§ 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,
delivering, transporting, distributing or dispensing cannabis for
certified medical use.

2. The acquiring, possession, manufacture, sale, delivery,
transporting, 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 chapter.

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 laboratories
used by the registered organization, including sampling and testing
protocols and standards used by the laboratories, and may require that
the registered organization use a particular testing laboratory. The
board is authorized 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
recommendation 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 and shall make such records available to the office.

(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
electronically 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
designated 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
recommendation 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
caregiver, it shall provide to that individual a safety insert,
developed by the registered organization subject to regulations issued
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
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 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.

8. Manufacturing of medical cannabis by a registered organization
shall only be done in a secure facility located in New York state, which
may include a greenhouse. The board shall promulgate 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. The board 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,
growing, 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
manufacturing 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
subdivision.

11. A registered organization shall, based on the findings of an
independent 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
stating, "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.

15. A registered organization shall operate in accordance with minimum
operating and recordkeeping requirements determined by the board in
regulation.