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A06357 Summary:

BILL NO    A06357E

SAME AS    SAME AS S07923

SPONSOR    Gottfried (MS)

COSPNSR    Lupardo, Cahill, Clark, Cymbrowitz, Dinowitz, Hevesi, Lavine, Paulin,
           Peoples-Stokes, Rosenthal, Titone, Arroyo, Bronson, Brook-Krasny,
           Cook, Crespo, DenDekker, Fahy, Jaffee, Kavanagh, Lifton, Otis,
           Rivera, Roberts, Skartados, Steck, Weprin, Zebrowski, Sepulveda,
           Katz, Miller, O'Donnell

MLTSPNSR   Abinanti, Aubry, Braunstein, Brennan, Buchwald, Farrell, Galef,
           Glick, Hikind, Jacobs, Kellner, Magee, Markey, McDonald, Millman,
           Mosley, Moya, Perry, Pretlow, Robinson, Rodriguez, Scarborough,
           Schimel, Sweeney, Walter, Weisenberg, Wright

Add Art 33 Title 5-A SS3360 - 3369-e, amd S3371, Pub Health L; add Art 20-B
SS490 & 491, amd S171-a, Tax L; add S89-h, St Fin L; amd S853, Gen Bus L; amd
S221.00, add Art 179 SS179.00 - 179.15, Pen L; amd SS216.00 & 410.91, CP L

Relates to the medical use of marihuana; legalizes the possession, manufacture,
use, delivery, transport or administration of medical marihuana by a designated
caregiver for a certified medical use; prescribes procedures for such
possession, acquisition, etc. including certification of patients by their
practitioner, and that, in the practitioner's professional judgment, the
patient would receive therapeutic or palliative benefit from use of medical
marihuana.
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A06357 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6357--E
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 26, 2013
                                       ___________
 
        Introduced  by  M.  of A. GOTTFRIED, LUPARDO, CAHILL, CLARK, CYMBROWITZ,
          DINOWITZ, HEVESI, LAVINE, PAULIN, PEOPLES-STOKES,  ROSENTHAL,  TITONE,
          ARROYO,  BRONSON, BROOK-KRASNY, COOK, CRESPO, DenDEKKER, FAHY, JAFFEE,
          KAVANAGH, LIFTON, OTIS, RIVERA,  ROBERTS,  SKARTADOS,  STECK,  WEPRIN,
          ZEBROWSKI, SEPULVEDA, KATZ, MILLER, O'DONNELL -- Multi-Sponsored by --

          M.  of  A.    ABINANTI, AUBRY, BRAUNSTEIN, BRENNAN, BUCHWALD, FARRELL,
          GALEF, GLICK, HIKIND, JACOBS, KELLNER, MAGEE, MARKEY, McDONALD,  MILL-
          MAN,  MOSLEY,  MOYA, PERRY, PRETLOW, ROBINSON, RODRIGUEZ, SCARBOROUGH,
          SCHIMEL, SWEENEY, WALTER, WEISENBERG, WRIGHT --  (at  request  of  the
          Governor)  --  read  once  and  referred to the Committee on Health --
          reported and referred to  the  Committee  on  Codes  --  reported  and
          referred  to the Committee on Ways and Means -- passed by Assembly and
          delivered to the Senate, recalled from the Senate, vote  reconsidered,
          bill  amended,  ordered reprinted, retaining its place on the order of
          third reading -- recommitted to the Committee on Health in  accordance
          with Assembly Rule 3, sec. 2 -- reported and referred to the Committee
          on  Codes  -- reported and referred to the Committee on Ways and Means

          -- committee discharged, bill amended, ordered  reprinted  as  amended
          and  recommitted  to  said  committee  -- reported and referred to the
          Committee on Rules -- passed by Assembly and delivered to the  Senate,
          recalled  from  the  Senate,  vote reconsidered, bill amended, ordered
          reprinted, retaining its place on the special order of  third  reading
          --   recommitted   to  the  Committee  on  Rules  --  Rules  Committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to the Committee on Rules -- again reported from said  committee  with
          amendments,  ordered  reprinted  as  amended  and  recommitted to said
          committee
 
        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 proce-
          dure law, in relation to medical use of marihuana; and  providing  for

          the repeal of such provisions upon expiration thereof
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01604-31-4

        A. 6357--E                          2
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section  1. Article 33 of the public health law is amended by adding a
     2  new title 5-A to read as follows:
     3                                  TITLE V-A
     4                          MEDICAL USE OF MARIHUANA
     5  Section 3360.   Definitions.
     6          3361.   Certification of patients.
     7          3362.   Lawful medical use.

     8          3363.   Registry identification cards.
     9          3364.   Registered organizations.
    10          3365.   Registering of registered organizations.
    11          3366.   Reports by registered organizations.
    12          3367.   Evaluation; research programs; report by department.
    13          3368.   Relation to other laws.
    14          3369.   Protections for the medical use of marihuana.
    15          3369-a. Regulations.
    16          3369-b. Effective date.
    17          3369-c. Suspend; terminate.
    18          3369-d. Pricing.
    19          3369-e. Severability.
    20    § 3360. Definitions. As used in this title, the following terms  shall
    21  have  the following meanings, unless the context clearly requires other-

    22  wise:
    23    1. "Certified medical use" means the acquisition, possession, use, or,
    24  transportation of medical marihuana  by  a  certified  patient,  or  the
    25  acquisition,  possession,  delivery, transportation or administration of
    26  medical marihuana by a designated caregiver, for  use  as  part  of  the
    27  treatment of the patient's serious condition, as authorized in a certif-
    28  ication  under  this  title  including  enabling the patient to tolerate
    29  treatment for the serious condition. A certified medical  use  does  not
    30  include smoking.
    31    2.  "Caring  for" means treating a patient, in the course of which the
    32  practitioner has completed a full assessment of  the  patient's  medical
    33  history and current medical condition.

    34    3.  "Certified  patient" means a patient who is a resident of New York
    35  state or receiving care and treatment in New York state as determined by
    36  the commissioner in regulation, and is certified under  section  thirty-
    37  three hundred sixty-one of this title.
    38    4.  "Certification"  means a certification, made under section thirty-
    39  three hundred sixty-one of this title.
    40    5. "Designated caregiver" means the individual designated by a  certi-
    41  fied  patient  in a registry application. A certified patient may desig-
    42  nate up to two designated caregivers.
    43    6. "Public place" means a public place as defined in regulation by the
    44  commissioner.
    45    7. (a) "Serious condition" means:

    46    (i) having one of the following severe debilitating or  life-threaten-
    47  ing  conditions:    cancer,  positive  status for human immunodeficiency
    48  virus or acquired immune deficiency syndrome, amyotrophic lateral scler-
    49  osis, Parkinson's disease, multiple sclerosis,  damage  to  the  nervous
    50  tissue  of  the  spinal  cord  with objective neurological indication of
    51  intractable spasticity, epilepsy, inflammatory bowel  disease,  neuropa-
    52  thies, Huntington's disease, or as added by the commissioner; and

        A. 6357--E                          3
 
     1    (ii) any of the following conditions where it is clinically associated
     2  with,  or  a  complication  of,  a condition under this paragraph or its

     3  treatment: cachexia or wasting syndrome; severe or chronic pain;  severe
     4  nausea; seizures; severe or persistent muscle spasms; or such conditions
     5  as are added by the commissioner.
     6    (b)  No  later  than  eighteen  months from the effective date of this
     7  section, the commissioner shall determine whether to add  the  following
     8  serious  conditions:  Alzheimer's,  muscular  dystrophy, dystonia, post-
     9  traumatic stress disorder and rheumatoid arthritis.
    10    8. "Medical marihuana" means marihuana as defined in subdivision twen-
    11  ty-one of section thirty-three hundred two of this article, intended for
    12  a certified medical use, as determined by the commissioner in his or her
    13  sole discretion. Any form of  medical  marihuana  not  approved  by  the

    14  commissioner is expressly prohibited.
    15    9.  "Registered  organization"  means  a registered organization under
    16  sections  thirty-three  hundred  sixty-four  and  thirty-three   hundred
    17  sixty-five of this title.
    18    10. "Registry application" means an application properly completed and
    19  filed  with  the department by a certified patient under section thirty-
    20  three hundred sixty-three of this title.
    21    11. "Registry identification card" means a document that identifies  a
    22  certified  patient  or  designated  caregiver, as provided under section
    23  thirty-three hundred sixty-three of this title.
    24    12. "Practitioner"  means  a  practitioner  who  (i)  is  a  physician

    25  licensed  by New York state and practicing within the state, (ii) who by
    26  training or experience is qualified to  treat  a  serious  condition  as
    27  defined  in subdivision seven of this section; and (iii) has completed a
    28  two to four hour course as determined by the commissioner in  regulation
    29  and  registered  with  the  department; provided however, a registration
    30  shall not be denied without cause. Such course may  count  toward  board
    31  certification  requirements.  The commissioner shall consider the inclu-
    32  sion of nurse practitioners under this title based  upon  considerations
    33  including  access and availability. After such consideration the commis-
    34  sioner is authorized to deem nurse practitioners as practitioners  under
    35  this title.

    36    13.  "Terminally ill" means an individual has a medical prognosis that
    37  the individual's life expectancy is approximately one year  or  less  if
    38  the illness runs its normal course.
    39    14. "Labor peace agreement" means an agreement between an entity and a
    40  labor  organization that, at a minimum, protects the state's proprietary
    41  interests by prohibiting labor organizations and members  from  engaging
    42  in picketing, work stoppages, boycotts, and any other economic interfer-
    43  ence with the registered organization's business.
    44    15.  "Individual dose" means a single measure of raw medical marihuana
    45  or non-infused concentrates to be determined and clearly identified by a
    46  patient's practitioner for the patient's specific  certified  condition.

    47  For  ingestible or sub-lingual medical marihuana products, no individual
    48  dose may contain more than ten milligrams of tetrahydrocannabinol.
    49    16. "Form of medical marihuana" means characteristics of  the  medical
    50  marihuana  recommended  or  limited  for a particular certified patient,
    51  including the method of consumption and any particular strain,  variety,
    52  and quantity or percentage of marihuana or particular active ingredient.
    53    17.  "Applicant"  means  a  for-profit entity or not-for-profit corpo-
    54  ration and includes:  board members, officers, managers,  owners,  part-
    55  ners,  principal  stakeholders  and members who submit an application to
    56  become a registered organization.

        A. 6357--E                          4
 

     1    § 3361. Certification of patients. 1. A patient certification may only
     2  be issued if: (a) a practitioner has been registered with the department
     3  to issue a certification as determined  by  the  commissioner;  (b)  the
     4  patient  has  a  serious  condition,  which  shall  be  specified in the
     5  patient's  health care record; (c) the practitioner by training or expe-
     6  rience is qualified to treat the serious condition; (d) the  patient  is
     7  under  the practitioner's continuing care for the serious condition; and
     8  (e) in the practitioner's professional opinion and review of past treat-
     9  ments, the patient is likely to receive therapeutic or palliative  bene-
    10  fit  from  the primary or adjunctive treatment with medical use of mari-

    11  huana for the serious condition.
    12    2. The certification shall include (a) the name,  date  of  birth  and
    13  address  of  the patient; (b) a statement that the patient has a serious
    14  condition and the patient is under the practitioner's care for the seri-
    15  ous condition; (c) a statement attesting that all requirements of subdi-
    16  vision one of this section have been satisfied; (d) the  date;  and  (e)
    17  the  name,  address,  federal registration number, telephone number, and
    18  the handwritten signature of the certifying practitioner.   The  commis-
    19  sioner  may  require  by regulation that the certification shall be on a
    20  form provided by the department.  The  practitioner  may  state  in  the

    21  certification  that,  in  the  practitioner's  professional opinion, the
    22  patient would benefit from medical  marihuana  only  until  a  specified
    23  date. The practitioner may state in the certification that, in the prac-
    24  titioner's  professional opinion, the patient is terminally ill and that
    25  the certification shall not expire until the patient dies.
    26    3. In making a certification, the practitioner shall consider the form
    27  of medical marihuana the patient should consume, including the method of
    28  consumption and any particular strain, variety, and quantity or percent-
    29  age of  marihuana  or  particular  active  ingredient,  and  appropriate
    30  dosage.  The practitioner shall state in the certification any recommen-

    31  dation  or limitation the practitioner makes, in his or her professional
    32  opinion, concerning the appropriate form or forms of  medical  marihuana
    33  and dosage.
    34    4.  Every  practitioner shall consult the prescription monitoring drug
    35  program registry prior to making or issuing  a  certification,  for  the
    36  purpose  of  reviewing  a  patient's  controlled  substance history. For
    37  purposes of this section, a practitioner may  authorize  a  designee  to
    38  consult  the  prescription  monitoring  program  registry  on his or her
    39  behalf, provided that such designation is  in  accordance  with  section
    40  thirty-three hundred forty-three-a of this article.
    41    5.  The  practitioner  shall  give  the certification to the certified

    42  patient, and place a copy in the patient's health care record.
    43    6. No practitioner shall issue a certification under this section  for
    44  himself or herself.
    45    7.    A  registry  identification  card based on a certification shall
    46  expire one year after the date the certification is signed by the  prac-
    47  titioner.
    48    8.  (a)  If  the practitioner states in the certification that, in the
    49  practitioner's professional opinion,  the  patient  would  benefit  from
    50  medical marihuana only until a specified earlier date, then the registry
    51  identification card shall expire on that date;
    52    (b)  If the practitioner states in the certification that in the prac-
    53  titioner's professional opinion the patient is terminally ill  and  that

    54  the  certification  shall  not  expire  until the patient dies, then the
    55  registry identification card shall state that the patient is  terminally

        A. 6357--E                          5
 
     1  ill  and  that  the registration card shall not expire until the patient
     2  dies;
     3    (c)  If  the practitioner re-issues the certification to terminate the
     4  certification on an earlier date, then the registry identification  card
     5  shall  expire  on that date and shall be promptly returned by the certi-
     6  fied patient to the department;
     7    (d) If the certification so provides, the registry identification card
     8  shall state any recommendation or limitation by the practitioner  as  to

     9  the  form  or  forms  of  medical  marihuana or dosage for the certified
    10  patient; and
    11    (e) The commissioner shall make regulations to implement this subdivi-
    12  sion.
    13    § 3362. Lawful medical  use.  1.  The  possession,  acquisition,  use,
    14  delivery,  transfer,  transportation, or administration of medical mari-
    15  huana by a certified patient or designated caregiver possessing a  valid
    16  registry identification card, for certified medical use, shall be lawful
    17  under this title; provided that:
    18    (a)  the  marihuana that may be possessed by a certified patient shall
    19  not exceed a thirty day supply of the dosage as determined by the  prac-
    20  titioner,  consistent  with  any  guidance and regulations issued by the

    21  commissioner, provided that during the last seven days of any thirty day
    22  period, the certified patient may also possess up to such amount for the
    23  next thirty day period;
    24    (b) the marihuana that may be possessed by designated caregivers  does
    25  not  exceed the quantities referred to in paragraph (a) of this subdivi-
    26  sion for each certified patient for whom the caregiver possesses a valid
    27  registry identification card, up to five certified patients;
    28    (c) the form or forms of medical marihuana that may  be  possessed  by
    29  the  certified  patient  or  designated  caregiver pursuant to a certif-
    30  ication shall be in compliance with any recommendation or limitation  by
    31  the  practitioner as to the form or forms of medical marihuana or dosage

    32  for the certified patient in the certification; and
    33    (d) the medical marihuana shall be kept in  the  original  package  in
    34  which  it was dispensed under subdivision twelve of section thirty-three
    35  hundred sixty-four of this title, except for  the  portion  removed  for
    36  immediate  consumption  for  certified  medical  use  by  the  certified
    37  patient.
    38    2. Notwithstanding subdivision one of this section:
    39    (a) possession of medical marihuana shall not  be  lawful  under  this
    40  title  if it is smoked, consumed, vaporized, or grown in a public place,
    41  regardless of the form of medical  marihuana  stated  in  the  patient's
    42  certification.
    43    (b)  a  person  possessing  medical  marihuana  under this title shall

    44  possess his or her registry identification card at  all  times  when  in
    45  immediate possession of medical marihuana.
    46    § 3363. Registry identification cards. 1. Upon approval of the certif-
    47  ication,  the  department  shall issue registry identification cards for
    48  certified patients and designated caregivers. A registry  identification
    49  card  shall expire as provided in section thirty-three hundred sixty-one
    50  of this title or as otherwise provided in this section.  The  department
    51  shall begin issuing registry identification cards as soon as practicable
    52  after  the  certifications  required  by  section  thirty-three  hundred
    53  sixty-nine-b are granted. The department may specify a form for a regis-

    54  try application, in which case the department shall provide the form  on
    55  request,  reproductions  of  the form may be used, and the form shall be
    56  available for downloading from the department's website.

        A. 6357--E                          6
 
     1    2. To obtain, amend or renew a registry identification card, a  certi-
     2  fied  patient  or designated caregiver shall file a registry application
     3  with the department. The registry  application  or  renewal  application
     4  shall include:
     5    (a) in the case of a certified patient:
     6    (i)  the patient's certification (a new written certification shall be
     7  provided with a renewal application);
     8    (ii) the name, address, and date of birth of the patient;

     9    (iii) the date of the certification;
    10    (iv) if the patient has a registry  identification  card  based  on  a
    11  current  valid  certification,  the  registry  identification number and
    12  expiration date of that registry identification card;
    13    (v) the specified date until which  the  patient  would  benefit  from
    14  medical marihuana, if the certification states such a date;
    15    (vi)  the  name,  address,  federal registration number, and telephone
    16  number of the certifying practitioner;
    17    (vii) any recommendation or limitation by the practitioner as  to  the
    18  form  or forms of medical marihuana or dosage for the certified patient;
    19  and
    20    (viii)  other  individual  identifying  information  required  by  the

    21  department;
    22    (b)  in  the  case of a certified patient, if the patient designates a
    23  designated caregiver, the name, address, and date of birth of the desig-
    24  nated caregiver, and other individual identifying  information  required
    25  by the department;
    26    (c) in the case of a designated caregiver:
    27    (i) the name, address, and date of birth of the designated caregiver;
    28    (ii)  if  the designated caregiver has a registry identification card,
    29  the registry identification number and expiration date of that  registry
    30  identification card; and
    31    (iii) other individual identifying information required by the depart-
    32  ment;
    33    (d)  a  statement  that  a  false statement made in the application is

    34  punishable under section 210.45 of the penal law;
    35    (e) the date of the application and the  signature  of  the  certified
    36  patient or designated caregiver, as the case may be;
    37    (f)  a fifty dollar application fee, provided, that the department may
    38  waive or reduce the fee in cases of financial hardship; and
    39    (g) any other requirements determined by the commissioner.
    40    3. Where a certified patient is under the age of eighteen:
    41    (a) The application for a registry identification card shall  be  made
    42  by  an  appropriate person over twenty-one years of age. The application
    43  shall state facts demonstrating that the person is appropriate.
    44    (b) The designated caregiver shall be (i) a parent or  legal  guardian

    45  of  the certified patient, (ii) a person designated by a parent or legal
    46  guardian, or (iii) an appropriate person approved by the department upon
    47  a sufficient showing that no parent or legal guardian is appropriate  or
    48  available.
    49    4.  No  person  may  be  a designated caregiver if the person is under
    50  twenty-one years of age unless a  sufficient  showing  is  made  to  the
    51  department  that the person should be permitted to serve as a designated
    52  caregiver. The requirements for such a showing shall  be  determined  by
    53  the commissioner.
    54    5.  No  person may be a designated caregiver for more than five certi-
    55  fied patients at one time.

        A. 6357--E                          7
 

     1    6. If a certified patient wishes to change or  terminate  his  or  her
     2  designated  caregiver,  for whatever reason, the certified patient shall
     3  notify the department as soon as practicable. The department shall issue
     4  a notification to the designated caregiver that their registration  card
     5  is  invalid  and  must be promptly returned to the department. The newly
     6  designated caregiver must comply with all requirements set forth in this
     7  section.
     8    7. If the certification so provides, the registry identification  card
     9  shall contain any recommendation or limitation by the practitioner as to
    10  the  form  or  forms  of  medical  marihuana or dosage for the certified
    11  patient.

    12    8. The department shall issue separate registry  identification  cards
    13  for  certified  patients and designated caregivers as soon as reasonably
    14  practicable after receiving a complete application under  this  section,
    15  unless  it  determines  that  the application is incomplete or factually
    16  inaccurate, in which case it shall promptly notify the applicant.
    17    9. If the application of a certified patient designates an  individual
    18  as a designated caregiver who is not authorized to be a designated care-
    19  giver, that portion of the application shall be denied by the department
    20  but  that  shall  not affect the approval of the balance of the applica-
    21  tion.
    22    10. A registry identification card shall:

    23    (a) contain the name of the certified patient or the designated  care-
    24  giver as the case may be;
    25    (b)  contain  the date of issuance and expiration date of the registry
    26  identification card;
    27    (c) contain a registry identification number for the certified patient
    28  or designated caregiver, as the case may be and a  registry  identifica-
    29  tion number;
    30    (d)  contain a photograph of the individual to whom the registry iden-
    31  tification card is being issued, which shall be obtained by the  depart-
    32  ment in a manner specified by the commissioner in regulations; provided,
    33  however,  that  if  the department requires certified patients to submit
    34  photographs for this purpose, there shall be a reasonable  accommodation

    35  of  certified  patients  who  are  confined  to their homes due to their
    36  medical conditions and may therefore have  difficulty  procuring  photo-
    37  graphs;
    38    (e) be a secure document as determined by the department;
    39    (f) plainly state any recommendation or limitation by the practitioner
    40  as to the form or forms of medical marihuana or dosage for the certified
    41  patient; and
    42    (g) any other requirements determined by the commissioner.
    43    11.  A certified patient or designated caregiver who has been issued a
    44  registry identification card shall notify the department of  any  change
    45  in  his or her name or address or, with respect to the patient, if he or
    46  she ceases to have the serious  condition  noted  on  the  certification

    47  within  ten  days  of such change. The certified patient's or designated
    48  caregiver's registry identification card shall  be  deemed  invalid  and
    49  shall be returned promptly to the department.
    50    12.  If  a  certified patient or designated caregiver loses his or her
    51  registry identification card, he or she shall notify the department  and
    52  submit  a  twenty-five  dollar fee within ten days of losing the card to
    53  maintain the registration. The department may establish higher fees  for
    54  issuing  a  new  registry  identification card for second and subsequent
    55  replacements for a lost card, provided, that the department may waive or
    56  reduce the fee in cases of  financial  hardship.  The  department  shall


        A. 6357--E                          8
 
     1  issue  a  new registry identification card as soon as practicable, which
     2  may contain a new  registry  identification  number,  to  the  certified
     3  patient  or  designated  caregiver,  as  the  case may be. The certified
     4  patient  or  designated  caregiver  shall  not be able to obtain medical
     5  marihuana until the certified patient receives a new card.
     6    13. The department shall maintain a confidential list of  the  persons
     7  to  whom it has issued registry identification cards. Individual identi-
     8  fying information obtained by the department under this title  shall  be
     9  confidential  and exempt from disclosure under article six of the public
    10  officers law.   Notwithstanding this  subdivision,  the  department  may

    11  notify any appropriate law enforcement agency of information relating to
    12  any violation or suspected violation of this title.
    13    14.  The  department  shall  verify to law enforcement personnel in an
    14  appropriate case whether a registry identification card is valid.
    15    15. If a certified patient or designated caregiver willfully  violates
    16  any  provision of this title as determined by the department, his or her
    17  registry identification card may be suspended or  revoked.  This  is  in
    18  addition to any other penalty that may apply.
    19    §  3364.  Registered organizations. 1. A registered organization shall
    20  be a for-profit business entity or not-for-profit corporation  organized
    21  for the purpose of acquiring, possessing, manufacturing, selling, deliv-

    22  ering,  transporting, distributing or dispensing marihuana for certified
    23  medical use.
    24    2. The acquiring, possession, manufacture, sale, delivery,  transport-
    25  ing,  distributing  or dispensing of marihuana by a registered organiza-
    26  tion under this title in accordance with its registration under  section
    27  thirty-three hundred sixty-five of this title or a renewal thereof shall
    28  be lawful under this title.
    29    3.  Each  registered  organization  shall contract with an independent
    30  laboratory to test the medical  marihuana  produced  by  the  registered
    31  organization.  The commissioner shall approve the laboratory and require
    32  that the laboratory report testing results in a manner determined by the

    33  commissioner. The commissioner is authorized to issue regulation requir-
    34  ing the laboratory to perform certain tests and services.
    35    4. (a) A registered organization may lawfully, in  good  faith,  sell,
    36  deliver, distribute or dispense medical marihuana to a certified patient
    37  or designated caregiver upon presentation to the registered organization
    38  of  a  valid  registry identification card for that certified patient or
    39  designated caregiver. When presented with  the  registry  identification
    40  card, the registered organization shall provide to the certified patient
    41  or designated caregiver a receipt, which shall state: the name, address,
    42  and  registry  identification number of the registered organization; the

    43  name and registry identification number of the certified patient and the
    44  designated caregiver (if any); the date  the  marihuana  was  sold;  any
    45  recommendation or limitation by the practitioner as to the form or forms
    46  of  medical  marihuana or dosage for the certified patient; and the form
    47  and the quantity of medical marihuana sold. The registered  organization
    48  shall  retain a copy of the registry identification card and the receipt
    49  for six years.
    50    (b) The proprietor of a registered organization shall file or cause to
    51  be filed any receipt and certification information with  the  department
    52  by  electronic  means  on  a  real  time basis as the commissioner shall
    53  require by regulation. When filing receipt and certification information

    54  electronically pursuant to this paragraph, the proprietor of the  regis-
    55  tered   organization   shall  dispose  of  any  electronically  recorded

        A. 6357--E                          9
 
     1  prescription information in such manner as  the  commissioner  shall  by
     2  regulation require.
     3    5.  (a)  No  registered  organization may sell, deliver, distribute or
     4  dispense to any certified patient or designated caregiver a quantity  of
     5  medical  marihuana  larger  than  that  individual  would  be allowed to
     6  possess under this title.
     7    (b) When dispensing medical marihuana to a certified patient or desig-
     8  nated caregiver, the registered organization (i) shall not  dispense  an

     9  amount greater than a thirty day supply to a certified patient until the
    10  certified  patient  has  exhausted  all  but a seven day supply provided
    11  pursuant to a previously issued certification, and (ii) shall verify the
    12  information in subparagraph (i) of  this  paragraph  by  consulting  the
    13  prescription  monitoring  program  registry  under  section thirty-three
    14  hundred forty-three-a of this article.
    15    (c) Medical marihuana dispensed to a certified patient  or  designated
    16  caregiver  by a registered organization shall conform to any recommenda-
    17  tion or limitation by the practitioner  as  to  the  form  or  forms  of
    18  medical marihuana or dosage for the certified patient.
    19    6.  When  a  registered  organization  sells, delivers, distributes or

    20  dispenses medical marihuana to a certified patient or  designated  care-
    21  giver,  it  shall provide to that individual a safety insert, which will
    22  be developed and approved by the commissioner and include,  but  not  be
    23  limited to, information on:
    24    (a) methods for administering medical marihuana in individual doses,
    25    (b) any potential dangers stemming from the use of medical marihuana,
    26    (c) how to recognize what may be problematic usage of medical marihua-
    27  na  and  obtain appropriate services or treatment for problematic usage,
    28  and
    29    (d) other information as determined by the commissioner.
    30    7. Registered organizations shall not be managed by or  employ  anyone

    31  who  has  been  convicted  of any felony of sale or possession of drugs,
    32  narcotics, or controlled substances provided that this subdivision  only
    33  applies  to  (a)  managers  or  employees  who come into contact with or
    34  handle medical marihuana, and (b) a conviction less than ten years  (not
    35  counting time spent in incarceration) prior to being employed, for which
    36  the person has not received a certificate of relief from disabilities or
    37  a  certificate  of  good  conduct  under  article  twenty-three  of  the
    38  correction law.
    39    8. Manufacturing of medical marihuana  by  a  registered  organization
    40  shall  only  be  done in an indoor, enclosed, secure facility located in
    41  New York state, which may include a greenhouse.  The commissioner  shall

    42  promulgate regulations establishing requirements for such facilities.
    43    9.  Dispensing of medical marihuana by a registered organization shall
    44  only be done in an indoor, enclosed, secure facility located in New York
    45  state, which may include a greenhouse.  The commissioner  shall  promul-
    46  gate regulations establishing requirements for such facilities.
    47    10. A registered organization shall determine the quality, safety, and
    48  clinical  strength of medical marihuana manufactured or dispensed by the
    49  registered organization, and shall provide documentation of that  quali-
    50  ty,  safety and clinical strength to the department and to any person or
    51  entity to which the medical marihuana is sold or dispensed.

    52    11. A registered organization shall be deemed to  be  a  "health  care
    53  provider"  for  the purposes of title two-D of article two of this chap-
    54  ter.
    55    12. Medical marihuana shall be dispensed to  a  certified  patient  or
    56  designated  caregiver  in  a  sealed  and  properly labeled package. The

        A. 6357--E                         10
 
     1  labeling shall contain: (a) the information required to be  included  in
     2  the receipt provided to the certified patient or designated caregiver by
     3  the  registered organization; (b) the packaging date; (c) any applicable
     4  date  by which the medical marihuana should be used; (d) a warning stat-
     5  ing, "This product is for medicinal use only.  Women should not  consume

     6  during  pregnancy  or  while  breastfeeding  except on the advice of the
     7  certifying health care practitioner, and in the  case  of  breastfeeding
     8  mothers,  including the infant's pediatrician. This product might impair
     9  the ability to drive. Keep out of reach of children."; (e) the amount of
    10  individual doses contained within; and (f) a warning  that  the  medical
    11  marihuana  must  be  kept  in  the  original  container  in which it was
    12  dispensed.
    13    13. The commissioner is  authorized  to  make  rules  and  regulations
    14  restricting  the  advertising  and marketing of medical marihuana, which
    15  shall be consistent with the federal regulations governing  prescription
    16  drug advertising and marketing.

    17    §  3365.  Registering  of registered organizations. 1. Application for
    18  initial registration. (a) An applicant for registration as a  registered
    19  organization under section thirty-three hundred sixty-four of this title
    20  shall include such information prepared in such manner and detail as the
    21  commissioner may require, including but not limited to:
    22    (i) a description of the activities in which it intends to engage as a
    23  registered organization;
    24    (ii) that the applicant:
    25    (A) is of good moral character;
    26    (B)  possesses or has the right to use sufficient land, buildings, and
    27  other premises (which shall be specified in the application) and  equip-
    28  ment  to properly carry on the activity described in the application, or

    29  in the alternative posts a bond of not less than two million dollars;
    30    (C) is able to maintain effective  security  and  control  to  prevent
    31  diversion, abuse, and other illegal conduct relating to the marihuana;
    32    (D)  is  able to comply with all applicable state laws and regulations
    33  relating to the activities in which  it  intends  to  engage  under  the
    34  registration;
    35    (iii) that the applicant has entered into a labor peace agreement with
    36  a  bona-fide labor organization that is actively engaged in representing
    37  or attempting to represent the applicant's employees. The maintenance of
    38  such a labor peace agreement shall be an ongoing material  condition  of
    39  certification.

    40    (iv)  the  applicant's status under subdivision one of section thirty-
    41  three hundred sixty-four of this title; and
    42    (v) the application shall include  the  name,  residence  address  and
    43  title  of  each of the officers and directors and the name and residence
    44  address of any person or entity that is a member of the applicant.  Each
    45  such person, if an individual, or lawful representative if a legal enti-
    46  ty, shall submit an affidavit with the application setting forth:
    47    (A)  any  position of management or ownership during the preceding ten
    48  years of a ten per centum or greater interest  in  any  other  business,
    49  located in or outside this state, manufacturing or distributing drugs;

    50    (B)  whether  such person or any such business has been convicted of a
    51  felony or had a registration or license  suspended  or  revoked  in  any
    52  administrative or judicial proceeding; and
    53    (C) such other information as the commissioner may reasonably require.
    54    2.  Duty  to report. The applicant shall be under a continuing duty to
    55  report to the department any change in facts or circumstances  reflected

        A. 6357--E                         11
 
     1  in  the application or any newly discovered or occurring fact or circum-
     2  stance which is required to be included in the application.
     3    3. Granting of registration. (a) The commissioner shall grant a regis-
     4  tration  or  amendment to a registration under this section if he or she

     5  is satisfied that:
     6    (i) the applicant will be able to maintain effective  control  against
     7  diversion of marihuana;
     8    (ii)  the  applicant  will be able to comply with all applicable state
     9  laws;
    10    (iii) the applicant and its officers are ready, willing  and  able  to
    11  properly carry on the manufacturing or distributing activity for which a
    12  registration is sought;
    13    (iv)  the applicant possesses or has the right to use sufficient land,
    14  buildings and equipment to properly carry on the activity  described  in
    15  the application;
    16    (v)  it  is  in the public interest that such registration be granted;
    17  the commissioner may consider whether the number of registered organiza-

    18  tions in an area will be adequate or excessive to reasonably  serve  the
    19  area;
    20    (vi) the applicant and its managing officers are of good moral charac-
    21  ter;
    22    (vii)  the  applicant  has entered into a labor peace agreement with a
    23  bona-fide labor organization that is actively engaged in representing or
    24  attempting to represent the applicant's employees; and
    25    (viii) the applicant satisfies any other conditions as  determined  by
    26  the commissioner.
    27    (b)  If the commissioner is not satisfied that the applicant should be
    28  issued a registration, he or she shall notify the applicant  in  writing
    29  of those factors upon which further evidence is required.  Within thirty

    30  days of the receipt of such notification, the applicant may submit addi-
    31  tional material to the commissioner or demand a hearing, or both.
    32    (c)  The  fee for a registration under this section shall be a reason-
    33  able amount determined  by  the  department  in  regulations;  provided,
    34  however,  if  the  registration  is issued for a period greater than two
    35  years the fee shall be increased, pro rata, for each additional month of
    36  validity.
    37    (d) Registrations issued under this section shall  be  effective  only
    38  for the registered organization and shall specify:
    39    (i) the name and address of the registered organization;
    40    (ii)  which  activities  of a registered organization are permitted by
    41  the registration;

    42    (iii) the land, buildings and facilities that  may  be  used  for  the
    43  permitted activities of the registered organization; and
    44    (iv)  such  other  information  as  the  commissioner shall reasonably
    45  provide to assure compliance with this title.
    46    (e) Upon application of a registered organization, a registration  may
    47  be  amended  to allow the registered organization to relocate within the
    48  state or to add or delete permitted registered  organization  activities
    49  or  facilities.  The  fee  for such amendment shall be two hundred fifty
    50  dollars.
    51    4. A registration issued under this section shall  be  valid  for  two
    52  years  from  the  date  of issue, except that in order to facilitate the

    53  renewals of such registrations, the commissioner may  upon  the  initial
    54  application  for  a  registration,  issue  some  registrations which may
    55  remain valid for a period of time greater than two years but not exceed-
    56  ing an additional eleven months.

        A. 6357--E                         12
 
     1    5. Applications for renewal of registrations. (a) An  application  for
     2  the renewal of any registration issued under this section shall be filed
     3  with  the  department not more than six months nor less than four months
     4  prior to the  expiration  thereof.  A  late-filed  application  for  the
     5  renewal of a registration may, in the discretion of the commissioner, be
     6  treated as an application for an initial license.

     7    (b)  The  application  for  renewal  shall  include  such  information
     8  prepared in the manner and  detail  as  the  commissioner  may  require,
     9  including but not limited to:
    10    (i)  any  material  change  in  the circumstances or factors listed in
    11  subdivision one of this section; and
    12    (ii) every known charge or investigation, pending or concluded  during
    13  the  period  of  the registration, by any governmental or administrative
    14  agency with respect to:
    15    (A) each incident or alleged incident involving the  theft,  loss,  or
    16  possible  diversion  of  marihuana  manufactured  or  distributed by the
    17  applicant; and
    18    (B) compliance by the applicant  with  the  laws  of  the  state  with

    19  respect  to  any substance listed in section thirty-three hundred six of
    20  this article.
    21    (c) An applicant for renewal shall  be  under  a  continuing  duty  to
    22  report  to the department any change in facts or circumstances reflected
    23  in the application or any newly discovered or occurring fact or  circum-
    24  stance which is required to be included in the application.
    25    (d)  If  the commissioner is not satisfied that the applicant is enti-
    26  tled to a renewal of the registration, he or she shall within a  reason-
    27  ably  practicable time as determined by the commissioner, serve upon the
    28  applicant or his or her attorney of record in person or by registered or
    29  certified mail an order directing the applicant to show cause why his or

    30  her application for renewal should not be denied. The order shall speci-
    31  fy in detail the respects in which the applicant has not  satisfied  the
    32  commissioner that the registration should be renewed.
    33    (e)  Within a reasonably practicable time as determined by the commis-
    34  sioner of such order, the applicant may submit  additional  material  to
    35  the  commissioner  or demand a hearing or both. If a hearing is demanded
    36  the commissioner shall fix a date as soon as reasonably practicable.
    37    6. Granting of renewal of registrations. (a)  The  commissioner  shall
    38  renew a registration unless he or she determines and finds that:
    39    (i)  the  applicant  is  unlikely  to  maintain or be able to maintain
    40  effective control against diversion; or

    41    (ii) the applicant is unlikely to comply with all state laws  applica-
    42  ble to the activities in which it may engage under the registration; or
    43    (iii)  it  is  not  in  the  public interest to renew the registration
    44  because the number of registered organizations in an area  is  excessive
    45  to reasonably serve the area; or
    46    (iv)  the  applicant has either violated or terminated its labor peace
    47  agreement.
    48    (b) For purposes of this section, proof that  a  registered  organiza-
    49  tion,  during  the  period  of  its registration, has failed to maintain
    50  effective control against diversion,  violates  any  provision  of  this
    51  article,  or has knowingly or negligently failed to comply with applica-

    52  ble state laws relating to the activities in which it engages under  the
    53  registration,  shall constitute grounds for suspension or termination of
    54  the registered organization's registration as determined by the  commis-
    55  sioner.  The  registered  organization  shall also be under a continuing
    56  duty to report to the department any material change or fact or  circum-

        A. 6357--E                         13
 
     1  stance  to  the  information  provided  in the registered organization's
     2  application.
     3    7.  The  department  may  suspend  or  terminate the registration of a
     4  registered organization, on grounds  and  using  procedures  under  this
     5  article relating to a license, to the extent consistent with this title.

     6  The  department shall suspend or terminate the registration in the event
     7  that a registered organization violates  or  terminates  the  applicable
     8  labor  peace  agreement. Conduct in compliance with this title which may
     9  violate conflicting federal law, shall not  be  grounds  to  suspend  or
    10  terminate a registration.
    11    8.  The  department  shall  begin issuing registrations for registered
    12  organizations as soon as practicable after the  certifications  required
    13  by section thirty-three hundred sixty-nine-b of this title are given.
    14    9. The commissioner shall register no more than five registered organ-
    15  izations  that  manufacture  medical  marihuana  with  no more than four
    16  dispensing sites wholly owned and operated by such registered  organiza-

    17  tion.  The  commissioner shall ensure that such registered organizations
    18  and dispensing sites are geographically distributed  across  the  state.
    19  The commission may register additional registered organizations.
    20    §  3366.  Reports  by  registered  organizations.  1. The commissioner
    21  shall, by regulation,  require  each  registered  organization  to  file
    22  reports  by  the registered organization during a particular period. The
    23  commissioner shall determine the information  to  be  reported  and  the
    24  forms, time, and manner of the reporting.
    25    2.  The  commissioner  shall,  by  regulation, require each registered
    26  organization to adopt and maintain security, tracking,  record  keeping,

    27  record retention and surveillance systems, relating to all medical mari-
    28  huana at every stage of acquiring, possession, manufacture, sale, deliv-
    29  ery,  transporting, distributing, or dispensing by the registered organ-
    30  ization, subject to regulations of the commissioner.
    31    § 3367. Evaluation; research programs; report by department. 1.    The
    32  commissioner  may  provide for the analysis and evaluation of the opera-
    33  tion of this title. The commissioner may enter into agreements with  one
    34  or more persons, not-for-profit corporations or other organizations, for
    35  the performance of an evaluation of the implementation and effectiveness
    36  of this title.
    37    2.  The  department  may  develop, seek any necessary federal approval

    38  for, and carry out research programs relating to medical use of marihua-
    39  na. Participation in any such research program shall be voluntary on the
    40  part of practitioners, patients, and designated caregivers.
    41    3. The department shall report every two years,  beginning  two  years
    42  after the effective date of this title, to the governor and the legisla-
    43  ture on the medical use of marihuana under this title and make appropri-
    44  ate recommendations.
    45    §  3368. Relation to other laws. 1. (a) The provisions of this article
    46  shall apply to this title, except that where a provision of  this  title
    47  conflicts  with  another  provision  of  this  article, this title shall
    48  apply.

    49    (b) Medical marihuana shall not be deemed to be a "drug" for  purposes
    50  of article one hundred thirty-seven of the education law.
    51    2.  Nothing  in this title shall be construed to require an insurer or
    52  health plan under this chapter or the insurance law to provide  coverage
    53  for  medical  marihuana.    Nothing  in this title shall be construed to
    54  require coverage for medical marihuana under article twenty-five of this
    55  chapter or article five of the social services law.

        A. 6357--E                         14
 
     1    § 3369. Protections for the medical use  of  marihuana.  1.  Certified
     2  patients, designated caregivers, practitioners, registered organizations

     3  and  the  employees  of registered organizations shall not be subject to
     4  arrest, prosecution, or penalty in any manner, or denied  any  right  or
     5  privilege,  including  but  not limited to civil penalty or disciplinary
     6  action by a business or occupational or professional licensing board  or
     7  bureau,  solely for the certified medical use or manufacture of marihua-
     8  na, or for any other action or conduct in accordance with this title.
     9    2. Non-discrimination. Being a certified patient shall be deemed to be
    10  having a "disability" under article fifteen of the executive law  (human
    11  rights  law),  section forty-c of the civil rights law, sections 240.00,
    12  485.00, and 485.05 of the penal law, and section 200.50 of the  criminal

    13  procedure law. This subdivision shall not bar the enforcement of a poli-
    14  cy  prohibiting an employee from performing his or her employment duties
    15  while impaired by a controlled substance.   This subdivision  shall  not
    16  require  any person or entity to do any act that would put the person or
    17  entity in violation of federal  law  or  cause  it  to  lose  a  federal
    18  contract or funding.
    19    3.  The  fact  that  a  person is a certified patient and/or acting in
    20  accordance with this title, shall not be a consideration in a proceeding
    21  pursuant to applicable sections  of  the  domestic  relations  law,  the
    22  social services law and the family court act.
    23    4.  Certification  applications,  certification  forms,  any certified

    24  patient information contained within a database, and copies of  registry
    25  identification cards shall be deemed exempt from public disclosure under
    26  sections eighty-seven and eighty-nine of the public officers law.
    27    §  3369-a.  Regulations.  The  commissioner  shall make regulations to
    28  implement this title.
    29    § 3369-b. Effective date. Registry identification cards or  registered
    30  organization  registrations shall be issued or become effective no later
    31  than eighteen months from signing or until such time as the commissioner
    32  and the superintendent of state police certify that this  title  can  be
    33  implemented  in  accordance  with  public  health  and safety interests,
    34  whichever event comes later.

    35    § 3369-c. Suspend; terminate.  Based upon the  recommendation  of  the
    36  commissioner  and/or  the superintendent of state police that there is a
    37  risk to the public health or safety, the governor may immediately termi-
    38  nate all licenses issued to registered organizations.
    39    § 3369-d. Pricing. 1. Every sale of medical marihuana shall be at  the
    40  price determined by the commissioner.  Every charge made or demanded for
    41  medical  marihuana  not  in  accordance with the price determined by the
    42  commissioner, is prohibited.
    43    2. The commissioner is hereby authorized to set the per dose price  of
    44  each  form  of medical marihuana sold by any registered organization. In
    45  setting the per dose price  of  each  form  of  medical  marihuana,  the

    46  commissioner  shall  consider  the fixed and variable costs of producing
    47  the form of marihuana and any other factor the commissioner, in  his  or
    48  her discretion, deems relevant to determining the per dose price of each
    49  form of medical marihuana.
    50    § 3369-e. Severability. If any clause, sentence, paragraph, section or
    51  part  of  this act shall be adjudged by any court of competent jurisdic-
    52  tion to be invalid, the judgment shall not affect, impair, or invalidate
    53  the remainder thereof, but shall be confined in  its  operation  to  the
    54  clause,  sentence,  paragraph, section or part thereof directly involved
    55  in the controversy in which the judgment shall have been rendered.

        A. 6357--E                         15
 

     1    § 3. Subdivision 2 of section 3371 of the public health law, as  added
     2  by section 5 of part A of chapter 447 of the laws of 2012, is amended to
     3  read as follows:
     4    2. The prescription monitoring program registry may be accessed, under
     5  such  terms  and  conditions  as  are  established by the department for
     6  purposes of maintaining the security and confidentiality of the informa-
     7  tion contained in the registry, by:
     8    (a) a practitioner, or a  designee  authorized  by  such  practitioner
     9  pursuant  to  paragraph  (b)  of subdivision two of section thirty-three
    10  hundred forty-three-a or section thirty-three hundred sixty-one of  this
    11  article,  for  the  purposes  of:  (i) informing the practitioner that a
    12  patient may be under treatment with a controlled  substance  by  another
    13  practitioner;  (ii)  providing  the  practitioner  with notifications of

    14  controlled substance activity as  deemed  relevant  by  the  department,
    15  including  but not limited to a notification made available on a monthly
    16  or other periodic basis through the registry  of  controlled  substances
    17  activity  pertaining  to  his or her patient; (iii) allowing the practi-
    18  tioner, through consultation  of  the  prescription  monitoring  program
    19  registry,  to  review his or her patient's controlled substances history
    20  as required by section thirty-three  hundred  forty-three-a  or  section
    21  thirty-three  hundred  sixty-one  of this article; and (iv) providing to
    22  his or her patient, or person authorized pursuant to  paragraph  (j)  of
    23  subdivision  one of this section, upon request, a copy of such patient's
    24  controlled substance history as is available to the practitioner through
    25  the prescription monitoring program registry; or

    26    (b) a pharmacist, pharmacy intern or other designee authorized by  the
    27  pharmacist  pursuant  to  paragraph  (b) of subdivision three of section
    28  thirty-three hundred forty-three-a of this article, for the purposes of:
    29  (i) consulting the prescription monitoring program  registry  to  review
    30  the  controlled substances history of an individual for whom one or more
    31  prescriptions for controlled substances or certifications for  marihuana
    32  is presented to the pharmacist, pursuant to section thirty-three hundred
    33  forty-three-a  of  this  article; and (ii) receiving from the department
    34  such notifications of controlled substance activity as are  made  avail-
    35  able by the department[.]; or
    36    (c)  an  individual  employed  by  a  registered  organization for the
    37  purpose of consulting the prescription monitoring  program  registry  to

    38  review  the  controlled substances history of an individual for whom one
    39  or more certifications for marihuana is  presented  to  that  registered
    40  organization,  pursuant  to  section  thirty-three hundred sixty-four of
    41  this article. Unless otherwise authorized by this article, an individual
    42  employed by a registered organization will be  provided  access  to  the
    43  prescription  monitoring  program  in the sole discretion of the commis-
    44  sioner.
    45    § 4. The tax law is amended by adding a new article 20-B  to  read  as
    46  follows:
    47                                ARTICLE 20-B
    48                       EXCISE TAX ON MEDICAL MARIHUANA
    49  Section 490. Definitions.
    50          491. Returns to be secret.

    51    §  490.    Definitions.  1. (a) All definitions of terms applicable to
    52  title five-A of article thirty-three of  the  public  health  law  shall
    53  apply to this article.
    54    (b)  As used in this section, where not otherwise specifically defined
    55  and unless a different meaning is clearly required "gross receipt" means
    56  the amount received in or by reason of any sale, conditional  or  other-

        A. 6357--E                         16
 
     1  wise,  of  medical  marihuana  or  in  or by reason of the furnishing of
     2  medical marihuana from the sale  of  medical  marihuana  provided  by  a
     3  registered  organization to a certified patient or designated caregiver.
     4  Gross  receipt  is  expressed  in money, whether paid in cash, credit or

     5  property of any kind or nature, and  shall  be  determined  without  any
     6  deduction  therefrom  on  account of the cost of the service sold or the
     7  cost of materials, labor or services used or other  costs,  interest  or
     8  discount  paid,  or any other expenses whatsoever. "Amount received" for
     9  the purpose of the definition  of  gross  receipt,  as  the  term  gross
    10  receipt  is  used  throughout this article, means the amount charged for
    11  the provision of medical marihuana.
    12    2. There is hereby imposed an excise tax on the  gross  receipts  from
    13  the  sale  of medical marihuana by a registered organization to a certi-
    14  fied patient or designated caregiver,  to  be  paid  by  the  registered

    15  organization,  at  the  rate  of  seven percent. The tax imposed by this
    16  article shall be charged against and be paid by the registered organiza-
    17  tion and shall not be added as a separate charge or  line  item  on  any
    18  sales  slip,  invoice,  receipt  or other statement or memorandum of the
    19  price given to the retail customer.
    20    3. The commissioner may make,  adopt  and  amend  rules,  regulations,
    21  procedures  and  forms  necessary  for the proper administration of this
    22  article.
    23    4. Every registered organization that makes sales of medical marihuana
    24  subject to the tax imposed by this article shall, on or before the twen-
    25  tieth date of each month, file with the commissioner a return  on  forms

    26  to  be  prescribed  by  the  commissioner, showing its receipts from the
    27  retail sale of medical marihuana during the preceding calendar month and
    28  the amount of tax due thereon. Such returns shall contain  such  further
    29  information  as the commissioner may require. Every registered organiza-
    30  tion required to file a return under this section shall, at the time  of
    31  filing  such return, pay to the commissioner the total amount of tax due
    32  on its retail sales of medical marihuana for the period covered by  such
    33  return.  If  a return is not filed when due, the tax shall be due on the
    34  day on which the return is required to be filed.
    35    5. Whenever the commissioner shall determine that any moneys  received

    36  under  the  provisions  of this article were paid in error, he may cause
    37  the same to be refunded, with interest, in accordance  with  such  rules
    38  and  regulations  as  he may prescribe, except that no interest shall be
    39  allowed or paid if the amount thereof would be  less  than  one  dollar.
    40  Such  interest  shall be at the overpayment rate set by the commissioner
    41  pursuant to subdivision twenty-sixth of section one hundred  seventy-one
    42  of  this  chapter,  or if no rate is set, at the rate of six percent per
    43  annum, from the date when the tax, penalty or interest  to  be  refunded
    44  was  paid  to  a date preceding the date of the refund check by not more
    45  than thirty days. Provided, however,  that  for  the  purposes  of  this

    46  subdivision, any tax paid before the last day prescribed for its payment
    47  shall be deemed to have been paid on such last day. Such moneys received
    48  under the provisions of this article which the commissioner shall deter-
    49  mine  were paid in error, may be refunded out of funds in the custody of
    50  the comptroller to the credit of  such  taxes  provided  an  application
    51  therefor  is  filed with the commissioner within two years from the time
    52  the erroneous payment was made.
    53    6. The provisions of article twenty-seven of this chapter shall  apply
    54  to  the tax imposed by this article in the same manner and with the same
    55  force and effect as if the language of such article  had  been  incorpo-

    56  rated  in  full  into this section and had expressly referred to the tax

        A. 6357--E                         17
 
     1  imposed by this article, except to the extent that any provision of such
     2  article is either inconsistent with a provision of this  article  or  is
     3  not relevant to this article.
     4    7.  All  taxes,  interest  and  penalties collected or received by the
     5  commissioner under this article  shall  be  deposited  and  disposed  of
     6  pursuant  to the provisions of section one hundred seventy-one-a of this
     7  chapter, provided that an amount equal to one hundred percent  collected
     8  under  this article less any amount determined by the commissioner to be
     9  reserved by the comptroller for refunds or reimbursements shall be  paid

    10  by  the  comptroller  to  the credit of the medical marihuana trust fund
    11  established by section eighty-nine-h of the state finance law.
    12    8. A registered organization that dispenses  medical  marihuana  shall
    13  provide to the department information on where the medical marihuana was
    14  dispensed and where the medical marihuana was manufactured. A registered
    15  organization that obtains marihuana from another registered organization
    16  shall  obtain from such registered organization information on where the
    17  medical marihuana was manufactured.
    18    § 491. Returns to be secret. 1. Except in accordance with proper judi-
    19  cial order or as in this section or otherwise provided by law, it  shall

    20  be unlawful for the commissioner, any officer or employee of the depart-
    21  ment, or any officer or person who, pursuant to this section, is permit-
    22  ted  to inspect any return or report or to whom a copy, an abstract or a
    23  portion of any return or report is furnished, or to whom any information
    24  contained in any return or report is furnished, or any person engaged or
    25  retained by such department on an  independent  contract  basis  or  any
    26  person  who  in  any  manner  may acquire knowledge of the contents of a
    27  return or report filed pursuant to this article to divulge or make known
    28  in any manner the contents or any  other  information  relating  to  the
    29  business of a distributor, owner or other person contained in any return

    30  or  report  required  under this article.  The officers charged with the
    31  custody of such returns or reports shall not be required to produce  any
    32  of  them  or  evidence  of  anything  contained in them in any action or
    33  proceeding in any court, except  on  behalf  of  the  state,  the  state
    34  department  of  health,  or  the commissioner in an action or proceeding
    35  under the provisions of this chapter or on behalf of the  state  or  the
    36  commissioner  in any other action or proceeding involving the collection
    37  of a tax due under this chapter to which the state or  the  commissioner
    38  is  a  party  or  a  claimant or on behalf of any party to any action or
    39  proceeding under the provisions of this article, when the returns or the

    40  reports or the facts shown thereby are directly involved in such  action
    41  or  proceeding, or in an action or proceeding relating to the regulation
    42  or taxation of medical marihuana on behalf of officers to whom  informa-
    43  tion  shall  have  been  supplied as provided in subdivision two of this
    44  section, in any of which events the court may require the production of,
    45  and may admit in evidence so much of said returns or reports or  of  the
    46  facts  shown thereby as are pertinent to the action or proceeding and no
    47  more. Nothing herein shall be construed to prohibit the commissioner, in
    48  his or her discretion, from allowing the inspection  or  delivery  of  a
    49  certified  copy  of  any return or report filed under this article or of

    50  any information contained in any such return or report by or to  a  duly
    51  authorized  officer or employee of the state department of health; or by
    52  or to the attorney general or other legal representatives of  the  state
    53  when an action shall have been recommended or commenced pursuant to this
    54  chapter  in which such returns or reports or the facts shown thereby are
    55  directly involved; or the inspection of the returns or reports  required
    56  under  this  article  by  the  comptroller or duly designated officer or

        A. 6357--E                         18
 
     1  employee of the state department of audit and control, for  purposes  of
     2  the  audit  of  a refund of any tax paid by a registered organization or

     3  other person under this article; nor  to  prohibit  the  delivery  to  a
     4  registered  organization,  or  a  duly authorized representative of such
     5  registered organization, a certified copy of any return or report  filed
     6  by such registered organization pursuant to this article, nor to prohib-
     7  it  the  publication of statistics so classified as to prevent the iden-
     8  tification of particular returns or reports and the items thereof.
     9    2. The commissioner, in his or her discretion  and  pursuant  to  such
    10  rules and regulations as he or she may adopt, may permit the commission-
    11  er of internal revenue of the United States, or the appropriate officers
    12  of  any  other  state which regulates or taxes medical marihuana, or the

    13  duly authorized representatives of such  commissioner  or  of  any  such
    14  officers,  to  inspect returns or reports made pursuant to this article,
    15  or may furnish to such commissioner or other officers, or  duly  author-
    16  ized representatives, a copy of any such return or report or an abstract
    17  of  the  information  therein  contained, or any portion thereof, or may
    18  supply such commissioner or any such officers  or  such  representatives
    19  with  information  relating to the business of a registered organization
    20  making returns or reports hereunder.  The  commissioner  may  refuse  to
    21  supply  information  pursuant to this subdivision to the commissioner of
    22  internal revenue of the United States or to the officers  of  any  other

    23  state  if the statutes of the United States, or of the state represented
    24  by such officers, do not grant substantially similar privileges  to  the
    25  commissioner, but such refusal shall not be mandatory. Information shall
    26  not  be  supplied  to the commissioner of internal revenue of the United
    27  States or the appropriate officers of any other state which regulates or
    28  taxes medical marihuana, or the duly authorized representatives of  such
    29  commissioner or of any of such officers, unless such commissioner, offi-
    30  cer or other representatives shall agree not to divulge or make known in
    31  any  manner  the information so supplied, but such officers may transmit
    32  such information to their employees or legal representatives when neces-

    33  sary, who in turn shall be subject to the  same  restrictions  as  those
    34  hereby imposed upon such commissioner, officer or other representatives.
    35    3. (a) Any officer or employee of the state who willfully violates the
    36  provisions  of subdivision one or two of this section shall be dismissed
    37  from office and be incapable of holding any public office in this  state
    38  for a period of five years thereafter.
    39    (b)  Cross-reference: For criminal penalties, see article thirty-seven
    40  of this chapter.
    41    § 5. The state finance law is amended by adding a new section 89-h  to
    42  read as follows:
    43    §  89-h. Medical marihuana trust fund.  1. There is hereby established
    44  in the joint custody of the state comptroller and  the  commissioner  of

    45  taxation and finance a special fund to be known as the "medical marihua-
    46  na trust fund."
    47    2.  The  medical  marihuana  trust  fund  shall  consist of all moneys
    48  required to be deposited in the medical marihuana trust fund pursuant to
    49  the provisions of section four hundred ninety of the tax law.
    50    3. The moneys in the medical marihuana trust fund shall be kept  sepa-
    51  rate and shall not be commingled with any other moneys in the custody of
    52  the commissioner of taxation and finance and the state comptroller.
    53    4. The moneys of the medical marihuana trust fund, following appropri-
    54  ation  by  the  legislature,  shall  be  allocated upon a certificate of
    55  approval of availability by the director of the budget as follows:   (a)

    56  Twenty-two and five-tenths percent of the monies shall be transferred to

        A. 6357--E                         19
 
     1  the  counties in New York state in which the medical marihuana was manu-
     2  factured and allocated in proportion to the gross sales originating from
     3  medical marihuana manufactured in each such county; (b)  twenty-two  and
     4  five-tenths  percent  of the moneys shall be transferred to the counties
     5  in New York state in which the medical marihuana was dispensed and allo-
     6  cated in proportion to the gross sales occurring in  each  such  county;
     7  (c)  five  percent  of  the monies shall be transferred to the office of
     8  alcoholism and substance abuse services, which shall  use  that  revenue

     9  for additional drug abuse prevention, counseling and treatment services;
    10  and  (d) five percent of the revenue received by the department shall be
    11  transferred to the division of criminal justice  services,  which  shall
    12  use  that  revenue  for  a  program of discretionary grants to state and
    13  local law enforcement agencies that demonstrate a need relating to title
    14  five-A of article thirty-three of the public  health  law;  said  grants
    15  could  be  used  for  personnel costs of state and local law enforcement
    16  agencies. For purposes of this subdivision, the city of New  York  shall
    17  be deemed to be a county.
    18    §  6.  Subdivision  1  of  section 171-a of the tax law, as amended by
    19  section 1 of part R of chapter 60 of the laws of  2004,  is  amended  to
    20  read as follows:

    21    1.  All  taxes,  interest, penalties and fees collected or received by
    22  the commissioner or the commissioner's duly authorized agent under arti-
    23  cles nine (except section one hundred eighty-two-a thereof and except as
    24  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    25  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    26  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    27  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    28  (except as otherwise provided in section four hundred eighty-two  there-
    29  of),  twenty-B twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-
    30  eight (except as otherwise provided in section  eleven  hundred  two  or
    31  eleven  hundred  three  thereof),  twenty-eight-A, thirty-one (except as
    32  otherwise provided in  section  fourteen  hundred  twenty-one  thereof),

    33  thirty-two,  thirty-three  and  thirty-three-A  of this chapter shall be
    34  deposited daily in one account  with  such  responsible  banks,  banking
    35  houses  or  trust  companies as may be designated by the comptroller, to
    36  the credit of the comptroller. Such an account may be established in one
    37  or more of such depositories. Such deposits shall be kept  separate  and
    38  apart  from  all  other  money in the possession of the comptroller. The
    39  comptroller shall require adequate security from all such  depositories.
    40  Of  the  total revenue collected or received under such articles of this
    41  chapter, the comptroller shall retain in the  comptroller's  hands  such
    42  amount  as the commissioner may determine to be necessary for refunds or
    43  reimbursements under such articles of this chapter and article ten ther-
    44  eof out of which  amount  the  comptroller  shall  pay  any  refunds  or

    45  reimbursements to which taxpayers shall be entitled under the provisions
    46  of  such  articles  of this chapter and article ten thereof. The commis-
    47  sioner and the comptroller shall maintain a system of  accounts  showing
    48  the  amount  of  revenue  collected  or  received from each of the taxes
    49  imposed by such articles. The comptroller, after reserving the amount to
    50  pay such refunds or reimbursements, shall, on or before the tenth day of
    51  each month, pay into the state treasury to the  credit  of  the  general
    52  fund  all  revenue  deposited  under  this  section during the preceding
    53  calendar month and remaining to the comptroller's credit on the last day
    54  of such preceding month, (i) except that the comptroller  shall  pay  to
    55  the  state  department of social services that amount of overpayments of
    56  tax imposed by article twenty-two of this chapter and  the  interest  on

        A. 6357--E                         20
 
     1  such amount which is certified to the comptroller by the commissioner as
     2  the  amount to be credited against past-due support pursuant to subdivi-
     3  sion six of section one hundred seventy-one-c of this chapter, (ii)  and
     4  except  that  the  comptroller  shall  pay  to the New York state higher
     5  education services corporation and the state university of New  York  or
     6  the city university of New York respectively that amount of overpayments
     7  of tax imposed by article twenty-two of this chapter and the interest on
     8  such amount which is certified to the comptroller by the commissioner as
     9  the amount to be credited against the amount of defaults in repayment of
    10  guaranteed  student  loans and state university loans or city university
    11  loans pursuant to subdivision five of section one hundred  seventy-one-d

    12  and  subdivision  six of section one hundred seventy-one-e of this chap-
    13  ter, (iii) and except further that, notwithstanding any law,  the  comp-
    14  troller  shall  credit  to  the  revenue  arrearage account, pursuant to
    15  section ninety-one-a of the state finance law, that amount  of  overpay-
    16  ment  of  tax imposed by article nine, nine-A, twenty-two, thirty, thir-
    17  ty-A, thirty-B, thirty-two or thirty-three  of  this  chapter,  and  any
    18  interest  thereon,  which is certified to the comptroller by the commis-
    19  sioner as the amount to be credited against a past-due legally enforcea-
    20  ble debt owed to a state agency pursuant to paragraph (a) of subdivision
    21  six of section one hundred  seventy-one-f  of  this  article,  provided,
    22  however, he shall credit to the special offset fiduciary account, pursu-
    23  ant  to  section  ninety-one-c of the state finance law, any such amount

    24  creditable as a liability as set forth in paragraph (b)  of  subdivision
    25  six  of  section  one  hundred  seventy-one-f  of this article, (iv) and
    26  except further that the comptroller shall pay to the city  of  New  York
    27  that amount of overpayment of tax imposed by article nine, nine-A, twen-
    28  ty-two,  thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
    29  chapter and any interest thereon that is certified to the comptroller by
    30  the commissioner as the amount to be credited against city of  New  York
    31  tax  warrant judgment debt pursuant to section one hundred seventy-one-l
    32  of this article, (v) and except further that the comptroller  shall  pay
    33  to  a  non-obligated spouse that amount of overpayment of tax imposed by
    34  article twenty-two of this chapter and the interest on such amount which
    35  has been credited pursuant to section  one  hundred  seventy-one-c,  one

    36  hundred  seventy-one-d,  one hundred seventy-one-e, one hundred seventy-
    37  one-f or one hundred seventy-one-l of this article and which  is  certi-
    38  fied  to the comptroller by the commissioner as the amount due such non-
    39  obligated spouse pursuant to paragraph six of subsection (b) of  section
    40  six  hundred  fifty-one  of this chapter; and (vi) the comptroller shall
    41  deduct a like amount which the comptroller shall pay into  the  treasury
    42  to  the  credit of the general fund from amounts subsequently payable to
    43  the department of social services, the state university of New York, the
    44  city university of New York, or the  higher  education  services  corpo-
    45  ration,  or  the  revenue  arrearage account or special offset fiduciary
    46  account pursuant to section ninety-one-a or ninety-one-c  of  the  state
    47  finance  law, as the case may be, whichever had been credited the amount

    48  originally withheld from such overpayment, and  (vii)  with  respect  to
    49  amounts  originally  withheld  from such overpayment pursuant to section
    50  one hundred seventy-one-l of this article and paid to the  city  of  New
    51  York,  the  comptroller shall collect a like amount from the city of New
    52  York.
    53    § 7. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
    54  section  54  of  part A of chapter 59 of the laws of 2014, is amended to
    55  read as follows:

        A. 6357--E                         21
 
     1    1. All taxes, interest, penalties and fees collected  or  received  by
     2  the commissioner or the commissioner's duly authorized agent under arti-
     3  cles nine (except section one hundred eighty-two-a thereof and except as
     4  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,

     5  twelve-A  (except  as  otherwise provided in section two hundred eighty-
     6  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
     7  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
     8  (except as otherwise provided in section four hundred eighty-two  there-
     9  of),  twenty-B,  twenty-one, twenty-two, twenty-six, twenty-six-B, twen-
    10  ty-eight (except as otherwise provided in section eleven hundred two  or
    11  eleven  hundred  three  thereof),  twenty-eight-A, thirty-one (except as
    12  otherwise provided in  section  fourteen  hundred  twenty-one  thereof),
    13  thirty-three and thirty-three-A of this chapter shall be deposited daily
    14  in  one  account  with  such  responsible banks, banking houses or trust
    15  companies as may be designated by the comptroller, to the credit of  the
    16  comptroller.  Such  an account may be established in one or more of such

    17  depositories. Such deposits shall be kept separate and  apart  from  all
    18  other  money in the possession of the comptroller. The comptroller shall
    19  require adequate security from  all  such  depositories.  Of  the  total
    20  revenue  collected  or received under such articles of this chapter, the
    21  comptroller shall retain in the comptroller's hands such amount  as  the
    22  commissioner may determine to be necessary for refunds or reimbursements
    23  under  such articles of this chapter out of which amount the comptroller
    24  shall pay any refunds or reimbursements  to  which  taxpayers  shall  be
    25  entitled  under  the  provisions  of  such articles of this chapter. The
    26  commissioner and the comptroller shall maintain  a  system  of  accounts
    27  showing  the  amount  of  revenue collected or received from each of the
    28  taxes imposed by such articles. The  comptroller,  after  reserving  the

    29  amount  to  pay  such refunds or reimbursements, shall, on or before the
    30  tenth day of each month, pay into the state treasury to  the  credit  of
    31  the  general  fund  all  revenue deposited under this section during the
    32  preceding calendar month and remaining to the  comptroller's  credit  on
    33  the  last  day  of such preceding month, (i) except that the comptroller
    34  shall pay to the state department of  social  services  that  amount  of
    35  overpayments  of  tax  imposed by article twenty-two of this chapter and
    36  the interest on such amount which is certified to the comptroller by the
    37  commissioner as the amount  to  be  credited  against  past-due  support
    38  pursuant to subdivision six of section one hundred seventy-one-c of this
    39  article,  (ii) and except that the comptroller shall pay to the New York
    40  state higher education services corporation and the state university  of

    41  New  York or the city university of New York respectively that amount of
    42  overpayments of tax imposed by article twenty-two of  this  chapter  and
    43  the interest on such amount which is certified to the comptroller by the
    44  commissioner as the amount to be credited against the amount of defaults
    45  in  repayment  of guaranteed student loans and state university loans or
    46  city university loans  pursuant  to  subdivision  five  of  section  one
    47  hundred  seventy-one-d and subdivision six of section one hundred seven-
    48  ty-one-e of this article, (iii) and except further that, notwithstanding
    49  any law, the comptroller shall credit to the revenue arrearage  account,
    50  pursuant  to  section ninety-one-a of the state finance law, that amount
    51  of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
    52  ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest

    53  thereon, which is certified to the comptroller by  the  commissioner  as
    54  the  amount  to  be credited against a past-due legally enforceable debt
    55  owed to a state agency pursuant to paragraph (a) of subdivision  six  of
    56  section one hundred seventy-one-f of this article, provided, however, he

        A. 6357--E                         22
 
     1  shall  credit  to  the  special  offset  fiduciary  account, pursuant to
     2  section ninety-one-c of the state finance law, any such amount  credita-
     3  ble  as  a liability as set forth in paragraph (b) of subdivision six of
     4  section  one  hundred  seventy-one-f  of  this  article, (iv) and except
     5  further that the comptroller shall pay to the  city  of  New  York  that
     6  amount  of  overpayment  of tax imposed by article nine, nine-A, twenty-
     7  two, thirty, thirty-A, thirty-B or thirty-three of this chapter and  any

     8  interest thereon that is certified to the comptroller by the commission-
     9  er  as  the  amount  to be credited against city of New York tax warrant
    10  judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
    11  article,  (v)  and  except  further  that the comptroller shall pay to a
    12  non-obligated spouse that amount of overpayment of tax imposed by  arti-
    13  cle twenty-two of this chapter and the interest on such amount which has
    14  been credited pursuant to section one hundred seventy-one-c, one hundred
    15  seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
    16  one hundred seventy-one-l of this article and which is certified to  the
    17  comptroller  by  the  commissioner  as the amount due such non-obligated
    18  spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
    19  hundred fifty-one of this chapter; and (vi) the comptroller shall deduct

    20  a  like  amount which the comptroller shall pay into the treasury to the
    21  credit of the general fund from  amounts  subsequently  payable  to  the
    22  department  of  social  services,  the state university of New York, the
    23  city university of New York, or the  higher  education  services  corpo-
    24  ration,  or  the  revenue  arrearage account or special offset fiduciary
    25  account pursuant to section ninety-one-a or ninety-one-c  of  the  state
    26  finance  law, as the case may be, whichever had been credited the amount
    27  originally withheld from such overpayment, and  (vii)  with  respect  to
    28  amounts  originally  withheld  from such overpayment pursuant to section
    29  one hundred seventy-one-l of this article and paid to the  city  of  New
    30  York,  the  comptroller shall collect a like amount from the city of New
    31  York.
    32    § 7-a. Section 853 of the general business law is amended by adding  a

    33  new subdivision 3 to read as follows:
    34    3.  This article shall not apply to any sale, furnishing or possession
    35  which is for a lawful purpose under title five-A of article thirty-three
    36  of the public health law.
    37    § 8. Section 221.00 of the penal law, as added by chapter 360  of  the
    38  laws of 1977, is amended to read as follows:
    39  § 221.00 Marihuana; definitions.
    40    Unless  the context in which they are used clearly otherwise requires,
    41  the terms occurring in this article shall have the same meaning ascribed
    42  to them in article two hundred twenty of this chapter.  Any act that  is
    43  lawful  under  title five-A of article thirty-three of the public health
    44  law is not a violation of this article.
    45    § 9. The penal law is amended by adding a new article 179 to  read  as
    46  follows:
 

    47                                 ARTICLE 179
    48                   CRIMINAL DIVERSION OF MEDICAL MARIHUANA
    49  Section 179.00 Criminal diversion of medical marihuana; definitions.
    50          179.05 Criminal diversion of medical marihuana; limitations.
    51          179.10 Criminal  diversion  of  medical  marihuana  in the first
    52                   degree.
    53          179.11 Criminal diversion of medical  marihuana  in  the  second
    54                   degree.
    55          179.15 Criminal retention of medical marihuana.

        A. 6357--E                         23
 
     1  § 179.00 Criminal diversion of medical marihuana; definitions.
     2    The following definitions are applicable to this article:

     3    1.  "Medical marihuana" means medical marihuana as defined in subdivi-
     4  sion eight of section thirty-three hundred sixty of  the  public  health
     5  law.
     6    2.  "Certification"  means a certification, made under section thirty-
     7  three hundred sixty-one of the public health law.
     8  § 179.05 Criminal diversion of medical marihuana; limitations.
     9    The provisions of this article shall not apply to:
    10    1. a practitioner authorized to issue a  certification  who  acted  in
    11  good faith in the lawful course of his or her profession; or
    12    2.  a  registered  organization as that term is defined in subdivision
    13  nine of section thirty-three hundred sixty of the public health law  who

    14  acted in good faith in the lawful course of the practice of pharmacy; or
    15    3.  a  person  who  acted  in good faith seeking treatment for medical
    16  condition or assisting another person to obtain treatment for a  medical
    17  condition.
    18  § 179.10 Criminal diversion of medical marihuana in the first degree.
    19    A  person  is guilty of criminal diversion of medical marihuana in the
    20  first degree when he or she is a practitioner, as that term  is  defined
    21  in  subdivision  twelve  of  section  thirty-three  hundred sixty of the
    22  public health law, who issues a certification with knowledge of  reason-
    23  able  grounds to know that (i) the recipient has no medical need for it,
    24  or (ii) it is for a purpose other than to treat a serious  condition  as

    25  defined  in  subdivision  seven of section thirty-three hundred sixty of
    26  the public health law.
    27    Criminal diversion of medical marihuana in the first degree is a class
    28  E felony.
    29  § 179.11 Criminal diversion of medical marihuana in the second degree.
    30    A person is guilty of criminal diversion of medical marihuana  in  the
    31  second  degree  when  he  or  she  sells, trades, delivers, or otherwise
    32  provides medical marihuana  to  another  with  knowledge  or  reasonable
    33  grounds  to know that the recipient is not registered under title five-A
    34  of article thirty-three of the public health law.
    35    Criminal diversion of medical marihuana in  the  second  degree  is  a
    36  class B misdemeanor.

    37  § 179.15 Criminal retention of medical marihuana.
    38    A  person  is  guilty of criminal retention of medical marihuana when,
    39  being a certified patient or designated caregiver, as  those  terms  are
    40  defined  in  subdivisions three and five of section thirty-three hundred
    41  sixty of the public  health  law,  respectively,  he  or  she  knowingly
    42  obtains, possesses, stores or maintains an amount of marihuana in excess
    43  of the amount he or she is authorized to possess under the provisions of
    44  title five-A of article thirty-three of the public health law.
    45    Criminal retention of medical marihuana is a class A misdemeanor.
    46    §  10. The opening paragraph of subdivision 1 of section 216.00 of the
    47  criminal procedure law, as added by section 4 of part AAA of chapter  56

    48  of the laws of 2009, is amended to read as follows:
    49    "Eligible defendant" means any person who stands charged in an indict-
    50  ment  or  a  superior court information with a class B, C, D or E felony
    51  offense defined in article one hundred seventy-nine, two hundred  twenty
    52  or  two  hundred  twenty-one  of  the  penal  law or any other specified
    53  offense as defined in subdivision four of section 410.91 of  this  chap-
    54  ter, provided, however, a defendant is not an "eligible defendant" if he
    55  or she:

        A. 6357--E                         24
 
     1    §  11.  Subdivision 5 of section 410.91 of the criminal procedure law,
     2  as amended by section 8 of part AAA of chapter 56 of the laws  of  2009,
     3  is amended to read as follows:
     4    5.  For  the  purposes  of  this  section, a "specified offense" is an

     5  offense defined by any of the following provisions  of  the  penal  law:
     6  burglary  in  the  third  degree  as defined in section 140.20, criminal
     7  mischief in the third degree as  defined  in  section  145.05,  criminal
     8  mischief in the second degree as defined in section 145.10, grand larce-
     9  ny in the fourth degree as defined in subdivision one, two, three, four,
    10  five,  six,  eight,  nine or ten of section 155.30, grand larceny in the
    11  third degree as defined in section 155.35  (except  where  the  property
    12  consists  of one or more firearms, rifles or shotguns), unauthorized use
    13  of a vehicle in the second degree as defined in section 165.06, criminal
    14  possession of stolen property in the fourth degree as defined in  subdi-
    15  vision  one,  two,  three,  five  or  six  of  section  165.45, criminal
    16  possession of stolen property in the third degree as defined in  section

    17  165.50  (except  where  the  property  consists of one or more firearms,
    18  rifles or shotguns), forgery in the second degree as defined in  section
    19  170.10,  criminal possession of a forged instrument in the second degree
    20  as defined in section 170.25, unlawfully using slugs in the first degree
    21  as defined in section 170.60, criminal diversion of medical marihuana in
    22  the first degree as defined in section 179.10 or an  attempt  to  commit
    23  any  of the aforementioned offenses if such attempt constitutes a felony
    24  offense; or a class B felony offense  defined  in  article  two  hundred
    25  twenty where a sentence is imposed pursuant to paragraph (a) of subdivi-
    26  sion  two  of section 70.70 of the penal law; or any class C, class D or
    27  class E controlled substance or marihuana felony offense as  defined  in
    28  article two hundred twenty or two hundred twenty-one.

    29    §  12.  This act shall take effect immediately and shall expire and be
    30  deemed repealed seven years after such date; provided  that  the  amend-
    31  ments  to section 171-a of the tax law made by section seven of this act
    32  shall take effect on the same date and in the same manner as section  54
    33  of  part A of chapter 59 of the laws of 2014 takes effect; and provided,
    34  further, that the amendments to subdivision 5 of section 410.91  of  the
    35  criminal  procedure  law  made  by  section eleven of this act shall not
    36  affect the expiration and repeal of such section and shall expire and be
    37  deemed repealed therewith.
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