NY-CAN Cannabis Law NY

Section 1. Short title. This chapter shall be known and may be cited

and referred to as the "cannabis law".

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

curbing 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

cannabis 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, protect the environment, improve the

state's resiliency to climate change, protect the public health, safety

and welfare of the people of the state, 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

smoking tobacco is prohibited; or to require any individual to engage in

any conduct that violates federal law or to exempt anyone from any

requirement 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.

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" unless otherwise specified in this chapter, shall mean

a person applying for any cannabis, medical cannabis or cannabinoid hemp

license or permit issued by the New York state cannabis control board

pursuant to this chapter that: has a significant presence in New York

state, either individually or by having a principal corporate location

in the state; is incorporated or otherwise organized under the laws of

this state; or a majority of the ownership are residents of this state.

For the purposes of this subdivision, "person" means an individual,

institution, corporation, government or governmental subdivision or

agency, business trust, estate, trust, partnership or association, or

any other legal entity.

2. "Cannabinoid" means the phytocannabinoids found in hemp and does

not include synthetic cannabinoids as that term is defined in

subdivision (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

office 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,

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 hemp, cannabinoid hemp or hemp extract as defined by

this section or any drug products approved by the federal Food and Drug

Administration.

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" or "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

product 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

cannabis consumer.

10. "Cannabis-infused products" means products that have been

manufactured and contain either cannabis or concentrated cannabis and

other ingredients that are intended for use or consumption.

11. "Cannabis trim" means all parts of the plant of the genus Cannabis

other than cannabis flower that have been harvested, dried, and cured,

but prior to any further processing.

12. "Caring for" means treating a patient, in the course of which the

practitioner has completed a full assessment of the patient's medical

history and current medical condition.

13. "Certification" means a certification made under this chapter.

14. "Certified medical use" includes the acquisition, cultivation,

manufacture, delivery, harvest, possession, preparation, transfer,

transportation, or use of medical cannabis for a certified patient, or

the acquisition, administration, cultivation, manufacture, delivery,

harvest, possession, preparation, transfer, or transportation of medical

cannabis by a designated caregiver or designated caregiver facility, or

paraphernalia relating to the administration of cannabis, including

whole cannabis flower, 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. "Concentrated cannabis" means: (a) the separated resin, whether

crude or purified, obtained from cannabis; or (b) a material,

preparation, mixture, compound or other substance which contains more

than three percent by weight or by volume of total THC, as defined in

this section.

18. "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.

19. "Cultivation" means growing, cloning, harvesting, drying, curing,

grading, and trimming of cannabis plants for sale to certain other

categories of cannabis license- and permit-holders.

20. "Delivery" means the direct delivery of cannabis products by a

retail licensee, microbusiness licensee, or delivery licensee to a

cannabis consumer.

21. "Designated caregiver facility" means a facility that registers

with the office to assist one or more certified patients with the

acquisition, possession, delivery, transportation or administration of

medical cannabis and is a: general hospital or residential 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 residential treatment program

certified pursuant to article thirty-two of the mental hygiene law; a

residential facility for the care and treatment of persons with

developmental disabilities operating pursuant to article sixteen of the

mental hygiene law; a residential treatment facility for children and

youth operating pursuant to article thirty-one of the mental hygiene

law; a private or public school; research institution with an internal

review board; or any other facility as determined by the board in

regulation.

22. "Designated caregiver" means an individual designated by a

certified patient in a registry application. A certified patient may

designate up to five designated caregivers not counting designated

caregiver facilities or designated caregiver facilities' employees.

23. "Designated caregiver facility employee" means an employee of a

designated caregiver facility.

24. "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.

25. "Executive director" means the executive director of the office of

cannabis management.

26. "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,

or whole cannabis flower.

27. "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 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.

28. "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 office 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.

29. "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

interference with the entity.

30. "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.

31. "License" means a written authorization as provided under this

chapter permitting persons to engage in a specified activity authorized

pursuant to this chapter.

32. "Licensee" means an individual or an entity who has been granted a

license under this chapter.

33. "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.

34. "Microbusiness" means a licensee that may act as a cannabis

producer for the cultivation of cannabis, a cannabis processor, a

cannabis 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.

35. "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 by licensed adult use

cannabis cultivators, microbusinesses, cooperatives and registered

organizations.

36. "Office" or "office of cannabis management" means the New York

state office of cannabis management.

37. "On-site consumption" means the consumption of cannabis in an area

licensed as provided for in this chapter.

38. "Package" means any container or receptacle used for holding

cannabis or cannabis products.

39. "Permit" means a permit issued pursuant to this chapter.

40. "Permittee" means any person to whom a permit has been issued

pursuant to this chapter.

40-a. "Person" means an individual, institution, corporation,

government or governmental subdivision or agency, business trust,

estate, trust, partnership or association, or any other entity.

41. "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.

42. "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.

43. "Registered organization" means an organization registered under

article three of this chapter.

44. "Registration" means identifying information of a certified

patient or designated caregiver that is electronically filed by a

practitioner and confirmed by a registered organization or designated

caregiver facility, as provided under this chapter and as determined by

the board in regulation.

45. "Registry application" means an application properly completed and

filed with the office by a designated caregiver under article three of

this chapter.

46. "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

cannabis, cannabis product, cannabinoid hemp or hemp extract product to

a cannabis consumer for any purpose other than resale.

46-a. "Indirect retail sale" means to give any cannabis, cannabis

product, cannabinoid hemp, hemp extract product, or any product marketed

or labeled as such by any person engaging in a commercial business

venture or otherwise providing or offering goods or services to the

general public for remuneration for such goods and/or services, where

any such cannabis, cannabis product, cannabinoid hemp or hemp extract

product, or any product marketed or labeled as such, accompanies (a) the

sale of any tangible or intangible property; or (b) the provision of any

service, including but not limited to entry to a venue or event, or a

benefit of a membership to a club, association, or other organization.

47. "Retailer" means any person who sells at retail any cannabis

product, the sale of which a license is required under the provisions of

this chapter.

48. "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.

49. "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.

50. "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.

51. "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.

52. "THC" means Delta-9-tetrahydrocannabinol;

Delta-8-tetrahydrocannabinol; Delta-10-tetrahydrocannabinol and the

optical isomer of such substances.

53. "Total THC" means the sum of the percentage by weight or volume

measurement of tetrahydrocannabinolic acid multiplied by 0.877, plus,

the percentage by weight or volume measurement of THC.

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.

Establishment of the cannabis control board or "board". 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 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 direct

appointment to the board. Appointments shall be for a term of three

years each and should, to the extent possible, 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 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 shall, when performing the work of

the board, 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. 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

temporary president of the senate and the speaker of the assembly of the

designation of a board member as acting chairperson; and

(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.

(C) A majority of the voting board members of the board shall

constitute 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. 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.

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

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 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,

transportation 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 receiving 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.

Establishment of an office of cannabis management. There is

hereby 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,

except as expressly authorized in sections sixteen-a of this article and

one hundred thirty-one of this chapter. The office shall exercise its

authority by and through an executive director.

Executive director. The office shall exercise its authority,

other than powers and duties specifically granted to the board, by and

through an executive director nominated by the governor and with the

advice and consent of the senate. The executive director shall serve for

a term of three years and once confirmed, may only be removed for good

cause with appropriate notice. 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 his or

her official duties, unless otherwise provided by the legislature.

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. Discretion to issue or refuse to issue any registration, license or

permit provided for in this chapter, as follows: the chairperson, after

receiving a recommendation and relevant application information from the

office and providing such information to all board members, shall issue

a preliminary determination on whether the license, registration or

permit shall be granted, denied, or held for further action. Within

fourteen days of the chairperson's preliminary determination, any board

member may object to the chairperson's preliminary determination, or

request the matter be brought before the full board for consideration.

Any preliminary determination by the chairperson shall take effect

fourteen days after it has been issued by the chairperson, provided that

no board member objects or requests the matter be considered by the full

board, as adopted by the board through resolution.

2. Sole discretion to limit, or not to limit, the number of

registrations, 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. To revoke, cancel or suspend, after notice and an opportunity to be

heard, any registration, license, or permit issued under this chapter

for a violation of this chapter or any regulation pursuant thereto.

3-a. To impose or recover a civil penalty, as otherwise authorized

under this chapter, against any person found to have violated any

provision of this chapter, whether or not a registration, license, or

permit has been issued to such person pursuant to this chapter.

4. To fix by rule and regulation the standards and requirements of

cultivation, processing, packaging, marketing, and sale of medical

cannabis, adult-use cannabis and cannabis product, and cannabinoid hemp

and hemp extract, including but not limited to, the ability to regulate

excipients, and the types, forms, and concentration 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, adult-use, cannabinoid hemp and hemp

extract to be sold or consumed in the state and to ensure that products

are not packaged, marketed, or otherwise sold in a way which targets

minors or promotes increased use or cannabis use disorders.

5. To limit or prohibit, at any time of public emergency and without

previous notice or advertisement, the cultivation, processing,

distribution 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

appropriation. Directors, deputies and counsels, including the chief

equity officer, and confidential secretaries to board members 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 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. The executive director shall appoint a deputy

director for health and safety who shall be a licensed health care

practitioner within the state and who shall oversee all clinical aspects

of the office.

8. To conduct regulatory inspections of any place of business,

including a vehicle used for such business, where medical cannabis,

adult-use cannabis, cannabis, cannabis product, cannabinoid hemp, hemp

extract products, or any products marketed or labeled as such, are

cultivated, processed, stored, distributed or sold by any person holding

a registration, license, or permit under this chapter, or by any person

who is engaging in activity for which a license would be required under

this chapter. For the purposes of this subdivision, "place of business"

shall not include a residence or other real property not otherwise held

out as open to the public or otherwise being utilized in a business or

commercial manner or any private vehicle on or about the same such

property, unless probable cause exists to believe that such residence,

real property, or vehicle are being used in such business or commercial

manner for the activity described herein.

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

objectives 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

training and education.

13. To enter into contracts, memoranda of understanding, and

agreements as deemed appropriate to effectuate the policy and purpose of

this chapter.

14. To advise the office of cannabis management and/or urban

development corporation in making low interest or zero-interest loans to

qualified social and economic equity applicants as provided for in this

chapter.

15. If public health, safety, or welfare imperatively requires

emergency 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

instituted 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. 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, department of motor

vehicles and the division of criminal justice services. The report shall

provide, but not be limited to, the following information:

(a) the number of registrations, licenses, and permits applied for by

geographic region of the state; the number of registrations, licenses,

and permits approved or denied by geographic region of the state;

(b) the economic and fiscal impacts associated with this chapter,

including revenue from licensing or other fees, fines and taxation

related to the cultivation, distribution and sale of cannabis for

medical and adult-use and cannabinoid hemp and hemp extract in this

state;

(c) specific programs and progress made by the cannabis control board

and the office of cannabis management in achieving the goals of the

social and economic equity plan, and other social justice goals

including, but not limited to, restorative justice, minority- and

women-owned businesses, distressed farmers and service disabled

veterans;

(d) 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;

(g) any other information or data deemed significant; and

(h) 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

availability for substance abuse treatment programs; and any other

recommendations deemed necessary and appropriate. Such report shall be

published on the office's website and presented to the governor, the

majority leader of the senate and the speaker of the assembly, no later

than January first, two thousand twenty-three and annually thereafter.

18. When an administrative decision is appealed to the board by an

applicant, registered organization, licensee or permittee, issue a final

determination of the office.

19. Approve the opening of new license application periods, and when

new or additional licenses are made available pursuant to this chapter,

provided, however, that the initial adult-use cannabis retail dispensary

license application period shall be opened for all applicants at the

same time.

20. Approve any price quotas or price controls set by the executive

director as provided by this chapter.

21. Approve the office's social and economic equity plan pursuant to

section eighty-four of this chapter.

22. To enter into tribal-state compacts and other agreements with the

New York state Indian nations and tribes, as defined by section two of

the Indian law, authorizing such Indian nations or tribes to acquire,

possess, manufacture, sell, deliver, transport, distribute or dispense

adult-use cannabis and/or medical cannabis.

23. With the exception of promulgating rules and regulations, the

board shall have the power to delegate any functions, powers and duties

as provided for in this section to the executive director of the office

of cannabis management. Any such delegation shall be through a

resolution voted on and approved by the board members.

24. The board shall, two years after the first retail sale pursuant to

this chapter, review the impact of licenses issued pursuant to article

four of this chapter with substantial market share for any category of

licensure, to determine if such licensees are impairing the achievement

of the goals of inclusion of social equity licensees, fairness for small

businesses and distressed farmers, adequate supplies of cannabis and

prevention of dominant marketplace participation in the cannabis

industry. The board may modify the terms of the licensee's license

consistent with the determination and to better achieve those goals. Any

such modification may be appealed by the licensee for a formal hearing

as provided in section seventeen of this article. For any licensee such

review shall include violations of New York state labor law and labor

peace agreements. Further, an existing collective bargaining agreement

shall not be infringed or voided by any licensee who after such review

suffers from a reduction in market share.

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

specifically vested by this chapter in, or delegated by, the cannabis

control board.

2. To keep records in such form as they 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

directors 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 conduct regulatory inspections of any place of business,

including a vehicle used for such business, where cannabis, cannabis

product, cannabinoid hemp, hemp extract products, or any products

marketed or labeled as such, are cultivated, processed, manufactured,

distributed, stored, or sold, irrespective of whether a registration,

license, or permit has been issued under this chapter. For the purposes

of this subdivision, "place of business" shall not include a residence

or other real property not otherwise held out as open to the public or

otherwise being utilized in a business or commercial manner or any

private vehicle on or about the same such property, unless probable

cause exists to believe that such residence, real property, or vehicle

are being used in such business or commercial manner for the activity

described herein.

4. To prescribe forms of applications for licenses and permits under

this chapter and of all reports deemed necessary by the board.

5. To conduct regulatory inspections of any registered, licensed or

permitted place of business, including a vehicle used for such business,

where medical cannabis, adult-use cannabis, cannabinoid hemp, hemp

extract products, or any products marketed or labeled as such, are

cultivated, processed, stored, distributed or sold. For the purposes of

this subdivision, "place of business" shall not include a residence or

other real property not otherwise held out as open to the public or

otherwise being utilized in a business or commercial manner or any

private vehicle on or about the same such property, unless probable

cause exists to believe that such residence, real property, or vehicle

are being used in such business or commercial manner for the activity

described herein.

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

officers or employees as may be deemed appropriate by the executive

director.

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

to effectuate the policy and purpose of this chapter.

10. To advise and assist the board in carrying out any of its

functions, powers and duties.

11. To coordinate across state agencies and departments in order to

research and study any changes in cannabis use and the impact that

cannabis use and the regulated cannabis industry may have on access to

cannabis products, public health, and public safety.

12. To issue guidance and industry advisories.

13. To create and maintain a publicly available directory of the names

and locations of persons licensed or registered pursuant to this chapter

to engage in retail sales.

14. To create a system whereby persons registered, licensed, or

permitted under this chapter can confirm the registration, license, or

permit of another person for the purposes of ensuring compliance with

this chapter.

15. Beginning January first, two thousand twenty-four and annually

thereafter, report on enforcement actions taken under this chapter and

the enforcement actions taken by the department of taxation and finance,

including the information required to be provided in section four

hundred ninety-six-e of the tax law and to submit such annual report to

the legislature and post it publicly on its website.

16. To share any and all information obtained from applicants and

licensees, as defined in section three of this chapter, to requesting

financial institutions for the purpose of consideration and compliance,

with the consent of such applicants and licensees.

Chief equity officer. The board, by an affirmative vote of at

least four members, shall appoint a chief equity officer. The chief

equity officer 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 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

programming 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 board, no

later than January first, two thousand twenty-three, and annually

thereafter, of their activities in ensuring compliance with the social

and economic equity plan, required to be developed pursuant to article

four of this chapter, and the board shall provide such report to the

legislature.

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.

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 advise and issue

recommendations on the use of medical cannabis, adult-use cannabis and

cannabinoid hemp and hemp extract in the state of New York, and shall

govern and administer the New York state community grants reinvestment

fund pursuant to section 99-kk of the state finance law.

2. The state cannabis advisory board shall consist of thirteen voting

appointed members, along with a representative from the department of

environmental conservation, the department of agriculture and markets,

the office of children and family services, the department of labor, the

department of health, the division of housing and community renewal, the

office of addiction services and supports, and the department of

education, serving as non-voting 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 representatives 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

representation 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, homelessness and housing, 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 from the farming industry, cannabis

industry, and 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

advisory board functions.

5. The advisory board shall make recommendations to the cannabis

control board, the office and the legislature on cannabis and hemp

cultivation, processing, distribution, transport, social and economic

equity in the cannabis and hemp industries, criminal justice, public

health and safety concerns, law enforcement related to cannabis and

cannabis products, and on the testing and sale of cannabis and cannabis

products.

6. The advisory board shall meet as frequently as its business may

require. The advisory board shall enact and from time to time may amend

bylaws in relation to its meetings and the transaction of its business.

A majority of the total number of voting members which the board would

have were there no vacancies, shall constitute a quorum and shall be

required for the board to conduct business. All meetings of the advisory

board shall be conducted in accordance with the provisions of article

seven of the public officers law.

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 cannabis

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-ii of

the state finance law.

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

regulation pursuant thereto for which a civil penalty is not otherwise

expressly prescribed in this chapter by law, may be liable to the people

of the state for a civil penalty of not to exceed five thousand dollars

for each such violation or subsequent violation. In assessing the civil

penalty under this subdivision, the board or office, as may be

applicable shall take into consideration the nature of such violation

and shall assess a penalty that is proportionate to the violation.

2. The penalty provided for in subdivision one of this section may be

recovered by an action or proceeding in a court of competent

jurisdiction brought by the board or the office, as may be applicable,

or by the attorney general at the request of the board or the office.

3. Such civil penalty may be released or compromised by the board or

the office, as may be applicable, 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 or proceeding 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 or office, as may be applicable, to bring an action or

proceeding 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 for any relief authorized under this

chapter, including equitable and/or injunctive relief and the recovery

of civil penalties; provided, however, that the board or 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 or proceeding.

5. It is the purpose of this section to provide additional and

cumulative 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.

6. The board or the office, as may be applicable, shall forward any

final findings of a violation under this chapter to any other statewide

licensing agency where such findings were entered against a business

holding any other such license, for any such other licensing agency to

review the findings to determine if there has been a violation of any

such license issued by such agency.

7. Any request for a temporary closing order or a temporary

restraining order to be issued without notice in connection with an

action or proceeding brought pursuant to this section or section

sixteen-a of this article or section one hundred thirty-eight-a of this

chapter may be filed under temporary seal pending order of the court

granting or refusing a preliminary injunction and until further order of

the court, and the clerk shall provide a sealed index number upon

request of the office or the attorney general. If temporary sealing

cannot be implemented via the court's electronic filing system, such

action or proceeding shall be permitted by the court to be filed through

hard copy.

* § 16-a. Emergency relief. Following service of an order issued by

the office of cannabis management requiring immediate cessation of

unlicensed activity under this chapter, by a local government pursuant

to a local law authorized by section one hundred thirty-one of this

chapter or pursuant to an order issued under section 7-552 of the

administrative code of the city of New York, the office of cannabis

management, or the attorney general, at the request of and on behalf of

the office, or any county attorney, corporation counsel, or local

government authorized pursuant to subdivision eight of this section to

bring and maintain a civil proceeding in accordance with the procedures

set forth in this section, may bring and maintain a civil proceeding in

the supreme court of the county in which the building or premises is

located to permanently enjoin such unlicensed activity when conducted,

maintained, or permitted in such building or premises, occupied as a

place of business as described in subdivision eight of section ten of

this chapter, in violation of subdivision one or one-a of section one

hundred twenty-five of this chapter or subdivision eight of section one

hundred thirty-two of this chapter, which shall constitute an unlicensed

activity that presents a danger to the public health, safety, and

welfare, and shall also enjoin the person or persons conducting or

maintaining such unlicensed activity, in accordance with the following

procedures:

1. Proceeding for permanent injunction. (a) To the extent known, the

owner, lessor, and lessee of a building or premises wherein the

unlicensed activity is being conducted, maintained, or permitted shall

be made defendants in the proceeding. The venue of such proceeding shall

be in the county where the unlicensed activity is being conducted,

maintained, or permitted or in any venue where a respondent is located.

The existence of an adequate remedy at law shall not prevent the

granting of temporary or permanent relief pursuant to this section.

(b) The proceeding shall name as defendants the building or premises

wherein the unlicensed activity is being conducted, maintained, or

permitted, by describing it by tax lot and street address and at least

one of the owners of some part of or interest in the property.

(c) In rem jurisdiction shall be complete over the building or

premises wherein the unlicensed activity is being conducted, maintained,

or permitted by affixing the notice of petition or order to show cause

to the door of the building or premises and by mailing the notice of

petition or order to show cause by certified or registered mail, return

receipt requested, to one of the owners of some part of or interest in

the property. Proof of service shall be filed within two days thereafter

with the clerk of the court designated in the notice of petition or as

set by the court in the order to show cause. In any county where

e-filing is unavailable, proof of service may be mailed to the clerk.

Service shall be complete upon such filing or mailing.

(d) Defendants, other than the building or premises wherein the

unlicensed activity is being conducted, maintained, or permitted, shall

be served with the notice of petition or order to show cause as provided

in the civil practice law and rules or pursuant to court order. No more

than thirty days prior to such service, the office shall mail a copy, by

certified mail, of any order to cease and desist relating to the

unlicensed activity at the building or premises to the person in whose

name the real estate affected by the proceeding is recorded in the

office of the city register or the county clerk, as the case may be, who

shall be presumed to be the owner thereof. Such mailing shall constitute

notice to the owner and shall be deemed to be complete upon such mailing

by the office as provided above. No more than fifteen days prior to such

service, the office, the attorney general, at the request of and on

behalf of the office of cannabis management, or any local government

authorized pursuant to subdivision eight of this section shall verify

the ongoing occupancy of any natural person who is a tenant of record

and alleged to have caused or permitted the unlicensed activity in the

building or premises wherein the unlicensed activity is alleged to have

been conducted, maintained, or permitted.

(e) With respect to any proceeding commenced or to be commenced

pursuant to this section by the office of cannabis management or the

attorney general, at the request of and on behalf of the office, may

file a notice of pendency pursuant to the provisions of article

sixty-five of the civil practice law and rules.

(f) The person in whose name the real estate affected by the

proceeding is recorded in the office of the city register or the county

clerk, as the case may be, shall be presumed to be the owner thereof.

Upon being served in a proceeding under this section, such owner shall,

to the extent known, provide to the office of cannabis management,

within three days, the names of any other owners, lessors and lessees of

the building or premises that is the subject of the proceeding.

Thereafter, such owners, lessors and lessees may be made parties to the

proceeding.

(g) Whenever there is evidence that a person was the manager,

operator, supervisor or, in any other way, in charge of the premises, at

the time the unlicensed activity was being conducted, maintained, or

permitted, such evidence shall be presumptive that they were an agent or

employee of the owner or lessee of the building or premises.

(h) A defendant shall furnish to any other party, within five days

after a demand, a verified statement identifying:

(i) If the responding party is a natural person, such party's: (1)

full legal name; (2) date of birth; (3) current home or business street

address; and (4) a unique identifying number from: (A) an unexpired

passport; (B) an unexpired state driver's license; or (C) an unexpired

identification card or document issued by a state or local government

agency or tribal authority for the purpose of identification of that

individual;

(ii) If the responding party is a partnership, limited liability

partnership, limited liability company, or other unincorporated

association, including a for profit or not-for-profit membership

organization or club, the information required pursuant to subparagraph

(i) of this paragraph for each of its partners or members, as well as

the state or other jurisdiction of its formation;

(iii) If the responding party is a corporation, its state or other

jurisdiction of incorporation, principal place of business, and any

state or other jurisdiction of which that party is a citizen;

(iv) If the responding party is not an individual, in addition to any

information provided pursuant to subparagraphs (ii) and (iii) of this

paragraph, and to the extent not previously provided, each beneficial

owner of the responding party by: (1) full legal name; (2) date of

birth; (3) current home or business street address; and (4) a unique

identifying number from: (A) an unexpired passport; (B) an unexpired

state driver's license; or (C) an unexpired identification card or

document issued by a state or local government agency or tribal

authority for the purpose of identification of that individual. As used

in this subparagraph, the term "beneficial owner" shall have the same

meaning as defined in 31 U.S.C. § 5336(a)(3), as amended, and any

regulations promulgated thereunder.

(i) If a finding is made that the defendant has conducted, maintained,

or permitted the unlicensed activity a penalty, to be included in the

judgment, may be awarded in an amount not to exceed ten thousand dollars

for each day it is found that the defendant intentionally conducted,

maintained or permitted the unlicensed activity. With regard to any

defendant conducting the referenced unlicensed activity, any such

penalties may be awarded in addition to any penalties that may be

imposed pursuant to section one hundred thirty-two of this chapter. Upon

recovery, such penalty shall be paid to the office of cannabis

management, or to the county attorney, corporation counsel, or local

government that has been authorized pursuant to subdivision eight of

this section to bring and maintain a civil proceeding in accordance with

the procedures set forth in this section.

2. Preliminary injunction. (a) Pending a proceeding for a permanent

injunction pursuant to this section the court may grant a preliminary

injunction enjoining the unlicensed activity and the person or persons

conducting, maintaining, or permitting the unlicensed activity from

further conducting, maintaining, or permitting the unlicensed activity,

where the public health, safety or welfare immediately requires the

granting of such injunction. A temporary closing order may be granted

pending a hearing for a preliminary injunction where it appears by clear

and convincing evidence that unlicensed activity within the scope of

this section is being conducted, maintained, or permitted and that the

public health, safety or welfare immediately requires the granting of a

temporary closing order. A temporary restraining order may be granted

pending a hearing for a preliminary injunction.

(b) A preliminary injunction shall be enforced by the office or, at

the request of the office, the attorney general. At the request of the

office, a police officer or peace officer with jurisdiction may also

enforce the preliminary injunction.

(c) The office or the attorney general shall show, by affidavit and

such other evidence as may be submitted, that there is a cause of action

for a permanent injunction abating unlicensed activity.

3. Temporary closing order. (a) If, on a motion for a preliminary

injunction alleging unlicensed activity as described in this section in

a building or premises used for commercial purposes only, the office or

the attorney general demonstrates by clear and convincing evidence that

such unlicensed activity is being conducted, maintained, or permitted

and that the public health, safety, or welfare immediately requires a

temporary closing order, a temporary order closing such part of the

building or premises wherein such unlicensed activity is being

conducted, maintained, or permitted may be granted without notice,

pending order of the court granting or refusing the preliminary

injunction and until further order of the court. Any such closing order

may also include a preservation order authorizing issuance of subpoenas

to third parties to preserve all off site electronic business records.

Upon granting a temporary closing order, the court shall direct the

holding of a hearing for the preliminary injunction at the earliest

possible time but no later than three business days from the granting of

such order; a decision on the motion for a preliminary injunction shall

be rendered by the court within four business days after the conclusion

of the hearing.

(b) Unless the court orders otherwise, a temporary closing order

together with the papers upon which it was based and a notice of hearing

for the preliminary injunction shall be personally served, in the same

manner as a summons as provided in the civil practice law and rules.

(c) A temporary closing order shall only be issued prior to a hearing

on a preliminary injunction if the premises that is the subject of the

closure order is used for commercial purposes only.

(d) No temporary closing order shall be issued against any building or

premises where, in addition to the unlicensed activity which is alleged,

activity that is licensed or otherwise lawful remains in place, unless

the licensed or otherwise lawful activity is a de minimis part of the

business. In addition, no temporary closing order shall be issued

against any building or premises which is used in part as residence and

pursuant to local law or ordinance is zoned and lawfully occupied as a

residence.

4. Temporary restraining order. (a) If, on a motion for a preliminary

injunction alleging unlicensed activity as described in this section in

a building or premises used for commercial purposes, the office or the

attorney general demonstrates by clear and convincing evidence that such

unlicensed activity is being conducted, maintained, or permitted and

that the public health, safety, or welfare immediately requires a

temporary restraining order, a temporary restraining order may be

granted without notice restraining the defendants and all persons from

removing or in any manner interfering with the furniture, fixtures and

movable property used in conducting, maintaining or permitting such

unlicensed activity, including cannabis, cannabis product, cannabinoid

hemp or hemp extract product, or any product marketed or labeled as such

and from further conducting, maintaining or permitting such unlicensed

activity, pending order of the court granting or refusing the

preliminary injunction and until further order of the court. Any such

temporary restraining order may also include a preservation order

authorizing issuance of subpoenas to third parties to preserve all off

site electronic business records. Upon granting a temporary restraining

order, the court shall direct the holding of a hearing for the

preliminary injunction at the earliest possible time but no later than

three business days from the granting of such order; a decision on the

motion for a preliminary injunction shall be rendered by the court

within thirty calendar days after the conclusion of the hearing.

(b) Unless the court orders otherwise, a temporary restraining order

and the papers upon which it was based and a notice of hearing for the

preliminary injunction shall be personally served, in the same manner as

a summons as provided in the civil practice law and rules, upon any

agent, employee, or other representative of the defendant business

present at the time the temporary restraining order is effectuated.

5. Temporary closing order; temporary restraining order; additional

enforcement procedures. (a) If on a motion for a preliminary injunction,

the office of cannabis management or the attorney general submits

evidence warranting both a temporary closing order and a temporary

restraining order, the court shall grant both orders.

(b) Upon the request of the office, any police officer or peace

officer with jurisdiction may assist in the enforcement of a temporary

closing order and temporary restraining order. Any reference to police

officer or peace officer in this subdivision and subdivisions six and

seven of this section shall also include any investigator employed by

the office of the attorney general.

(c) The police officer or peace officer serving a temporary closing

order or a temporary restraining order shall forthwith make and return

to the court an inventory of personal property situated in and used in

conducting, maintaining, or permitting the unlicensed activity within

the scope of this chapter and shall enter upon the building or premises

for such purpose. Such inventory shall be taken in any manner which is

deemed likely to evidence a true and accurate representation of the

personal property subject to such inventory including, but not limited

to photographing such personal property, except that any cash found on

the premises during such inventory shall be inventoried, seized, and

secured off premises pending further order of the court. Any police

officer or peace officer, or any representative of the office, shall be

permitted to review and copy records.

(d) The police officer or peace officer serving a temporary closing

order shall, upon service of the order, command all persons present in

the building or premises to vacate the premises forthwith. Upon the

building or premises being vacated, the premises shall be securely

locked and all keys delivered to the officer serving the order who

thereafter may deliver the keys to the fee owner, lessor, or lessee of

the building or premises involved. If the fee owner, lessor, or lessee

is not at the building or premises when the order is being executed, the

officer shall securely padlock the premises and retain the keys until

the fee owner, lessor, or lessee of the building is ascertained, in

which event, the officer may deliver the keys to such owner, lessor, or

lessee or retain them pending further order of the court.

(e) Upon service of a temporary closing order or a temporary

restraining order, the police officer or peace officer shall post a copy

thereof in a conspicuous place or upon one or more of the principal

doors at entrances of such premises where the unlicensed activity is

being conducted, maintained, or permitted. In addition, where a

temporary closing order has been granted, the officer shall affix, in a

conspicuous place or upon one or more of the principal doors at

entrances of such premises, a printed notice that the premises have been

closed by court order, which notice shall contain the legend "closed by

court order" in block lettering of sufficient size to be observed by

anyone intending or likely to enter the premises, the date of the order,

the court from which issued, and the name of the officer or agency

posting the notice. In addition, where a temporary restraining order has

been granted, the police officer or peace officer shall affix, in the

same manner, a notice similar to the notice provided for in relation to

a temporary closing order except that the notice shall state that

certain described activity is prohibited by court order and that removal

of property is prohibited by court order. Mutilation or removal of such

a posted order or such a posted notice while it remains in force, in

addition to any other punishment prescribed by law, shall be punishable,

on conviction, by a fine of not more than five thousand dollars or by

imprisonment not exceeding ninety days, or by both, provided such order

or notice contains therein a notice of such penalty. Any police officer

or peace officer with jurisdiction may, upon the request of the office,

assist in the enforcement of this section.

6. Temporary closing order; temporary restraining order; defendant's

remedies. (a) A temporary closing order or a temporary restraining order

may be vacated, upon notice to the office and to any county attorney,

corporation counsel, or local government that may have been authorized

pursuant to subdivision eight of this section to bring and maintain the

proceeding in accordance with the procedures set forth in this section,

if a defendant who is the fee owner, lessor, or lessee of the building

or premises shows by affidavit and such other proof as may be submitted

that the unlicensed activity within the scope of this chapter has been

abated and that they are also not affiliated with the person who is

conducting the unlicensed activity. An order vacating a temporary

closing order or a temporary restraining order shall include a provision

authorizing the office, or any county attorney, corporation counsel, or

local government, as applicable, to inspect the building or premises

which is the subject of a proceeding pursuant to this subdivision,

periodically without notice, during the pendency of the proceeding for

the purpose of ascertaining whether or not the unlicensed activity has

been resumed. Any police officer or peace officer with jurisdiction may,

upon the request of the office, assist in the enforcement of an

inspection provision of an order vacating a temporary closing order or

temporary restraining order.

(b) A temporary closing order or a temporary restraining order may be

vacated by the court, upon notice to the office, or any county attorney,

corporation counsel, or local government, as applicable, when a

defendant entitled to request vacatur pursuant to paragraph (a) of this

subdivision gives an undertaking and the court is satisfied that the

public health, safety, or welfare will be protected adequately during

the pendency of the proceeding. The undertaking shall be in an amount

equal to the assessed valuation of the building or premises where the

unlicensed activity is being conducted, maintained, or permitted or in

such other amount as may be fixed by the court. The defendant shall pay

to the office and the attorney general, in the event a judgment of

permanent injunction is obtained, their actual costs, expenses and

disbursements in bringing and maintaining the proceeding. In addition,

the defendant shall pay to the local government or law enforcement

agency that provided assistance in enforcing any order of the court

issued pursuant to a proceeding brought under this section, its actual

costs, expenses and disbursements in assisting with the enforcement of

the proceeding.

7. Permanent injunction. (a) A judgment awarding a permanent

injunction pursuant to this chapter shall direct that any illicit

cannabis, cannabis product, cannabinoid hemp or hemp extract product, or

any product marketed or labeled as such seized shall be turned over to

the office of cannabis management or their authorized representative.

The judgment may further direct any police officer or peace officer with

jurisdiction to seize and remove from the building or premises all

material, equipment, and instrumentalities used in the creation and

maintenance of the unlicensed activity and shall direct the sale by the

sheriff of any such property in the manner provided for the sale of

personal property under execution pursuant to the provisions of the

civil practice law and rules, if the estimated value of the property

exceeds the estimated lawful expenses of such sale, or the disposal of

the property if the estimated value of the property does not exceed the

estimated lawful expenses of such sale. The net proceeds of any such

sale, after deduction of the lawful expenses involved, shall be paid to

the general fund of the state.

(b) A judgment awarding a permanent injunction pursuant to this

chapter may direct the closing of the building or premises by any police

officer or peace officer with jurisdiction to the extent necessary to

abate the unlicensed activity and shall direct any police officer or

peace officer with jurisdiction to post a copy of the judgment and a

printed notice of such closing conforming to the requirements of this

chapter. The closing directed by the judgment shall be for such period

as the court may direct but in no event shall the closing be for a

period of more than one year from the posting of the judgment provided

for in this section. If the owner shall file a bond in the value of the

property ordered to be closed and submits proof to the court that the

unlicensed activity has been abated and will not be created, maintained,

or permitted for such period of time as the building or premises has

been directed to be closed in the judgment, and also submits proof that

they are also not affiliated with the person who is conducting the

unlicensed activity, the court may vacate the provisions of the judgment

that direct the closing of the building or premises. A closing by a

police officer or peace officer with jurisdiction pursuant to the

provisions of this section shall not constitute an act of possession,

ownership, or control by such police officer or peace officer of the

closed premises.

(c) Upon the request of the office of cannabis management or its

authorized representative, or any county attorney, corporation counsel,

or local government authorized pursuant to subdivision eight of this

section to bring and maintain a civil proceeding in accordance with the

procedures set forth in this section, any police officer or peace

officer with jurisdiction may assist in the enforcement of a judgment

awarding a permanent injunction entered in a proceeding brought pursuant

to this chapter.

(d) A judgment rendered awarding a permanent injunction pursuant to

this chapter shall be and become a lien upon the building or premises

named in the petition in such proceeding, such lien to date from the

time of filing a notice of lis pendens in the office of the clerk of the

county wherein the building or premises is located. Every such lien

shall have priority before any mortgage or other lien that exists prior

to such filing except tax and assessment liens.

(e) A judgment awarding a permanent injunction pursuant to this

chapter shall provide, in addition to the costs and disbursements

allowed by the civil practice law and rules, upon satisfactory proof by

affidavit or such other evidence as may be submitted, the actual costs,

expenses and disbursements of the office and the attorney general, or of

any county attorney, corporation counsel, or local government authorized

pursuant to subdivision eight of this section to bring and maintain a

civil proceeding in accordance with the procedures set forth in this

section, in bringing and maintaining the proceeding.

8. Civil proceedings. In addition to the authority granted in this

section to the office of cannabis management and the attorney general,

any county attorney, corporation counsel, or local government in which

such building or premises is located may, seven days or more after

providing notice to the office of cannabis management, bring and

maintain a civil proceeding in the supreme court of the county in which

the building or premises is located to permanently enjoin the unlicensed

activity described in this section and the person or persons conducting

or maintaining such unlicensed activity, in accordance with the

procedures set forth in this section. The office shall be permitted to

intervene as of right in any such proceeding. Any such governmental

entity which obtains a permanent injunction pursuant to this chapter

shall be awarded, in addition to the costs and disbursements allowed by

the civil practice law and rules, upon satisfactory proof by affidavit

or such other evidence as may be submitted, any penalties awarded

pursuant to paragraph (i) of subdivision one or paragraph (e) of

subdivision five of this section and the actual costs, expenses and

disbursements in bringing and maintaining the proceeding. The authority

provided by this subdivision shall be in addition to, and shall not be

deemed to diminish or reduce, any rights of the parties described in

this section for any violation pursuant to this chapter or any other

law.

* NB Repealed May 1, 2028

Formal hearings; notice and procedure. 1. The board, or any

person designated by them for this purpose, may issue subpoenas and

administer oaths in connection with any hearing or investigation under

or pursuant to this chapter, and it shall be the duty of the board and

any persons designated by them for such purpose to issue subpoenas at

the request of and upon behalf of the respondent.

2. The board and those designated by them shall not be bound by the

laws of evidence in the conduct of hearing proceedings, but the

determination 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 or with respect to

a violation of subdivision one or one-a of section one hundred

twenty-five of this chapter, the board may serve the respondent with an

order requiring certain action, the cessation of certain activities, or

the sealing of a premises immediately or within a specified period of

less than fifteen days, in accordance with the provisions of this

chapter. Whenever a notice of violation or order has been served,

including an order to seal, the respondent shall be provided an

opportunity to request a hearing pursuant to the procedures established

by the office and in accordance with the state administrative procedure

act and the provisions of this chapter.

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. Upon a demand by the office, a respondent shall furnish to the

office, within five days after a demand, or sooner if the hearing is

scheduled less than five days from the date of demand, a verified

statement setting forth:

(a) If the respondent is a natural person, the respondent's: (i) full

legal name; (ii) date of birth; (iii) current home or business street

address; and (iv) a unique identifying number from: (1) an unexpired

passport; (2) an unexpired state driver's license; or (3) an unexpired

identification card or document issued by a state or local government

agency or tribal authority for the purpose of identification of that

individual;

(b) If the respondent is a partnership, limited liability partnership,

limited liability company, or other unincorporated association,

including a for profit or not-for-profit membership organization or

club, the information required pursuant to paragraph (a) of this

subdivision for all of its partners or members, as well as the state or

other jurisdiction of its formation;

(c) If the respondent is a corporation, its state or other

jurisdiction of incorporation, principal place of business, and any

state or other jurisdiction of which the respondent is a citizen;

(d) If the respondent is not an individual, in addition to any

information provided pursuant to paragraphs (b) and (c) of this

subdivision, and to the extent not previously provided, each beneficial

owner of the respondent by: (i) full legal name; (ii) date of birth;

(iii) current home or business street address; and (iv) a unique

identifying number from: (1) an unexpired passport; (2) an unexpired

state driver's license; or (3) an unexpired identification card or

document issued by a state or local government agency or tribal

authority for the purpose of identification of that individual. As used

in this section, the term "beneficial owner" shall have the same meaning

as defined in 31 U.S.C. § 5336(a)(3), as amended, and any regulations

promulgated thereunder.

6. Prior to a hearing, the office may, at its discretion, request a

stay of any proceeding and the board or those designated by them shall

grant such request. The initiation of any action, by or on behalf of the

office, in state or federal court on matters directly or indirectly

related to the subject of any pending administrative proceeding shall,

upon a request by the office, provide sufficient basis for an immediate

stay of such administrative proceeding.

7. 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 on his or her behalf.

8. Following a hearing, the board may make appropriate determinations

and issue a final order in accordance therewith. Any such order may

include financial penalties as well as injunctive relief, including an

order to seal a premises in accordance with section one hundred

thirty-eight-b of this chapter. The respondent and the office shall have

thirty days to submit a written appeal to the board. If any party fails

to submit a written appeal within thirty days of the determination of

the board the order shall be final.

9. The board may adopt, amend and repeal administrative rules and

regulations governing the procedures to be followed with respect to

hearings, investigations, and other administrative enforcement actions

taken pursuant to this chapter, including any such enforcement actions

taken against persons not registered, licensed, or permitted under this

chapter. Such rules shall be consistent with the policy and purpose of

this chapter and the effective and fair enforcement of its provisions.

10. 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.

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,

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, transportation or storage

of adult-use cannabis, medical cannabis or cannabinoid hemp and 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 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, transportation 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 public office in the state or in any

political subdivision. After notice and opportunity to be heard, anyone

found to have knowingly violated any of the provisions of this section

shall, after notice, be removed and shall divest themselves of such

direct or indirect interests, in addition to any other penalty provided

by law.

Public health and education campaign. The office, in

consultation with the commissioners of the department of health, office

of addiction services and supports, and office of mental health, shall

develop and implement a comprehensive public health monitoring,

surveillance and education campaign regarding the legalization of

adult-use cannabis and the impact of cannabis use on public health and

safety. The public health and education campaign shall also include

general education to the public about the cannabis law, including the

potential risks associated with patronizing unlicensed retail locations,

or otherwise procuring cannabis product, cannabinoid hemp or hemp

extract product through persons not authorized by the office.

Establish uniform policies and best practices. The office shall

engage in activities with other states, territories, or jurisdictions in

order to coordinate and establish uniform policies and best practices in

cannabis regulation. These activities shall prioritize coordination with

neighboring and regional states, and may include, but not be limited to,

establishing working groups related to laboratory testing, product

safety, taxation, road safety, compliance and adherence with federal

policies which promote or facilitate cannabis research, commerce and/or

regulation, and any other issues identified by the executive director.

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

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

practitioner'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

percentage 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. The practitioner shall give the certification to the certified

patient or the certified patient's designated caregiver, and place a

copy in the patient's health care record. Such certification shall

include information sufficient for a registered organization to confirm

that the certification is valid in accordance with section thirty-two of

this article and as determined by the board in regulation. The board

may, by rules and regulations, establish a code, including but not

limited to quick response (QR) code, for each practitioner to provide a

certified patient or their designated caregiver with, to present to a

registered organization to obtain medical cannabis or medical cannabis

products from a registered organization.

5. No practitioner shall issue a certification under this section for

themselves.

6. A certification shall expire two years after the date the

certification is signed by the practitioner, except as provided for in

subdivision seven of this section.

7. (a) 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 earlier date, upon which the

certification shall expire; (b) the practitioner may state on the

certification that the patient is terminally ill and the certification

will not expire until the patient dies; (c) the practitioner may reissue

the certification to terminate the certification on an earlier date; (d)

the certification may state any recommendation or limitation by the

practitioner as to the form or forms of medical cannabis or dosage for

the certified patient; (e) a practitioner may extend the expiration date

of a certification prior to the certification's expiration; (f) if a

certification has expired and the practitioner determines that the

patient would benefit from medical cannabis, the certification shall be

reissued; and (g) the board shall make regulations to implement this

subdivision.

8. Prior to issuing a certification a practitioner must complete

appropriate training 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.

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 or concentrated cannabis that may be possessed by a

certified patient shall not exceed the greater of the quantities

authorized in section 222.05 of the penal law or a sixty-day supply,

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, consistent with any guidance and regulations issued by

the board;

2. the cannabis or concentrated cannabis that may be possessed by a

designated caregiver shall not exceed the greater of the quantities

authorized in section 222.05 of the penal law or a sixty-day supply for

the certified patient, 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;

3. the cannabis that may be possessed by designated caregiver

facilities 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

recommendation or limitation by the practitioner as to the form or forms

of medical cannabis or dosage for the certified patient in the

certification;

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.

Validating medical cannabis certifications. 1. When presented

with a certification from a practitioner, registered organizations shall

confirm certifications and government-issued photo identifications,

pursuant to subdivision four of section thirty of this article, of

certified patients and designated caregivers upon the production of such

documentation by the certified patient or designated caregiver as

determined by the board in regulation.

2. Registered organizations shall validate patient certifications and

designated caregiver registrations in a manner determined by the office.

The authorized representative of a registered organization shall

designate and authorize specific employees to conduct the validation.

(a) When dispensing medical cannabis, authorized registered

organization employees shall not dispense any medical cannabis to a

certified patient or a designated caregiver unless the certified patient

or designated caregiver presents to the authorized registered

organization employee a valid certification from a practitioner and a

valid government-issued photo identification, which the authorized

registered organization employee shall use to validate that such person

is eighteen years of age or older and capable of consent as documented

on the certification, provided that such valid government-issued photo

identification is issued by the commissioner of motor vehicles, a local

government agency within the state, the federal government, any United

States territory, commonwealth or possession, the District of Columbia,

a state government within the United States, or is a valid passport

issued by the United States government or any other country, or is an

identification card issued by the armed forces of the United States.

(b) The authorized representative of the registered organization shall

promptly notify the office if at any time any unauthorized person

accesses patient certification or designated caregiver data, if there is

evidence of tampering or fraud, or any other circumstances as determined

by the board in regulation.

2-a. A certified patient may designate a caregiver. The designation of

the caregiver and registration of the caregiver shall be determined by

the board in regulation. The designated caregiver application or renewal

application shall include:

(a) the name, address, and date of birth of the designated caregiver,

and other individual identifying information required by the board;

(b) the name and date of birth for each certified patient the

designated caregiver is designated to care for;

(c) 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;

(d) a statement that a false statement made in the application is

punishable under section 210.45 of the penal law;

(e) the date of the application and the signature, which may be

electronic, of the designated caregiver; and

(f) upon approval of the designated caregiver application, the office

shall provide the designated caregiver with a code, including but not

limited to a quick response (QR) code, that the designated caregiver

must present to the registered organization when obtaining medical

cannabis product or products.

3. Where a certified patient is under the age of eighteen or otherwise

incapable of consent:

(a) The certifying practitioner must obtain consent from the person

legally authorized to make health care decisions on behalf of the

patient for the use of medical cannabis product or products and any

device used for its administration.

(b) At least one designated caregiver is required to be provided upon

certification of the patient. 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, including 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

eighteen 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 four

certified 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 their

designated caregiver, for whatever reason, the certified patient shall

notify the office as soon as practicable. The office shall issue a

notification in a manner determined by the office to the designated

caregiver that their registration is invalid and shall promptly remove

such designated caregiver's registration from the registry. The newly

designated caregiver must comply with all requirements set forth in this

section.

7. A certified patient shall notify their practitioner of any change

in their name or address and the practitioner shall update the

certification accordingly.

8. A designated caregiver who has been issued a registration shall

notify the office of any change in their name or address in a manner

determined by the office.

9. If a certified patient or designated caregiver willfully violates

any provision of this article as determined by the board, their

certification, and in the case of the designated caregiver, their

registration may be suspended or revoked. This may be in addition to any

other penalty that would apply.

10. The maintenance and access of records pertaining to

certifications, registrations, certified patients and designated

caregivers shall be in compliance with the federal health insurance

portability and accountability act of 1996, and with all privacy and

confidentiality protections afforded to individuals under the law.

Information obtained by the office under this article shall be

confidential and exempt from disclosure under article six of the public

officers law.

11. Any practitioner or registered organization authorized

representative or employee who is found to have knowingly and

fraudulently manipulated certified patient or designated caregiver

information, or whose knowing and negligent behavior or knowing actions

directly related to their duties pursuant to this section results in a

serious threat to the health and safety of a certified patient or

patients, is guilty of a class A misdemeanor. In the case that this

misdemeanor complaint has been filed against a practitioner, the board

or office may additionally refer any relevant internal findings to the

department of health or the state education department if the board or

office concludes the violation may warrant professional disciplinary

intervention.

Medical cannabis patient reciprocity. 1. Subject to the

provisions of this article and the rules and regulations of the board

promulgated thereunder, medical cannabis patients from other states

within the United States, United States territories, commonwealths or

possessions, or the District of Columbia are authorized to obtain

medical cannabis or medical cannabis products from a registered

organization, provided such patient is deemed a certified patient or is

registered as a medical cannabis patient in their home state or

jurisdiction and presents proof of such certification or registration

and a valid government-issued photo identification to a registered

organization. Such registered organization shall then validate such

patient and dispense medical cannabis pursuant to the procedures

determined by the board in regulation.

2. Medical cannabis patients from other states or jurisdictions of the

United States who obtain medical cannabis from a registered organization

in this state pursuant to subdivision one of this section shall comply

with:

(a) all provisions of this chapter and all rules and regulations

promulgated thereunder; and

(b) articles one hundred seventy-nine and two hundred twenty-two of

the penal law.

3. Certified patients in New York shall be authorized to obtain

medical cannabis or medical cannabis products from other states and

jurisdictions of the United States in accordance with the requirements

set forth by such state or other United States jurisdiction.

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) name, title, and signature of an authorized facility

representative;

(d) a statement that the facility agrees to secure and ensure proper

handling of all medical cannabis products;

(e) an acknowledgement that a false statement in the application is

punishable under section 210.45 of the penal law; and

(f) any other information that may be required by the board.

2. Prior to issuing or renewing a designated caregiver facility

registration, the office may verify the information submitted by the

applicant. The applicant shall provide, at the office's request, such

information 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

inaccurate 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

materials 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.

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 certification and valid government-issued photo

identification for that certified patient or designated caregiver,

pursuant to section thirty-two of this article. When presented with the

certification, the registered organization shall provide to the

certified patient or designated caregiver a receipt, which may be

electronic, 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; and the

form and the quantity of medical cannabis sold. The registered

organization shall retain any copies of registry identification cards

used by certified patients or designated caregivers prior to the

effective date of the chapter of the laws of two thousand twenty-five

that amended this paragraph and the receipt for six years following the

effective date of the chapter of the laws of two thousand twenty-five

that amended this paragraph and shall make such records available to the

office upon request.

(b) The proprietor of a registered organization shall file or cause to

be filed any dispensing receipt and certification information with the

office by electronic means on a real-time basis as the board shall

require by regulation. When filing dispensing receipt and certification

information electronically pursuant to this paragraph, the proprietor of

the registered organization shall dispose of any electronically recorded

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 shall not dispense an

amount greater than the amounts authorized in section thirty-one of 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.

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;

(B) possesses or has the right to use sufficient land, buildings, and

other premises, which shall be specified in the application, and

equipment 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

entity, shall submit an affidavit with the application setting forth:

(A) any position of management, interest or ownership during the

preceding ten years of a ten per centum or greater interest in any other

cannabis business, or applicant, located in or outside this state,

manufacturing or distributing drugs including indirect management,

interest, or ownership of parent companies, subsidiaries, or affiliates;

(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 if applicable, the history of

violations or administrative penalties with respect to any license to

cultivate, manufacture, distribute or sell adult-use cannabis or medical

cannabis; 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

registration under this section if they are 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, a service-disabled veteran-owned business, or

from communities disproportionally impacted by the enforcement of

cannabis prohibition;

(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;

(E) the affordability of medical cannabis products offered by the

registered organization;

(F) whether the registered organization is culturally, linguistically,

and medically competent to provide services to unserved and underserved

areas; and

(G) whether the registered organization promotes racial, ethnic, and

gender diversity in their workforce;

(vi) the applicant and its managing officers are of good moral

character;

(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

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 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 determined by the

board in regulation and be based off the administrative burden to

process and review the amendment by the office, provided no fee shall be

greater than two thousand 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

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 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:

(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 the cultivation, manufacture, distribution, or sale of

medical cannabis or adult-use cannabis, where applicable.

(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

circumstance which is required to be included in the application and to

obtain approval prior to any material change in management, interest or

ownership.

(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

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

applicable 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;

(iv) the applicant has either violated or terminated its labor peace

agreement; or

(v) the applicant has substantively violated the laws of another

jurisdiction, in which they operate or have operated a cannabis license

or registration, related to the operation of a cannabis business.

(b) For purposes of this section, proof that a registered

organization, 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

applicable state laws relating to the activities in which it engages

under the registration, may constitute grounds for suspension,

termination or limitation of the registered organization's registration

or as determined by the board. The registered organization shall also

be under a continuing duty to report to the office any material change

or fact or circumstance to the information provided in the registered

organization's application.

7. The board may suspend or terminate the registration of a registered

organization, on grounds and using procedures under this article

relating to a license, to the extent consistent with this article. The

board 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

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

geographically distributed across the state and that their ownership

reflects the demographics of the state.

9. In coordination with the chief equity officer the board shall

register additional registered organizations to provide services to

unserved and underserved areas of the state. Pursuant to the social and

economic equity plan established by section eighty-seven of this

chapter, those additional registered organizations shall be reflective

of the demographics of the state, be representative of communities

disproportionately impacted by cannabis prohibition, and be culturally,

linguistically, and medically competent to serve unserved and

underserved areas of the state. The board shall actively promote racial,

ethnic, and gender diversity when registering additional registered

organizations.

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

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 registered

organization, subject to regulations of the board.

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

article.

2. The board 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 board shall collect data and publish information related to the

medical use of cannabis under this article and make appropriate

recommendations in its annual report.

Cannabis research license. 1. The board shall establish a

cannabis research license that permits a licensee to produce, process,

purchase and/or 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

(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

requirements 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

producers 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

determined by the board on an annual basis and may be based on the size,

scope and duration of the research proposed.

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

qualifications under this section.

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.

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.

Home cultivation of medical cannabis. 1. Certified patients

eighteen years of age or older may cultivate cannabis for personal

medical use. Designated caregivers eighteen years of age or older,

caring for certified patients either younger than eighteen years of age

or whose physical or cognitive impairments prevent them from cultivating

cannabis, may cultivate cannabis for use by such patients, provided that

no other caregiver is growing for said patient or patients. Cultivation

under this section shall be in accordance with section 222.15 of the

penal law and any regulations made by the board, provided that the

maximum number of cannabis plants a designated caregiver is authorized

to grow is proportionately increased for each patient they are growing

for.

2. Nothing in this section shall be construed to permit any certified

patient or designated caregiver to sell any cultivated cannabis produced

by any cannabis plant which is or was cultivated for a certified patient

pursuant to this section to any other person, even if the certified

patient no longer needs or wants such cannabis; provided however, a

certified patient or designated caregiver shall be authorized to give

such cultivated cannabis to another certified patient in the amounts

authorized by section thirty-one of this article. Any certified patient

or designated caregiver who is found to be selling such cultivated

cannabis for compensation or other remuneration may be subject to any

relevant penalties in this chapter, the penal law, and the tax law.

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

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

"disability" 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

proceeding pursuant to applicable sections of the domestic relations

law, the social services law and the family court act.

4. (a) Certifications, certification forms and any certified patient

or designated caregiver information contained within a database shall be

deemed exempt from public disclosure under sections eighty-seven and

eighty-nine of the public officers law. Upon specific request by a

certified patient to the office, the office shall verify the requesting

patient's status as a valid certified patient to the patient's school or

employer or other designated party, to ensure compliance with the

protections afforded by this section.

(b) The name, contact information, and other information relating to

practitioners certifying patients under this article shall be public

information and shall be maintained on the board's website accessible to

the public in searchable form. However, if a practitioner notifies the

board in writing that they do not want their 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.

6. Employees who use medical cannabis 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.

Regulations. The board shall promulgate regulations to implement

this article. The cannabis advisory board may make recommendations to

the board.

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.

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.

License application. 1. Any person may apply to the board for a

license to cultivate, process, distribute, deliver 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,

distribute, 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.

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 office for licensure under this

article.

2. The board is authorized to adopt regulations, including 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

identity, 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 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.

5. If there are any proposed 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 proposed change, cost and source of money involved

in the change, duly verified or affirmed, shall be filed with the board

at least thirty days prior to such proposed 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

registered 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

organizations, 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.

7. The board may waive the submission of non-material information or

documentation described in this section, the waiver of which would not

be inconsistent with the purposes and goals set forth in this article,

for any category 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.

8. The board pursuant to regulation, may wholly prohibit and/or

prescribe specific criteria under which it will consider and allow

limited transfers or changes of ownership, interest, or control during

the registration or license application period and/or up to two years

after an approved applicant commences licensed activities.

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

appropriate by the board to achieve the policy and purpose of this

chapter.

1-a. (a) In addition to any other fee authorized by this chapter,

there shall be a special licensing fee for a registered organization

adult-use cultivator processor, distributor retail dispensary license

issued pursuant to section sixty-eight-a of this article. Such fee shall

be used to fund social and economic equity and incubator assistance

pursuant to this article and paragraph (c) of subdivision three of

section ninety-nine-ii of the state finance law.

(b) For purposes of this subdivision, "co-located adult-use retail

dispensary" shall mean an adult-use retail dispensary operated by a

registered organization at one of such registered organization's medical

dispensary premises pursuant to section sixty-eight-a of this article.

(c) Such special fee shall be paid as follows:

(i) three million dollars at the time the registered organization

adult-use cultivator processor distributor retail dispensary license is

issued;

(ii) four million dollars within one hundred eighty days of the

opening of the licensee's second co-located adult-use retail dispensary;

(iii) four million dollars within thirty days of the first one hundred

million dollars in revenue generated by the registered organization

adult-use cultivator processor distributor retail dispensary; and

(iv) four million dollars within thirty days of the second one hundred

million dollars in revenue generated by the registered organization

adult-use cultivator processor distributor retail dispensary.

(d) 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 organizations may be granted such authority shall be

determined by the board in regulation.

(e) Failure to make any payment required by paragraph (c) of this

subdivision will result in the suspension of the registered

organization's authority to operate co-located adult-use dispensaries

until such payment is acknowledged by the office.

(f) Failure to make any payment required by paragraph (c) of this

subdivision will result, in the event of the expiration of the license,

in a denial of the renewal of the license.

(g) In the event that a registered organization adult-use cultivator

processor distributor retail dispensary license expires, or is

cancelled, revoked or otherwise terminated, the registered organization

shall not be required to make any payments required by this subdivision

that become due after the date of such expiration, cancellation,

revocation or other termination of the license.

(h) A registered organization adult-use cultivator processor

distributor retail dispensary license approved or issued pursuant to the

provisions of section sixty-eight-a of this article prior to the

effective date of the chapter of the laws of two thousand twenty-five

that added this paragraph shall be subject to the amendments made by

such chapter.

* (i) The office shall determine the special license fees due, if any,

for any co-located adult-use dispensaries operating on the effective

date of the chapter of the laws of two thousand twenty-five that added

this paragraph, provided that:

(i) any payment made prior to such effective date by a registered

organization shall be credited as a payment toward any fee due or that

shall become due under this subdivision, as amended by the chapter of

the laws of two thousand twenty-five; and

(ii) if there is a balance due for a co-located adult-use dispensary

upon such effective date, after applying the credit provided for in this

paragraph, the office shall determine the timing and manner by which

such balance shall be paid by the registered organization.

* NB Repealed February 3, 2026

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

period, and any other factors deemed reasonable and appropriate by the

board.

3. The board shall waive or reduce fees pursuant to this section for

social and economic equity applicants.

Selection criteria. 1. The board shall develop regulations for

use by the office in 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 or inversion 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;

(e) where appropriate and applicable, 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

disproportionally 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, subdivision thereof

or geographic boundary as established by the board;

(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 increase climate resiliency and minimize or

eliminate adverse environmental impacts, including but not limited to

water usage, energy usage, carbon emissions, waste, pollutants, harmful

chemicals and single use plastics;

(vii) the effect on the production, price and availability of cannabis

and cannabis products;

(viii) the applicant's history of violations and compliance with the

laws of another jurisdiction, in which they operate or have operated a

cannabis license or registration, related to the operation of a cannabis

business;

(ix) the applicant's history of violations related to the operation of

a business, including but not limited to, violations related to labor

laws, federal occupational safety and health law and tax compliance; and

(x) any other factors specified by law or regulation that are relevant

to determine that granting a license would promote public convenience

and advantage, public health and safety and the public interest of the

state, county or community.

(h) the applicant and its managing officers are of good moral

character and do not have an ownership or controlling interest in more

licenses or permits than allowed by this chapter, or any regulations

promulgated hereunder;

(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 consideration to whether

applicants have entered into an agreement with a statewide or local

bona-fide building and construction trades organization for construction

work on its licensed facilities;

(j) the applicant will contribute to communities and people

disproportionately harmed by enforcement of cannabis laws through

including, but not limited to, the social responsibility framework as

provided in section sixty-six of this article 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, including compliance with

energy standards, of the facility to be licensed;

(l) the applicant satisfies any other conditions as determined by the

board;

(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; and

(n) whether the applicant or its managing officers have been found to

have engaged in activities in violation of this chapter.

2. If the board is not satisfied that the applicant should be issued a

license, the executive director shall notify the applicant in writing of

the specific reason or reasons recommended by the board for denial.

3. The state cannabis advisory board shall have the authority to

recommend to the board the number of licenses issued pursuant to this

article to ensure a competitive market where no licensee is dominant in

the statewide marketplace or in any individual category of licensing, to

actively promote and potentially license social and economic equity

applicants, and carry out the goals of this chapter.

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 eighteen years. Any employee

eighteen years of age or older but under twenty-one years of age may not

have direct interaction with customers inside a licensed retail store.

2. (a) 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 or any visibly intoxicated person.

(b) It shall be an affirmative defense that such person had produced a

photographic identification card apparently issued by a governmental

entity and that the cannabis had been sold, delivered or given to such

person in reasonable reliance upon such identification. In evaluating

the applicability of such affirmative defense, the board shall take into

consideration any written policy or training adopted and implemented by

the licensee to prevent sales to minors.

3. No licensee or permittee shall knowingly sell, deliver or give away

or cause or permit or procure to be sold, delivered or given away to a

lawful cannabis consumer any amount of cannabis which they know would

cause the lawful cannabis consumer to be in violation of this chapter or

possession limits established by article two hundred twenty-two of the

penal law.

4. 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,

distributed or sold by a licensee.

5. All licenses under this article shall expire two years after the

date of issue.

License renewal. 1. Each license, issued pursuant to this

article, 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

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 board shall

consult with the chief equity officer and executive director to create a

social responsibility framework agreement that fosters racial, ethnic,

and gender diversity in their workplace and make the adherence to such

agreement a conditional requirement of license renewal.

3. The board shall provide an application for renewal of a license

issued under this article not less than ninety days prior to the

expiration 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.

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 fifty-one percent or more of the

officers and/or directors, or a transfer of fifty-one percent or more of

stock of such corporation, or an existing stockholder obtaining

fifty-one percent or more of the stock of such corporation; or

(b) for a limited liability company, a change of fifty-one percent or

more of the managing members of the company, or a transfer of fifty-one

percent or more of ownership interest in said company, or an existing

member obtaining a cumulative of fifty-one percent or more of the

ownership interest in said company; or

(c) for a partnership, a change of fifty-one percent or more of the

managing partners of the company, or a transfer of fifty-one percent or

more of ownership interest in said company, or an existing member

obtaining a cumulative of fifty-one percent or more of the ownership

interest in said company.

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 and one distributor's license solely

for the distribution of their own 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, management agreement, share parent companies

or affiliated organizations, 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.

5. 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, provided that one adult-use cultivator license may

authorize adult-use cultivation in more than one location pursuant to

criteria established by the board in regulation.

Registered organization adult-use cultivator processor

distributor retail dispensary license. 1. A registered organization

cultivator 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

location of its adult-use dispensaries shall be limited to only three of

the organization's medical dispensaries' premises and facilities

authorized pursuant to article three of this chapter, and that it may

only distribute its own products. 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. Such license does not qualify such organization for any other

adult-use license.

2. A person holding a registered organization adult-use cultivator

processor distributor retail dispensary license may not also hold

another retail dispensary license pursuant to this article and no

registered organization adult-use cultivator processor distributor

retail dispensary shall have a direct or indirect interest, including by

stock ownership, interlocking directors, mortgage or lien, personal or

real property, management agreement, share parent companies or

affiliated organizations, 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.

Registered organization adult-use cultivator, processor and

distributor license. A registered organization cultivator, processor and

distributor license shall have the same authorization and conditions as

an adult-use cultivator, processor, and distributor license, provided,

however, that such license does not qualify such organization for any

other adult-use license and may only authorize the distribution of the

licensee's own products.

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 processors or distributors. A person holding an

adult-use processor's license may apply for, and obtain, one

distributor's license solely for the distribution of their own products.

2. For purposes of this section, processing shall include, but not be

limited to, blending, extracting, infusing, packaging, labeling,

branding 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 a person issued an adult-use cannabis

cultivator, processor, and/or distributor license or a processor who has

also been issued a hemp grower license by the department of agriculture

and markets or a cannabinoid hemp processor license under this chapter

may hold and operate all issued licenses on the same premises.

4. No cannabis processor licensee may hold more than one cannabis

processor license provided a single license may authorize processor

activities at multiple locations, as set out in regulations by the

board.

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, management agreement, share parent

companies or affiliated organizations 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.

6. Adult-use processor licensees are subject to minimum operating

requirements as determined by the board in regulation.

Adult-use cooperative license. 1. A cooperative license shall

authorize the acquisition, possession, cultivation, processing,

distribution and sale from the licensed premises of the adult-use

cooperative by such licensee to duly licensed distributors, on-site

consumption sites, registered organization and/or retail dispensaries;

but not directly to cannabis consumers.

2. To be licensed as an adult-use cooperative, the cooperative must:

(a) be comprised of residents of the state of New York as a limited

liability company or limited liability partnership under the laws of the

state, or an appropriate business structure as determined and authorized

by the board;

(b) subordinate capital, both as regards control over the cooperative

undertaking, and as regards the ownership of the pecuniary benefits

arising therefrom;

(c) be democratically controlled by the members themselves on the

basis of one vote per member;

(d) 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

(e) the cooperative must operate according to the seven cooperative

principles published by the International Cooperative Alliance in

nineteen hundred ninety-five.

3. A cooperative member shall be a natural person and shall not 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 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

measures designed to incentivize the use and licensure of cooperatives.

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,

processor, adult-use cooperative, microbusiness, or registered

organization authorized pursuant to this chapter to sell adult-use

cannabis, to duly licensed retail dispensaries and on-site consumption

sites.

2. No distributor shall have a direct or indirect economic interest in

any microbusiness, adult-use retail dispensary, adult-use on-site

consumption licensee 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 board

to distribute adult-use cannabis products cultivated and processed by

the registered organization to licensed adult-use retail dispensaries.

3. Any distributor with a direct or indirect interest in a licensed

cultivator or processor, shall only distribute cannabis or cannabis

products cultivated and/or processed by such licensee.

4. Nothing in subdivision two of this section shall prevent a

distributor from charging an appropriate fee, authorized by the board,

for the distribution of cannabis, including based on the volume of

cannabis distributed.

5. Adult-use distributor licensees are subject to minimum operating

requirements as determined by the board in regulation.

Adult-use retail dispensary license. 1. A retail dispensary

license shall authorize the acquisition, possession, sale and delivery

of cannabis from the licensed premises of the retail dispensary by such

licensee to cannabis consumers.

2. No person may have a direct or indirect financial or controlling

interest in more than three adult-use retail dispensary licenses issued

pursuant to this chapter.

3. No person holding a retail dispensary license may also hold an

adult-use cultivation, processor, microbusiness, cooperative or

distributor 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 final 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 delivery or 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. (a) No premises with a license issued pursuant to this section, or

section sixty-eight-a of this article, or section seventy-three of this

article that allows for the retail sale of adult-use cannabis, shall be

located on the same street and within five hundred feet of a building

containing a school.

(b) No premises with a license issued pursuant to this section, or

section sixty-eight-a of this article, or section seventy-three of this

article that allows for the retail sale of adult-use cannabis, shall be

located on the same street and within two hundred feet of a building

exclusively occupied as a house of worship.

(c) The measurements in paragraphs (a) and (b) of this subdivision are

to be taken in straight lines from the center of the nearest entrance of

the premises sought to be licensed to the center of the nearest entrance

of such school or house of worship.

(d) For purposes of this subdivision: (i) The word "entrance" shall

mean: (A) a door of a school regularly used to give ingress to students

of the school; (B) a door of a house of worship regularly used to give

ingress to the general public attending the house of worship; or (C) a

door of the premises sought to be licensed regularly used to give

ingress to customers of such premises.

(ii) A door which has no exterior hardware, or which is used solely as

an emergency or fire exit, or for maintenance or delivery purposes, or

which leads directly to a part of a building not regularly used by

students of the school, the general public attending the house of

worship, or customers of the premises sought to be licensed, is not

deemed an "entrance".

(iii) If the school, house of worship or premises sought to be

licensed is set back from a public thoroughfare, the walkway or stairs

leading to any such door shall be deemed an entrance; and the

measurement shall be taken to the center of the walkway or stairs at the

point where it meets the building line or public thoroughfare.

(e)(i) For purposes of paragraph (b) of this subdivision, a building

occupied as a house of worship does not cease to be "exclusively"

occupied as such by incidental uses that are not of a nature to detract

from the predominant character of the building as a house of worship.

(ii) Such uses include, but are not limited to: (A) the conduct of

legally authorized games of bingo or other games of chance held as a

means of raising funds for the not-for-profit religious organization

which conducts services at the house of worship or for other

not-for-profit organizations or groups; (B) use of the building for

fund-raising performances by or benefitting the not-for-profit religious

organization which conducts services at the house of worship or other

not-for-profit organizations or groups; (C) the use of the building by

other religious organizations or groups for religious services or other

purposes; (D) the conduct of social activities by or for the benefit of

the congregants of the house of worship; (E) the use of the building for

meetings held by organizations or groups providing bereavement

counseling to persons having suffered the loss of a loved one, or

providing advice or support for conditions or diseases including, but

not limited to, alcoholism, drug addiction, cancer, cerebral palsy,

Parkinson's disease, or Alzheimer's disease; (F) the use of the building

for blood drives, health screenings, health information meetings, yoga

classes, exercise classes or other activities intended to promote the

health of the congregants or other persons; and (G) use of the building

by non-congregant members of the community for private social functions.

(iii) The building occupied as a house of worship does not cease to be

"exclusively" occupied as such where the not-for-profit religious

organization occupying the house of worship accepts the payment of funds

to defray costs related to another party's use of the building.

(f) No renewal of a license shall be denied because of the

restrictions in paragraphs (a) or (b) of this subdivision.

(g) When evaluating an application for compliance with this

subdivision, the proximity of the premises sought to be licensed to a

school or house of worship shall be determined based on the date such

applicant submits its location to the office.

Microbusiness license. 1. A microbusiness license shall

authorize the limited cultivation, processing, distribution, delivery,

and dispensing of their own adult-use cannabis and cannabis products.

2. A microbusiness licensee may not hold any direct or indirect

interest in any other license in this chapter and may only distribute

its own cannabis and cannabis products to dispensaries.

3. The size, scope and eligibility criteria of a microbusiness shall

be determined in regulation by the board in consultation with the

executive director and the chief equity officer. The granting of such

licenses shall promote social and economic equity applicants as provided

for in this chapter.

Delivery license. A delivery license shall authorize the

delivery of cannabis and cannabis products by licensees independent of

another 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 to

cannabis consumers 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. The granting of such licenses shall promote social and

economic equity applicants as provided for in this chapter.

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,

propagation, and cultivation of cannabis by licensed adult-use

cultivators, cooperatives, microbusinesses or registered organizations.

For the purposes of this section, the office shall provide

recommendations to the board for the application process, license

criteria and scope of licensed activities for this class of license. The

granting of such licenses shall promote social and economic equity

applicants as provided for in this chapter.

2. A person or entity holding an adult-use cultivator's license may

apply for, and obtain, one nursery license to sell directly to other

cultivators, cooperatives, microbusinesses, or registered organizations.

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

jurisdiction over the area in which the premises is located shall be

considered 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

registration, 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 explanation 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

establishment;

(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

representative 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

premises, the name of the old establishment and such establishment's

registration or license number;

(h) in the case of a renewal or alteration application, the

registration or license number of the applicant; and

(i) the type of license.

Adult-use on-site consumption license; provisions governing

on-site consumption licenses. 1. No applicant shall be granted an

adult-use on-site consumption license for any premises, unless the

applicant shall be the owner thereof, or shall be in possession of said

premises under a lease, in writing, for a term not less than the license

period except, however, that such license may thereafter be renewed

without the requirement of a lease as provided in this section. This

subdivision shall not apply to premises leased from government agencies;

provided, however, that the appropriate administrator of such government

agency provides some form of written documentation regarding the terms

of occupancy under which the applicant is leasing said premises from the

government agency for presentation to the office at the time of the

license application. Such documentation shall include the terms of

occupancy 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,

microbusiness, 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 or two hundred feet from a

house of worship.

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

thereof;

(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

cannabis;

(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 adult-use distributor; registered organization

adult-use cultivator processor distributor retail dispenser; registered

organization adult-use cultivator, processor and distributor;

cooperative, or microbusiness authorized to sell adult-use cannabis, and

only in containers approved by the board. Such containers shall have

affixed thereto such labels as may be required by the rules of the

board. No adult-use on-site consumption licensee shall reuse, refill,

tamper with, adulterate, 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,

gambling, 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 activities 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

maintain 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 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 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

representatives 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

cannabis 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.

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 require the utilization of an approved seed-to-sale

tracking system compiling a licensee's cannabis inventory and

transaction data.

Inspections and ongoing requirements. All licensed or permitted

premises, regardless of the type of premises, and all records including

but not limited to financial statements and corporate documents, 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. The board shall make

reasonable 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 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.

Adult-use cultivators, processors or distributors not to be

interested in retail dispensaries. 1. It shall be unlawful for any

person authorized to cultivate, process, or distribute under this

article to:

(a) be interested directly or indirectly in any premises where any

cannabis product is sold at retail, including for on-site consumption;

or in any business devoted wholly or partially to the sale or delivery

of any cannabis product at retail, including for on-site consumption, by

stock ownership, interlocking directors, mortgage or lien or any

personal or real property, or by any other means;

(b) make, or cause to be made, any loan to any person engaged in the

manufacture or sale of any cannabis product at wholesale or retail;

(c) make any gift or render any service of any kind whatsoever,

directly or indirectly, to any person licensed under this chapter which

in the judgment of the board may influence such licensee to purchase the

product of such cultivator or processor or distributor; or

(d) enter into any contract or agreement with any retail, on-site

consumption or delivery licensee whereby such licensee agrees to confine

his or her sales to cannabis products manufactured or sold by one or

more such cultivator or processors or distributors. Any such contract or

agreement shall be void and subject the licenses of all parties

concerned to revocation for cause and any applicable administrative

enforcement and penalties.

2. The provisions of this section shall not prohibit a registered

organization authorized pursuant to section thirty-nine or sixty-eight-a

of this chapter, or microbusiness authorized pursuant to section

seventy-three of this chapter, from cultivating, processing, or selling

adult-use cannabis under this article, at facilities wholly owned and

operated by such registered organization or microbusiness, subject to

any conditions, limitations or restrictions established by this chapter.

3. The board shall develop rules and regulations in regard to this

section.

Packaging, labeling, and administration of adult-use cannabis

products. 1. The board is hereby authorized to promulgate rules and

regulations governing the advertising, branding, marketing, packaging,

labeling and unconventional methods of administration or ingestion, of

cannabis products, sold or possessed for sale in New York state,

including rules pertaining to the accuracy of information and rules

restricting 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) prior to delivery or sale at a retailer, cannabis and cannabis

products shall be labeled according to regulations and placed in a

resealable, child-resistant package; and

(c) packages, labels, shapes and products shall not be made to be

attractive to or target persons under the age of twenty-one.

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 and may establish

standardized and/or uniform packaging and labeling requirements for

adult-use products.

4. Such rules and regulations shall establish methods and procedures

for determining serving sizes for cannabis products, active cannabis

concentration per serving size, and number of servings per container or

package, and the methods of separating or clearly delineating servings

within a container or package. Such regulations may also require a

nutritional or supplement fact panel that incorporates data regarding

serving sizes and potency thereof.

5. Such rules and regulations shall establish approved product types

and forms and establish an application and review process to determine

the suitability of new product types and forms, taking into

consideration the consumer and public health and safety implications of

different product varieties, manufacturing processes, product types and

forms, the means and methods of administration associated with specific

product types, and any other criteria identified by the board for

consideration to protect public health and safety.

6. Such regulations shall also require product labels to accurately

display the total THC of each product.

7. 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

accordance 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.

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, and may establish consortia

with neighboring states, to inform best practices, and share laboratory

data.

2. Adult-use cannabis processors, microbusinesses, cooperatives and

registered organizations shall make laboratory test reports available to

licensed distributors, retail dispensaries, and on-site consumption

sites for all cannabis products manufactured by the processor or

licensee.

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 subject to

regulation; 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, or interest in 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 or a

cannabinoid hemp processor license pursuant to article five 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 and the board may promulgate

regulations related to all aspects of third-party testing and quality

assurance including but not limited to:

(a) minimum testing and sampling requirements;

(b) testing and sampling methodologies;

(c) testing reporting requirements;

(d) retesting; and

(e) product quarantine, hold, recall, and remediation.

Provisions governing the cultivation and processing of adult-use

cannabis. 1. Cultivation and processing of cannabis shall comply with

regulations promulgated by the board governing minimum requirements for

adult-use cultivators, nurseries, processors, microbusinesses,

cooperatives, registered organizations, and registered organization

cultivators.

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 originally sealed containers containing quantities in

accordance with size standards pursuant to rules adopted by the board.

Such containers shall have affixed thereto such labels or other means of

tracking and identification as may be required by the rules of the

board.

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

board. The board may make such rules as it deems necessary to carry out

the purpose and intent of this subdivision.

4. Cultivators of adult-use cannabis consistent with protecting public

health and safety, shall comply with plant cultivation 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 environmental 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 to the extent possible, 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.

5. No cultivator or processor of adult-use cannabis shall transport

any cannabis products, except in vehicles owned and operated by such

cultivator or processor, or hired by such cultivator or processor and

operated by a trucking or transportation company registered with the

office, and shall only make deliveries at the licensed premises of the

purchaser.

6. No cultivator or processor of adult-use cannabis, including an

adult-use cannabis cooperative, microbusiness, or registered

organization may offer any incentive, payment or other benefit to a

licensed cannabis distributor or retail dispensary in return for

carrying the cultivator, processor, cooperative, microbusiness or

registered organization products, or preferential shelf placement.

7. All cannabis products shall be processed in accordance with good

manufacturing practices for the product category, pursuant to either

Part 111 or Part 117 of Title 21 of the Code of Federal Regulations, as

may be modified by the board in regulation.

8. 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.

9. The use or integration of alcoholic beverages or nicotine in

cannabis products is strictly prohibited.

10. The board shall promulgate regulations governing the minimum

requirements for the secure transport of adult-use cannabis.

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

package. 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

vehicles 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

premises, adequate books and records of all transactions involving the

business transacted by such distributor, which shall show the amount of

cannabis products purchased by such distributor and the total THC

content of purchased cannabis products as reflected on the product

labels 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 and the total THC content of cannabis products

sold as reflected on the final product labels, with the names,

addresses, and license numbers of such purchasers and any other

information required in regulation. 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, the total THC content of

cannabis products sold as reflected on the product labels, 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

licensee, any exterior or interior sign, printed, painted, electric or

otherwise, unless authorized by the board.

5. No distributor shall provide any discount, rebate or customer

loyalty program to any licensed retailer, except as otherwise authorized

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

premises, 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.

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, any visibly intoxicated person.

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

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 (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 licensee 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 electronically readable format. 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 transaction scan indicates

that the information is false or fraudulent, the attempted purchase of

the cannabis or cannabis 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. All licensees shall be subject to reasonable inspection by the

office and a person who holds a license must make himself or herself, or

an agent thereof, available and present for any inspection required by

the office. The office shall make reasonable accommodations so that

ordinary business is not interrupted, and safety and security procedures

are not compromised by the inspection.

7. No cannabis retail licensee shall be interested, directly or

indirectly, in any cultivator, processor, distributor or microbusiness

operator 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 nineteen, 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 hereby.

8. No cannabis retail licensee shall make or cause to be made any loan

to any person engaged in the cultivation, processing or distribution of

cannabis pursuant to this article.

9. Each cannabis retail licensee shall designate the price of each

item of cannabis by attaching to or otherwise displaying immediately

adjacent to each such item displayed in the interior of the licensed

premises where sales are made a price tag, sign or placard setting forth

the price at which each such item is offered for sale therein.

10. No person licensed to sell cannabis products at retail, shall

allow or permit any gambling, or offer any gambling on the licensed

premises, or allow or permit illicit drug activity on the licensed

premises.

11. All adult-use dispensing facilities shall make educational

materials and resources available to cannabis consumers at the point of

sale, as prescribed by the board.

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,

types and concentration of product servings offered and establishing a

minimum and maximum margin for retail dispensary markups of cannabis

product or products before selling to a cannabis consumer. It shall be

unlawful for any retail dispensary to sell any adult-use cannabis

product for less than the minimum markup allowed in regulation.

Adult-use cannabis advertising and marketing. 1. The board shall

promulgate rules and regulations governing the form and content of

advertising and marketing of licensed cannabis and any cannabis products

or services.

2. The board shall promulgate regulations for advertising and

marketing content including but not limited to explicit rules

prohibiting advertising that:

(a) is false, deceptive, or misleading;

(b) promotes overconsumption;

(c) depicts consumption;

(d) is designed in any way to appeal to children or other minors;

(e) is within or is readily observed 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;

(i) makes medical claims or promotes adult-use cannabis for a medical

or wellness purpose;

(j) promotes or implements discounts, coupons, or other means of

selling adult-use cannabis products below market value or whose discount

would subvert local and state tax collections;

(k) is in the form of a billboard; or

(l) fails to satisfy any other advertising or marketing rule or

regulations promulgated by the board related to marketing or

advertising, not inconsistent with this chapter.

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 and/or

populations at-risk of increased adverse health consequences as

determined by the board in regulation; or

(b) disseminate false or misleading information to customers.

4. The board shall promulgate regulations requiring that:

(a) all advertisements and marketing accurately and legibly identify

the party 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. The burden of proving this

requirement lies with the party that has paid for or facilitated the

advertisement.

5. The board may establish procedures to review and enforce

advertising and marketing requirements.

Social and economic equity, minority and women-owned businesses,

distressed farmers and service-disabled veterans; incubator program. 1.

The board, in consultation with the chief equity officer and executive

director, and after receiving public input shall create and implement a

social and economic equity plan and actively promote applicants from

communities disproportionately impacted by cannabis prohibition, and

promote racial, ethnic, and gender diversity when issuing licenses for

adult-use cannabis related activities, including mentoring potential

applicants, by prioritizing consideration of applications by applicants

who are from communities disproportionately impacted by the enforcement

of cannabis prohibition or who qualify as a minority or women-owned

business, distressed farmers, or service-disabled veterans. Such

qualifications shall be determined by the board, with recommendations

from the state cannabis advisory board, the chief equity officer and

executive director, by 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) distressed 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

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 effective 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

encourage 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

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,

substantial 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

independently 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 noncitizen 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,

regardless 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

corporation that is:

(i) at least fifty-one percent owned by one or more United States

citizens or permanent resident noncitizens 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

independently 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) "Distressed farmer" shall mean: (i) a New York state resident or

business enterprise, including a sole proprietorship, partnership,

limited liability company or corporation, that meets the small farm

classification developed by the Economic Research Service of the United

States Department of Agriculture, has filed a schedule F with farm

receipts for the last three years, qualifies for an agriculture

assessment and meets other qualifications defined in regulation by the

board to demonstrate that they operate a farm operation as defined in

section three hundred one of the agriculture and markets law and has

been disproportionately impacted, including but not limited to incurring

operating losses, by low commodity prices and faces the loss of farmland

through development or suburban sprawl and meets any other

qualifications as defined in regulation by board; or (ii) a New York

state resident or business enterprise, including a sole proprietorship,

partnership, limited liability company or corporation, that is a small

farm operator and a member of a group that has been historically

underrepresented in farm ownership and meets any other qualifications as

defined in regulation by board.

(f) "Service-disabled veterans" shall mean persons qualified under

article three of the veterans' services 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, with recommendations from the state cannabis advisory board, the

chief equity officer and executive director, issue guidelines to

determine how to assess which communities have been disproportionately

impacted and how to assess if someone is a member of a community

disproportionately impacted.

6. The board shall actively promote applicants that foster racial,

ethnic, and gender diversity in their workforce.

7. Licenses issued under the social and economic equity plan shall not

be transferred or sold within the first three years of issue, except to

a qualified social and economic equity applicant and with the prior

written approval of the board. In the event a social and economic equity

applicant seeks to transfer or sell their license at any point after

issue and the transferee is to a person or entity that does not qualify

as a social and economic equity applicant, the transfer agreement shall

require the new license holder to pay to the board any outstanding

amount owed by the transferor to the board as repayment of any loan

issued by the board as well as any other fee or assessment as determined

by the board.

Data collection and reporting. The board shall collect

demographic data on owners and employees in the adult-use cannabis

industry and shall annually publish such data in its annual report.

Regulations. The board shall promulgate regulations with

recommendations from the state cannabis advisory board to implement this

article.

Definitions. As used in this article, the following terms shall

have the following meanings, unless the context clearly requires

otherwise:

1. "Cannabinoid" means the phytocannabinoids found in hemp and does

not include synthetic cannabinoids as that term is defined in

subdivision (g) of schedule I of section thirty-three hundred six of the

public health law.

2. "Cannabinoid hemp" means any hemp and any product processed or

derived from hemp, that is used for human consumption provided that when

such product is packaged or offered for retail sale to a consumer, it

shall not have a concentration of more than three tenths of one 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,

cannabinoids, 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,

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 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

authorized 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.

9. "Cannabinoid hemp flower" means the flower of the plant Cannabis

sativa L. that has been harvested, dried, and cured, with a delta-9

tetrahydrocannabinol concentration of not more than three-tenths of one

percent, on a dry weight basis, prior to any processing.

10. "Cannabinoid hemp flower product" means cannabinoid hemp flower

that has been minimally processed consistent with the requirements of

this article, intended for retail sale to consumers.

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

consumption, which may include, but not be limited to:

1. Specifying forms, establishing application, reasonable

administration 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

therefrom;

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,

including 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

requirements 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

cannabinoid hemp, hemp extract and products derived therefrom;

11. Any other regulations necessary to implement this article;

12. Nothing in this article shall prevent the sale of cannabinoid hemp

flower; provided however, that any cannabinoid hemp flower product sold

shall be limited to a person over twenty-one years of age and shall be

subject to regulations promulgated by the board; provided further that

such regulations shall not unduly restrict the availability of

cannabinoid hemp flower; and

13. Any cannabinoid hemp flower product clearly labeled or advertised

for the purposes of smoking, or in the form of a cigarette, cigar, or

pre-roll, or packaged or combined with other items designed to

facilitate smoking such as rolling papers or pipes, shall only be

offered for sale in adult-use cannabis retail dispensaries licensed

pursuant to article four of this chapter.

Cannabinoid hemp processor license. 1. Persons processing

cannabinoid 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

specific 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

processing 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

opportunity to be heard.

Cannabinoid hemp retailer license. 1. Retailers selling

cannabinoid 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

authorized, which shall be one year or more, and to make rules and

regulations necessary to implement this section.

Cannabinoid license applications. 1. Persons shall apply for a

license under this article by submitting an application upon a form

supplied by the board, providing all the relevant requested information,

verified by the applicant or an authorized representative of the

applicant.

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.

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

information shall 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; 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

penalties 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.

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

appropriate by the board.

Selection criteria. 1. The applicant, if an individual or

individuals, shall furnish evidence of the individual's good moral

character, 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

facilities, 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.

License renewal. 1. Each license, issued pursuant to this

article, 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

expiration 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.

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.

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.

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

facilities, 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

thereto;

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

thereof or of the licensed activity has willfully failed to comply with

any of the provisions of this article or regulations under it and other

laws of this state applicable to the licensed activity.

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.

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

country 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

cannabinoid 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

article.

Processing of cannabinoid hemp and hemp extract. 1. No

processor shall sell or agree to sell or deliver in the state any

cannabinoid hemp, hemp extract or product derived therefrom, used for

human consumption, 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

accordance with good manufacturing processes pursuant to Part 117 or

Part 111 of title 21 of the code of federal regulations, as may be

defined, modified 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.

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

product 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.

New York hemp product. The board may establish and adopt

official 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.

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.

Hemp workgroup. The board, in consultation with the

commissioner 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.

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.

Special use permits. The board shall have the authority to

issue temporary permits for carrying on any activity related to

cannabinoid 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.

Severability. If any provision of this article or the

application thereof to any person or circumstances is held invalid, such

invalidity 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 severable.

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, or any product marketed or

labeled as such, within the state without obtaining the appropriate

registration, license, or permit therefor required by this chapter

unless otherwise authorized by law.

1-a. No person shall engage in an indirect retail sale irrespective of

whether such person has obtained a registration, license, or permit

issued under this chapter.

1-b. Any activity conducted in violation of subdivision one or one-a

of this section presents a danger to public health, safety, and welfare.

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 eighteen years in

any capacity where the duties of such person require or permit such

person to sell, dispense or handle cannabis. Any employee eighteen years

of age or older and under twenty-one years of age may not have direct

interaction with customers inside a licensed retail store.

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

registration, 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

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 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

jurisdiction 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. As it is a privilege under the law to be registered, licensed, or

permitted to cultivate, process, distribute, or sell cannabis, the board

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 board may, in accordance

with this chapter subject the registrant, licensee, or permittee to

suspension, cancellation, revocation, and/or civil penalties in

accordance with this chapter, as determined by the board.

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

promulgate such rules and regulations as it deems necessary to protect

the public and the policy of the state, including but not limited 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 chapter.

11. No registered organization, licensee or any of its agents,

servants 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.

12. No licensee shall employ any canvasser or solicitor for the

purpose of receiving an order from a certified patient, designated

caregiver 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 solicited at the residence or place of business of a patient,

caregiver or consumer. This subdivision shall not prohibit the

solicitation by a distributor of an order from any licensee at the

licensed premises of such licensee.

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

transferable 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

granting 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

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,

management 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

operated 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 a

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.

Protections for the use of cannabis; unlawful discriminations

prohibited. 1. No person, registered organization, licensee or

permittee, 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 cooperate 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 landlord may refuse to lease to and may not otherwise penalize

an individual solely for conduct authorized under this chapter, except:

(a) if failing to do so would cause the landlord to lose a monetary or

licensing related benefit under federal law or regulations; or

(b) if a property has in place a smoke-free policy, it is not required

to permit the smoking of cannabis products on its premises, provided no

such restriction may be construed to limit the certified medical use of

cannabis.

2-a. No school, college or university may refuse to enroll and may not

otherwise penalize a person solely for conduct allowed under this

chapter, except:

(a) if failing to do so would cause the school, college or university

to lose a monetary or licensing related benefit under federal law or

regulations; or

(b) if the school, college or university has adopted a code of conduct

prohibiting cannabis use on the basis of a sincere religious belief of

the school, college or university.

3. For the purposes of medical care, including organ transplants, a

certified patient's authorized use of medical cannabis 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

illicit substance or otherwise disqualify a registered qualifying

patient from medical care.

4. An employer shall adhere to policies regarding cannabis use in

accordance with section two hundred one-d of the labor law.

5. No person may be denied custody of or visitation or parenting time

with a minor under the family court act, domestic relations law or

social services law, solely for conduct permitted under this chapter

including, but not limited to, section 222.05 or 222.15 of the penal

law, unless it is in the best interest of the child and 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.

6. A person currently under parole, probation or other state

supervision, or released on recognizance, non-monetary conditions, or

bail prior to being convicted, shall not be punished or otherwise

penalized for conduct allowed under this chapter unless the terms and

conditions of said parole, probation, or state supervision explicitly

prohibit a person's cannabis use or any other conduct otherwise allowed

under this chapter. A person's use of cannabis or conduct under this

chapter shall not be prohibited unless it has been shown by clear and

convincing evidence that the prohibition is reasonably related to the

underlying crime. Nothing in this provision shall restrict the rights of

a certified medical patient.

Permits, registrations and licenses. 1. No permit, registration

or license shall be transferable or assignable except that

notwithstanding any other provision of law, the permit, registration or

license of a sole proprietor converting to corporate form, where such

proprietor becomes the sole stockholder and only officer and director of

such new corporation, may be transferred to the subject corporation if

all requirements of this chapter remain the same with respect to such

permit, registration or license as transferred and, further, the

registered 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

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.

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 office, on a form and in a manner prescribed by the

office, which may include a reasonable fee, and must demonstrate the

following to the satisfaction of the board:

(a) the owners and directors of the laboratory are of good moral

character;

(b) the laboratory and its staff has the skills, resources and

expertise 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,

labeling, accessioning, preparation, analysis, result reporting,

disposal and storage of adult-use cannabis, and/or medical cannabis;

(d) for the testing of cannabis, the laboratory is physically located

in New York state; and

(e) 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

chapter 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

organization or licensee under this chapter, or such person's immediate

family member, shall have an interest or voting rights in any laboratory

testing permittee.

4. The board shall require that the permitted laboratory report

testing results to the board in a manner, form and timeframe as

determined by the office.

5. The board is authorized to promulgate regulations, establishing

minimum operating and testing requirements, and 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

agency.

7. The board is authorized to enter into contracts or memoranda of

understanding with any other state for the purposes of aligning

laboratory testing requirements or establishing best practices in

testing of cannabis.

Special use permits. The board shall have the authority to

issue temporary permits for carrying on activities consistent with the

policy and purpose of this chapter with respect to cannabis. No special

use permit shall extend for a period longer than ninety days and shall

not be renewable, except where a permit is being issued to a licensee as

defined in article four of this chapter. A special use permit shall be

issued pursuant to an abbreviated application process. The special use

permit holder shall have ninety days in which to become fully licensed

by satisfying all of the remaining conditions for licensure which were

not required for the issuance of the special use permit.

The board may set reasonable fees for such permits and make rules and

regulations 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

registered 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.

Cannabis showcase event permit. 1. When used in this section:

(a) "Cannabis showcase event" shall mean an event where a licensee

authorized to conduct retail sales of adult-use cannabis, cannabis

products, and cannabis merchandise engages in the sale and showcase of

such products away from the licensed premises in partnership with at

minimum one licensed New York state adult-use cannabis cultivator and at

minimum one licensed New York state adult-use cannabis processor, at

showcase events that are located at stand-alone cannabis sale "pop-up"

events, farmers' markets and public markets as defined in section two

hundred sixty of the agriculture and markets law or similar such

locations, as authorized by the office.

(b) "Showcase" shall mean the exhibiting or displaying at a cannabis

showcase event by a permittee or an authorized licensee of adult-use

cannabis and cannabis products and may include branded merchandise and

educational materials.

2. A licensee authorized under this chapter to conduct retail sales of

adult-use cannabis may apply to the office for a cannabis showcase event

permit and shall be required to demonstrate that they are in partnership

with a licensed cultivator and a licensed processor pursuant to

subdivision one of this section. A microbusiness licensee authorized to

conduct retail sales under section seventy-three of this chapter may

also serve as the required licensed processor and licensed cultivator

for a cannabis showcase event permit if that microbusiness licensee is

also authorized to conduct processing and cultivation. A microbusiness

licensee may also serve as a licensed processor and/or the licensed

cultivator for another licensee applying for a permit under this section

if that microbusiness is authorized to conduct the applicable processing

or cultivating activity. An application for a cannabis showcase event

permit shall identify such licensed cultivators and processors who are

authorized under this chapter to showcase at such cannabis showcase

event.

3. A cannabis showcase event permit shall authorize: (a) the permitted

licensee, authorized under this chapter to conduct retail sales of

adult-use cannabis, adult-use cannabis products, and cannabis

merchandise, and (b) the permitted licensee and licensees who are

authorized under this chapter to cultivate or process adult-use

cannabis, to showcase their adult-use cannabis and cannabis products,

for a temporary period of time, at a cannabis showcase event. The

permittee shall offer for sale the adult-use cannabis and adult-use

cannabis products cultivated or processed by the licensees authorized on

the permit to showcase at such cannabis showcase event, provided,

however, the permittee shall not be limited to selling the products of

such authorized licensees.

4. All adult-use cannabis and cannabis product sales at a cannabis

showcase event shall be executed by the permittee. No other licensee,

person or entity shall be authorized to engage in cannabis or cannabis

product sales at a cannabis showcase event.

5. A separate cannabis showcase event permit shall be required for

each showcase event at which a cannabis showcase event is being held.

6. A separate cannabis showcase event permit shall be required for

each licensee authorized under this chapter to conduct retail sales of

adult-use cannabis and cannabis products.

7. In the event a cannabis showcase event contains more than one

permittee, each permittee shall nevertheless be required to partner with

at minimum one cultivator, pursuant to subdivision two of this section.

8. Each permittee shall be limited to partnering with no more than one

licensed processor for each licensed cultivator authorized on their

cannabis showcase event permit application.

9. No cannabis showcase event permit shall authorize more than one

cannabis showcase event at one time. A licensee may participate in more

than one cannabis showcase event so long as each cannabis showcase event

has a corresponding separate cannabis showcase event permit.

10. Notwithstanding any other provision of this chapter, a cannabis

showcase event permit shall be valid for no more than fourteen days.

11. The board may set reasonable fees for cannabis showcase event

permits. Such fees may be based on cannabis showcase event permit size,

length, duration, or any other factors deemed reasonable and appropriate

by the board to achieve the policy and purpose of this chapter.

12. Permitted licensees shall comply with all reporting requirements,

including required sales reporting, and all other requirements set forth

in regulations. Any noncompliance by such permitted licensees or

licensees authorized on the permit to showcase shall subject such

licensees to applicable fees, fines and penalties.

13. The board shall promulgate regulations to implement this section.

Local opt-out; municipal control and preemption. 1. The

licensure and establishment of a retail dispensary license and/or

on-site consumption license under 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 the effective date of this chapter, and, on or before the later of

December thirty-first, two thousand twenty-one or nine months after the

effective date of this section, adopts a local law, subject to

permissive referendum governed by section twenty-four of the municipal

home rule law, requesting the cannabis control board to prohibit the

establishment of such retail dispensary licenses and/or on-site

consumption 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. No local law may be adopted after the later of

December thirty-first, two thousand twenty-one or nine months after the

effective date of this section prohibiting the establishment of retail

dispensary licenses and/or on-site consumption licenses; provided,

however, that a local law repealing such prohibition may be adopted

after such date.

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 law, rule, ordinance, regulation or prohibition

pertaining to the operation or licensure of registered organizations,

adult-use cannabis licenses or cannabinoid hemp licenses. However,

towns, cities and villages may pass local laws and regulations governing

the time, place and manner of the operation of licensed adult-use

cannabis retail dispensaries and/or on-site consumption site, provided

such law or regulation does not make the operation of such licensed

retail dispensaries or on-site consumption sites unreasonably

impracticable as determined by the board.

3. (a) As used in this subdivision and for purposes of any local law

adopted pursuant to it, the following terms shall have the following

meanings: "person" shall have the meaning provided for in subdivision

forty-a of section three of this chapter; "unlicensed activity" shall

refer only to unlawfully selling cannabis, cannabis product, or any

product marketed or labeled as such without obtaining the appropriate

registration, license, or permit therefor, or engaging in an indirect

retail sale; "indirect retail sale" shall have the meaning provided for

in subdivision forty-six-a of section three of this chapter, except that

it shall not include cannabinoid hemp or hemp extract product; "place of

business" shall not include a residence or other real property not

otherwise held out as open to the public or otherwise being utilized in

a business or commercial manner, or any vehicle associated with the

business, unless probable cause exists to believe that such residence,

real property, or vehicle, is being used in such business or commercial

manner for the unlicensed activity.

(b) Any county or city may adopt a local law authorizing an officer or

agency to conduct regulatory inspections of any place of business

located within the county or city, including a vehicle used for such

business, not listed on the directory maintained by the office pursuant

to subdivision thirteen of section eleven of this chapter. Any such

regulatory inspection shall only occur during the operating hours of a

place of business and be conducted for purposes of civil administrative

enforcement with respect to premises lacking applicable registrations,

licenses or permits issued pursuant to this chapter, and in furtherance

of its purposes, provided that nothing herein shall limit any

enforcement action under law when illegal activity is observed or occurs

during such inspection.

(c) A local law adopted by a county authorizing regulatory inspections

shall not apply in any city included within the boundaries of such

county that adopts a local law authorizing regulatory inspections within

such city.

(d) The local law adopted by a county or a city pursuant to this

subdivision shall also:

(i) require procedures sufficient to ensure that any regulatory

inspections are conducted in a reasonable manner, are administrative in

nature, designed to detect administrative violations, in furtherance of

the regulatory scheme established pursuant to this section, and designed

to guarantee certainty and regularity of application;

(ii) designate a local official who shall serve as the liaison to the

office and who shall: (1) be required to ensure that updates to the

directory are immediately incorporated into the local inspection

process, coordinate with the office on efforts to inspect such

unlicensed businesses and related local enforcement efforts; (2) send

bi-weekly reports to the office in a manner and format prescribed by the

office detailing recent enforcement efforts, including information

regarding the number and location of inspections conducted, notices of

violation issued, and orders to seal issued and executed, and the amount

and nature of the cannabis, cannabis products, or products marketed as

such seized; and (3) serve as the primary contact for the office in

connection with the office's training program and the sharing of

materials made available to counties and cities with regard to the

inspection and enforcement of unlicensed cannabis businesses;

(iii) be filed with the office, as well as any procedures or

regulations promulgated pursuant to the local law. Notwithstanding the

effective date of any such local law, the local law shall not become

effective until ten days after it is filed with the office;

(iv) establish a system for receiving complaints of such unlicensed

activity by any business within the county or city, as the case may be;

(v) provide that any person who engages in the unlawful sale of

cannabis, cannabis product, or any product marketed or labeled as such,

or in indirect retail sales, shall be subject to a civil penalty of not

less than one hundred dollars and not more than ten thousand dollars for

each day during which such violation continues, with a maximum penalty

of no more than twenty-five thousand dollars. The penalty provided for

in this subparagraph may be recovered by an action or proceeding in a

court of competent jurisdiction brought by the county or city to enforce

the notice of violation referred to in clause one of subparagraph (vi)

of this paragraph; and

(vi) provide that the officer or agency designated to conduct

regulatory inspections of any place of business not listed on the

directory maintained by the office shall have the authority to:

(1) issue a notice of violation and order to cease unlicensed activity

setting forth the nature of the unlawful conduct along with any fines or

penalties for such conduct in amounts not to exceed the fines set forth

in subparagraph (v) of this paragraph and order any person who is

unlawfully selling cannabis, cannabis product, or any product marketed

or labeled as such without obtaining the appropriate registration,

license, or permit therefor, or engaging in indirect retail sale, to

cease such prohibited conduct, provided that any such notice of

violation and order to cease unlicensed activity may only be issued

against the business that is conducting the unlicensed activity or an

individual owner of the business. Any notice of violation and order to

cease unlicensed activity shall be served by delivery of the order to

the owner of the business or other person of suitable age or discretion

in actual or apparent control of the premises at the time of the

inspection and shall be posted at the building or premises that have

been sealed, secured and closed. A copy of the order shall also be

mailed to any address for the owner of the business at any address

provided by the person to whom such order was delivered pursuant to this

paragraph;

(2) seize any cannabis, cannabis product, or any product marketed or

labeled as such, found in the possession of a person engaged in the

conduct described in clause one of this subparagraph and in their place

of business, including a vehicle used for such business, providing that

the business that is conducting the unlicensed activity or an individual

owner of the business, maintain documentation of the chain of custody of

such seized products, and ensure that such products are properly stored,

catalogued, and safeguarded until such time as they may properly be

destroyed by the county or the city;

(3) issue an order to seal the building or premises of any business

engaged in unlicensed activity, when such activity is conducted,

maintained, or permitted in such building or premises, occupied as a

place of business subject to the procedures and requirements set forth

in this subparagraph:

A. The officer or agency may issue an order to seal with an immediate

effective date if such order is based upon a finding by the officer or

agency of an imminent threat to the public health, safety, and welfare.

B. Any order to seal shall be served by delivery of the order to the

owner of the business or other person of suitable age or discretion in

actual or apparent control of the premises at the time of the inspection

and shall be posted at the building or premises that have been sealed,

secured and closed. A copy of the order shall also be mailed to any

address for the owner of the business provided by the person to whom

such order was delivered pursuant to this paragraph. The order shall

remain in effect pending a hearing and final determination of a court,

or until such order is vacated by the officer or agency pursuant to the

local law adopted pursuant to this subdivision. An order to seal shall

explicitly state that a request for a hearing may be submitted in

writing to the corporation counsel or to the county attorney as

applicable within seven days. Upon receiving such a request for a

hearing, the corporation counsel or county attorney shall file a copy of

the request with the clerk of the city court or county court in the city

or county where the building or premises is located.

C. The court that receives notice of a request for a hearing from a

corporation counsel or a county attorney shall fix the date of such

hearing no later than three business days from the date such notice is

received by the court and provide notice to the parties of the date,

time, and location of the hearing. Upon such date, or upon such other

date to which the proceeding may be adjourned by agreement of the

parties, the court shall hear testimony and receive evidence presented

by the parties. The city or county, as applicable, and the person that

requested the hearing shall be parties to the proceeding. Within four

business days of the conclusion of the hearing, the court shall make a

determination as to: (i) whether the person upon which the order to seal

was issued was engaged in unlicensed activity, (ii) if the person is

found to have engaged in unlicensed activity, then whether such

unlicensed activity presents an imminent threat to public health, safety

and welfare according to subdivision four of section one hundred

thirty-eight-b of this article, and (iii) whether the unlicensed

activity as described in this section is more than a de minimis part of

the business activity on the premises or in the building to be sealed

pursuant to the order. However, when an order to seal has been issued

upon a second or subsequent inspection in which unlicensed activity is

confirmed to be continuing more than ten calendar days after a notice of

violation and order to cease unlicensed activity was previously issued,

the court need only determine: (i) whether the person upon which the

order to seal was issued was engaged in unlicensed activity; (ii)

whether a notice of violation and order to cease unlicensed activity had

been issued eleven or more days prior to the issuance of the order to

seal; and (iii) whether the order to seal was issued in compliance with

paragraph (a) of subdivision six of section one hundred thirty-eight-b

of this article. If the court determines that an order to seal was not

properly issued, the court shall vacate such order. If the court is

satisfied that an order to seal was properly issued, the court may

render a judgment affirming the issuance of an order to seal, and direct

the closing of the building or premises by any police officer or peace

officer with jurisdiction to the extent necessary to abate the

unlicensed activity and shall direct any police officer or peace officer

with jurisdiction to post a copy of the judgment and a printed notice of

such closing conforming to the requirements of this chapter. The closing

directed by the judgment shall be for such period as the court may

direct but in no event shall the closing be for a period of more than

one year from the posting of the judgment provided for in this section.

Failure of a party that requested a hearing to appear at the hearing

will result in a default and order of sealing to remain in effect for

such period as the court may direct but in no event shall the order be

in effect for a period of more than one year from the posting of the

judgment unless otherwise vacated pursuant to the local law adopted

pursuant to this subdivision.

D. The local law adopted pursuant to this subdivision shall include,

without alteration the provisions of subdivisions four through twelve of

section one hundred thirty-eight-b of this article. Any provisions

adopted by a local law to the contrary shall be considered specifically

preempted by this paragraph, provided however that a county or city

shall be permitted to substitute the officer or agency authorized by the

county or city to conduct regulatory inspections pursuant to this

subsection for any reference to the office or board;

(4) seek injunctive relief against any person engaging in conduct in

violation of this section, including through an action pursuant to

section sixteen-a of this chapter.

(e) Upon a demand by the county or city, a respondent or defendant

shall provide to the county or city prior to a hearing pursuant to

subparagraph (v) of paragraph (d) of this subdivision or an order to

seal pursuant to clause three of subparagraph (vi) of paragraph (d) of

this subdivision, within five days after a demand or sooner if a hearing

is scheduled less than five days from the date of demand, a verified

statement setting forth:

(i) If the responding party is a natural person, such party's: (1)

full legal name; (2) date of birth; (3) current home or business street

address; and (4) a unique identifying number from: (A) an unexpired

passport; (B) an unexpired state driver's license; or (C) an unexpired

identification card or document issued by a state or local government

agency or tribal authority for the purpose of identification of that

individual;

(ii) If the responding party is a partnership, limited liability

partnership, limited liability company, or other unincorporated

association, including a for profit or not-for-profit membership

organization or club, the information required pursuant to subparagraph

(i) of this paragraph for all of its partners or members, as well as the

state or other jurisdiction of its formation;

(iii) If the responding party is a corporation, its state or other

jurisdiction of incorporation, principal place of business, and any

state or other jurisdiction of which that party is a citizen;

(iv) If the responding party is not an individual, in addition to any

information provided pursuant to subparagraphs (ii) and (iii) of this

paragraph, and to the extent not previously provided, each beneficial

owner of the responding party by: (A) full legal name; (B) date of

birth; (C) current home or business street address; and (D) a unique

identifying number from: (1) an unexpired passport; (2) an unexpired

state driver's license; or (3) an unexpired identification card or

document issued by a state or local government agency or tribal

authority for the purpose of identification of that individual. As used

in this section, the term "beneficial owner" shall have the same meaning

as defined in 31 U.S.C. § 5336(a)(3), as amended, and any regulations

promulgated thereunder.

(f) Notwithstanding any provision to the contrary in this section, a

city with a population of more than one million may enforce any

violations, orders to cease, and orders to seal related to unlicensed

activity through an administrative hearing process.

Office to be necessary party to certain proceedings. The

office shall be made a party to all actions and proceedings affecting in

any manner the possession, ownership or transfer of a registration,

license or permit to operate within a municipality and to all such

injunction proceedings.

Penalties for violation of this chapter. 1.(a) Any person who

cultivates for sale, offers to sell, or sells cannabis, cannabis

products, medical cannabis, or any product marketed or labeled as such,

without having an appropriate registration, license or permit therefor,

including a person whose registration, license, or permit has been

revoked, surrendered or cancelled, where such person is engaging in

activity for which a license would be required under this chapter, may

be subject to a civil penalty of not more than ten thousand dollars for

each day during which such violation continues and an additional civil

penalty in an amount of no more than five times the revenue from such

prohibited sales or, in an amount of no more than three times the

projected revenue for any such product found in the possession of such

person based on the retail list price of such products; provided,

however, that any such person who engages in such activity from a

residence or other real property not otherwise held out as open to the

public or otherwise being utilized in a business or commercial manner or

any private vehicle on or about same such property, and the quantity of

such product on such premises or vehicle does not exceed the limits of

personal use under article two hundred twenty-two of the penal law, may

be subject to a civil penalty of no more than five thousand dollars.

Provided, further, that where such person has been ordered to cease

such conduct pursuant to subdivision one of section one hundred

thirty-eight-a of this article, such person may be assessed a civil

penalty of no more than twenty thousand dollars per day for each day

during which such violation continues after receiving such order in

addition to the additional civil penalties set forth above; provided,

however, that any such person who engages in such activity from a

residence or other real property not otherwise held out as open to the

public or otherwise being utilized in a business or commercial manner or

any private vehicle on or about same such property, and the quantity of

such product on such premises or vehicle does not exceed the limits of

personal use under article two hundred twenty-two of the penal law, may

be subject to a civil penalty of no more than ten thousand dollars.

(b) If a person engaging in the conduct described in paragraph (a) of

this subdivision or subdivision one-a of this section refuses to permit

the office or the board from performing a regulatory inspection, such

person may be assessed a civil penalty of up to eight thousand dollars

for a first refusal and up to fifteen thousand dollars for a second or

subsequent refusal within three years of a prior refusal. If the office

or board is not permitted access for a regulatory inspection pursuant to

section ten or section eleven of this chapter, as applicable, by such

person, the attorney general, upon the request of the office or the

board, shall be authorized to apply, without notice to such person, to

the supreme court in the county in which the place of business is

located for an order granting the office or board access to such place

of business. The court may grant such an order if it determines, based

on evidence presented by the attorney general, that there is reasonable

cause to believe that such place of business is a place of business

which does not possess a valid registration, license, or permit issued

by the office or board.

(c) In assessing the civil penalties under this subdivision or

subdivision one-a of this section, the board or office shall take into

consideration the nature of such violation and shall assess a penalty

that is proportionate to the violation; provided, however, that an

affidavit from a representative of the office, the office of the

attorney general, or a local government, or a local police officer

confirming the presence of conduct described in this subdivision or

subdivision one-a of this section following an inspection by the office

after the office has ordered such conduct to cease shall be sufficient

to establish a prima facie case that such conduct had been continuing

for each business day between the initial inspection and the last

observed or otherwise documented conduct.

1-a. Any person engaged in indirect retail sale in violation of

subdivision one-a of section one hundred twenty-five of this article,

shall be subject to a civil penalty in an amount equaling the lesser of

three times the revenue for such indirect retail sales or up to two

thousand five hundred dollars for each such sale, provided, however,

that where such conduct also constitutes a violation of subdivision one

of this section, such person may only be subject to the civil penalties

under one such subdivision, and provided, further, that where such

person has been ordered to cease such conduct pursuant to subdivision

one of section one hundred thirty-eight-a of this article, such person

may be assessed a civil penalty of up to five thousand dollars for each

day during which such violation continues in addition to any civil

penalties set forth above.

2. Any registered organization or licensee, who has received

notification 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 materially false statement

in the application for a registration, license or a permit under this

chapter may be subject to license or registration suspension,

revocation, or denial subject to the board, and 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

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.

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.

6. Except as otherwise provided for in this chapter, the board shall

promulgate rules and regulations providing for notice and opportunity to

be heard, prior to the imposition of any civil penalty under this

section, except where such civil penalty is being sought in an action or

proceeding by the attorney general as otherwise authorized in this

chapter, provided, further, nothing in this section shall prohibit the

board from suspending, revoking, or denying a license, permit,

registration, or application in addition to the penalties that may be

assessed under this section.

7. The penalties provided for in subdivision one of this section may

be recovered by the attorney general on behalf of the board or office in

an action or proceeding brought pursuant to section one hundred

thirty-eight-a of this chapter.

8. Any person who knowingly and unlawfully sells, gives, or causes to

be sold or given, any cannabis or cannabis products for which the sale

of such products requires a license, permit, or registration under this

chapter where such person owns and/or is principally responsible for the

operation of a business where such products were sold, given, or caused

to be sold or given without having obtained a valid license, permit or

registration therefor shall be guilty of a class A misdemeanor. For the

purposes of this section, "operation of a business" shall mean engaging

in the sale of, or otherwise offering for sale, goods and services to

the general public, including through indirect retail sales.

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.

2. 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.

3. Notwithstanding the issuance of a registration, license or permit

by way of renewal, the board may revoke, cancel or suspend such

registration, 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.

4. (a) As used in this section, the term "for cause" shall also

include the existence of a sustained and continuing pattern of

misconduct, 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

management:

(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.

5. As used in this chapter, the existence of a sustained and

continuing pattern of misconduct or disorder on or about the premises

may be presumed upon the sixth incident reported to the board by a law

enforcement agency, or discovered by the board during the course of any

investigation, of misconduct 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.

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. In addition to the grounds set forth

in this section, the board may also revoke, cancel, or suspend any

registration, license, or permit where such person holding such

registration, license, or permit has been found to have refused to

permit a regulatory inspection by the board.

7. The board 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 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. In addition to the grounds set forth in this section, the

office may also revoke, cancel, or suspend any registration, license, or

permit where such person holding such registration, license, or permit

has been found to have refused to permit a regulatory inspection by the

office.

9. Where a licensee or permittee is convicted of two or more

qualifying 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 subdivision only, a conviction of a licensee or an employee or

agent of such licensee shall constitute a conviction of such licensee.

10. The board may adopt rules and regulations based on federal

guidance, provided those rules and regulations are designed to comply

with federal guidance and mitigate federal enforcement against the

registrations, licenses, or permits issued under this chapter, or the

cannabis industry as a whole. This may include regulations which permit

the sharing of licensee, registrant, or permit holder information with

designated banking or financial institutions, provided these regulations

are designed to aid cannabis industry participants' access to banking

and financial services.

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

chapter, 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,

pursuant 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

permitted 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.

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,

stockholdings, officers or directors.

Illicit cannabis. 1. "Illicit cannabis" means and includes any

cannabis flower, concentrated cannabis and cannabis product on which any

tax required to have been paid under any applicable state law, has not

been paid. Illicit cannabis shall not include any cannabis lawfully

possessed in accordance with this chapter or the penal law.

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 who

knowingly permits the same to be used for the cultivation, processing,

distribution, purchase, sale, warehousing or transportation of any

cannabis, in violation of a possession limit in the penal law, known by

the person to be illicit cannabis, is guilty of a violation.

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 or 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

partnership, or each of the principal officers and directors of the

corporation, 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 directors are citizens of the United States or persons lawfully

admitted for permanent residence in the United States; and provided

further that a corporation organized under the not-for-profit

corporation law or the education law which otherwise conforms to the

requirements of this section and chapter may be licensed if each of its

principal officers and directors are not less than twenty-one years of

age; and provided, further, that a corporation organized under the

not-for-profit corporation 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;

(d-1) A person who has been found to have engaged in unlicensed,

unregistered, or unpermitted conduct under this chapter, until three

years after such finding;

(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

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 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.

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

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 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 designee, shall submit such fingerprints and the

processing fee to the division. 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 applicant 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 information contained

in such criminal history information pursuant to regulations and

procedures established by the division of criminal justice services.

Action for unlawful business practices relating to cannabis.

The board or the office of cannabis management shall, in accordance with

the authority otherwise conferred in this chapter, have the authority

to:

1. order any person who is unlawfully cultivating, processing,

distributing or selling cannabis, cannabis product, cannabinoid hemp or

hemp extract product, or any product marketed or labeled as such in this

state without obtaining the appropriate registration, license, or permit

therefor, or engaging in an indirect retail sale to cease such

prohibited conduct;

2. seize any cannabis, cannabis product, cannabinoid hemp or hemp

extract product, or any product marketed or labeled as such, found in

the possession of a person engaged in the conduct described in

subdivision one of this section and their place of business, including a

vehicle used for such business;

3. initiate or refer the matter to the board for an administrative

proceeding to enforce the provisions of this section;

4. seek injunctive relief against any person engaging in conduct in

violation of this section;

5. request that the attorney general obtain judicial enforcement of an

order issued under subdivision one of this section or bring an action or

proceeding for any relief otherwise authorized under this chapter for a

violation of this chapter, including the recovery of any applicable

civil penalties;

6. in connection with any regulatory inspection or investigation or

action thereafter, review, seize and copy records;

7. in connection with any action or proceeding authorized by this

chapter, request that the attorney general or any police officer or

peace officer seize or remove and hold as evidence all material,

equipment, and instrumentalities used in the creation and maintenance of

the conduct described in subdivision one of this section;

8. upon receipt of one or more complaints that a person is engaged in

conduct described in subdivision one of this section or in connection

with any inspection or subsequent investigation of a person engaged in

the conduct described in subdivision one of this section, issue

subpoenas to any owners, managers, or employees of such person for

information regarding the person and the conduct;

9. with the assistance of law enforcement, seize or impound other

property used in furtherance of the conduct described in subdivision one

of this section;

10. upon an ex parte order to a court, request the court to issue a

restraining order freezing liquid assets to enforce the provisions of

this section and section sixteen-a of this chapter and section one

hundred thirty-two of this article;

11. in accordance with the procedures outlined in section one hundred

thirty-eight-b of this chapter, issue and execute an order to seal a

building or premises of any unlicensed businesses in which any person is

engaged in conduct in violation of this section or section one hundred

twenty-five or one hundred thirty-two of this article;

12. upon receipt of one or more complaints that a person is engaged in

conduct described in subdivision one of this section, apply or request

that the attorney general apply for an ex parte order to the supreme

court in the county in which the place of business is located for an

order granting the office or board access to such place of business. The

court may grant such an order it if determines, based on the evidence

presented, that there is reasonable cause to believe that such place of

business is the same place of business for which the office has received

such complaints;

13. upon finding a violation of this section by a holder of a license

issued by the state liquor authority, a registration issued by the

commissioner of taxation and finance to sell cigarettes or tobacco

products at retail, a registration issued by the commissioner of

taxation and finance to sell vapor products at retail, or a lottery

sales agent license issued by the division of lottery, (a) issue a

notice of violation to the holder or an agent thereof that clearly

states (i) that the holder's state licenses, permits, or registrations

may be at risk of revocation or suspension and (ii) that the holder's

business premises may be subject to an order to seal if upon a

subsequent inspection the office finds that the violation has not been

abated, and (b) notify the agency that issued the authorization that the

holder is in violation of this section; and

14. if any penalty is not paid within six months, enter the amount

thereof as a judgment in the office of the clerk of the county of Albany

and in any other county in which the person resides, has a place of

business, or through which it operates. If such judgment has not been

satisfied within thirty days thereafter, no license, registration, or

permit shall be issued by the board to such person for three years

thereafter.

Orders to seal. 1. In addition to any other authority

conferred in this chapter, pursuant to the provisions of this section,

the board or the office shall have the authority to issue an order to

seal the building or premises of any business engaged in unlicensed

activity, when such activity is conducted, maintained, or permitted in

such building or premises, occupied as a place of business as described

in subdivision eight of section ten of this chapter, in violation of

subdivision one or one-a of section one hundred twenty-five or

subdivision one or eight of section one hundred thirty-two of this

article.

2. Any order to seal shall be served by delivery of the order to the

owner of the business or other person of suitable age or discretion in

actual or apparent control of the premises at the time of the inspection

and shall be posted at the building or premises that have been sealed,

secured and closed. A copy of the order shall also be mailed to any

address for the owner of the business at any address provided by the

person to whom such order was delivered pursuant to this subdivision.

The order shall remain in effect pending a hearing and final

determination of the board, or until such order is vacated by the office

pursuant to subdivision six of this section. An order to seal shall

explicitly state the procedure to request a hearing within seven days.

3. The office may issue an order to seal with an immediate effective

date if such order is based upon a finding by the office of an imminent

threat to the public health, safety, and welfare. In such cases a

hearing shall be held within three business days of a request for such

hearing, unless otherwise adjourned by agreement of the parties, and a

determination shall be rendered within four business days of the

conclusion of such hearing, provided that the respondent has submitted a

verified statement that may be required pursuant to subdivision five of

section seventeen of this chapter. Failure of a respondent to appear at

the hearing will result in a default and order of sealing to remain in

effect for up to one year unless otherwise vacated pursuant to the

provisions of this section.

4. Factors that determine an imminent threat to public health, safety,

and welfare shall be limited to:

(a) documented sales to minors;

(b) unlicensed processing of cannabis products at the building or

premises;

(c) orders issued following an inspection wherein the person engaged

in the unlicensed activity engaged in violent, tumultuous, or other

behaviors indicating expressed intent to not comply with the office's

order to cease the unlicensed activity;

(d) documented presence of unlawful firearms at the building or

premises;

(e) proximity of the building or premises to schools, houses of

worship, or public youth facilities;

(f) presence of products deemed unsafe based on reports of illness or

hospitalization; or

(g) sales of, or offers to sell, cannabis products not tested or

labeled lawfully in accordance with this chapter.

5. Notwithstanding the factors listed in subdivision four of this

section and the restriction set forth in paragraph (b) of subdivision

six of this section, the office may issue an order to seal with an

immediate effective date upon a second or subsequent inspection in which

unlicensed activity is confirmed to be continuing more than ten calendar

days after a notice of violation and order to cease unlicensed activity

was previously issued by the office, provided that the office has also

provided notice pursuant to subparagraph (ii) of paragraph (a) of

subdivision thirteen of section one hundred thirty-eight-a of this

article.

6. An order to seal may be issued by the office or the board pursuant

to subdivision three of this section only if: (a) no part of the

premises to be sealed is used in part as a residence and pursuant to

local law or ordinance is zoned and lawfully occupied as a residence;

and (b) the unlicensed activity as described in this section is more

than a de minimis part of the business activity on the premises or in

the building to be sealed pursuant to the order. In the event that an

order to seal may not be issued pursuant to this subdivision, the office

shall issue a notice of violation and order to cease the unlicensed

conduct, which shall constitute notice that such unlicensed activity

must cease immediately.

7. In assessing whether unlicensed activity within a building or

premises is more than de minimis, the office or board, as relevant,

shall consider factors such as any one or more of the following:

(a) the presence of signs or symbols, indoors or out, advertising the

sale of cannabis or otherwise indicating that cannabis is sold on the

premises;

(b) information shared in any advertisements or other marketing

content in connection with the unlicensed business activity and any

direct or indirect sales of cannabis or other conduct in violation of

this chapter;

(c) the volume of illicit cannabis products on site; and

(d) the variety of illicit cannabis products on site.

8. Upon a request by the office, any police officer or peace officer

with jurisdiction may assist in the enforcement of an order to seal

issued by the office or the board, in accordance with the following

procedures:

(a) The police officer or peace officer serving and executing the

order to seal shall forthwith make and return to the office an inventory

of personal property situated in and used in conducting, maintaining, or

permitting the unlicensed activity within the scope of this chapter and

shall enter upon the building or premises for such purpose. Such

inventory shall be taken in any manner which is deemed likely to

evidence a true and accurate representation of the personal property

subject to such inventory including, but not limited to photographing

such personal property.

(b) The police officer or peace officer serving and executing the

order to seal shall enter the building or premises and, upon service of

the order, command all persons present in the building or premises to

vacate the premises forthwith. Upon the building or premises being

vacated, the premises shall be securely locked and all keys delivered to

the officer serving the order who thereafter shall deliver the keys to

the fee owner, lessor, or lessee of the building or premises involved.

If the fee owner, lessor, or lessee is not at the building or premises

when the order is being executed, the officer shall securely padlock the

premises and retain the keys until the fee owner, lessor, or lessee of

the building is ascertained, in which event, the officer shall deliver

the keys to such fee owner, lessor, or lessee.

(c) Upon service and execution of the order to seal, the police

officer or peace officer shall post a copy thereof in a conspicuous

place or upon one or more of the principal doors at entrances of such

premises where the unlicensed activity is being conducted, maintained,

or permitted. In addition, the officer shall affix, in a conspicuous

place or upon one or more of the principal doors at entrances of such

premises, a printed notice that the premises have been closed by order

of the cannabis control board, and the name of the officer or agency

posting the notice.

(d) Mutilation or removal of such a posted order or such a posted

notice while it remains in force, in addition to any other punishment

prescribed by law, shall be punishable, on conviction, by a fine of not

more than five thousand dollars or by a class B misdemeanor, or both,

provided such order or notice contains therein a notice of such penalty,

and shall be referred to the local district attorney for enforcement.

The office shall also adhere to the procedures in this subdivision when

executing an order to seal issued in accordance with this section.

9. Any order to seal issued by the office or the board issued pursuant

to this section shall be effective for one year from the later of the

posting of the order or the date of the judgment provided for in this

section. An order to seal shall be vacated by the office or the board,

upon notice to the office, if the respondent submits sufficient evidence

to the office or the board by an affidavit and such other proof as may

be submitted by the respondent that the unlicensed activity has been

abated. An order vacating an order to seal shall include a provision

authorizing the office, or any police officer or peace officer who

assisted with the execution of the order to seal, to inspect the

building or premises without notice for the purpose of ascertaining

whether or not the unlicensed activity has been abated. Any police

officer or peace officer with jurisdiction may, upon the request of the

office, assist in the enforcement of an inspection provision of an order

vacating an order to seal.

10. The office shall mail a copy, by certified mail, of any order to

seal issued by the office or board within five days following issuance

of such order to the person in whose name the real estate affected by

the order is recorded in the office of the city register or the county

clerk, as the case may be, who shall be presumed to be the owner

thereof. Such mailing shall constitute notice to the owner and shall be

deemed to be complete upon such mailing by the office as provided above.

11. If at any time a respondent vacates the building or premises

subject to an order to seal issued by the office or board, or if the

building owner provides sufficient proof thereof, any action or

proceeding filed in accordance with these procedures relating to such

building or premises shall be withdrawn by the office or the board

without prejudice, and any order to seal shall be vacated.

12. The remedies provided for in this section are not exclusive and

the office or board may also request and recover penalties in accordance

with other provisions in this chapter.

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.