S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2904
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2023
                                ___________
 
 Introduced by M. of A. JENSEN -- read once and referred to the Committee
   on Economic Development
 
 AN  ACT  to  amend  the cannabis law, in relation to appointments to the
   cannabis control board, and to oversight of registered cannabis organ-
   izations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions 1 and 2 of section 7 of the cannabis law are
 amended to read as follows:
   1. The cannabis control board is hereby created and shall consist of a
 chairperson nominated by the governor and with the advice and consent of
 the senate, with one vote, and [four] EIGHT other voting  board  members
 as provided for in subdivision two of this section.
   2.  Appointments.  In  addition to the chairperson, the governor shall
 have two direct appointments to the board, [and] the temporary president
 of the senate and the speaker of the assembly shall each have [one]  TWO
 direct  [appointment] APPOINTMENTS to the board, AND THE MINORITY LEADER
 OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY  SHALL  EACH  HAVE
 ONE  DIRECT  APPOINTMENT TO THE BOARD.  Appointments shall be for a term
 of three years each and should, to the  extent  possible,  be  geograph-
 ically  and  demographically representative of the state and communities
 historically affected by the war on drugs. Board members shall be  citi-
 zens  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 respective 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, except for the chairperson,
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06570-01-3
              

 A. 2904                             2
 
 actual and necessary expenses incurred in the discharge of their duties.
 The  chairperson  shall receive an annual salary not to exceed an amount
 appropriated therefor by the legislature, and  their  expenses  actually
 and  necessarily  incurred  in the performance of their official duties,
 unless otherwise provided by the  legislature.  No  member  or  member's
 spouse  or minor child shall have any interest in an entity regulated by
 the board.
   § 2. Section 36 of the cannabis law is amended to read as follows:
   § 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.    SUCH  SECURITY,  TRACKING,
 RECORD  KEEPING,  RECORD  RETENTION  AND  SURVEILLANCE  SYSTEMS SHALL BE
 DESIGNED TO ASSIST STATE AND LOCAL GOVERNMENTS WITH  THE  COLLECTION  OF
 TAXES,  ENFORCEMENT  OF RELEVANT REGULATIONS, VERIFICATION THAT CANNABIS
 PRODUCTS ARE NOT UNLAWFULLY TAMPERED WITH  OR  ALTERED  PRIOR  TO  LEGAL
 SALE, AND PREVENTION OF ILLEGAL CANNABIS SALES AND DISTRIBUTION.
   § 3. Section 78 of the cannabis law is amended to read as follows:
   §  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. Such
 regulations [may] SHALL require the utilization of an approved  seed-to-
 sale tracking system compiling a licensee's cannabis inventory and tran-
 saction  data.    SUCH  SEED-TO-SALE  TRACKING  AND  REPORTING  SHALL BE
 DESIGNED TO ASSIST STATE AND LOCAL GOVERNMENTS WITH  THE  COLLECTION  OF
 TAXES,  ENFORCEMENT  OF RELEVANT REGULATIONS, VERIFICATION THAT CANNABIS
 PRODUCTS ARE NOT UNLAWFULLY TAMPERED WITH  OR  ALTERED  PRIOR  TO  LEGAL
 SALE,  AND  PREVENTION  OF  ILLEGAL  CANNABIS  SALES AND DISTRIBUTION. A
 LICENSEE SHALL RECORD IN THE SEED-TO-SALE TRACKING SYSTEM ALL COMMERCIAL
 CANNABIS ACTIVITY, INCLUDING:  PACKAGING  OF  CANNABIS  GOODS,  SALE  OF
 CANNABIS  GOODS, TRANSPORTATION OF CANNABIS GOODS TO A LICENSEE, RECEIPT
 OF CANNABIS GOODS, RETURN OF CANNABIS GOODS, DESTRUCTION AND DISPOSAL OF
 CANNABIS GOODS, LABORATORY TESTING AND RESULTS, AND ANY  OTHER  ACTIVITY
 AS REQUIRED BY THE BOARD.
   § 4. Section 79 of the cannabis law is amended to read as follows:
   §  79.  Inspections  and  ongoing  requirements.    1. All licensed or
 permitted premises, regardless of the type of premises, and all  records
 including  but  not  limited to financial statements and corporate docu-
 ments, shall be subject to inspection by the office, by the duly author-
 ized representatives of the board, by any peace officer acting  pursuant
 to  his  or  her special duties, or by a police officer. The board shall
 make reasonable accommodations so that ordinary business is  not  inter-
 A. 2904                             3
 
 rupted  and  safety  and  security procedures are not compromised by the
 inspection. A person who holds a license or  permit  [must]  SHALL  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  of  the  requirements  of this article, the regulations promulgated
 pursuant thereto, and other applicable state and local  building  codes,
 fire, health, safety, and other applicable regulations.
   2. ALL REQUIRED STATE AND LOCAL INSPECTIONS, INCLUDING BUT NOT LIMITED
 TO,  BUILDING, PLUMBING, ELECTRICAL, FIRE CODES AND FOOD SAFETY SHALL BE
 CONDUCTED THROUGH THE LOCAL  MUNICIPAL  BUILDING  DEPARTMENT  AND  LOCAL
 COUNTY  HEALTH  DEPARTMENT.  THE  BOARD  SHALL  DEVELOPMENT STANDARDIZED
 TRAINING FOR SUCH INSPECTIONS AND PROVIDE SUCH TRAINING TO LOCAL MUNICI-
 PALITIES AND LOCAL COUNTY HEALTH DEPARTMENTS AT NO COST.
   3. THE APPLICANT SHALL  ALLOW  REASONABLE  ACCESS  TO  THE  DEPARTMENT
 AND/OR  ITS  AUTHORIZED REPRESENTATIVES FOR THE PURPOSE OF CONDUCTING AN
 ON-SITE SURVEY OR INSPECTION OF SUCH APPLICANT'S PROPOSED  MANUFACTURING
 AND/OR DISPENSING FACILITIES. ANY COSTS ASSOCIATED WITH SUCH INSPECTIONS
 SHALL  BE  REIMBURSED  TO  SUCH MUNICIPALITIES BY THE OFFICE OF CANNABIS
 MANAGEMENT.
   § 5. This act shall take effect immediately.