NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6357E
SPONSOR: Gottfried (MS)
 
TITLE OF BILL: An act to amend the public health law, the tax law,
the state finance law, the general business law, the penal law and the
criminal procedure law, in relation to medical use of marihuana; and
providing for the repeal of such provisions upon expiration thereof
 
PURPOSE:
This bill would comprehensively regulate the manufacture, sale and use
of medical marihuana. It would strike the right balance between poten-
tially relieving the pain and suffering of those in desperate need of a
treatment and protecting the public against risks to its health and
safety. The balance would be maintained by granting discretion to physi-
cians to prescribe in accordance with regulatory requirements and
medical norms, empowering the Department of Health to oversee the regi-
men of medical marihuana usage and leaving to the Governor, the final
say in seeing that the public's safety and health are protected by
authorizing him to discontinue the program, in whole or in part, should
risks to the public so warrant.
 
SUMMARY OF PROVISIONS:
The bill would create a new Title V-A in Article 33 of the Public Health
Law entitled "Medical Use of Marihuana," a comprehensive regulatory
structure governing every aspect of the medical use of marihuana.
Certification: A patient would have to be certified by a practitioner in
order to obtain medical marihuana. A practitioner would be a physician,
trained by and registered with the Department of Health (DOH), licensed
by the State and qualified to treat the serious condition for which the
patient is seeking treatment. A certification could be issued only to a
patient with a serious condition, which is limited to a defined list of
conditions. The Commissioner of Health (Commissioner) may add additional
conditions or symptoms to the list. The patient would have to be under
the practitioner's continuing care for the serious condition.
The bill would establish the form of the certification. In making the
certification, the practitioner must consider the appropriate form and
dosage of medical marihuana. Any form of medical marihuana not approved
by the Commissioner would be prohibited, and smoking would be prohibit-
ed. The dosage must be consistent with guidance issued by the Commis-
sioner, and the patient would not be allowed to possess an amount of
medical marihuana in excess of a 30 day supply of the dosage. Addi-
tionally, the patient would be required to keep the medical marihuana in
the original packaging in which it was dispensed.
Registry Identification Cards: Upon approval of the certification, DOH
would issue registration identification cards. Patients or designated
caregivers would have to apply to DOH for a card, on an application
determined by the Commissioner. If a patient wishes to change or termi-
nate a certified caregiver, the patient would be required to notify the
Department, which would notify the caregiver that the caregiver's card
is invalid and must be returned to the Department.
The registry identification card would expire one year after the date
the certification is signed. The card would contain any recommendation
or limitation on form or dosage imposed by the practitioner as well as
other information. A patient or caregiver would have to notify the
Department of any change in name or address or if the patient ceases to
have the serious condition noted on the certification, at which point
the card would have to be returned to the Department. A patient would be
required to carry his or her registration card when in possession of the
medical marihuana.
The Department would maintain a confidential list of persons issued a
registry identification card, and individual identifying information
obtained by the Department would be exempt from disclosure under Article
Six of the Public Officers Law. The Department would be able to suspend
or revoke the card of a patient or caregiver who willfully violates any
provision of the new Title.
Registered Organizations: A registered organization would be a for-pro-
fit business entity or not-for-profit corporation that would acquire,
possess, manufacture, sell, deliver, transport, distribute, or dispense
medical marihuana. Registered organizations would be able to dispense
medical marihuana to individuals who present a registry identification
card and would provide the patient or caregiver with a receipt, which
would also be provided to the Department. A safety insert would also be
provided to the patient or caregiver. The organization would not be able
to dispense an amount greater than a thirty day supply to a patient. The
medical marihuana would be dispensed in a sealed and properly labeled
package. All manufacturing and dispensing of medical marihuana by regis-
tered organizations would take place in New York State. The Commissioner
is authorized to promulgate regulations restricting the advertising and
marketing of medical marihuana.
Registered organizations would register with the Department on a form
determined by the Commissioner. Registered organizations would also be
under a continuing obligation to report any changes in facts or circum-
stances reflected in the application either during the application proc-
ess or once registration has been granted. The Commissioner would grant
applications only when the Commissioner is satisfied that the applicant
would be able to conform to a delineated list of requirements. Registra-
tions would be valid for two years at a time and would be renewable. A
registration will be suspended or revoked if the organization fails to
comply with applicable state laws. The Commissioner would be able to
register up to five organizations that each operate four dispensaries,
and would be able to allow additional registered organizations and
dispensaries.
Registered organizations would be required to file reports with the
Department and would have to comply with security and record keeping
requirements determined through regulation by the Commissioner.
 
OTHER PROVISIONS:
*Health insurers would not be required to provide coverage for medical
marihuana.
*The Commissioner would have authority to issue any necessary regu-
lations to implement the Title's provisions and would also set a price
for medical marihuana.
*Registration identifications and registrations for organizations would
be issued 18 months after the effective date of the bill, unless the
Commissioner certifies that the Title could not be implemented in
accordance with public health and safety interests. The Governor would
also be allowed to suspend or terminate any provisions of the Title
based on the recommendations of the Commissioner or Superintendent.
*The medical marihuana program would be integrated into the successful
existing I-STOP program.
*There would be a new article in the Tax Law, Article 20-B, which would
impose an excise tax on every sale of medical marihuana by a registered
organization to a certified patient or designated caregiver. The excise
tax, which would be charged against and paid by the organization, would
equal 7% of the gross receipts attributable to the sale of the medical
marihuana to the certified patient or designated caregiver. The
provisions in proposed new Article 20-B also include the procedural
rules necessary to administer and enforce the new excise tax.
*The bill would establish the Medical Marihuana Trust Fund - in Section
89-h of the State Finance Law that would consist of the proceeds of the
excise tax. The moneys of the medical marihuana trust fund, following
appropriation by the Legislature, would be allocated as follows: 22.5%
to the counties in New York in which the medical marihuana was manufac-
tured; 22.5% to the counties in New York in which the medical marihuana
was dispensed; 5% to the Office of Alcoholism and Substance Abuse
Services to be used for additional drug abuse prevention, counseling and
treatment services; and 5% to the Division of Criminal Justice Services
to be used for a program of discretionary grants to state and local law
enforcement agencies that demonstrate a need relating to Title V-A of
Article 33 of the Public Health Law.
*The Penal Law would be amended to create a class E felony for a practi-
tioner to issue a certification when the practitioner knows or has
reason to know that the patient has no medical need for the certif-
ication, or that the certification was requested for a purpose other
than to treat a serious condition. It would be a class B misdemeanor for
a person to transfer medical marihuana to an individual who the person
knows or has reasonable grounds to know is not authorized to possess
medical marihuana. It would be a class A misdemeanor for patients or
caregivers to retain an amount of marihuana in excess of the amount they
are authorized to possess.
 
EXISTING LAW:
Article 221 of the Penal Law governs the possession and sale of marihua-
na.
 
JUSTIFICATION:
Medical marihuana has the potential to alleviate the pain and suffering
of New Yorkers afflicted with serious illnesses. Numerous other states
have recognized the therapeutic and palliative benefits of medical mari-
huana. Any system allowing medical marihuana, however, must be strictly
regulated to avoid any undue risks or negative consequences to the
public health and public safety. This bill would create a comprehensive,
regulated framework for providing medical marihuana to individuals who
stand to benefit most from its use.
The bill would regulate practitioners, patients and organizations that
participate in the medical marihuana system. It would also provide that
the program would not begin until the Commissioner and the Superinten-
dent of State Police certify that the system can be administered
consistent with public health and safety interests. It would also
provide the Commissioner substantial regulatory authority to ensure the
system is administered safely.
Notably, this bill prohibits smoking medical marihuana. The negative
health consequences of smoking of marihuana are well-established. As the
National Institute for Drug Abuse notes, "The smoke of marijuana, like
that of tobacco, consists of a toxic mixture of gases and particulates,
many of which are known to be harmful to the lungs." In addition to its
direct negative effects on users' health, the widespread smoking of
medical marihuana has the potential to undermine New York State's
decades-long and successful effort to decrease smoking more broadly.
However well-intentioned, any effort that reduces the stigma associated
with smoking, and that has the potential to lead to an increase in smok-
ing rates among New Yorkers, especially young New Yorkers, presents an
unwarranted public health risk. This legislation would avoid that risk.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
BUDGET IMPLICATIONS:
Any State Fiscal Year 2014-2015 expenses associated with this bill would
be paid for by existing state resources, and ongoing expenses would be
funded through the excise tax revenues and application fees.
 
EFFECTIVE DATE:
This bill would take effect immediately, subject to the necessary
certifications by the Commissioner and Superintendent. This bill would
sunset in 7 years.