§ 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 and
the chief equity officer, 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 cultivators, processors, cooperatives, microbusiness,
distributors, laboratories, 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;

(c) the books and records to be created and maintained by all
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 permittee and on the premises of any registered organization,
licensee, or permittee;

(d) methods of producing, processing, and packaging cannabis, medical
cannabis, cannabis-infused products, concentrated cannabis, and
cannabinoid 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 licensees;

(e) security requirements for medical cannabis and adult-use cannabis
retail dispensaries and premises where cannabis products, medical
cannabis, and cannabinoid hemp and hemp extract, are cultivated,
produced, processed, or stored, and safety protocols for registered
organizations, licensees and their employees;

(f) hearing procedures and additional causes for cancellation,
suspension, revocation, and/or civil penalties against any person
registered, licensed, or permitted by the board; and

(g) the circumstances, manner and process by which an applicant,
registered organization, licensee, or permittee, may apply to change or
alter its previously submitted or approved owners, managers, members,
directors, financiers, or interest holders.

3. The 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
criminal enterprises;

(c) prevent the diversion and inversion of cannabis from this state to
other states and from other states into this state, insofar as cannabis
remains federally prohibited;

(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) inform the public about the dangers of driving while impaired and
the public health consequences associated with the use of cannabis;

(f) prevent the growing of cannabis on public lands;

(g) inform the public about the prohibition on the possession and use
of cannabis on federal property; and

(h) establish application, licensing, and permitting processes which
ensure all material owners and interest holders are disclosed and that
officials or other individuals with control over the approval of an
application, permit, or license do not themselves have any interest in
an application, license, or permit.

4. The board, in consultation with the department of agriculture and
markets and the department of environmental conservation, shall
promulgate 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 conservation.

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
subdivision 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
emergency basis or the adoption of a substantially similar rule on an
emergency basis is necessary for the preservation of the public health,
safety or general welfare the agency may only readopt the rule on an
emergency basis or adopt a substantially similar rule on an emergency
basis if on or before the date of such action the board has also
submitted 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 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 permitted for a
period of one hundred twenty days. Nothing in this subdivision 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; and

(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.

6. The board shall have the authority to promulgate regulations
governing the appropriate use and licensure of the manufacturing of
cannabinoids, or other compounds contained within the cannabis plant,
through any method other than planting, growing, cloning, harvesting, or
other traditional means of plant agriculture.