THE PUBLIC HEALTH LAW, EXCEPT AS EXEMPTED:
   (A) IF FAILING TO DO SO WOULD CAUSE THE SCHOOL OR LANDLORD TO  LOSE  A
 MONETARY OR LICENSING RELATED BENEFIT UNDER FEDERAL LAW OR REGULATIONS;
   (B) IF THE INSTITUTION HAS ADOPTED A CODE OF CONDUCT PROHIBITING MARI-
 HUANA USE ON THE BASIS OF RELIGIOUS BELIEF;
   (C)  IF  A PROPERTY IS REGISTERED WITH THE NEW YORK SMOKE-FREE HOUSING
 REGISTRY, IT IS NOT REQUIRED TO PERMIT THE SMOKING OF MARIHUANA PRODUCTS
 ON ITS PREMISES.
   2. FOR THE PURPOSES OF MEDICAL CARE, INCLUDING  ORGAN  TRANSPLANTS,  A
 REGISTERED QUALIFYING PATIENT'S AUTHORIZED USE OF MEDICAL MARIHUANA MUST
 BE  CONSIDERED  THE  EQUIVALENT OF THE USE OF ANY OTHER MEDICATION UNDER
 THE DIRECTION OF A PRACTITIONER AND DOES NOT CONSTITUTE THE  USE  OF  AN

 S. 1527                            46
 
 ILLICIT  SUBSTANCE  OR  OTHERWISE  DISQUALIFY  A  REGISTERED  QUALIFYING
 PATIENT FROM MEDICAL CARE.
   3.  NO PERSON MAY BE DENIED CUSTODY OF OR VISITATION OR PARENTING TIME
 WITH A MINOR, AND THERE IS NO PRESUMPTION OF NEGLECT OR CHILD  ENDANGER-
 MENT FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
 LAW,  UNLESS THE PERSON'S BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE
 SAFETY OF THE MINOR AS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE. FOR
 THE PURPOSES OF THIS SECTION,  AN  "UNREASONABLE  DANGER"  DETERMINATION
 CANNOT  BE  BASED  SOLELY  ON WHETHER, WHEN, AND HOW OFTEN A PERSON USES
 MARIHUANA WITHOUT SEPARATE EVIDENCE OF HARM.
   § 196. EMPLOYMENT PROTECTIONS. 1.  UNLESS AN EMPLOYER ESTABLISHES BY A
 PREPONDERANCE OF THE EVIDENCE THAT  THE  LAWFUL  USE  OF  MARIHUANA  HAS
 IMPAIRED  THE EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSI-
 BILITIES, IT SHALL BE UNLAWFUL TO TAKE  ANY  ADVERSE  EMPLOYMENT  ACTION
 AGAINST AN EMPLOYEE BASED ON EITHER:
   (A)  CONDUCT  ALLOWED  UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
 LAW; OR
   (B) THE EMPLOYEE'S POSITIVE DRUG  TEST  FOR  MARIHUANA  COMPONENTS  OR
 METABOLITES.
   2.  FOR  THE  PURPOSES  OF  THIS  SECTION, AN EMPLOYER MAY CONSIDER AN
 EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSIBILITIES TO  BE
 IMPAIRED WHEN THE EMPLOYEE MANIFESTS SPECIFIC ARTICULABLE SYMPTOMS WHILE
 WORKING THAT DECREASE OR LESSEN THE EMPLOYEE'S PERFORMANCE OF THE DUTIES
 OR TASKS OF THE EMPLOYEE'S JOB POSITION.
   3.  NOTHING  IN  THIS  SECTION SHALL RESTRICT AN EMPLOYER'S ABILITY TO
 PROHIBIT OR TAKE ADVERSE EMPLOYMENT ACTION FOR THE POSSESSION OR USE  OF
 INTOXICATING  SUBSTANCES  DURING  WORK  HOURS, OR REQUIRE AN EMPLOYER TO
 COMMIT ANY ACT THAT WOULD CAUSE THE  EMPLOYER  TO  BE  IN  VIOLATION  OF
 FEDERAL  LAW,  OR THAT WOULD RESULT IN THE LOSS OF A FEDERAL CONTRACT OR
 FEDERAL FUNDING.
   4. AS USED IN THIS SECTION, "ADVERSE EMPLOYMENT ACTION" MEANS REFUSING
 TO HIRE OR EMPLOY, BARRING OR DISCHARGING FROM EMPLOYMENT,  REQUIRING  A
 PERSON  TO  RETIRE FROM EMPLOYMENT, OR DISCRIMINATING AGAINST IN COMPEN-
 SATION OR IN TERMS, CONDITIONS, OR PRIVILEGES OF EMPLOYMENT.
   § 197. PROTECTIONS FOR  PERSONS  UNDER  STATE  SUPERVISION.  A  PERSON
 CURRENTLY  UNDER  PAROLE,  PROBATION  OR  OTHER  STATE  SUPERVISION,  OR
 RELEASED ON BAIL AWAITING TRIAL MAY NOT BE PUNISHED OR OTHERWISE  PENAL-
 IZED FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
 LAW.
   §  198.  PROFESSIONAL  AND  MEDICAL  RECORD  KEEPING. ANY PROFESSIONAL
 PROVIDING SERVICES IN CONNECTION WITH A LICENSED OR POTENTIALLY LICENSED
 BUSINESS UNDER THIS CHAPTER, OR IN CONNECTION WITH OTHER CONDUCT PERMIT-
 TED UNDER THIS CHAPTER, AND ANY MEDICAL PROFESSIONAL  PROVIDING  MEDICAL
 CARE TO A PATIENT, MAY AGREE WITH THEIR CLIENT OR PATIENT TO MAINTAIN NO
 RECORD,  OR  ANY  REDUCED  LEVEL OF RECORD KEEPING THAT PROFESSIONAL AND
 CLIENT OR PATIENT MAY AGREE. IN CASE  OF  SUCH  AGREEMENT,  THE  PROFES-
 SIONAL'S ONLY OBLIGATION SHALL BE TO KEEP SUCH RECORDS AS AGREED, AND TO
 KEEP  A RECORD OF THE AGREEMENT.  SUCH REDUCED RECORD KEEPING IS CONDUCT
 PERMITTED UNDER THIS CHAPTER,  AND  SHALL  ATTRACT  THE  PROTECTIONS  OF
 SECTION ONE HUNDRED NINETY-FOUR OF THIS ARTICLE.
   §  32.  The  state finance law is amended by adding three new sections
 99-ff, 99-gg and 99-hh to read as follows:
   § 99-FF. NEW YORK STATE MARIHUANA REVENUE FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "NEW YORK STATE MARIHUANA REVENUE FUND".

 S. 1527                            47
 
   2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
 OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  ARTICLE  EIGH-
 TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
 OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
 PURPOSES:
   (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
 PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
 REVENUES RECEIVED.
   (B) REASONABLE COSTS INCURRED BY THE BUREAU OF  MARIHUANA  POLICY  FOR
 IMPLEMENTING,  ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION AND
 TAXATION ACT TO THE EXTENT THOSE COSTS ARE NOT  REIMBURSED  PURSUANT  TO
 SECTIONS ONE HUNDRED EIGHTY-NINE AND ONE HUNDRED NINETY OF ARTICLE ELEV-
 EN  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW. THIS PARAGRAPH SHALL REMAIN
 OPERATIVE THROUGH THE TWO THOUSAND TWENTY-FOUR -- TWO  THOUSAND  TWENTY-
 FIVE FISCAL YEAR.
   (C)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOUSAND TWEN-
 TY-TWO FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND  TWENTY-THREE
 --  TWO  THOUSAND  TWENTY-FOUR FISCAL YEAR, THE COMMISSIONER OF TAXATION
 AND FINANCE SHALL ANNUALLY DISBURSE ONE MILLION DOLLARS TO THE MARIHUANA
 MICROBUSINESS AND MARIHUANA  LICENSE  REVOLVING  LOAN  FUND  ESTABLISHED
 PURSUANT TO SECTION NINETY-NINE-II OF THE STATE FINANCE LAW.
   (D)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOUSAND TWEN-
 TY-TWO FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND THIRTY -- TWO
 THOUSAND THIRTY-ONE  FISCAL  YEAR,  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE  SHALL  ANNUALLY DISBURSE THE FOLLOWING SUMS FOR THE PURPOSES OF
 DATA COLLECTION AND REPORTING:
   (1) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE  BUREAU  OF  MARIHUANA
 POLICY  TO  TRACK  AND REPORT DATA RELATED TO THE LICENSING OF MARIHUANA
 BUSINESSES, INCLUDING THE GEOGRAPHIC LOCATION, STRUCTURE,  AND  FUNCTION
 OF  LICENSED MARIHUANA BUSINESSES, AND DEMOGRAPHIC DATA, INCLUDING RACE,
 ETHNICITY, AND GENDER, OF LICENSE HOLDERS. THE BUREAU OF MARIHUANA POLI-
 CY SHALL PUBLISH REPORTS ON ITS FINDINGS ANNUALLY  AND  SHALL  MAKE  THE
 REPORTS AVAILABLE TO THE PUBLIC.
   (2) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMINAL
 JUSTICE  SERVICES  TO  TRACK AND REPORT DATA RELATED TO ANY INFRACTIONS,
 VIOLATIONS, OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE  REMAIN-
 ING  MARIHUANA  STATUTES.    THE DEPARTMENT OF CRIMINAL JUSTICE SERVICES
 SHALL PUBLISH REPORTS ON  ITS  FINDINGS  ANNUALLY  AND  SHALL  MAKE  THE
 REPORTS AVAILABLE TO THE PUBLIC.
   (3)  ONE  MILLION  DOLLARS  TO  THE  STATE  UNIVERSITY  OF NEW YORK TO
 RESEARCH AND EVALUATE THE IMPLEMENTATION AND  EFFECT  OF  THE  MARIHUANA
 REGULATION  AND TAXATION ACT.  NO MORE THAN FOUR PERCENT OF THESE MONIES
 MAY BE USED FOR EXPENSES RELATED TO ADMINISTRATIVE COSTS  OF  CONDUCTING
 SUCH  RESEARCH,  AND  TO,  IF  APPROPRIATE,  MAKE RECOMMENDATIONS TO THE
 LEGISLATURE AND GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE  MARIHUANA
 REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS SHALL PUBLISH
 REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS AND SHALL MAKE
 THE  REPORTS  AVAILABLE  TO  THE PUBLIC. THE RESEARCH FUNDED PURSUANT TO
 THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:

 S. 1527                            48
 
   (A) THE IMPACTS ON PUBLIC HEALTH, INCLUDING  HEALTH  COSTS  ASSOCIATED
 WITH  MARIHUANA USE, AS WELL AS WHETHER MARIHUANA USE IS ASSOCIATED WITH
 AN INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
   (B)  THE  IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND THE EFFEC-
 TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
   (C) PUBLIC SAFETY ISSUES RELATED TO MARIHUANA USE, INCLUDING  STUDYING
 THE  EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND ADVER-
 TISING AND MARKETING RESTRICTIONS CONTAINED IN  THE  ACT  AT  PREVENTING
 UNDERAGE  ACCESS  TO  AND  USE  OF MARIHUANA AND MARIHUANA PRODUCTS, AND
 STUDYING THE HEALTH-RELATED  EFFECTS  AMONG  USERS  OF  VARYING  POTENCY
 LEVELS OF MARIHUANA AND MARIHUANA PRODUCTS;
   (D)  MARIHUANA  USE RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
 AND DIAGNOSIS RATES OF MARIHUANA-RELATED SUBSTANCE USE DISORDERS;
   (E) MARIHUANA MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES AND
 RATES, INCLUDING AN EVALUATION OF HOW TO BEST  TAX  MARIHUANA  BASED  ON
 POTENCY,  AND  THE  STRUCTURE  AND  FUNCTION OF LICENSED MARIHUANA BUSI-
 NESSES;
   (F) WHETHER ADDITIONAL PROTECTIONS  ARE  NEEDED  TO  PREVENT  UNLAWFUL
 MONOPOLIES OR ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE NONMEDICAL
 MARIHUANA  INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST EFFECTIVE
 MEASURES FOR PREVENTING SUCH BEHAVIOR;
   (G) THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS,  INCLUDING
 BUT  NOT  NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE SAFETY, REVEN-
 UES, TAXES GENERATED FOR STATE AND LOCAL BUDGETS, AND  CRIMINAL  JUSTICE
 IMPACTS,  INCLUDING,  BUT  NOT  NECESSARILY  LIMITED  TO, IMPACTS ON LAW
 ENFORCEMENT AND PUBLIC RESOURCES, SHORT AND LONG  TERM  CONSEQUENCES  OF
 INVOLVEMENT  IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL GOVERN-
 MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
   (H) WHETHER THE  REGULATORY  AGENCIES  TASKED  WITH  IMPLEMENTING  AND
 ENFORCING  THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING SO
 CONSISTENT WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT  AGENCIES
 MIGHT DO SO MORE EFFECTIVELY; AND
   (I)  ANY  ENVIRONMENTAL ISSUES RELATED TO MARIHUANA PRODUCTION AND THE
 CRIMINAL PROHIBITION OF MARIHUANA PRODUCTION.
   4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
 SECTION, THE REMAINING MONEYS IN THE FUND  DEPOSITED  DURING  THE  PRIOR
 FISCAL YEAR SHALL BE DISBURSED INTO THE STATE LOTTERY FUND AND TWO ADDI-
 TIONAL  SUB-FUNDS CREATED WITHIN THE MARIHUANA REVENUE FUND KNOWN AS THE
 DRUG TREATMENT AND PUBLIC EDUCATION FUND AND THE COMMUNITY GRANTS  REIN-
 VESTMENT FUND, AS FOLLOWS:
   (A)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
 ESTABLISHED BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT  SUCH
 MONEYS SHALL BE DISTRIBUTED TO THE DEPARTMENT OF EDUCATION IN ACCORDANCE
 WITH  SUBDIVISIONS  TWO AND FOUR OF SECTION NINETY-TWO-C OF THIS ARTICLE
 AND SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF  SUCH
 SECTION.  MONIES  ALLOCATED  BY  THIS ARTICLE MAY ENHANCE, BUT SHALL NOT
 SUPPLANT, EXISTING DEDICATED FUNDS TO THE DEPARTMENT OF EDUCATION;
   (B) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE DRUG  TREATMENT  AND
 PUBLIC  EDUCATION  FUND  ESTABLISHED  BY  SECTION NINETY-NINE-GG OF THIS
 ARTICLE; AND
   (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
 MENT FUND ESTABLISHED BY SECTION NINETY-NINE-HH OF THIS ARTICLE.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF  TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY
 PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR  OF  THE  SENATE
 FINANCE  COMMITTEE,  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE

 S. 1527                            49
 
 STATE COMPTROLLER AND THE PUBLIC.  SUCH  REPORT  SHALL  DETAIL  HOW  THE
 MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
 SHALL INCLUDE:
   (I)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (II) RECIPIENTS OF AWARDS FROM THE FUND;
   (III) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (IV) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (V) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
 YEAR.
   6. MONEYS SHALL BE PAYABLE DIRECTLY FROM THE MARIHUANA REVENUE FUND TO
 THE DEPARTMENT.
   §  99-GG.  NEW  YORK  STATE  DRUG  TREATMENT PUBLIC EDUCATION FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
 TROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO
 BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
   2. SUCH FUND SHALL  CONSIST  OF  REVENUES  RECEIVED  PURSUANT  TO  THE
 PROVISIONS  OF  SECTION  NINETY-NINE-FF  OF  THIS  ARTICLE AND ALL OTHER
 MONEYS APPROPRIATED THERETO FROM ANY OTHER FUND OR  SOURCE  PURSUANT  TO
 LAW.  NOTHING  CONTAINED  IN  THIS  SECTION SHALL PREVENT THE STATE FROM
 RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE  PURPOSES  OF  THE  FUND  AS
 DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
 LAW.
   3. THE MONEYS IN SUCH FUND SHALL BE EXPENDED TO  THE  COMMISSIONER  OF
 THE  OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE AND DISBURSED IN CONSULTA-
 TION WITH THE COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
   (A) TO DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC  HEALTH  EDUCATION
 AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
 VENTION,  AND  HEALTH  CARE  SERVICES AND PROGRAMS TO REDUCE THE RISK OF
 MARIHUANA AND OTHER SUBSTANCE USE BY SCHOOL-AGED CHILDREN;
   (B) TO DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC  HEALTH  CAMPAIGN
 FOCUSED  ON  THE HEALTH EFFECTS OF MARIHUANA AND LEGAL USE, INCLUDING AN
 ONGOING EDUCATION AND PREVENTION  CAMPAIGN  THAT  EDUCATES  THE  GENERAL
 PUBLIC,  INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE OF
 MARIHUANA, THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE IMPORTANCE  OF
 SAFE  STORAGE AND PREVENTING SECONDHAND MARIHUANA SMOKE EXPOSURE, INFOR-
 MATION FOR PREGNANT OR BREASTFEEDING WOMEN, AND THE  OVERCONSUMPTION  OF
 EDIBLES;
   (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
 ADULTS,  WITH  AN  EMPHASIS  ON  PROGRAMS THAT ARE CULTURALLY AND GENDER
 COMPETENT, TRAUMA-INFORMED, EVIDENCE-BASED AND PROVIDE  A  CONTINUUM  OF
 CARE  THAT  INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE DISORDER AS
 WELL AS MENTAL HEALTH), EARLY  INTERVENTION,  ACTIVE  TREATMENT,  FAMILY
 INVOLVEMENT,  CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF COMMU-
 NICABLE DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT  FOR
 SUBSTANCE  USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS, VOCA-
 TIONAL SERVICES, LITERACY SERVICES, PARENTING  CLASSES,  FAMILY  THERAPY
 AND  COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS, PSYCHIATRIC
 MEDICATION AND PSYCHOTHERAPY; AND
   (D) TO EVALUATE THE PROGRAMS BEING FUNDED TO  DETERMINE  THEIR  EFFEC-
 TIVENESS.
   4.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
 WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE

 S. 1527                            50
 
 ASSEMBLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY
 WAYS AND MEANS COMMITTEE, CHAIR OF THE SENATE  COMMITTEE  ON  ALCOHOLISM
 AND  DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE COMMIT-
 TEE,  THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL HOW
 THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
 AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF EDUCATION.
   § 99-HH. NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND.  1.  THERE
 IS  HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND
 THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE  KNOWN  AS
 THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
   2.  SUCH  FUND  SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO THE
 PROVISIONS OF SECTION NINETY-NINE-FF  OF  THIS  ARTICLE  AND  ALL  OTHER
 MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
 LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
 RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
 DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
 LAW.
   3.  THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE STEER-
 ING COMMITTEE OF THIRTEEN MEMBERS ESTABLISHED BY THE OFFICE OF  CHILDREN
 AND  FAMILY  SERVICES  AND INCLUDING ADDITIONAL REPRESENTATIVES FROM THE
 LABOR DEPARTMENT, AND THE HEALTH DEPARTMENT APPOINTED  BY  THE  GOVERNOR
 AND  A REPRESENTATIVE OF THE EDUCATION DEPARTMENT APPOINTED BY THE BOARD
 OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS OF THE SENATE
 AND ASSEMBLY SHALL EACH APPOINT ONE MEMBER TO  THE  STEERING  COMMITTEE,
 THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL MEMBERS, AND THE ATTORNEY
 GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL GOVERN-
 MENT  ENTITIES AND COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHOULD BE
 MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH SHALL HAVE EXPER-
 TISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAVIORAL  HEALTH  AND
 SUBSTANCE USE DISORDER TREATMENT, AND EFFECTIVE REHABILITATIVE TREATMENT
 FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZA-
 TIONS  SERVING COMMUNITIES IMPACTED BY PAST FEDERAL AND STATE DRUG POLI-
 CIES.
   4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
 COMMITTEE TO QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS  FOR  THE
 PURPOSE  OF  REINVESTING  IN  COMMUNITIES DISPROPORTIONATELY AFFECTED BY
 PAST FEDERAL AND STATE DRUG POLICIES. THE GRANTS FROM THIS PROGRAM SHALL
 BE USED TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT  EDUCATION,
 MENTAL  HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, SYSTEM NAVI-
 GATION SERVICES, LEGAL SERVICES TO  ADDRESS  BARRIERS  TO  REENTRY,  AND
 LINKAGES  TO  MEDICAL CARE, WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-
 BASED SUPPORTIVE SERVICES.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
 OF  THE  OFFICE  OF CHILDREN AND FAMILY SERVICES SHALL PROVIDE A WRITTEN

 S. 1527                            51
 
 REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
 BLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS
 AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
 LIES,  CHAIR  OF  THE ASSEMBLY CHILDREN AND FAMILIES COMMITTEE, CHAIR OF
 THE SENATE COMMITTEE ON LABOR, CHAIR OF THE  ASSEMBLY  LABOR  COMMITTEE,
 CHAIR  OF  THE  SENATE COMMITTEE ON HEALTH, CHAIR OF THE ASSEMBLY HEALTH
 COMMITTEE, CHAIR OF THE SENATE COMMITTEE  ON  EDUCATION,  CHAIR  OF  THE
 ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
 REPORT  SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE
 PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   6. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF EDUCATION.
   § 33. The tax law is amended by adding a new article 18-A to  read  as
 follows:
                               ARTICLE 18-A
                     PROVISIONS RELATING TO MARIHUANA
 SECTION 446.   DEFINITIONS.
         447.   TAXES IMPOSED.
         447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN.
         447-B. ORDINARY  AND  NECESSARY  EXPENSES  DEDUCTIBLE  FROM  NET
                  INCOME.
         448.   SURETY BOND.
         449.   COLLECTION OF TAX.
   § 446. DEFINITIONS. AS USED IN THIS ARTICLE:
   1.  "COMMERCIAL MARKET ACTIVITY" INCLUDES THE CULTIVATION, POSSESSION,
 MANUFACTURE,  DISTRIBUTION,  PROCESSING,  STORING,  LABORATORY  TESTING,
 LABELING,  TRANSPORTATION,  DELIVERY  OR SALE OF MARIHUANA AND MARIHUANA
 PRODUCTS, AS PROVIDED FOR IN ARTICLE ELEVEN OF  THE  ALCOHOLIC  BEVERAGE
 CONTROL LAW, BUT SHALL NOT INCLUDE MEDICAL MARIHUANA ACTIVITIES PROVIDED
 FOR IN TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   2.    "CONCENTRATED  CANNABIS"  MEANS (A) THE SEPARATED RESIN, WHETHER
 CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
 MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
 CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
 NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
 SYSTEM.
   3.  "MARIHUANA"  MEANS  ALL  PARTS OF THE PLANT OF THE GENUS CANNABIS,
 WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
 PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
 MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
 INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
 OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
 FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
 (EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
 STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES

 S. 1527                            52
 
 NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
 OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
 BINOL (THC).
   4.  "MARIHUANA  CONSUMER"  MEANS  A  PERSON TWENTY-ONE YEARS OF AGE OR
 OLDER WHO PURCHASED MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE  BY
 PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
   5.  "MARIHUANA  FLOWERS" SHALL MEAN THE DRIED FLOWERS OF THE MARIHUANA
 PLANT.
   6. "MARIHUANA LEAVES" SHALL MEAN ALL  PARTS  OF  THE  MARIHUANA  PLANT
 OTHER THAN MARIHUANA FLOWERS THAT ARE SOLD OR CONSUMED.
   7.  "MARIHUANA  PROCESSOR"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
 MARIHUANA POLICY TO PURCHASE MARIHUANA AND  CONCENTRATED  CANNABIS  FROM
 MARIHUANA  PRODUCERS,  TO  PROCESS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS, PACKAGE AND  LABEL  MARIHUANA,  CONCENTRATED
 CANNABIS  AND MARIHUANA-INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND
 SELL MARIHUANA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS  AT
 WHOLESALE TO MARIHUANA RETAILERS.
   8. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE BUREAU OF MARI-
 HUANA  POLICY  TO  PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED
 CANNABIS AT WHOLESALE TO MARIHUANA PROCESSORS, MARIHUANA  RETAILERS,  OR
 OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS.
   9.  "MARIHUANA  PRODUCTS"  MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
 MARIHUANA-INFUSED PRODUCTS.
   10. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARIHUANA
 OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR  CONSUMPTION,
 SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINCTURES.
   11. "IMMATURE MARIHUANA PLANT" MEANS A MARIHUANA PLANT WITH NO OBSERV-
 ABLE FLOWERS OR BUDS.
   12.  "MARIHUANA  RETAILER"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
 MARIHUANA POLICY TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARI-
 HUANA-INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA PROCESSORS
 AND SELL MARIHUANA, MARIHUANA-INFUSED PRODUCTS, AND CONCENTRATED  CANNA-
 BIS IN A RETAIL OUTLET.
   13.  "MARIHUANA  RETAILER  FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
 LICENSED BY THE  BUREAU  OF  MARIHUANA  POLICY  TO  PURCHASE  MARIHUANA,
 CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED PRODUCTS FROM MARIHUANA
 PRODUCERS, MARIHUANA RETAILERS AND MARIHUANA PROCESSORS AND  SELL  MARI-
 HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
 THE FACILITY.
   § 447. TAXES IMPOSED.  1. (A) THERE IS HEREBY  LEVIED  AND  IMPOSED  A
 CULTIVATION  TAX UPON ALL HARVESTED MARIHUANA THAT ENTERS THE COMMERCIAL
 MARKET UPON ALL PERSONS REQUIRED TO BE LICENSED TO  CULTIVATE  MARIHUANA
 PURSUANT  TO  ARTICLE  ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW. THE
 TAX SHALL BE DUE AFTER THE MARIHUANA IS HARVESTED.
   (I) MARIHUANA FLOWERS SHALL BE TAXED AT A RATE OF SIXTY-TWO CENTS  PER
 DRY-WEIGHT GRAM.
   (II)  MARIHUANA  LEAVES SHALL BE TAXED AT A RATE OF TEN CENTS PER DRY-
 WEIGHT GRAM.
   (B) THERE IS HEREBY LEVIED AND IMPOSED A NURSERY TAX UPON ALL IMMATURE
 PLANTS THAT ENTER THE COMMERCIAL MARKET UPON ALL PERSONS REQUIRED TO  BE
 LICENSED  TO  PRODUCE  IMMATURE PLANTS PURSUANT TO ARTICLE ELEVEN OF THE
 ALCOHOLIC BEVERAGE CONTROL LAW. IMMATURE PLANTS SHALL BE TAXED AT A RATE
 OF ONE DOLLAR AND THIRTY-FIVE CENTS EACH.
   (C) THERE IS HEREBY LEVIED AND IMPOSED A TAX UPON  MARIHUANA  SOLD  OR
 OTHERWISE  TRANSFERRED  BY A MARIHUANA PRODUCER TO A MARIHUANA PROCESSOR

 S. 1527                            53
 
 OR MARIHUANA RETAILER AT A RATE EQUIVALENT TO THE RATE ESTABLISHED UNDER
 ARTICLE TWENTY-EIGHT OF THIS CHAPTER.
   (D) A MARIHUANA EXCISE TAX IS HEREBY LEVIED AND IMPOSED UPON CUSTOMERS
 OF  NONMEDICAL  MARIHUANA  OR NONMEDICAL MARIHUANA PRODUCTS SOLD IN THIS
 STATE AT THE RATE FIFTEEN PERCENT OF ANY SALE BY A RETAILER,  MICROBUSI-
 NESS, OR OTHER PERSON REQUIRED TO BE LICENSED PURSUANT TO ARTICLE ELEVEN
 OF  THE  ALCOHOLIC  BEVERAGE CONTROL LAW TO SELL MARIHUANA AND MARIHUANA
 PRODUCTS DIRECTLY TO A CUSTOMER.
   (E) THE DEPARTMENT SHALL ESTABLISH PROCEDURES FOR  THE  COLLECTION  OF
 ALL TAXES LEVIED.
   (F)  NO  TAX  ESTABLISHED BY THIS SECTION SHALL BE LEVIED UPON MEDICAL
 MARIHUANA INTENDED FOR SALE TO A CERTIFIED PATIENT OR  DESIGNATED  CARE-
 GIVER  PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
 HEALTH LAW.
   2. FOR REPORTING PERIODS BEGINNING LATER THAN ONE YEAR  FOLLOWING  THE
 EFFECTIVE  DATE  OF THIS ARTICLE, THE RATES OF TAX UNDER SUBDIVISION ONE
 OF THIS SECTION SHALL BE ADJUSTED FOR EACH  BIENNIUM  ACCORDING  TO  THE
 COST-OF-LIVING ADJUSTMENT FOR THE CALENDAR YEAR.
   3.  THE  DEPARTMENT  SHALL REGULARLY REVIEW THE RATES OF THE TAX UNDER
 SUBDIVISION ONE OF THIS SECTION AND MAKE RECOMMENDATIONS TO THE LEGISLA-
 TURE REGARDING APPROPRIATE ADJUSTMENTS TO THE RATES  THAT  WILL  FURTHER
 THE PURPOSES OF:
   (A) MAXIMIZING NET REVENUE;
   (B) MINIMIZING THE ILLEGAL MARIHUANA INDUSTRY; AND
   (C) DISCOURAGING THE USE OF MARIHUANA BY MINORS UNDER TWENTY-ONE YEARS
 OF AGE.
   §  447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN. ANY CITY OR TOWN
 IN THIS STATE, ACTING THROUGH ITS  LOCAL  LEGISLATIVE  BODY,  IS  HEREBY
 AUTHORIZED  AND  EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY
 SUCH CITY OR TOWN A SALES TAX ON MARIHUANA RETAILERS AT  A  RATE  OF  NO
 MORE  THAN TWO PERCENT OF THE SALE PRICE OF MARIHUANA PRODUCTS SOLD TO A
 MARIHUANA CONSUMER. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY OF  THIS
 SECTION  SHALL  BE  ADMINISTERED  AND COLLECTED BY THE DEPARTMENT IN THE
 SAME MANNER AS THE TAXES IMPOSED UNDER SECTION FOUR  HUNDRED  FORTY-NINE
 OF  THIS  ARTICLE.  THE  COMMISSIONER  IS  HEREBY EMPOWERED TO MAKE SUCH
 PROVISIONS AS IT  DEEMS  NECESSARY  FOR  THE  JOINT  ADMINISTRATION  AND
 COLLECTION  OF  THE STATE AND LOCAL TAXES IMPOSED AND AUTHORIZED BY THIS
 ARTICLE.
   § 447-B. ORDINARY AND NECESSARY EXPENSES DEDUCTIBLE FROM  NET  INCOME.
 NOTWITHSTANDING  ANY  FEDERAL  TAX LAW TO THE CONTRARY, IN COMPUTING NET
 INCOME FOR BUSINESSES EXEMPTED FROM CRIMINAL  PENALTIES  UNDER  ARTICLES
 TWO HUNDRED TWENTY AND TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AND ARTI-
 CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW, THERE SHALL BE ALLOWED
 AS  A DEDUCTION FROM STATE TAXES ALL THE ORDINARY AND NECESSARY EXPENSES
 PAID OR INCURRED DURING THE TAXABLE YEAR IN CARRYING  ON  ANY  TRADE  OR
 BUSINESS,  INCLUDING  BUT NOT LIMITED TO, REASONABLE ALLOWANCE FOR SALA-
 RIES OR OTHER COMPENSATION FOR PERSONAL SERVICES ACTUALLY RENDERED.
   § 448. SURETY BOND. MARIHUANA  RETAILER  APPLICANTS  ARE  REQUIRED  TO
 SUBMIT  A  SURETY  BOND  WITH  THE DEPARTMENT EQUAL TO TWO MONTHS OF THE
 CULTIVATION FACILITY'S ANTICIPATED  RETAIL  MARIHUANA  EXCISE  TAX.  THE
 SURETY BOND MUST BE ISSUED BY A COMPANY AUTHORIZED TO DO BUSINESS IN THE
 STATE.  PROOF  OF  SURETY  BOND  IS REQUIRED FOR APPROVAL OF APPLICANT'S
 RETAIL LICENSE.
   § 449. COLLECTION OF TAX. THIS TAX SHALL BE COLLECTED BY  THE  COMMIS-
 SIONER WHO SHALL ESTABLISH A PROCEDURE FOR THE COLLECTION OF THIS TAX.

 S. 1527                            54
 
   §  34.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
 of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
 ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
 the  laws  of 1977 and as relettered by chapter 192 of the laws of 1980,
 are amended to read as follows:
   (i)  prior to the filing of an accusatory instrument in a local crimi-
 nal court against such person, the prosecutor elects  not  to  prosecute
 such  person.  In such event, the prosecutor shall serve a certification
 of such disposition upon the division of criminal justice  services  and
 upon  the appropriate police department or law enforcement agency which,
 upon receipt thereof, shall comply with  the  provisions  of  paragraphs
 (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
 manner as is required thereunder with respect to an  order  of  a  court
 entered pursuant to said subdivision one[.]; OR
   (j)  following the arrest of such person, the arresting police agency,
 prior to the filing of an accusatory  instrument  in  a  local  criminal
 court  but subsequent to the forwarding of a copy of the fingerprints of
 such person to the division of criminal justice services, elects not  to
 proceed  further. In such event, the head of the arresting police agency
 shall serve a certification of such disposition  upon  the  division  of
 criminal justice services which, upon receipt thereof, shall comply with
 the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
 this  section  in the same manner as is required thereunder with respect
 to an order of a court entered pursuant to said subdivision one[.]; OR
   (k) (i) The accusatory instrument alleged a violation of  article  two
 hundred  twenty  or section 240.36 of the penal law, prior to the taking
 effect of article two hundred twenty-one of the penal  law,  or  BY  THE
 CONVICTION  OF  SUCH PERSON OF a violation of [article two hundred twen-
 ty-one] SECTION 221.45 of the penal law ON OR AFTER THE  EFFECTIVE  DATE
 OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
 SUBDIVISION OR A VIOLATION OF SECTION 221.05,  221.10,  221.15,  221.20,
 221.25, 221.30, 221.35 OR 221.40 OF THE PENAL LAW PRIOR TO THE EFFECTIVE
 DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
 THIS SUBDIVISION; AND (ii) the sole  controlled  substance  involved  is
 [marijuana; (iii) the conviction was only for a violation or violations;
 and  (iv)  at  least three years have passed since the offense occurred]
 MARIHUANA.  NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO WAIVE  ELIGI-
 BILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUIL-
 TY, SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR A VIOLATION OF
 SECTION  221.45  OF  THE PENAL LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID
 AND WHOLLY UNENFORCEABLE.
   § 35. Subdivision 4 of section 160.50 of the criminal  procedure  law,
 as  amended by chapter 905 of the laws of 1977 and renumbered by chapter
 142 of the laws of 1991, is amended to read as follows:
   4. A person in whose favor a criminal action or proceeding was  termi-
 nated,  as defined in [paragraph] PARAGRAPHS (a) through (h), (K) OR (L)
 of subdivision [two] THREE of this section, prior to the effective  date
 of  [this  section,  may  upon  motion  apply to the court in which such
 termination occurred, upon not less  than  twenty  days  notice  to  the
 district  attorney,  for an order granting to such person the relief set
 forth in subdivision one of this section, and such order shall be grant-
 ed unless the district attorney demonstrates to the satisfaction of  the
 court that the interests of justice require otherwise. A person in whose
 favor  a  criminal  action  or  proceeding was terminated, as defined in
 paragraph (i) or (j) of subdivision two of this section,  prior  to  the
 effective  date of this section, may apply to the appropriate prosecutor

 S. 1527                            55

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

 S. 1527                            56
 
 offender on the basis of any act or acts involving controlled substances
 and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
 TIONS  SET  FORTH  IN  THIS  SUBDIVISION,  THE  COURT MAY ORDER THAT ALL
 PROCEEDINGS  BE  SUSPENDED  AND THE ACTION ADJOURNED IN CONTEMPLATION OF
 DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
 PURPOSES  OF  THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES EXIST WHEN,
 REGARDLESS OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A  PLEA
 OF GUILTY IS LIKELY TO RESULT IN SEVERE COLLATERAL CONSEQUENCES, INCLUD-
 ING,  BUT NOT LIMITED TO, THOSE THAT COULD LEAVE A NONCITIZEN INADMISSI-
 BLE OR REMOVABLE FROM THE UNITED STATES.
   2.  Upon ordering the action adjourned in contemplation of  dismissal,
 the  court  must  set and specify such conditions for the adjournment as
 may be appropriate, and such conditions may include placing the  defend-
 ant  under the supervision of any public or private agency.  At any time
 prior to dismissal the court may modify  the  conditions  or  extend  or
 reduce  the  term  of  the  adjournment, except that the total period of
 adjournment shall not exceed [twelve] SIX months.  Upon violation of any
 condition fixed by the court, the court may revoke its order and restore
 the case to the calendar and the prosecution thereupon must proceed.  If
 the case is not so restored to the calendar during the period  fixed  by
 the court, the accusatory instrument is, at the expiration of such peri-
 od, deemed to have been dismissed in the furtherance of justice.
   §  37.  Section  210.46  of  the criminal procedure law, as amended by
 chapter 360 of the laws of 1977, is amended to read as follows:
 § 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
         in a superior court.
   Upon or after arraignment in a superior court upon an indictment where
 the  sole  remaining count or counts charge a violation or violations of
 section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
 law  and before the entry of a plea of guilty thereto or commencement of
 a  trial  thereof, the court, upon motion of a defendant, may order that
 all proceedings be suspended and the action adjourned  in  contemplation
 of dismissal or may dismiss the indictment in furtherance of justice, in
 accordance with the provisions of section 170.56 of this chapter.
   § 38. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdivi-
 sion 1 of section 440.10 of the criminal procedure law, paragraph (h) as
 amended  by  chapter  332  of  the laws of 2010 and subparagraph (ii) of
 paragraph (i) as amended by chapter 368 of the laws of 2015, are amended
 and a new paragraph (j) is added to read as follows:
   (h) The judgment was obtained in violation of a right of the defendant
 under the constitution of this state or of the United States; [or]
   (ii) official documentation of the defendant's status as a  victim  of
 trafficking,  compelling  prostitution  or trafficking in persons at the
 time of the offense from a federal, state  or  local  government  agency
 shall  create  a  presumption  that the defendant's participation in the
 offense was a result of having been a victim of sex trafficking, compel-
 ling prostitution or trafficking in persons, but shall not  be  required
 for granting a motion under this paragraph[.]; OR
   (J)  THE  JUDGMENT  OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
 GRAPH AND IS A CONVICTION FOR:
   (I) AN OFFENSE AS DEFINED BY SECTION 221.05 OR 221.10 OF THE PENAL LAW
 (CRIMINAL POSSESSION OF MARIHUANA IN THE FIFTH  DEGREE),  AS  IN  EFFECT
 PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSA-
 TORY  INSTRUMENT THAT UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN ALLEGA-
 TION THAT THE DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS  OF  MARI-
 HUANA; OR

 S. 1527                            57
 
   (II)  AN  OFFENSE AS DEFINED BY FORMER SECTION 221.35 OF THE PENAL LAW
 (CRIMINAL SALE OF MARIHUANA IN THE FIFTH DEGREE).
   §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
 as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
 follows:
   6.  If  the court grants a motion under paragraph (i) OR PARAGRAPH (J)
 of subdivision one of this section, it  must  vacate  the  judgment  and
 dismiss  the  accusatory instrument, and may take such additional action
 as is appropriate in the circumstances.
   § 40. The criminal procedure law is amended by adding  a  new  section
 440.46-a to read as follows:
 § 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
              OFFENSES.
   1.  A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
 TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN  GUILTY  OF
 AN  OFFENSE  OR  WHO  WOULD  HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
 AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
 AT THE TIME OF HIS OR HER  CONVICTION  MAY  PETITION  FOR  A  RECALL  OR
 DISMISSAL  OF  SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT
 OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
 ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
   2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS  SECTION  THE
 COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
 OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
 CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
 THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE  OF  THIS  SECTION,
 THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
 BECAUSE  IT  IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT
 MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:
   (A) THE MOVANT'S CRIMINAL CONVICTION HISTORY, INCLUDING  THE  TYPE  OF
 CRIMES  COMMITTED,  THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR
 PRISON COMMITMENTS, AND THE REMOTENESS OF THE CRIMES.
   (B) THE MOVANT'S DISCIPLINARY  RECORD  AND  RECORD  OF  REHABILITATION
 WHILE INCARCERATED.
   3.  A  PERSON  WHO  IS  SERVING A SENTENCE AND RESENTENCED PURSUANT TO
 SUBDIVISION TWO OF THIS SECTION SHALL  BE  GIVEN  CREDIT  FOR  ANY  TIME
 ALREADY  SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW-
 ING COMPLETION OF HIS OR HER TIME IN CUSTODY  OR  SHALL  BE  SUBJECT  TO
 WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
 AFTER   RELEASE,   WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,  IN  ITS
 DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON  FROM
 SUPERVISION.  SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION
 60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER  SECTION  70.45
 OF  THE  PENAL  LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE
 COURT IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR  IN
 WHICH  AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE
 OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
   4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS  SECTION  RESULT
 IN  THE  IMPOSITION  OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
 REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREE-
 MENT.
   5.  A  PERSON  WHO  HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
 UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
 ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE  BEEN  GUILTY
 OF  AN  OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
 AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT

 S. 1527                            58
 
 AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
 TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR  HER  CASE
 TO  HAVE  THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-
 ONE OF THE PENAL LAW:
   (A)  DISMISSED BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID AND
 SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER;
   (B) REDESIGNATED (OR "RECLASSIFIED") AS  A  VIOLATION  AND  SEALED  IN
 ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER; OR
   (C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR.
   6.  THE  COURT  SHALL PRESUME THE PETITIONER SATISFIES THE CRITERIA IN
 SUBDIVISION FIVE UNLESS THE PARTY OPPOSING  THE  APPLICATION  PROVES  BY
 CLEAR  AND  CONVINCING EVIDENCE THAT THE PETITIONER DOES NOT SATISFY THE
 CRITERIA IN SUBDIVISION FIVE. ONCE THE APPLICANT SATISFIES THE  CRITERIA
 IN  SUBDIVISION  FIVE, THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE
 CONVICTION AS A MISDEMEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION  AS
 A  VIOLATION AND SEAL THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION
 AS LEGALLY INVALID UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT
 THE TIME OF HIS OR HER CONVICTION.
   7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
 OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
   8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER  SUBDI-
 VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
 SIX  OF  THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR VIOLATION FOR
 ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
 UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER
 SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR  ALL
 PURPOSES.
   9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
 THE  PRESIDING  JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE PETI-
 TION OR APPLICATION.
   10. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH  OR  ABROGATE  ANY
 RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
   11.  NOTHING  IN  THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR
 ABROGATE THE FINALITY OF JUDGEMENTS IN ANY CASE NOT FALLING  WITHIN  THE
 PURVIEW OF THIS SECTION.
   12.  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY EQUALLY TO JUVENILE
 DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER  SECTION  FIVE  HUNDRED
 ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
 AN  OFFENSE  OR  WOULD  HAVE  BEEN GUILTY OF A LESSER OFFENSE UNDER THIS
 SECTION HAD THIS SECTION BEEN IN EFFECT  AT  THE  TIME  OF  HIS  OR  HER
 CONVICTION.
   13.  THE  OFFICE  OF  COURT  ADMINISTRATION  SHALL PROMULGATE AND MAKE
 AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS  AND
 APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
 THE EFFECTIVE DATE OF THIS SECTION.
   § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
 procedure  law, as amended by chapter 37 of the laws of 2014, is amended
 to read as follows:
   (c) Criminal possession of  a  controlled  substance  in  the  seventh
 degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
 possession of a controlled substance in the fifth degree as  defined  in
 section  220.06  of  the  penal law, criminal possession of a controlled
 substance in the fourth degree as defined in section 220.09 of the penal
 law, criminal possession of a controlled substance in the  third  degree
 as  defined in section 220.16 of the penal law, criminal possession of a
 controlled substance in the second degree as defined in  section  220.18

 S. 1527                            59

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

 S. 1527                            60
 
 by law, together with evidence which: (i) provides  substantial  indicia
 that  the  defendant  used  the  real property to engage in a continual,
 ongoing course of conduct involving the  unlawful  mixing,  compounding,
 manufacturing,  warehousing,  or  packaging of controlled substances [or
 where the conviction is for a violation of section 221.30 of  the  penal
 law,  marijuana,]  as part of an illegal trade or business for gain; and
 (ii) establishes, where the conviction is for possession of a controlled
 substance [or where the conviction is for a violation of section  221.30
 of  the  penal law, marijuana], that such possession was with the intent
 to sell it.
   [6. "Pre-conviction forfeiture crime" means only a felony  defined  in
 article  two  hundred  twenty  or  section 221.30 or 221.55 of the penal
 law.]
   9. "Criminal defendant" means a person who has criminal liability  for
 a  crime  defined in [subdivisions] SUBDIVISION five [and six hereof] OF
 THIS SECTION. For purposes  of  this  article,  a  person  has  criminal
 liability  when [(a)] he has been convicted of a post-conviction forfei-
 ture crime[, or (b) the claiming authority proves by clear and  convinc-
 ing evidence that such person has committed an act in violation of arti-
 cle two hundred twenty or section 221.30 or 221.55 of the penal law].
   §  43.  Subdivision 13 of section 89-f of the general business law, as
 added by chapter 336 of the laws of 1992, is amended to read as follows:
   13. "Serious offense" shall mean any  felony  involving  the  offenses
 enumerated  in  the  closing  paragraph  of this subdivision; a criminal
 solicitation of or a conspiracy to commit or an attempt to commit  or  a
 criminal  facilitation  of a felony involving the offenses enumerated in
 the closing paragraph of this subdivision, which criminal  solicitation,
 conspiracy, attempt or criminal facilitation itself constitutes a felony
 or  any  offense  in  any  other jurisdiction which if committed in this
 state would constitute a felony; any offense in any  other  jurisdiction
 which if committed in this state would constitute a felony provided that
 for the purposes of this article, none of the following shall be consid-
 ered  criminal  convictions  or  reported  as such: (i) a conviction for
 which an executive pardon has been issued pursuant to the executive law;
 (ii) a conviction which has been vacated  and  replaced  by  a  youthful
 offender  finding pursuant to article seven hundred twenty of the crimi-
 nal procedure law, or the applicable provisions  of  law  of  any  other
 jurisdiction;  or  (iii)  a  conviction  the  records of which have been
 sealed pursuant to the applicable provisions of the laws of  this  state
 or  of  any  other  jurisdiction;  and (iv) a conviction for which other
 evidence of successful rehabilitation to remove the disability has  been
 issued.
   Felonies involving: assault, aggravated assault and reckless endanger-
 ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
 manslaughter and murder pursuant to article one hundred twenty-five; sex
 offenses pursuant to article one hundred thirty; unlawful  imprisonment,
 kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
 criminal trespass and burglary pursuant to article  one  hundred  forty;
 criminal  mischief,  criminal  tampering  and  tampering with a consumer
 product pursuant to article one hundred forty-five;  arson  pursuant  to
 article one hundred fifty; larceny and offenses involving theft pursuant
 to article one hundred fifty-five; offenses involving computers pursuant
 to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
 hundred sixty; criminal possession of stolen property pursuant to  arti-
 cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
 article one hundred seventy; involving false written statements pursuant

 S. 1527                            61
 
 to article one hundred seventy-five; commercial bribing  and  commercial
 bribe  receiving pursuant to article one hundred eighty; criminal imper-
 sonation and scheme to defraud pursuant to article one  hundred  ninety;
 bribery involving public servants and related offenses pursuant to arti-
 cle  two  hundred;  perjury and related offenses pursuant to article two
 hundred ten; tampering with a witness, intimidating a victim or  witness
 and  tampering  with  physical  evidence pursuant to article two hundred
 fifteen; criminal possession  of  a  controlled  substance  pursuant  to
 sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
 controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
 220.41,  220.43  and  220.44;  [criminal] UNLICENSED sale of [marijuana]
 MARIHUANA IN THE FIRST DEGREE pursuant to  [sections]  SECTION  221.45[,
 221.50  and  221.55]; riot in the first degree, aggravated harassment in
 the first degree, criminal nuisance in  the  first  degree  and  falsely
 reporting  an incident in the second or first degree pursuant to article
 two hundred forty; and crimes against public safety pursuant to  article
 two hundred sixty-five of the penal law.
   §  44.  Paragraph  (f)  of subdivision 2 of section 850 of the general
 business law is REPEALED.
   § 45. Paragraph (h) of subdivision 2 of section  850  of  the  general
 business  law, as amended by chapter 812 of the laws of 1980, is amended
 to read as follows:
   (h) Objects, used or designed for the purpose of ingesting,  inhaling,
 or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
 into the human body.
   §  46.  Paragraph  a  of  subdivision  4-a of section 165 of the state
 finance law, as added by chapter 95 of the laws of 2000, is  amended  to
 read as follows:
   a.  In  order  to  advance  specific  economic  goals,  New York state
 labelled wines, as defined in subdivision [twenty-a] TWENTY-J of section
 three of the alcoholic beverage control law, shall have  favored  source
 status for the purposes of procurement in accordance with the provisions
 of this subdivision.  Procurement of these New York state labelled wines
 shall  be  exempt from the competitive procurement provisions of section
 one hundred sixty-three of this article and other  competitive  procure-
 ment  statutes.    Such exemption shall apply to New York state labelled
 wines as defined in subdivision [twenty-a] TWENTY-J of section three  of
 the  alcoholic  beverage  control  law  produced by a licensed winery as
 defined in section seventy-six of the alcoholic beverage control law.
   § 47. Subdivision 7 of section 995 of the executive law, as amended by
 chapter 19 of the laws of 2012, is amended to read as follows:
   7. "Designated offender"  means  a  person  convicted  of  any  felony
 defined  in  any  chapter  of  the  laws of the state or any misdemeanor
 defined in the penal law [except that  where  the  person  is  convicted
 under  section  221.10  of  the penal law, only a person convicted under
 subdivision two of such section, or a person convicted under subdivision
 one of such section who stands previously  convicted  of  any  crime  as
 defined in subdivision six of section 10.00 of the penal law].
   § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
 penal law, paragraph (b) as amended by section 31 of part AAA of chapter
 56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
 laws of 1990, are amended to read as follows:
   (b) three or more violations of any of the felonies defined in section
 220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
 220.43[,]  OR  220.77[,  or 221.55] of this chapter, which violations do
 not constitute a single criminal offense as defined in  subdivision  one

 S. 1527                            62
 
 of  section  40.10  of  the criminal procedure law, or a single criminal
 transaction, as defined in paragraph (a) of subdivision two  of  section
 40.10  of the criminal procedure law, and at least one of which resulted
 in  a  conviction  of  such  offense, or where the accusatory instrument
 charges one or more of such felonies, conviction upon a plea  of  guilty
 to a felony for which such plea is otherwise authorized by law; or
   (c)  a  conviction  of  a  person  for  a violation of section 220.09,
 220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
 accusatory instrument charges any such felony, conviction upon a plea of
 guilty  to  a  felony for which the plea is otherwise authorized by law,
 together with evidence which: (i) provides substantial indicia that  the
 defendant  used  the  real  property  to  engage in a continual, ongoing
 course of conduct involving the unlawful mixing,  compounding,  manufac-
 turing, warehousing, or packaging of controlled substances [or where the
 conviction  is  for a violation of section 221.30 of this chapter, mari-
 juana] as part of an illegal trade or business for gain; and (ii) estab-
 lishes, where the conviction is for possession of a controlled substance
 [or where the conviction is for a violation of section  221.30  of  this
 chapter,  marijuana],  that  such possession was with the intent to sell
 it.
   § 49. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
 and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
 amended to read as follows:
   (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
 subdivision one and subparagraph (i) of paragraph (c) of subdivision two
 of  this  section  that  result in disqualification for a period of five
 years shall include a conviction under sections 100.10, 105.13,  115.05,
 120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
 125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
 140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
 220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
 230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
 235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
 section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
 265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
 the  aforesaid  offenses  under  section 110.00 of the penal law, or any
 similar offenses committed under a former section of the penal  law,  or
 any  offenses  committed  under  a former section of the penal law which
 would constitute violations of the aforesaid sections of the penal  law,
 or  any  offenses  committed  outside  this state which would constitute
 violations of the aforesaid sections of the penal law.
   § 50. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
 section  1194  of the vehicle and traffic law, as amended by chapter 196
 of the laws of 1996, is amended to read as follows:
   When authorized. Any person who operates a motor vehicle in this state
 shall be deemed to have given consent to a chemical test of one or  more
 of  the  following:  breath, blood, urine, or saliva, for the purpose of
 determining the alcoholic and/or  drug  content,  OTHER  THAN  MARIHUANA
 CONTENT  INCLUDING  BUT  NOT LIMITED TO TETRAHYDROCANNABINOL CONTENT, of
 the blood provided that such test is administered by or at the direction
 of a police officer with respect to a chemical test of breath, urine  or
 saliva or, with respect to a chemical test of blood, at the direction of
 a police officer:
   §  51.  Section 17 of the alcoholic beverage control law is amended by
 adding a new subdivision 12 to read as follows:

 S. 1527                            63
 
   12. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
 USE DISORDER TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINIS-
 TERED BY SCHOOLS; OTHER  ENTITIES  INCLUDING  TRADE  ASSOCIATIONS  WHOSE
 MEMBERS  ARE  ENGAGED  IN  OR  INVOLVED  IN THE RETAIL SALE OF ALCOHOLIC
 BEVERAGES;  NATIONAL  AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST
 FIVE FRANCHISES IN THE STATE WHICH ARE LICENSED TO SELL BEER  AT  RETAIL
 FOR  OFF-PREMISES  CONSUMPTION;  LICENSEES  AUTHORIZED TO SELL ALCOHOLIC
 BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR  MORE
 LICENSED  PREMISES;  AND  PERSONS  INTERESTED,  WHETHER AS AN INDIVIDUAL
 PROPRIETOR OR PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPA-
 NY, IN FIVE OR MORE LICENSEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
 RETAIL FOR OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR THE
 ISSUANCE  OF  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  ALCOHOL OR
 SUBSTANCE USE DISORDER  TRAINING  AWARENESS  PROGRAMS.  CERTIFICATES  OF
 APPROVAL  MAY  BE  REVOKED BY THE AUTHORITY FOR FAILURE TO ADHERE TO THE
 AUTHORITY'S RULES AND REGULATIONS.  SUCH  RULES  AND  REGULATIONS  SHALL
 AFFORD  THOSE WHO HAVE BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTU-
 NITY FOR A HEARING PRIOR TO ANY DETERMINATION OF  WHETHER  SUCH  CERTIF-
 ICATE SHOULD BE REVOKED.
   NO  LICENSEE  SHALL  BE  REQUIRED TO APPLY FOR ANY SUCH CERTIFICATE OR
 RENEWAL CERTIFICATE AND THE LICENSEE MAY VOLUNTARILY  SURRENDER  SUCH  A
 CERTIFICATE  OR  RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE AMOUNT OF
 NINE HUNDRED DOLLARS SHALL BE PAID TO THE AUTHORITY WITH  EACH  APPLICA-
 TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE.  THE AUTHORI-
 TY  SHALL PROMPTLY REFUND SUCH FEE TO AN APPLICANT WHOSE APPLICATION WAS
 DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
 FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
 VISION, THE AUTHORITY IS EMPOWERED TO  REQUIRE  IN  CONNECTION  WITH  AN
 APPLICATION  THE  SUBMISSION  OF  SUCH  INFORMATION AS THE AUTHORITY MAY
 DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS  WHICH  IT
 DEEMS  NECESSARY  TO  BE MADE BY ANY APPLICANT OR CERTIFICATE HOLDER; TO
 CONDUCT INVESTIGATIONS; TO REQUIRE THE MAINTENANCE  OF  SUCH  BOOKS  AND
 RECORDS  AS  THE AUTHORITY MAY DIRECT; AND TO REVOKE, CANCEL, OR SUSPEND
 FOR CAUSE ANY CERTIFICATE PROVIDED FOR IN THIS SUBDIVISION. EACH  ENTITY
 AUTHORIZED  TO  GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER
 TRAINING AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO ALL
 LICENSEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCO-
 HOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS  PROGRAM.  SUCH  ENTITY
 SHALL REGULARLY TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES
 OF  ATTENDANCE  OF  ALL  THE  LICENSEES  AND  EMPLOYEES OF LICENSEES WHO
 SUCCESSFULLY COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  USE  DISORDER
 TRAINING  AWARENESS  PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND
 MANNER PRESCRIBED BY THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES  AND
 REGULATIONS  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING
 THE MINIMUM REQUIREMENTS  FOR  THE  CURRICULUM  OF  EACH  SUCH  TRAINING
 PROGRAM  AND  THE  REGULAR ONGOING TRAINING OF EMPLOYEES HOLDING CERTIF-
 ICATES OF COMPLETION OR RENEWAL CERTIFICATES.    SUCH  RULES  AND  REGU-
 LATIONS SHALL INCLUDE THE MINIMUM REQUIREMENTS FOR A SEPARATE CURRICULUM
 FOR LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES
 AT RETAIL FOR OFF-PREMISES CONSUMPTION, MINIMUM REQUIREMENTS FOR A SEPA-
 RATE  CURRICULUM  FOR  LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL
 ALCOHOLIC BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION, AND THE  FORM
 OF  A  CERTIFICATE  OF  COMPLETION  OR  RENEWAL  THEREOF TO BE ISSUED IN
 RESPECT TO EACH SUCH TYPE OF PROGRAM. A  CERTIFICATE  OF  COMPLETION  OR
 RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN
 ALCOHOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS PROGRAM PURSUANT TO

 S. 1527                            64
 
 THIS  SUBDIVISION  TO  LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL
 ALCOHOLIC BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION SHALL NOT  BE
 INVALIDATED  BY  A  CHANGE  OF  EMPLOYMENT  TO  ANOTHER SUCH LICENSEE. A
 CERTIFICATE OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHOR-
 IZED  TO GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER TRAIN-
 ING AWARENESS PROGRAM PURSUANT TO  THIS  SUBDIVISION  TO  LICENSEES  AND
 THEIR  EMPLOYEES  AUTHORIZED  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
 ON-PREMISES CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF  EMPLOY-
 MENT  TO  ANOTHER  SUCH  LICENSEE.  ATTENDANCE AT ANY COURSE ESTABLISHED
 PURSUANT TO THIS SECTION SHALL BE IN PERSON, THROUGH  DISTANCE  LEARNING
 METHODS, OR THROUGH AN INTERNET BASED ONLINE PROGRAM.
   §  52.  Subdivision 12 of section 17 of the alcoholic beverage control
 law, as amended by chapter 549 of the laws of 2001,  the  closing  para-
 graph  as amended by chapter 435 of the laws of 2010, is amended to read
 as follows:
   12. To develop and establish minimum criteria for alcohol OR SUBSTANCE
 USE DISORDER training awareness programs which may be given and adminis-
 tered by schools; other  entities  including  trade  associations  whose
 members  are  engaged  in  or  involved  in the retail sale of alcoholic
 beverages; national and regional franchisors who have granted  at  least
 five  franchises  in the state which are licensed to sell beer at retail
 for off-premises consumption; licensees  authorized  to  sell  alcoholic
 beverages  at retail for off-premises consumption operating five or more
 licensed premises; and persons  interested,  whether  as  an  individual
 proprietor or partner or officer or member of a limited liability compa-
 ny,  in five or more licensees authorized to sell alcoholic beverages at
 retail for off-premises consumption. The authority shall provide for the
 issuance of  certificates  of  approval  to  all  certified  alcohol  OR
 SUBSTANCE  USE  DISORDER  training  awareness  programs. Certificates of
 approval may be revoked by the authority for failure to  adhere  to  the
 authority's  rules  and  regulations.  Such  rules and regulations shall
 afford those who have been issued a certificate of approval an  opportu-
 nity  for  a  hearing prior to any determination of whether such certif-
 icate should be revoked.
   No licensee shall be required to apply for  any  such  certificate  or
 renewal  certificate  and  the licensee may voluntarily surrender such a
 certificate or renewal certificate at any time. A fee in the  amount  of
 nine  hundred  dollars shall be paid to the authority with each applica-
 tion for a certificate of approval or renewal certificate. The authority
 shall promptly refund such fee to an  applicant  whose  application  was
 denied. Each certificate of approval and renewal thereof shall be issued
 for a period of three years. To effectuate the provisions of this subdi-
 vision,  the  authority  is  empowered  to require in connection with an
 application the submission of such  information  as  the  authority  may
 direct;  to  prescribe forms of applications and of all reports which it
 deems necessary to be made by any applicant or  certificate  holder;  to
 conduct  investigations;  to  require  the maintenance of such books and
 records as the authority may direct; to revoke, cancel, or  suspend  for
 cause  any  certificate  provided  for  in this subdivision. Each entity
 authorized to give and administer an alcohol OR SUBSTANCE  USE  DISORDER
 training awareness program shall issue certificates of completion to all
 licensees and employees who successfully complete such an approved alco-
 hol  OR  SUBSTANCE  USE DISORDER training awareness program. Such entity
 shall regularly transmit to the authority the names, addresses and dates
 of attendance of all  the  licensees  and  employees  of  licensees  who
 successfully  complete  an  approved  alcohol  OR SUBSTANCE USE DISORDER

 S. 1527                            65
 
 training awareness program.  Such transmittal shall be  in  a  form  and
 manner  prescribed by the authority. The authority shall adopt rules and
 regulations to effectuate the provisions of this subdivision,  including
 the  minimum  requirements  for  the  curriculum  of  each such training
 program and the regular ongoing training of  employees  holding  certif-
 icates of completion or renewal certificates. Such rules and regulations
 shall  include  the  minimum  requirements for a separate curriculum for
 licensees and their employees authorized to sell alcoholic beverages  at
 retail for off-premises consumption, minimum requirements for a separate
 curriculum for licensees and their employees authorized to sell alcohol-
 ic  beverages  at  retail for on-premises consumption, and the form of a
 certificate of completion or renewal thereof to be issued in respect  to
 each such type of program. A certificate of completion or renewal there-
 of  issued  by an entity authorized to give and administer an alcohol OR
 SUBSTANCE USE DISORDER  training  awareness  program  pursuant  to  this
 subdivision to licensees and their employees authorized to sell alcohol-
 ic beverages at retail for off-premises consumption shall not be invali-
 dated  by a change of employment to another such licensee. A certificate
 of completion or renewal thereof issued by an entity authorized to  give
 and  administer  an alcohol OR SUBSTANCE USE DISORDER training awareness
 program pursuant to this subdivision to licensees  and  their  employees
 authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
 consumption shall not be invalidated by a change of employment to anoth-
 er such licensee. Attendance at any course established pursuant to  this
 section  shall  be  in  person,  through  distance  learning methods, or
 through an internet based online program.
   § 53. Subdivision 10 of section 18 of the alcoholic  beverage  control
 law,  as  amended by chapter 118 of the laws of 2012, is amended to read
 as follows:
   10. To develop and establish minimum criteria for alcohol OR SUBSTANCE
 USE DISORDER training awareness programs which may be given and adminis-
 tered by schools; other  entities  including  trade  associations  whose
 members  are  engaged  in  or  involved  in the retail sale of alcoholic
 beverages; national and regional franchisors who have granted  at  least
 five  franchises  in the state which are licensed to sell beer at retail
 for off-premises consumption; licensees  authorized  to  sell  alcoholic
 beverages  at retail for off-premises consumption operating five or more
 licensed premises; and persons  interested,  whether  as  an  individual
 proprietor or partner or officer or member of a limited liability compa-
 ny,  in five or more licensees authorized to sell alcoholic beverages at
 retail for off-premises consumption. The authority shall provide for the
 issuance of  certificates  of  approval  to  all  certified  alcohol  OR
 SUBSTANCE  USE  DISORDER  training  awareness  programs. Certificates of
 approval may be revoked by the authority for failure to  adhere  to  the
 authority's  rules  and  regulations.  Such  rules and regulations shall
 afford those who have been issued a certificate of approval an  opportu-
 nity  for  a  hearing prior to any determination of whether such certif-
 icate should be revoked.
   No licensee shall be required to apply for  any  such  certificate  or
 renewal  certificate  and  the licensee may voluntarily surrender such a
 certificate or renewal certificate at any time. A fee in the  amount  of
 nine  hundred  dollars shall be paid to the authority with each applica-
 tion for a certificate of approval or renewal certificate. The authority
 shall promptly refund such fee to an  applicant  whose  application  was
 denied. Each certificate of approval and renewal thereof shall be issued
 for a period of three years. To effectuate the provisions of this subdi-

 S. 1527                            66
 
 vision,  the  authority  is  empowered  to require in connection with an
 application the submission of such  information  as  the  authority  may
 direct;  to  prescribe forms of applications and of all reports which it
 deems  necessary  to  be made by any applicant or certificate holder; to
 conduct investigations; to require the maintenance  of  such  books  and
 records  as  the authority may direct; to revoke, cancel, or suspend for
 cause any certificate provided for  in  this  subdivision.  Each  entity
 authorized  to  give and administer an alcohol OR SUBSTANCE USE DISORDER
 training awareness program shall issue certificates of completion to all
 licensees and employees who successfully complete such an approved alco-
 hol OR SUBSTANCE USE DISORDER training awareness  program.  Such  entity
 shall regularly transmit to the authority the names, addresses and dates
 of  attendance  of  all  the  licensees  and  employees of licensees who
 successfully complete an approved  alcohol  OR  SUBSTANCE  USE  DISORDER
 training  awareness  program.    Such transmittal shall be in a form and
 manner prescribed by the authority. The authority shall adopt rules  and
 regulations  to effectuate the provisions of this subdivision, including
 the minimum requirements  for  the  curriculum  of  each  such  training
 program  and  the  regular ongoing training of employees holding certif-
 icates of completion or renewal certificates. Such rules and regulations
 shall include the minimum requirements for  a  separate  curriculum  for
 licensees  and their employees authorized to sell alcoholic beverages at
 retail for off-premises consumption, minimum requirements for a separate
 curriculum for licensees and their employees authorized to sell alcohol-
 ic beverages at retail for on-premises consumption, and the  form  of  a
 certificate  of completion or renewal thereof to be issued in respect to
 each such type of program. A certificate of completion or renewal there-
 of issued by an entity authorized to give and administer an  alcohol  OR
 SUBSTANCE  USE  DISORDER  training  awareness  program  pursuant to this
 subdivision to licensees and their employees authorized to sell alcohol-
 ic beverages at retail for off-premises consumption shall not be invali-
 dated by a change of employment to another such licensee. A  certificate
 of  completion or renewal thereof issued by an entity authorized to give
 and administer an alcohol OR SUBSTANCE USE DISORDER  training  awareness
 program  pursuant  to  this subdivision to licensees and their employees
 authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
 consumption shall not be invalidated by a change of employment to anoth-
 er  such licensee. Attendance at any course established pursuant to this
 section shall be  in  person,  through  distance  learning  methods,  or
 through an internet based online program.
   §  54.  Section  18 of the alcoholic beverage control law, as added by
 chapter 83 of the laws of 1995, is amended by adding a  new  subdivision
 10 to read as follows:
   10. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
 USE DISORDER TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINIS-
 TERED  BY  SCHOOLS;  OTHER  ENTITIES  INCLUDING TRADE ASSOCIATIONS WHOSE
 MEMBERS ARE ENGAGED IN OR INVOLVED  IN  THE  RETAIL  SALE  OF  ALCOHOLIC
 BEVERAGES;  NATIONAL  AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST
 FIVE FRANCHISES IN THE STATE WHICH ARE LICENSED TO SELL BEER  AT  RETAIL
 FOR  OFF-PREMISES  CONSUMPTION;  LICENSEES  AUTHORIZED TO SELL ALCOHOLIC
 BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR  MORE
 LICENSED  PREMISES;  AND  PERSONS  INTERESTED,  WHETHER AS AN INDIVIDUAL
 PROPRIETOR OR PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPA-
 NY, IN FIVE OR MORE LICENSEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
 RETAIL FOR OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR THE
 ISSUANCE  OF  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  ALCOHOL OR

 S. 1527                            67
 
 SUBSTANCE USE DISORDER  TRAINING  AWARENESS  PROGRAMS.  CERTIFICATES  OF
 APPROVAL  MAY  BE  REVOKED BY THE AUTHORITY FOR FAILURE TO ADHERE TO THE
 AUTHORITY'S RULES AND REGULATIONS.  SUCH  RULES  AND  REGULATIONS  SHALL
 AFFORD  THOSE WHO HAVE BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTU-
 NITY FOR A HEARING PRIOR TO ANY DETERMINATION OF  WHETHER  SUCH  CERTIF-
 ICATE SHOULD BE REVOKED.
   NO  LICENSEE  SHALL  BE  REQUIRED TO APPLY FOR ANY SUCH CERTIFICATE OR
 RENEWAL CERTIFICATE AND THE LICENSEE MAY VOLUNTARILY  SURRENDER  SUCH  A
 CERTIFICATE  OR  RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE AMOUNT OF
 NINE HUNDRED DOLLARS SHALL BE PAID TO THE AUTHORITY WITH  EACH  APPLICA-
 TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE. THE AUTHORITY
 SHALL  PROMPTLY  REFUND  SUCH  FEE TO AN APPLICANT WHOSE APPLICATION WAS
 DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
 FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
 VISION, THE AUTHORITY IS EMPOWERED TO  REQUIRE  IN  CONNECTION  WITH  AN
 APPLICATION  THE  SUBMISSION  OF  SUCH  INFORMATION AS THE AUTHORITY MAY
 DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS  WHICH  IT
 DEEMS  NECESSARY  TO  BE MADE BY ANY APPLICANT OR CERTIFICATE HOLDER; TO
 CONDUCT INVESTIGATIONS; TO REQUIRE THE MAINTENANCE  OF  SUCH  BOOKS  AND
 RECORDS  AS  THE AUTHORITY MAY DIRECT; TO REVOKE, CANCEL, OR SUSPEND FOR
 CAUSE ANY CERTIFICATE PROVIDED FOR  IN  THIS  SUBDIVISION.  EACH  ENTITY
 AUTHORIZED  TO  GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER
 TRAINING AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO ALL
 LICENSEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCO-
 HOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS  PROGRAM.  SUCH  ENTITY
 SHALL REGULARLY TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES
 OF  ATTENDANCE  OF  ALL  THE  LICENSEES  AND  EMPLOYEES OF LICENSEES WHO
 SUCCESSFULLY COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  USE  DISORDER
 TRAINING  AWARENESS  PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND
 MANNER PRESCRIBED BY THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES  AND
 REGULATIONS  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING
 THE MINIMUM REQUIREMENTS  FOR  THE  CURRICULUM  OF  EACH  SUCH  TRAINING
 PROGRAM  AND  THE  REGULAR ONGOING TRAINING OF EMPLOYEES HOLDING CERTIF-
 ICATES OF COMPLETION OR RENEWAL CERTIFICATES. SUCH RULES AND REGULATIONS
 SHALL INCLUDE THE MINIMUM REQUIREMENTS FOR  A  SEPARATE  CURRICULUM  FOR
 LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES AT
 RETAIL FOR OFF-PREMISES CONSUMPTION, MINIMUM REQUIREMENTS FOR A SEPARATE
 CURRICULUM FOR LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOL-
 IC BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION, AND THE  FORM  OF  A
 CERTIFICATE  OF COMPLETION OR RENEWAL THEREOF TO BE ISSUED IN RESPECT TO
 EACH SUCH TYPE OF PROGRAM. A CERTIFICATE OF COMPLETION OR RENEWAL THERE-
 OF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN  ALCOHOL  OR
 SUBSTANCE  USE  DISORDER  TRAINING  AWARENESS  PROGRAM  PURSUANT TO THIS
 SUBDIVISION TO LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOL-
 IC BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION SHALL NOT BE INVALI-
 DATED BY A CHANGE OF EMPLOYMENT TO ANOTHER SUCH LICENSEE.  A CERTIFICATE
 OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO  GIVE
 AND  ADMINISTER  AN ALCOHOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS
 PROGRAM PURSUANT TO THIS SUBDIVISION TO LICENSEES  AND  THEIR  EMPLOYEES
 AUTHORIZED  TO  SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR  ON-PREMISES
 CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF EMPLOYMENT TO ANOTH-
 ER SUCH LICENSEE.  ATTENDANCE AT ANY COURSE ESTABLISHED PURSUANT TO THIS
 SECTION SHALL BE  IN  PERSON,  THROUGH  DISTANCE  LEARNING  METHODS,  OR
 THROUGH AN INTERNET BASED ONLINE PROGRAM.
   § 55. Section 150.75 of the criminal procedure law is REPEALED.

 S. 1527                            68

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

 S. 1527                            69
 
 state purposes account, not otherwise appropriated, and made immediately
 available, for the purpose of carrying out the provisions of  this  act.
 Such moneys shall be payable on the audit and warrant of the comptroller
 on  vouchers certified or approved by the superintendent or the chairman
 of the New York State Liquor Authority in the manner prescribed by law.
   § 59. Severability. If any provision or term of this act  is  for  any
 reason  declared unconstitutional or invalid or ineffective by any court
 of competent jurisdiction, such decision shall not affect  the  validity
 of  the  effectiveness of the remaining portions of this act or any part
 thereof.
   § 60. This act shall take effect immediately; provided, however,  that
 the  amendments to section 17 of the alcoholic beverage control law made
 by section fifty-one of this act shall not  affect  the  expiration  and
 reversion of such section and shall expire and be deemed repealed there-
 with,  when  upon  such date the provisions of section fifty-two of this
 act shall take effect; provided further, however, that the amendments to
 section 18 of the alcoholic beverage control law made by section  fifty-
 three  of this act shall not affect the expiration and reversion of such
 section and shall expire and be deemed  repealed  therewith,  when  upon
 such  date  the  provisions of section fifty-four of this act shall take
 effect.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1527--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 Introduced  by Sens. KRUEGER, BAILEY, BIAGGI, COMRIE, GIANARIS, HOYLMAN,
   JACKSON, KENNEDY, LIU, MAY, MONTGOMERY, MYRIE, PARKER, RAMOS,  RIVERA,
   SALAZAR, SANDERS, SAVINO, SEPULVEDA, SERRANO -- read twice and ordered
   printed,  and when printed to be committed to the Committee on Finance
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and  recommitted  to  said  committee  --  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
   and medical use of marihuana; to repeal article 221 of the  penal  law
   relating  to  offenses involving marihuana; to repeal paragraph (f) of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07592-11-9

 S. 1527--B                          2
 
   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-
 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

 S. 1527--B                          3
 
 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.
   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.

 S. 1527--B                          4
 
   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-
 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

 S. 1527--B                          5
 
 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.
   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,

 S. 1527--B                          6
 
 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
 device that creates an aerosol or vapor, unless local laws or ordinances
 or state statutes extend prohibitions on smoking to  electronic  smoking
 devices.

 S. 1527--B                          7
 
   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
 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.

 S. 1527--B                          8
 
   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.
   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.

 S. 1527--B                          9
 
   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
 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.

 S. 1527--B                         10
 
   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.
   §  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

 S. 1527--B                         11
 
 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
 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

 S. 1527--B                         12
 
 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
 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.

 S. 1527--B                         13
 
                                 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
 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

 S. 1527--B                         14
 
 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
 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

 S. 1527--B                         15
 
   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;
   (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:

 S. 1527--B                         16
 
   (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
 their medical conditions and may  therefore  have  difficulty  procuring
 photographs;
   (e) be a secure document as determined by the office;

 S. 1527--B                         17

   (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
 period,  the  office shall issue a registration as soon as is reasonably
 practicable.

 S. 1527--B                         18
 
   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
 amount greater than a sixty-day supply to a certified patient until  the
 certified  patient  has  exhausted  all  but a seven day supply provided

 S. 1527--B                         19
 
 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,
 repair, and security, provided that  the  person  or  entity  shall  not
 perform  any function or activity directly involving the planting, grow-

 S. 1527--B                         20
 
 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;
   (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

 S. 1527--B                         21
 
 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
   (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

 S. 1527--B                         22
 
 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.
   (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

 S. 1527--B                         23
 
 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,
 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-

 S. 1527--B                         24
 
 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;
   (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;

 S. 1527--B                         25

   (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,
 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

 S. 1527--B                         26
 
 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.
         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.

 S. 1527--B                         27
 
         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
 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-

 S. 1527--B                         28
 
 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) 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;

 S. 1527--B                         29
 
   (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.
   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,

 S. 1527--B                         30
 
 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
   (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-

 S. 1527--B                         31
 
 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-
 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.

 S. 1527--B                         32
 
   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.
   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.

 S. 1527--B                         33
 
   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) 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

 S. 1527--B                         34
 
 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.
   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;

 S. 1527--B                         35
 
   (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.
   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-

 S. 1527--B                         36
 
 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.
   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.

 S. 1527--B                         37
 
   §  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
 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;

 S. 1527--B                         38
 
   (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
 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.

 S. 1527--B                         39
 
   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
 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.

 S. 1527--B                         40
 
   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
 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

 S. 1527--B                         41
 
 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) 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

 S. 1527--B                         42
 
 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;
   (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:

 S. 1527--B                         43
 
   (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.
   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.

 S. 1527--B                         44
 
   § 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
 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.

 S. 1527--B                         45
 
   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
 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:

 S. 1527--B                         46
 
   (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
 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

 S. 1527--B                         47
 
 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-
 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.

 S. 1527--B                         48
 
   §  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.
   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.

 S. 1527--B                         49
 
   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
   (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

 S. 1527--B                         50
 
 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
 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

 S. 1527--B                         51
 
 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
 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.

 S. 1527--B                         52
 
   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.
 
                                 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.

 S. 1527--B                         53
 
         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.
   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

 S. 1527--B                         54
 
 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
 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.

 S. 1527--B                         55
 
   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
 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-

 S. 1527--B                         56
 
 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
 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-

 S. 1527--B                         57
 
 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;
   (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.

 S. 1527--B                         58
 
   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
 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.

 S. 1527--B                         59
 
   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
 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:

 S. 1527--B                         60
 
   (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
 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.

 S. 1527--B                         61
 
   (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
   (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-

 S. 1527--B                         62
 
 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.
   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

 S. 1527--B                         63
 
 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.
   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,

 S. 1527--B                         64
 
 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
 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

 S. 1527--B                         65
 
 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
 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

 S. 1527--B                         66
 
 and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
 subdivision 20, the opening paragraph of subdivision 22 and  subdivision
 29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
 vision  41 as added by section 6 of part A of chapter 447 of the laws of
 2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
 chapter 60 of the laws of 2014, is amended to read as follows:
   §  3302.  Definitions  of terms of general use in this article. Except
 where  different  meanings  are  expressly   specified   in   subsequent
 provisions of this article, the following terms have the following mean-
 ings:
   1.  "Addict" means a person who habitually uses a controlled substance
 for a non-legitimate or unlawful use, and who by reason of such  use  is
 dependent thereon.
   2.   "Administer"   means  the  direct  application  of  a  controlled
 substance, whether by injection, inhalation,  ingestion,  or  any  other
 means, to the body of a patient or research subject.
   3.  "Agent" means an authorized person who acts on behalf of or at the
 direction of a manufacturer, distributor, or dispenser. No person may be
 authorized to so act if under title  VIII  of  the  education  law  such
 person  would  not  be  permitted to engage in such conduct. It does not
 include a common or contract carrier, public warehouseman,  or  employee
 of  the  carrier  or  warehouseman  when  acting in the usual and lawful
 course of the carrier's or warehouseman's business.
   4. ["Concentrated Cannabis" means
   (a) the separated resin, whether crude or purified,  obtained  from  a
 plant of the genus Cannabis; or
   (b)  a  material,  preparation,  mixture,  compound or other substance
 which contains more than two and one-half percent by weight  of  delta-9
 tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
 terpene numbering system.
   5.] "Controlled substance" means a substance or substances  listed  in
 section thirty-three hundred six of this [chapter] TITLE.
   [6.]  5.  "Commissioner"  means commissioner of health of the state of
 New York.
   [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
 attempted transfer from one person to another of a controlled substance,
 whether or not there is an agency relationship.
   [8.]  7.  "Department"  means the department of health of the state of
 New York.
   [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
 mate user or research subject by lawful means, including by means of the
 internet, and includes the packaging, labeling, or compounding necessary
 to prepare the substance for such delivery.
   [10.] 9. "Distribute" means to deliver a controlled substance, includ-
 ing by means of the internet, other than by administering or dispensing.
   [11.] 10. "Distributor" means a person who  distributes  a  controlled
 substance.
   [12.]  11.  "Diversion" means manufacture, possession, delivery or use
 of a controlled substance by a person or in a  manner  not  specifically
 authorized by law.
   [13.] 12. "Drug" means
   (a) 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;

 S. 1527--B                         67

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

 S. 1527--B                         68
 
 origin, or independently by means of chemical synthesis, or by a  combi-
 nation of extraction and chemical synthesis:
   (a)  opium and opiate, and any salt, compound, derivative, or prepara-
 tion of opium or opiate;
   (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
 which  is  chemically equivalent or identical with any of the substances
 referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
 including the isoquinoline alkaloids of opium;
   (c) opium poppy and poppy straw.
   [23.]  21. "Opiate" means any substance having an addiction-forming or
 addiction-sustaining liability similar to morphine or being  capable  of
 conversion  into a drug having addiction-forming or addiction-sustaining
 liability. It  does  not  include,  unless  specifically  designated  as
 controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
 cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
 its salts (dextromethorphan). It does include its racemic and  levorota-
 tory forms.
   [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
 somniferum L., except its seeds.
   [25.] 23. "Person" means individual, institution, corporation, govern-
 ment or governmental subdivision  or  agency,  business  trust,  estate,
 trust, partnership or association, or any other legal entity.
   [26.]  24. "Pharmacist" means any person licensed by the state depart-
 ment of education to practice pharmacy.
   [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
 York  state  board  of  pharmacy  and registered with the Federal agency
 pursuant to the federal controlled substances act.
   [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
 opium poppy, after mowing.
   [29.] 27. "Practitioner" means:
   A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
 gator, or other person licensed, or  otherwise  permitted  to  dispense,
 administer or conduct research with respect to a controlled substance in
 the  course  of  a  licensed  professional practice or research licensed
 pursuant to this article. Such person shall be deemed  a  "practitioner"
 only  as  to such substances, or conduct relating to such substances, as
 is permitted by his license, permit or otherwise permitted by law.
   [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
 prescription,  permitting an ultimate user lawfully to obtain controlled
 substances  from  any  person  authorized  by  law  to   dispense   such
 substances.
   [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
 prescription, an electronic prescription, an oral prescription[,] OR  an
 out-of-state prescription[, or any one].
   [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
 er, or offer or agree to do the same.
   [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
 possesses a controlled substance for his own use or the use by a  member
 of  his  household  or  for an animal owned by him or in his custody. It
 shall also mean and include a person designated, by a practitioner on  a
 prescription, to obtain such substance on behalf of the patient for whom
 such substance is intended.
   [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
 cations facilities which comprise the worldwide network of networks that
 employ a set of industry standards and protocols, or any predecessor  or
 successor  protocol  to  such  protocol,  to exchange information of all

 S. 1527--B                         69
 
 kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
 networks,  whether  private  or  public, used to transmit information by
 electronic means.
   [35.]  33.  "By  means  of  the  internet"  means  any sale, delivery,
 distribution, or dispensing of a  controlled  substance  that  uses  the
 internet,  is initiated by use of the internet or causes the internet to
 be used.
   [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
 in the United States that sells, delivers or  dispenses,  or  offers  to
 sell,  deliver,  or  dispense,  a  controlled  substance by means of the
 internet.
   [37.] 35. "Electronic prescription" means a prescription  issued  with
 an  electronic  signature and transmitted by electronic means in accord-
 ance with regulations of the commissioner and the commissioner of educa-
 tion and consistent with federal requirements. A prescription  generated
 on an electronic system that is printed out or transmitted via facsimile
 is  not  considered  an  electronic  prescription  and  must be manually
 signed.
   [38.] 36. "Electronic" means of or relating to technology having elec-
 trical, digital, magnetic, wireless, optical, electromagnetic or similar
 capabilities. "Electronic" shall not include facsimile.
   [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
 created,  generated,  transmitted,  communicated,  received or stored by
 means of electronic equipment and includes the preservation,  retrieval,
 use  and  disposition in accordance with regulations of the commissioner
 and the commissioner of education and in compliance with federal law and
 regulations.
   [40.] 38. "Electronic signature" means an electronic sound, symbol, or
 process, attached to or logically associated with an  electronic  record
 and  executed or adopted by a person with the intent to sign the record,
 in accordance with regulations of the commissioner and the  commissioner
 of education.
   [41.]  39.  "Registry"  or  "prescription monitoring program registry"
 means the prescription monitoring program registry established  pursuant
 to section thirty-three hundred forty-three-a of this article.
   [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
 ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
 drug  substance to create a drug with respect to an outsourcing facility
 under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
 further defined in this section.
   [43.] 41. "Outsourcing facility" means a facility that:
   (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
 section sixty-eight hundred two of the education law;
   (b) is currently registered as an  outsourcing  facility  pursuant  to
 article one hundred thirty-seven of the education law; and
   (c)  complies  with  all  applicable requirements of federal and state
 law, including the Federal Food, Drug and Cosmetic Act.
   Notwithstanding any other provision of law to the  contrary,  when  an
 outsourcing  facility  distributes  or  dispenses any drug to any person
 pursuant to a prescription, such outsourcing facility shall be deemed to
 be providing pharmacy services and shall be subject to all  laws,  rules
 and regulations governing pharmacies and pharmacy services.
   §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
 26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
 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

 S. 1527--B                         70
 
 1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
 laws of 2006, are amended to read as follows:
   (13) [Marihuana.
   (14)] Mescaline.
   [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
   [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
 fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
 not, the seeds thereof, any extract from any part  of  such  plant,  and
 every  compound, manufacture, salts, derivative, mixture, or preparation
 of such plant, its seeds or extracts.
   [(17)] (16) N-ethyl-3-piperidyl benzilate.
   [(18)] (17) N-methyl-3-piperidyl benzilate.
   [(19)] (18) Psilocybin.
   [(20)] (19) Psilocyn.
   [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
 DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
 contained  in the plant, or in the resinous extractives of cannabis, sp.
 and/or synthetic substances, derivatives, and their isomers with similar
 chemical structure and pharmacological activity such as the following:
   [/\] DELTA 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
 isomers
   [/\]  DELTA  6  cis  or  trans tetrahydrocannabinol, and their optical
 isomers
   [/\] DELTA 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
 isomers  (since  nomenclature of these substances is not internationally
 standardized, compounds of these  structures,  regardless  of  numerical
 designation of atomic positions covered).
   [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
 names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
   [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
   [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
 names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
 phencyclidine, TPCP, TCP.
   [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
   [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
 N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
 MDE, MDEA.
   [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
 N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
 N-hydroxy MDA.
   [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
 names: TCPY.
   [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
 etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
 3- (2-aminobutyl) indole; Alpha-ET or AET.
   [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
 names: DOET.
   [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
 names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
 DOB; 2C-B, Nexus.
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.

 S. 1527--B                         71
 
   § 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
 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].

 S. 1527--B                         72
 
   § 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) 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-

 S. 1527--B                         73

 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-
 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.

 S. 1527--B                         74
 
         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-
 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

 S. 1527--B                         75

   (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
   (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.

 S. 1527--B                         76
 
   (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
 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;

 S. 1527--B                         77
 
   (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
 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.

 S. 1527--B                         78
 
   § 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
 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

 S. 1527--B                         79

 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
   (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

 S. 1527--B                         80

 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
 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-

 S. 1527--B                         81
 
 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
 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:

 S. 1527--B                         82
 
   (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
 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.

 S. 1527--B                         83
 
   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.
   § 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

 S. 1527--B                         84

 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
 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

 S. 1527--B                         85
 
 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
 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-

 S. 1527--B                         86
 
 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
 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

 S. 1527--B                         87
 
 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
   §  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-

 S. 1527--B                         88
 
 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
 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

 S. 1527--B                         89

 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
 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

 S. 1527--B                         90
 
 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
 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-

 S. 1527--B                         91
 
 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
 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

 S. 1527--B                         92
 
 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
 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

 S. 1527--B                         93
 
 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.
   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-

 S. 1527--B                         94
 
 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
 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

 S. 1527--B                         95
 
 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.
   (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.

 S. 1527--B                         96
 
   (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
 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

 S. 1527--B                         97
 
 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-
 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

 S. 1527--B                         98
 
 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,
 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-

 S. 1527--B                         99

 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
 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

 S. 1527--B                         100
 
 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
 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:

 S. 1527--B                         101
 
   (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.
   § 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:

 S. 1527--B                         102
 
   §  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,
 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

 S. 1527--B                         103
 
 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-
 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:

 S. 1527--B                         104
 
   § 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,
 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

 S. 1527--B                         105
 
 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
 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:

 S. 1527--B                         106
 
   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-
 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.

 S. 1527--B                         107
 
   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.
   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.

 S. 1527--B                         108
 
   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
 [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

 S. 1527--B                         109
 
 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
 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

 S. 1527--B                         110
 
 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
 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.

 S. 1527--B                         111
 
   (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-
 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:

 S. 1527--B                         112
 
   (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
 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

 S. 1527--B                         113
 
 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)  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.

 S. 1527--B                         114
 
   §  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
 ________________________________________________________________________
 
                                  1527--C
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 Introduced by Sens. KRUEGER, BAILEY, BIAGGI, CARLUCCI, COMRIE, GIANARIS,
   HOYLMAN, JACKSON, KENNEDY, LIU, MAY, METZGER, MONTGOMERY, MYRIE, PARK-
   ER,  RAMOS,  RIVERA,  SALAZAR,  SANDERS, SAVINO, SEPULVEDA, SERRANO --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee  on  Finance  --  committee  discharged,  bill amended,
   ordered reprinted as amended and  recommitted  to  said  committee  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee  --  recommitted  to  the  Committee  on
   Finance  in  accordance  with  Senate  Rule  6,  sec.  8  -- committee
   discharged, bill amended, 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
   marihuana, in relation to the effectiveness thereof; to repeal certain
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07592-36-0

 S. 1527--C                          2
 
   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
 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-

 S. 1527--C                          3
 
 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.
   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.

 S. 1527--C                          4
 
   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
 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

 S. 1527--C                          5
 
 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.
   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.

 S. 1527--C                          6
 
   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-
 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.

 S. 1527--C                          7
 
   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
 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-

 S. 1527--C                          8
 
 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
 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

 S. 1527--C                          9
 
 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
 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

 S. 1527--C                         10
 
 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
 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

 S. 1527--C                         11
 
 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,
 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;

 S. 1527--C                         12
 
   (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.
   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.

 S. 1527--C                         13
 
   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
 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;

 S. 1527--C                         14
 
   (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;
   (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

 S. 1527--C                         15
 
 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
 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

 S. 1527--C                         16
 
 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
 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

 S. 1527--C                         17
 
 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-
 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,

 S. 1527--C                         18
 
 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
 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

 S. 1527--C                         19
 
 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-
 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

 S. 1527--C                         20
 
 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;
   (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;

 S. 1527--C                         21
 
   (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.
   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;

 S. 1527--C                         22
 
   (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
 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;

 S. 1527--C                         23
 
   (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-
 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.

 S. 1527--C                         24
 
   (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 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.

 S. 1527--C                         25
 
   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:
   (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;

 S. 1527--C                         26
 
   (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;
   (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

 S. 1527--C                         27
 
   (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
   (ii) every known charge or investigation, pending or concluded  during
 the  period  of  the registration, by any governmental or administrative
 agency with respect to:

 S. 1527--C                         28
 
   (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.
   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

 S. 1527--C                         29
 
 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;
   (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

 S. 1527--C                         30
 
   (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
 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

 S. 1527--C                         31
 
   (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
 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

 S. 1527--C                         32
 
 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.
         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.

 S. 1527--C                         33
 
         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).
 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.

 S. 1527--C                         34
 
   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;
   (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;

 S. 1527--C                         35
 
   (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.
   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

 S. 1527--C                         36
 
 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
 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.

 S. 1527--C                         37
 
   §  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,
 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.

 S. 1527--C                         38
 
   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
 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

 S. 1527--C                         39
 
 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.
   § 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.

 S. 1527--C                         40
 
   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
 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.

 S. 1527--C                         41
 
   § 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;
   (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

 S. 1527--C                         42
 
 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.
   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

 S. 1527--C                         43
 
 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
 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.

 S. 1527--C                         44
 
   §  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-
 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

 S. 1527--C                         45
 
 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
 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.

 S. 1527--C                         46
 
   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.
   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

 S. 1527--C                         47
 
 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
 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-

 S. 1527--C                         48
 
 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
 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

 S. 1527--C                         49
 
 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
   (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

 S. 1527--C                         50
 
 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)  "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;

 S. 1527--C                         51
 
   (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.
   (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

 S. 1527--C                         52
 
 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.
   § 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.

 S. 1527--C                         53
 
   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;
   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;

 S. 1527--C                         54

   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.
   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,

 S. 1527--C                         55
 
 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.
   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.

 S. 1527--C                         56
 
   § 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
 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

 S. 1527--C                         57
 
 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.
   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.

 S. 1527--C                         58
 
   § 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.
   § 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.

 S. 1527--C                         59
 
                                 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
 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-

 S. 1527--C                         60
 
 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
 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.

 S. 1527--C                         61
 
   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
 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

 S. 1527--C                         62
 
 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.
   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)

 S. 1527--C                         63
 
 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
 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

 S. 1527--C                         64
 
 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
   (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-

 S. 1527--C                         65
 
 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
 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

 S. 1527--C                         66
 
 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.
   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.

 S. 1527--C                         67
 
   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.
 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.

 S. 1527--C                         68
 
   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.
   (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-

 S. 1527--C                         69
 
 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;
   (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

 S. 1527--C                         70
 
 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
 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,

 S. 1527--C                         71
 
 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
 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

 S. 1527--C                         72

   (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
 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.

 S. 1527--C                         73
 
   [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
 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.

 S. 1527--C                         74
 
   [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.

 S. 1527--C                         75
 
   [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

 S. 1527--C                         76
 
 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];
   [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

 S. 1527--C                         77

 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.
   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

 S. 1527--C                         78
 
 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
 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,

 S. 1527--C                         79
 
 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
 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

 S. 1527--C                         80
 
 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:
   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.

 S. 1527--C                         81
 
   § 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.
 § 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;

 S. 1527--C                         82
 
   (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.
   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

 S. 1527--C                         83
 
 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
 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:

 S. 1527--C                         84
 
   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
 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.

 S. 1527--C                         85
 
   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
 constitution, based on those consequences. The people  may  rebut  these
 presumptions.
   § 19. Intentionally omitted.
   § 20. Intentionally omitted.
   § 21. Intentionally omitted.

 S. 1527--C                         86
 
   §  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
 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

 S. 1527--C                         87
 
 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
 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

 S. 1527--C                         88
 
 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
 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

 S. 1527--C                         89
 
 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
 liability when [(a)] he has been convicted of a post-conviction  forfei-
 ture  crime[, or (b) the claiming authority proves by clear and convinc-

 S. 1527--C                         90

 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 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.

 S. 1527--C                         91
 
   § 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,
 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-

 S. 1527--C                         92
 
 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
 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

 S. 1527--C                         93
 
 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
 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

 S. 1527--C                         94
 
 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-
 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.

 S. 1527--C                         95
 
 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
 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

 S. 1527--C                         96
 
 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.
   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

 S. 1527--C                         97
 
 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,
 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.

 S. 1527--C                         98
 
   (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
 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

 S. 1527--C                         99
 
 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
 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.

 S. 1527--C                         100
 
   §  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-
 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

 S. 1527--C                         101
 
 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-
 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

 S. 1527--C                         102
 
 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.
   § 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-

 S. 1527--C                         103
 
 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
 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

 S. 1527--C                         104

 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
 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

 S. 1527--C                         105
 
 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
 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

 S. 1527--C                         106
 
 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
 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

 S. 1527--C                         107
 
 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
 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

 S. 1527--C                         108
 
 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
 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:

 S. 1527--C                         109
 
   (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
 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.

 S. 1527--C                         110
 
   (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;
   (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-

 S. 1527--C                         111
 
 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
 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.

 S. 1527--C                         112
 
   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
 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

 S. 1527--C                         113
 
 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
 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,

 S. 1527--C                         114
 
 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
 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.

 S. 1527--C                         115
 
   § 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
 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,

 S. 1527--C                         116
 
 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.