STATE OF NEW YORK
________________________________________________________________________
7923
IN SENATE
June 19, 2014
___________
Introduced by Sen. SAVINO -- (at request of the Governor) -- read twice
and ordered printed, and when printed to be committed to the Committee
on Rules
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
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12117-01-4
S. 7923 2
1 medical marihuana by a designated caregiver, for use as part of the
2 treatment of the patient's serious condition, as authorized in a certif-
3 ication under this title including enabling the patient to tolerate
4 treatment for the serious condition. A certified medical use does not
5 include smoking.
6 2. "Caring for" means treating a patient, in the course of which the
7 practitioner has completed a full assessment of the patient's medical
8 history and current medical condition.
9 3. "Certified patient" means a patient who is a resident of New York
10 state or receiving care and treatment in New York state as determined by
11 the commissioner in regulation, and is certified under section thirty-
12 three hundred sixty-one of this title.
13 4. "Certification" means a certification, made under section thirty-
14 three hundred sixty-one of this title.
15 5. "Designated caregiver" means the individual designated by a certi-
16 fied patient in a registry application. A certified patient may desig-
17 nate up to two designated caregivers.
18 6. "Public place" means a public place as defined in regulation by the
19 commissioner.
20 7. (a) "Serious condition" means:
21 (i) having one of the following severe debilitating or life-threaten-
22 ing conditions: cancer, positive status for human immunodeficiency
23 virus or acquired immune deficiency syndrome, amyotrophic lateral scler-
24 osis, Parkinson's disease, multiple sclerosis, damage to the nervous
25 tissue of the spinal cord with objective neurological indication of
26 intractable spasticity, epilepsy, inflammatory bowel disease, neuropa-
27 thies, Huntington's disease, or as added by the commissioner; and
28 (ii) any of the following conditions where it is clinically associated
29 with, or a complication of, a condition under this paragraph or its
30 treatment: cachexia or wasting syndrome; severe or chronic pain; severe
31 nausea; seizures; severe or persistent muscle spasms; or such conditions
32 as are added by the commissioner.
33 (b) No later than eighteen months from the effective date of this
34 section, the commissioner shall determine whether to add the following
35 serious conditions: Alzheimer's, muscular dystrophy, dystonia, post-
36 traumatic stress disorder and rheumatoid arthritis.
37 8. "Medical marihuana" means marihuana as defined in subdivision twen-
38 ty-one of section thirty-three hundred two of this article, intended for
39 a certified medical use, as determined by the commissioner in his or her
40 sole discretion. Any form of medical marihuana not approved by the
41 commissioner is expressly prohibited.
42 9. "Registered organization" means a registered organization under
43 sections thirty-three hundred sixty-four and thirty-three hundred
44 sixty-five of this title.
45 10. "Registry application" means an application properly completed and
46 filed with the department by a certified patient under section thirty-
47 three hundred sixty-three of this title.
48 11. "Registry identification card" means a document that identifies a
49 certified patient or designated caregiver, as provided under section
50 thirty-three hundred sixty-three of this title.
51 12. "Practitioner" means a practitioner who (i) is a physician
52 licensed by New York state and practicing within the state, (ii) who by
53 training or experience is qualified to treat a serious condition as
54 defined in subdivision seven of this section; and (iii) has completed a
55 two to four hour course as determined by the commissioner in regulation
56 and registered with the department; provided however, a registration
S. 7923 3
1 shall not be denied without cause. Such course may count toward board
2 certification requirements. The commissioner shall consider the inclu-
3 sion of nurse practitioners under this title based upon considerations
4 including access and availability. After such consideration the commis-
5 sioner is authorized to deem nurse practitioners as practitioners under
6 this title.
7 13. "Terminally ill" means an individual has a medical prognosis that
8 the individual's life expectancy is approximately one year or less if
9 the illness runs its normal course.
10 14. "Labor peace agreement" means an agreement between an entity and a
11 labor organization that, at a minimum, protects the state's proprietary
12 interests by prohibiting labor organizations and members from engaging
13 in picketing, work stoppages, boycotts, and any other economic interfer-
14 ence with the registered organization's business.
15 15. "Individual dose" means a single measure of raw medical marihuana
16 or non-infused concentrates to be determined and clearly identified by a
17 patient's practitioner for the patient's specific certified condition.
18 For ingestible or sub-lingual medical marihuana products, no individual
19 dose may contain more than ten milligrams of tetrahydrocannabinol.
20 16. "Form of medical marihuana" means characteristics of the medical
21 marihuana recommended or limited for a particular certified patient,
22 including the method of consumption and any particular strain, variety,
23 and quantity or percentage of marihuana or particular active ingredient.
24 17. "Applicant" means a for-profit entity or not-for-profit corpo-
25 ration and includes: board members, officers, managers, owners, part-
26 ners, principal stakeholders and members who submit an application to
27 become a registered organization.
28 § 3361. Certification of patients. 1. A patient certification may only
29 be issued if: (a) a practitioner has been registered with the department
30 to issue a certification as determined by the commissioner; (b) the
31 patient has a serious condition, which shall be specified in the
32 patient's health care record; (c) the practitioner by training or expe-
33 rience is qualified to treat the serious condition; (d) the patient is
34 under the practitioner's continuing care for the serious condition; and
35 (e) in the practitioner's professional opinion and review of past treat-
36 ments, the patient is likely to receive therapeutic or palliative bene-
37 fit from the primary or adjunctive treatment with medical use of mari-
38 huana for the serious condition.
39 2. The certification shall include (a) the name, date of birth and
40 address of the patient; (b) a statement that the patient has a serious
41 condition and the patient is under the practitioner's care for the seri-
42 ous condition; (c) a statement attesting that all requirements of subdi-
43 vision one of this section have been satisfied; (d) the date; and (e)
44 the name, address, federal registration number, telephone number, and
45 the handwritten signature of the certifying practitioner. The commis-
46 sioner may require by regulation that the certification shall be on a
47 form provided by the department. The practitioner may state in the
48 certification that, in the practitioner's professional opinion, the
49 patient would benefit from medical marihuana only until a specified
50 date. The practitioner may state in the certification that, in the prac-
51 titioner's professional opinion, the patient is terminally ill and that
52 the certification shall not expire until the patient dies.
53 3. In making a certification, the practitioner shall consider the form
54 of medical marihuana the patient should consume, including the method of
55 consumption and any particular strain, variety, and quantity or percent-
56 age of marihuana or particular active ingredient, and appropriate
S. 7923 4
1 dosage. The practitioner shall state in the certification any recommen-
2 dation or limitation the practitioner makes, in his or her professional
3 opinion, concerning the appropriate form or forms of medical marihuana
4 and dosage.
5 4. Every practitioner shall consult the prescription monitoring drug
6 program registry prior to making or issuing a certification, for the
7 purpose of reviewing a patient's controlled substance history. For
8 purposes of this section, a practitioner may authorize a designee to
9 consult the prescription monitoring program registry on his or her
10 behalf, provided that such designation is in accordance with section
11 thirty-three hundred forty-three-a of this article.
12 5. The practitioner shall give the certification to the certified
13 patient, and place a copy in the patient's health care record.
14 6. No practitioner shall issue a certification under this section for
15 himself or herself.
16 7. A registry identification card based on a certification shall
17 expire one year after the date the certification is signed by the prac-
18 titioner.
19 8. (a) If the practitioner states in the certification that, in the
20 practitioner's professional opinion, the patient would benefit from
21 medical marihuana only until a specified earlier date, then the registry
22 identification card shall expire on that date;
23 (b) If the practitioner states 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, then the
26 registry identification card shall state that the patient is terminally
27 ill and that the registration card shall not expire until the patient
28 dies;
29 (c) If the practitioner re-issues the certification to terminate the
30 certification on an earlier date, then the registry identification card
31 shall expire on that date and shall be promptly returned by the certi-
32 fied patient to the department;
33 (d) If the certification so provides, the registry identification card
34 shall state any recommendation or limitation by the practitioner as to
35 the form or forms of medical marihuana or dosage for the certified
36 patient; and
37 (e) The commissioner shall make regulations to implement this subdivi-
38 sion.
39 § 3362. Lawful medical use. 1. The possession, acquisition, use,
40 delivery, transfer, transportation, or administration of medical mari-
41 huana by a certified patient or designated caregiver possessing a valid
42 registry identification card, for certified medical use, shall be lawful
43 under this title; provided that:
44 (a) the marihuana that may be possessed by a certified patient shall
45 not exceed a thirty day supply of the dosage as determined by the prac-
46 titioner, consistent with any guidance and regulations issued by the
47 commissioner, provided that during the last seven days of any thirty day
48 period, the certified patient may also possess up to such amount for the
49 next thirty day period;
50 (b) the marihuana that may be possessed by designated caregivers does
51 not exceed the quantities referred to in paragraph (a) of this subdivi-
52 sion for each certified patient for whom the caregiver possesses a valid
53 registry identification card, up to five certified patients;
54 (c) the form or forms of medical marihuana that may be possessed by
55 the certified patient or designated caregiver pursuant to a certif-
56 ication shall be in compliance with any recommendation or limitation by
S. 7923 5
1 the practitioner as to the form or forms of medical marihuana or dosage
2 for the certified patient in the certification; and
3 (d) the medical marihuana shall be kept in the original package in
4 which it was dispensed under subdivision twelve of section thirty-three
5 hundred sixty-four of this title, except for the portion removed for
6 immediate consumption for certified medical use by the certified
7 patient.
8 2. Notwithstanding subdivision one of this section:
9 (a) possession of medical marihuana shall not be lawful under this
10 title if it is smoked, consumed, vaporized, or grown in a public place,
11 regardless of the form of medical marihuana stated in the patient's
12 certification.
13 (b) a person possessing medical marihuana under this title shall
14 possess his or her registry identification card at all times when in
15 immediate possession of medical marihuana.
16 § 3363. Registry identification cards. 1. Upon approval of the certif-
17 ication, the department shall issue registry identification cards for
18 certified patients and designated caregivers. A registry identification
19 card shall expire as provided in section thirty-three hundred sixty-one
20 of this title or as otherwise provided in this section. The department
21 shall begin issuing registry identification cards as soon as practicable
22 after the certifications required by section thirty-three hundred
23 sixty-nine-b are granted. The department may specify a form for a regis-
24 try application, in which case the department shall provide the form on
25 request, reproductions of the form may be used, and the form shall be
26 available for downloading from the department's website.
27 2. To obtain, amend or renew a registry identification card, a certi-
28 fied patient or designated caregiver shall file a registry application
29 with the department. The registry application or renewal application
30 shall include:
31 (a) in the case of a certified patient:
32 (i) the patient's certification (a new written certification shall be
33 provided with a renewal application);
34 (ii) the name, address, and date of birth of the patient;
35 (iii) the date of the certification;
36 (iv) if the patient has a registry identification card based on a
37 current valid certification, the registry identification number and
38 expiration date of that registry identification card;
39 (v) the specified date until which the patient would benefit from
40 medical marihuana, if the certification states such a date;
41 (vi) the name, address, federal registration number, and telephone
42 number of the certifying practitioner;
43 (vii) any recommendation or limitation by the practitioner as to the
44 form or forms of medical marihuana or dosage for the certified patient;
45 and
46 (viii) other individual identifying information required by the
47 department;
48 (b) in the case of a certified patient, if the patient designates a
49 designated caregiver, the name, address, and date of birth of the desig-
50 nated caregiver, and other individual identifying information required
51 by the department;
52 (c) in the case of a designated caregiver:
53 (i) the name, address, and date of birth of the designated caregiver;
54 (ii) if the designated caregiver has a registry identification card,
55 the registry identification number and expiration date of that registry
56 identification card; and
S. 7923 6
1 (iii) other individual identifying information required by the depart-
2 ment;
3 (d) a statement that a false statement made in the application is
4 punishable under section 210.45 of the penal law;
5 (e) the date of the application and the signature of the certified
6 patient or designated caregiver, as the case may be;
7 (f) a fifty dollar application fee, provided, that the department may
8 waive or reduce the fee in cases of financial hardship; and
9 (g) any other requirements determined by the commissioner.
10 3. Where a certified patient is under the age of eighteen:
11 (a) The application for a registry identification card shall be made
12 by an appropriate person over twenty-one years of age. The application
13 shall state facts demonstrating that the person is appropriate.
14 (b) The designated caregiver shall be (i) a parent or legal guardian
15 of the certified patient, (ii) a person designated by a parent or legal
16 guardian, or (iii) an appropriate person approved by the department upon
17 a sufficient showing that no parent or legal guardian is appropriate or
18 available.
19 4. No person may be a designated caregiver if the person is under
20 twenty-one years of age unless a sufficient showing is made to the
21 department that the person should be permitted to serve as a designated
22 caregiver. The requirements for such a showing shall be determined by
23 the commissioner.
24 5. No person may be a designated caregiver for more than five certi-
25 fied patients at one time.
26 6. If a certified patient wishes to change or terminate his or her
27 designated caregiver, for whatever reason, the certified patient shall
28 notify the department as soon as practicable. The department shall issue
29 a notification to the designated caregiver that their registration card
30 is invalid and must be promptly returned to the department. The newly
31 designated caregiver must comply with all requirements set forth in this
32 section.
33 7. If the certification so provides, the registry identification card
34 shall contain any recommendation or limitation by the practitioner as to
35 the form or forms of medical marihuana or dosage for the certified
36 patient.
37 8. The department shall issue separate registry identification cards
38 for certified patients and designated caregivers as soon as reasonably
39 practicable after receiving a complete application under this section,
40 unless it determines that the application is incomplete or factually
41 inaccurate, in which case it shall promptly notify the applicant.
42 9. If the application of a certified patient designates an individual
43 as a designated caregiver who is not authorized to be a designated care-
44 giver, that portion of the application shall be denied by the department
45 but that shall not affect the approval of the balance of the applica-
46 tion.
47 10. A registry identification card shall:
48 (a) contain the name of the certified patient or the designated care-
49 giver as the case may be;
50 (b) contain the date of issuance and expiration date of the registry
51 identification card;
52 (c) contain a registry identification number for the certified patient
53 or designated caregiver, as the case may be and a registry identifica-
54 tion number;
55 (d) contain a photograph of the individual to whom the registry iden-
56 tification card is being issued, which shall be obtained by the depart-
S. 7923 7
1 ment in a manner specified by the commissioner in regulations; provided,
2 however, that if the department requires certified patients to submit
3 photographs for this purpose, there shall be a reasonable accommodation
4 of certified patients who are confined to their homes due to their
5 medical conditions and may therefore have difficulty procuring photo-
6 graphs;
7 (e) be a secure document as determined by the department;
8 (f) plainly state any recommendation or limitation by the practitioner
9 as to the form or forms of medical marihuana or dosage for the certified
10 patient; and
11 (g) any other requirements determined by the commissioner.
12 11. A certified patient or designated caregiver who has been issued a
13 registry identification card shall notify the department of any change
14 in his or her name or address or, with respect to the patient, if he or
15 she ceases to have the serious condition noted on the certification
16 within ten days of such change. The certified patient's or designated
17 caregiver's registry identification card shall be deemed invalid and
18 shall be returned promptly to the department.
19 12. If a certified patient or designated caregiver loses his or her
20 registry identification card, he or she shall notify the department and
21 submit a twenty-five dollar fee within ten days of losing the card to
22 maintain the registration. The department may establish higher fees for
23 issuing a new registry identification card for second and subsequent
24 replacements for a lost card, provided, that the department may waive or
25 reduce the fee in cases of financial hardship. The department shall
26 issue a new registry identification card as soon as practicable, which
27 may contain a new registry identification number, to the certified
28 patient or designated caregiver, as the case may be. The certified
29 patient or designated caregiver shall not be able to obtain medical
30 marihuana until the certified patient receives a new card.
31 13. The department shall maintain a confidential list of the persons
32 to whom it has issued registry identification cards. Individual identi-
33 fying information obtained by the department under this title shall be
34 confidential and exempt from disclosure under article six of the public
35 officers law. Notwithstanding this subdivision, the department may
36 notify any appropriate law enforcement agency of information relating to
37 any violation or suspected violation of this title.
38 14. The department shall verify to law enforcement personnel in an
39 appropriate case whether a registry identification card is valid.
40 15. If a certified patient or designated caregiver willfully violates
41 any provision of this title as determined by the department, his or her
42 registry identification card may be suspended or revoked. This is in
43 addition to any other penalty that may apply.
44 § 3364. Registered organizations. 1. A registered organization shall
45 be a for-profit business entity or not-for-profit corporation organized
46 for the purpose of acquiring, possessing, manufacturing, selling, deliv-
47 ering, transporting, distributing or dispensing marihuana for certified
48 medical use.
49 2. The acquiring, possession, manufacture, sale, delivery, transport-
50 ing, distributing or dispensing of marihuana by a registered organiza-
51 tion under this title in accordance with its registration under section
52 thirty-three hundred sixty-five of this title or a renewal thereof shall
53 be lawful under this title.
54 3. Each registered organization shall contract with an independent
55 laboratory to test the medical marihuana produced by the registered
56 organization. The commissioner shall approve the laboratory and require
S. 7923 8
1 that the laboratory report testing results in a manner determined by the
2 commissioner. The commissioner is authorized to issue regulation requir-
3 ing the laboratory to perform certain tests and services.
4 4. (a) A registered organization may lawfully, in good faith, sell,
5 deliver, distribute or dispense medical marihuana to a certified patient
6 or designated caregiver upon presentation to the registered organization
7 of a valid registry identification card for that certified patient or
8 designated caregiver. When presented with the registry identification
9 card, the registered organization shall provide to the certified patient
10 or designated caregiver a receipt, which shall state: the name, address,
11 and registry identification number of the registered organization; the
12 name and registry identification number of the certified patient and the
13 designated caregiver (if any); the date the marihuana was sold; any
14 recommendation or limitation by the practitioner as to the form or forms
15 of medical marihuana or dosage for the certified patient; and the form
16 and the quantity of medical marihuana sold. The registered organization
17 shall retain a copy of the registry identification card and the receipt
18 for six years.
19 (b) The proprietor of a registered organization shall file or cause to
20 be filed any receipt and certification information with the department
21 by electronic means on a real time basis as the commissioner shall
22 require by regulation. When filing receipt and certification information
23 electronically pursuant to this paragraph, the proprietor of the regis-
24 tered organization shall dispose of any electronically recorded
25 prescription information in such manner as the commissioner shall by
26 regulation require.
27 5. (a) No registered organization may sell, deliver, distribute or
28 dispense to any certified patient or designated caregiver a quantity of
29 medical marihuana larger than that individual would be allowed to
30 possess under this title.
31 (b) When dispensing medical marihuana to a certified patient or desig-
32 nated caregiver, the registered organization (i) shall not dispense an
33 amount greater than a thirty day supply to a certified patient until the
34 certified patient has exhausted all but a seven day supply provided
35 pursuant to a previously issued certification, and (ii) shall verify the
36 information in subparagraph (i) of this paragraph by consulting the
37 prescription monitoring program registry under section thirty-three
38 hundred forty-three-a of this article.
39 (c) Medical marihuana dispensed to a certified patient or designated
40 caregiver by a registered organization shall conform to any recommenda-
41 tion or limitation by the practitioner as to the form or forms of
42 medical marihuana or dosage for the certified patient.
43 6. When a registered organization sells, delivers, distributes or
44 dispenses medical marihuana to a certified patient or designated care-
45 giver, it shall provide to that individual a safety insert, which will
46 be developed and approved by the commissioner and include, but not be
47 limited to, information on:
48 (a) methods for administering medical marihuana in individual doses,
49 (b) any potential dangers stemming from the use of medical marihuana,
50 (c) how to recognize what may be problematic usage of medical marihua-
51 na and obtain appropriate services or treatment for problematic usage,
52 and
53 (d) other information as determined by the commissioner.
54 7. Registered organizations shall not be managed by or employ anyone
55 who has been convicted of any felony of sale or possession of drugs,
56 narcotics, or controlled substances provided that this subdivision only
S. 7923 9
1 applies to (a) managers or employees who come into contact with or
2 handle medical marihuana, and (b) a conviction less than ten years (not
3 counting time spent in incarceration) prior to being employed, for which
4 the person has not received a certificate of relief from disabilities or
5 a certificate of good conduct under article twenty-three of the
6 correction law.
7 8. Manufacturing of medical marihuana by a registered organization
8 shall only be done in an indoor, enclosed, secure facility located in
9 New York state, which may include a greenhouse. The commissioner shall
10 promulgate regulations establishing requirements for such facilities.
11 9. Dispensing of medical marihuana by a registered organization shall
12 only be done in an indoor, enclosed, secure facility located in New York
13 state, which may include a greenhouse. The commissioner shall promul-
14 gate regulations establishing requirements for such facilities.
15 10. A registered organization shall determine the quality, safety, and
16 clinical strength of medical marihuana manufactured or dispensed by the
17 registered organization, and shall provide documentation of that quali-
18 ty, safety and clinical strength to the department and to any person or
19 entity to which the medical marihuana is sold or dispensed.
20 11. A registered organization shall be deemed to be a "health care
21 provider" for the purposes of title two-D of article two of this chap-
22 ter.
23 12. Medical marihuana shall be dispensed to a certified patient or
24 designated caregiver in a sealed and properly labeled package. The
25 labeling shall contain: (a) the information required to be included in
26 the receipt provided to the certified patient or designated caregiver by
27 the registered organization; (b) the packaging date; (c) any applicable
28 date by which the medical marihuana should be used; (d) a warning stat-
29 ing, "This product is for medicinal use only. Women should not consume
30 during pregnancy or while breastfeeding except on the advice of the
31 certifying health care practitioner, and in the case of breastfeeding
32 mothers, including the infant's pediatrician. This product might impair
33 the ability to drive. Keep out of reach of children."; (e) the amount of
34 individual doses contained within; and (f) a warning that the medical
35 marihuana must be kept in the original container in which it was
36 dispensed.
37 13. The commissioner is authorized to make rules and regulations
38 restricting the advertising and marketing of medical marihuana, which
39 shall be consistent with the federal regulations governing prescription
40 drug advertising and marketing.
41 § 3365. Registering of registered organizations. 1. Application for
42 initial registration. (a) An applicant for registration as a registered
43 organization under section thirty-three hundred sixty-four of this title
44 shall include such information prepared in such manner and detail as the
45 commissioner may require, including but not limited to:
46 (i) a description of the activities in which it intends to engage as a
47 registered organization;
48 (ii) that the applicant:
49 (A) is of good moral character;
50 (B) possesses or has the right to use sufficient land, buildings, and
51 other premises (which shall be specified in the application) and equip-
52 ment to properly carry on the activity described in the application, or
53 in the alternative posts a bond of not less than two million dollars;
54 (C) is able to maintain effective security and control to prevent
55 diversion, abuse, and other illegal conduct relating to the marihuana;
S. 7923 10
1 (D) is able to comply with all applicable state laws and regulations
2 relating to the activities in which it intends to engage under the
3 registration;
4 (iii) that the applicant has entered into a labor peace agreement with
5 a bona-fide labor organization that is actively engaged in representing
6 or attempting to represent the applicant's employees. The maintenance of
7 such a labor peace agreement shall be an ongoing material condition of
8 certification.
9 (iv) the applicant's status under subdivision one of section thirty-
10 three hundred sixty-four of this title; and
11 (v) the application shall include the name, residence address and
12 title of each of the officers and directors and the name and residence
13 address of any person or entity that is a member of the applicant. Each
14 such person, if an individual, or lawful representative if a legal enti-
15 ty, shall submit an affidavit with the application setting forth:
16 (A) any position of management or ownership during the preceding ten
17 years of a ten per centum or greater interest in any other business,
18 located in or outside this state, manufacturing or distributing drugs;
19 (B) whether such person or any such business has been convicted of a
20 felony or had a registration or license suspended or revoked in any
21 administrative or judicial proceeding; and
22 (C) such other information as the commissioner may reasonably require.
23 2. Duty to report. The applicant shall be under a continuing duty to
24 report to the department any change in facts or circumstances reflected
25 in the application or any newly discovered or occurring fact or circum-
26 stance which is required to be included in the application.
27 3. Granting of registration. (a) The commissioner shall grant a regis-
28 tration or amendment to a registration under this section if he or she
29 is satisfied that:
30 (i) the applicant will be able to maintain effective control against
31 diversion of marihuana;
32 (ii) the applicant will be able to comply with all applicable state
33 laws;
34 (iii) the applicant and its officers are ready, willing and able to
35 properly carry on the manufacturing or distributing activity for which a
36 registration is sought;
37 (iv) the applicant possesses or has the right to use sufficient land,
38 buildings and equipment to properly carry on the activity described in
39 the application;
40 (v) it is in the public interest that such registration be granted;
41 the commissioner may consider whether the number of registered organiza-
42 tions in an area will be adequate or excessive to reasonably serve the
43 area;
44 (vi) the applicant and its managing officers are of good moral charac-
45 ter;
46 (vii) the applicant has entered into a labor peace agreement with a
47 bona-fide labor organization that is actively engaged in representing or
48 attempting to represent the applicant's employees; and
49 (viii) the applicant satisfies any other conditions as determined by
50 the commissioner.
51 (b) If the commissioner is not satisfied that the applicant should be
52 issued a registration, he or she shall notify the applicant in writing
53 of those factors upon which further evidence is required. Within thirty
54 days of the receipt of such notification, the applicant may submit addi-
55 tional material to the commissioner or demand a hearing, or both.
S. 7923 11
1 (c) The fee for a registration under this section shall be a reason-
2 able amount determined by the department in regulations; provided,
3 however, if the registration is issued for a period greater than two
4 years the fee shall be increased, pro rata, for each additional month of
5 validity.
6 (d) Registrations issued under this section shall be effective only
7 for the registered organization and shall specify:
8 (i) the name and address of the registered organization;
9 (ii) which activities of a registered organization are permitted by
10 the registration;
11 (iii) the land, buildings and facilities that may be used for the
12 permitted activities of the registered organization; and
13 (iv) such other information as the commissioner shall reasonably
14 provide to assure compliance with this title.
15 (e) Upon application of a registered organization, a registration may
16 be amended to allow the registered organization to relocate within the
17 state or to add or delete permitted registered organization activities
18 or facilities. The fee for such amendment shall be two hundred fifty
19 dollars.
20 4. A registration issued under this section shall be valid for two
21 years from the date of issue, except that in order to facilitate the
22 renewals of such registrations, the commissioner may upon the initial
23 application for a registration, issue some registrations which may
24 remain valid for a period of time greater than two years but not exceed-
25 ing an additional eleven months.
26 5. Applications for renewal of registrations. (a) An application for
27 the renewal of any registration issued under this section shall be filed
28 with the department not more than six months nor less than four months
29 prior to the expiration thereof. A late-filed application for the
30 renewal of a registration may, in the discretion of the commissioner, be
31 treated as an application for an initial license.
32 (b) The application for renewal shall include such information
33 prepared in the manner and detail as the commissioner may require,
34 including but not limited to:
35 (i) any material change in the circumstances or factors listed in
36 subdivision one of this section; and
37 (ii) every known charge or investigation, pending or concluded during
38 the period of the registration, by any governmental or administrative
39 agency with respect to:
40 (A) each incident or alleged incident involving the theft, loss, or
41 possible diversion of marihuana manufactured or distributed by the
42 applicant; and
43 (B) compliance by the applicant with the laws of the state with
44 respect to any substance listed in section thirty-three hundred six of
45 this article.
46 (c) An applicant for renewal shall be under a continuing duty to
47 report to the department any change in facts or circumstances reflected
48 in the application or any newly discovered or occurring fact or circum-
49 stance which is required to be included in the application.
50 (d) If the commissioner is not satisfied that the applicant is enti-
51 tled to a renewal of the registration, he or she shall within a reason-
52 ably practicable time as determined by the commissioner, serve upon the
53 applicant or his or her attorney of record in person or by registered or
54 certified mail an order directing the applicant to show cause why his or
55 her application for renewal should not be denied. The order shall speci-
S. 7923 12
1 fy in detail the respects in which the applicant has not satisfied the
2 commissioner that the registration should be renewed.
3 (e) Within a reasonably practicable time as determined by the commis-
4 sioner of such order, the applicant may submit additional material to
5 the commissioner or demand a hearing or both. If a hearing is demanded
6 the commissioner shall fix a date as soon as reasonably practicable.
7 6. Granting of renewal of registrations. (a) The commissioner shall
8 renew a registration unless he or she determines and finds that:
9 (i) the applicant is unlikely to maintain or be able to maintain
10 effective control against diversion; or
11 (ii) the applicant is unlikely to comply with all state laws applica-
12 ble to the activities in which it may engage under the registration; or
13 (iii) it is not in the public interest to renew the registration
14 because the number of registered organizations in an area is excessive
15 to reasonably serve the area; or
16 (iv) the applicant has either violated or terminated its labor peace
17 agreement.
18 (b) For purposes of this section, proof that a registered organiza-
19 tion, during the period of its registration, has failed to maintain
20 effective control against diversion, violates any provision of this
21 article, or has knowingly or negligently failed to comply with applica-
22 ble state laws relating to the activities in which it engages under the
23 registration, shall constitute grounds for suspension or termination of
24 the registered organization's registration as determined by the commis-
25 sioner. The registered organization shall also be under a continuing
26 duty to report to the department any material change or fact or circum-
27 stance to the information provided in the registered organization's
28 application.
29 7. The department may suspend or terminate the registration of a
30 registered organization, on grounds and using procedures under this
31 article relating to a license, to the extent consistent with this title.
32 The department shall suspend or terminate the registration in the event
33 that a registered organization violates or terminates the applicable
34 labor peace agreement. Conduct in compliance with this title which may
35 violate conflicting federal law, shall not be grounds to suspend or
36 terminate a registration.
37 8. The department shall begin issuing registrations for registered
38 organizations as soon as practicable after the certifications required
39 by section thirty-three hundred sixty-nine-b of this title are given.
40 9. The commissioner shall register no more than five registered organ-
41 izations that manufacture medical marihuana with no more than four
42 dispensing sites wholly owned and operated by such registered organiza-
43 tion. The commissioner shall ensure that such registered organizations
44 and dispensing sites are geographically distributed across the state.
45 The commission may register additional registered organizations.
46 § 3366. Reports by registered organizations. 1. The commissioner
47 shall, by regulation, require each registered organization to file
48 reports by the registered organization during a particular period. The
49 commissioner shall determine the information to be reported and the
50 forms, time, and manner of the reporting.
51 2. The commissioner shall, by regulation, require each registered
52 organization to adopt and maintain security, tracking, record keeping,
53 record retention and surveillance systems, relating to all medical mari-
54 huana at every stage of acquiring, possession, manufacture, sale, deliv-
55 ery, transporting, distributing, or dispensing by the registered organ-
56 ization, subject to regulations of the commissioner.
S. 7923 13
1 § 3367. Evaluation; research programs; report by department. 1. The
2 commissioner may provide for the analysis and evaluation of the opera-
3 tion of this title. The commissioner may enter into agreements with one
4 or more persons, not-for-profit corporations or other organizations, for
5 the performance of an evaluation of the implementation and effectiveness
6 of this title.
7 2. The department may develop, seek any necessary federal approval
8 for, and carry out research programs relating to medical use of marihua-
9 na. Participation in any such research program shall be voluntary on the
10 part of practitioners, patients, and designated caregivers.
11 3. The department shall report every two years, beginning two years
12 after the effective date of this title, to the governor and the legisla-
13 ture on the medical use of marihuana under this title and make appropri-
14 ate recommendations.
15 § 3368. Relation to other laws. 1. (a) The provisions of this article
16 shall apply to this title, except that where a provision of this title
17 conflicts with another provision of this article, this title shall
18 apply.
19 (b) Medical marihuana shall not be deemed to be a "drug" for purposes
20 of article one hundred thirty-seven of the education law.
21 2. Nothing in this title shall be construed to require an insurer or
22 health plan under this chapter or the insurance law to provide coverage
23 for medical marihuana. Nothing in this title shall be construed to
24 require coverage for medical marihuana under article twenty-five of this
25 chapter or article five of the social services law.
26 § 3369. Protections for the medical use of marihuana. 1. Certified
27 patients, designated caregivers, practitioners, registered organizations
28 and the employees of registered organizations shall not be subject to
29 arrest, prosecution, or penalty in any manner, or denied any right or
30 privilege, including but not limited to civil penalty or disciplinary
31 action by a business or occupational or professional licensing board or
32 bureau, solely for the certified medical use or manufacture of marihua-
33 na, or for any other action or conduct in accordance with this title.
34 2. Non-discrimination. Being a certified patient shall be deemed to be
35 having a "disability" under article fifteen of the executive law (human
36 rights law), section forty-c of the civil rights law, sections 240.00,
37 485.00, and 485.05 of the penal law, and section 200.50 of the criminal
38 procedure law. This subdivision shall not bar the enforcement of a poli-
39 cy prohibiting an employee from performing his or her employment duties
40 while impaired by a controlled substance. This subdivision shall not
41 require any person or entity to do any act that would put the person or
42 entity in violation of federal law or cause it to lose a federal
43 contract or funding.
44 3. The fact that a person is a certified patient and/or acting in
45 accordance with this title, shall not be a consideration in a proceeding
46 pursuant to applicable sections of the domestic relations law, the
47 social services law and the family court act.
48 4. Certification applications, certification forms, any certified
49 patient information contained within a database, and copies of registry
50 identification cards shall be deemed exempt from public disclosure under
51 sections eighty-seven and eighty-nine of the public officers law.
52 § 3369-a. Regulations. The commissioner shall make regulations to
53 implement this title.
54 § 3369-b. Effective date. Registry identification cards or registered
55 organization registrations shall be issued or become effective no later
56 than eighteen months from signing or until such time as the commissioner
S. 7923 14
1 and the superintendent of state police certify that this title can be
2 implemented in accordance with public health and safety interests,
3 whichever event comes later.
4 § 3369-c. Suspend; terminate. Based upon the recommendation of the
5 commissioner and/or the superintendent of state police that there is a
6 risk to the public health or safety, the governor may immediately termi-
7 nate all licenses issued to registered organizations.
8 § 3369-d. Pricing. 1. Every sale of medical marihuana shall be at the
9 price determined by the commissioner. Every charge made or demanded for
10 medical marihuana not in accordance with the price determined by the
11 commissioner, is prohibited.
12 2. The commissioner is hereby authorized to set the per dose price of
13 each form of medical marihuana sold by any registered organization. In
14 setting the per dose price of each form of medical marihuana, the
15 commissioner shall consider the fixed and variable costs of producing
16 the form of marihuana and any other factor the commissioner, in his or
17 her discretion, deems relevant to determining the per dose price of each
18 form of medical marihuana.
19 § 3369-e. Severability. If any clause, sentence, paragraph, section or
20 part of this act shall be adjudged by any court of competent jurisdic-
21 tion to be invalid, the judgment shall not affect, impair, or invalidate
22 the remainder thereof, but shall be confined in its operation to the
23 clause, sentence, paragraph, section or part thereof directly involved
24 in the controversy in which the judgment shall have been rendered.
25 § 3. Subdivision 2 of section 3371 of the public health law, as added
26 by section 5 of part A of chapter 447 of the laws of 2012, is amended to
27 read as follows:
28 2. The prescription monitoring program registry may be accessed, under
29 such terms and conditions as are established by the department for
30 purposes of maintaining the security and confidentiality of the informa-
31 tion contained in the registry, by:
32 (a) a practitioner, or a designee authorized by such practitioner
33 pursuant to paragraph (b) of subdivision two of section thirty-three
34 hundred forty-three-a or section thirty-three hundred sixty-one of this
35 article, for the purposes of: (i) informing the practitioner that a
36 patient may be under treatment with a controlled substance by another
37 practitioner; (ii) providing the practitioner with notifications of
38 controlled substance activity as deemed relevant by the department,
39 including but not limited to a notification made available on a monthly
40 or other periodic basis through the registry of controlled substances
41 activity pertaining to his or her patient; (iii) allowing the practi-
42 tioner, through consultation of the prescription monitoring program
43 registry, to review his or her patient's controlled substances history
44 as required by section thirty-three hundred forty-three-a or section
45 thirty-three hundred sixty-one of this article; and (iv) providing to
46 his or her patient, or person authorized pursuant to paragraph (j) of
47 subdivision one of this section, upon request, a copy of such patient's
48 controlled substance history as is available to the practitioner through
49 the prescription monitoring program registry; or
50 (b) a pharmacist, pharmacy intern or other designee authorized by the
51 pharmacist pursuant to paragraph (b) of subdivision three of section
52 thirty-three hundred forty-three-a of this article, for the purposes of:
53 (i) consulting the prescription monitoring program registry to review
54 the controlled substances history of an individual for whom one or more
55 prescriptions for controlled substances or certifications for marihuana
56 is presented to the pharmacist, pursuant to section thirty-three hundred
S. 7923 15
1 forty-three-a of this article; and (ii) receiving from the department
2 such notifications of controlled substance activity as are made avail-
3 able by the department[.]; or
4 (c) an individual employed by a registered organization for the
5 purpose of consulting the prescription monitoring program registry to
6 review the controlled substances history of an individual for whom one
7 or more certifications for marihuana is presented to that registered
8 organization, pursuant to section thirty-three hundred sixty-four of
9 this article. Unless otherwise authorized by this article, an individual
10 employed by a registered organization will be provided access to the
11 prescription monitoring program in the sole discretion of the commis-
12 sioner.
13 § 4. The tax law is amended by adding a new article 20-B to read as
14 follows:
15 ARTICLE 20-B
16 EXCISE TAX ON MEDICAL MARIHUANA
17 Section 490. Definitions.
18 491. Returns to be secret.
19 § 490. Definitions. 1. (a) All definitions of terms applicable to
20 title five-A of article thirty-three of the public health law shall
21 apply to this article.
22 (b) As used in this section, where not otherwise specifically defined
23 and unless a different meaning is clearly required "gross receipt" means
24 the amount received in or by reason of any sale, conditional or other-
25 wise, of medical marihuana or in or by reason of the furnishing of
26 medical marihuana from the sale of medical marihuana provided by a
27 registered organization to a certified patient or designated caregiver.
28 Gross receipt is expressed in money, whether paid in cash, credit or
29 property of any kind or nature, and shall be determined without any
30 deduction therefrom on account of the cost of the service sold or the
31 cost of materials, labor or services used or other costs, interest or
32 discount paid, or any other expenses whatsoever. "Amount received" for
33 the purpose of the definition of gross receipt, as the term gross
34 receipt is used throughout this article, means the amount charged for
35 the provision of medical marihuana.
36 2. There is hereby imposed an excise tax on the gross receipts from
37 the sale of medical marihuana by a registered organization to a certi-
38 fied patient or designated caregiver, to be paid by the registered
39 organization, at the rate of seven percent. The tax imposed by this
40 article shall be charged against and be paid by the registered organiza-
41 tion and shall not be added as a separate charge or line item on any
42 sales slip, invoice, receipt or other statement or memorandum of the
43 price given to the retail customer.
44 3. The commissioner may make, adopt and amend rules, regulations,
45 procedures and forms necessary for the proper administration of this
46 article.
47 4. Every registered organization that makes sales of medical marihuana
48 subject to the tax imposed by this article shall, on or before the twen-
49 tieth date of each month, file with the commissioner a return on forms
50 to be prescribed by the commissioner, showing its receipts from the
51 retail sale of medical marihuana during the preceding calendar month and
52 the amount of tax due thereon. Such returns shall contain such further
53 information as the commissioner may require. Every registered organiza-
54 tion required to file a return under this section shall, at the time of
55 filing such return, pay to the commissioner the total amount of tax due
56 on its retail sales of medical marihuana for the period covered by such
S. 7923 16
1 return. If a return is not filed when due, the tax shall be due on the
2 day on which the return is required to be filed.
3 5. Whenever the commissioner shall determine that any moneys received
4 under the provisions of this article were paid in error, he may cause
5 the same to be refunded, with interest, in accordance with such rules
6 and regulations as he may prescribe, except that no interest shall be
7 allowed or paid if the amount thereof would be less than one dollar.
8 Such interest shall be at the overpayment rate set by the commissioner
9 pursuant to subdivision twenty-sixth of section one hundred seventy-one
10 of this chapter, or if no rate is set, at the rate of six percent per
11 annum, from the date when the tax, penalty or interest to be refunded
12 was paid to a date preceding the date of the refund check by not more
13 than thirty days. Provided, however, that for the purposes of this
14 subdivision, any tax paid before the last day prescribed for its payment
15 shall be deemed to have been paid on such last day. Such moneys received
16 under the provisions of this article which the commissioner shall deter-
17 mine were paid in error, may be refunded out of funds in the custody of
18 the comptroller to the credit of such taxes provided an application
19 therefor is filed with the commissioner within two years from the time
20 the erroneous payment was made.
21 6. The provisions of article twenty-seven of this chapter shall apply
22 to the tax imposed by this article in the same manner and with the same
23 force and effect as if the language of such article had been incorpo-
24 rated in full into this section and had expressly referred to the tax
25 imposed by this article, except to the extent that any provision of such
26 article is either inconsistent with a provision of this article or is
27 not relevant to this article.
28 7. All taxes, interest and penalties collected or received by the
29 commissioner under this article shall be deposited and disposed of
30 pursuant to the provisions of section one hundred seventy-one-a of this
31 chapter, provided that an amount equal to one hundred percent collected
32 under this article less any amount determined by the commissioner to be
33 reserved by the comptroller for refunds or reimbursements shall be paid
34 by the comptroller to the credit of the medical marihuana trust fund
35 established by section eighty-nine-h of the state finance law.
36 8. A registered organization that dispenses medical marihuana shall
37 provide to the department information on where the medical marihuana was
38 dispensed and where the medical marihuana was manufactured. A registered
39 organization that obtains marihuana from another registered organization
40 shall obtain from such registered organization information on where the
41 medical marihuana was manufactured.
42 § 491. Returns to be secret. 1. Except in accordance with proper judi-
43 cial order or as in this section or otherwise provided by law, it shall
44 be unlawful for the commissioner, any officer or employee of the depart-
45 ment, or any officer or person who, pursuant to this section, is permit-
46 ted to inspect any return or report or to whom a copy, an abstract or a
47 portion of any return or report is furnished, or to whom any information
48 contained in any return or report is furnished, or any person engaged or
49 retained by such department on an independent contract basis or any
50 person who in any manner may acquire knowledge of the contents of a
51 return or report filed pursuant to this article to divulge or make known
52 in any manner the contents or any other information relating to the
53 business of a distributor, owner or other person contained in any return
54 or report required under this article. The officers charged with the
55 custody of such returns or reports shall not be required to produce any
56 of them or evidence of anything contained in them in any action or
S. 7923 17
1 proceeding in any court, except on behalf of the state, the state
2 department of health, or the commissioner in an action or proceeding
3 under the provisions of this chapter or on behalf of the state or the
4 commissioner in any other action or proceeding involving the collection
5 of a tax due under this chapter to which the state or the commissioner
6 is a party or a claimant or on behalf of any party to any action or
7 proceeding under the provisions of this article, when the returns or the
8 reports or the facts shown thereby are directly involved in such action
9 or proceeding, or in an action or proceeding relating to the regulation
10 or taxation of medical marihuana on behalf of officers to whom informa-
11 tion shall have been supplied as provided in subdivision two of this
12 section, in any of which events the court may require the production of,
13 and may admit in evidence so much of said returns or reports or of the
14 facts shown thereby as are pertinent to the action or proceeding and no
15 more. Nothing herein shall be construed to prohibit the commissioner, in
16 his or her discretion, from allowing the inspection or delivery of a
17 certified copy of any return or report filed under this article or of
18 any information contained in any such return or report by or to a duly
19 authorized officer or employee of the state department of health; or by
20 or to the attorney general or other legal representatives of the state
21 when an action shall have been recommended or commenced pursuant to this
22 chapter in which such returns or reports or the facts shown thereby are
23 directly involved; or the inspection of the returns or reports required
24 under this article by the comptroller or duly designated officer or
25 employee of the state department of audit and control, for purposes of
26 the audit of a refund of any tax paid by a registered organization or
27 other person under this article; nor to prohibit the delivery to a
28 registered organization, or a duly authorized representative of such
29 registered organization, a certified copy of any return or report filed
30 by such registered organization pursuant to this article, nor to prohib-
31 it the publication of statistics so classified as to prevent the iden-
32 tification of particular returns or reports and the items thereof.
33 2. The commissioner, in his or her discretion and pursuant to such
34 rules and regulations as he or she may adopt, may permit the commission-
35 er of internal revenue of the United States, or the appropriate officers
36 of any other state which regulates or taxes medical marihuana, or the
37 duly authorized representatives of such commissioner or of any such
38 officers, to inspect returns or reports made pursuant to this article,
39 or may furnish to such commissioner or other officers, or duly author-
40 ized representatives, a copy of any such return or report or an abstract
41 of the information therein contained, or any portion thereof, or may
42 supply such commissioner or any such officers or such representatives
43 with information relating to the business of a registered organization
44 making returns or reports hereunder. The commissioner may refuse to
45 supply information pursuant to this subdivision to the commissioner of
46 internal revenue of the United States or to the officers of any other
47 state if the statutes of the United States, or of the state represented
48 by such officers, do not grant substantially similar privileges to the
49 commissioner, but such refusal shall not be mandatory. Information shall
50 not be supplied to the commissioner of internal revenue of the United
51 States or the appropriate officers of any other state which regulates or
52 taxes medical marihuana, or the duly authorized representatives of such
53 commissioner or of any of such officers, unless such commissioner, offi-
54 cer or other representatives shall agree not to divulge or make known in
55 any manner the information so supplied, but such officers may transmit
56 such information to their employees or legal representatives when neces-
S. 7923 18
1 sary, who in turn shall be subject to the same restrictions as those
2 hereby imposed upon such commissioner, officer or other representatives.
3 3. (a) Any officer or employee of the state who willfully violates the
4 provisions of subdivision one or two of this section shall be dismissed
5 from office and be incapable of holding any public office in this state
6 for a period of five years thereafter.
7 (b) Cross-reference: For criminal penalties, see article thirty-seven
8 of this chapter.
9 § 5. The state finance law is amended by adding a new section 89-h to
10 read as follows:
11 § 89-h. Medical marihuana trust fund. 1. There is hereby established
12 in the joint custody of the state comptroller and the commissioner of
13 taxation and finance a special fund to be known as the "medical marihua-
14 na trust fund."
15 2. The medical marihuana trust fund shall consist of all moneys
16 required to be deposited in the medical marihuana trust fund pursuant to
17 the provisions of section four hundred ninety of the tax law.
18 3. The moneys in the medical marihuana trust fund shall be kept sepa-
19 rate and shall not be commingled with any other moneys in the custody of
20 the commissioner of taxation and finance and the state comptroller.
21 4. The moneys of the medical marihuana trust fund, following appropri-
22 ation by the legislature, shall be allocated upon a certificate of
23 approval of availability by the director of the budget as follows: (a)
24 Twenty-two and five-tenths percent of the monies shall be transferred to
25 the counties in New York state in which the medical marihuana was manu-
26 factured and allocated in proportion to the gross sales originating from
27 medical marihuana manufactured in each such county; (b) twenty-two and
28 five-tenths percent of the moneys shall be transferred to the counties
29 in New York state in which the medical marihuana was dispensed and allo-
30 cated in proportion to the gross sales occurring in each such county;
31 (c) five percent of the monies shall be transferred to the office of
32 alcoholism and substance abuse services, which shall use that revenue
33 for additional drug abuse prevention, counseling and treatment services;
34 and (d) five percent of the revenue received by the department shall be
35 transferred to the division of criminal justice services, which shall
36 use that revenue for a program of discretionary grants to state and
37 local law enforcement agencies that demonstrate a need relating to title
38 five-A of article thirty-three of the public health law; said grants
39 could be used for personnel costs of state and local law enforcement
40 agencies. For purposes of this subdivision, the city of New York shall
41 be deemed to be a county.
42 § 6. Subdivision 1 of section 171-a of the tax law, as amended by
43 section 1 of part R of chapter 60 of the laws of 2004, is amended to
44 read as follows:
45 1. All taxes, interest, penalties and fees collected or received by
46 the commissioner or the commissioner's duly authorized agent under arti-
47 cles nine (except section one hundred eighty-two-a thereof and except as
48 otherwise provided in section two hundred five thereof), nine-A,
49 twelve-A (except as otherwise provided in section two hundred eighty-
50 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
51 section three hundred twelve thereof), eighteen, nineteen, twenty
52 (except as otherwise provided in section four hundred eighty-two there-
53 of), twenty-B twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-
54 eight (except as otherwise provided in section eleven hundred two or
55 eleven hundred three thereof), twenty-eight-A, thirty-one (except as
56 otherwise provided in section fourteen hundred twenty-one thereof),
S. 7923 19
1 thirty-two, thirty-three and thirty-three-A of this chapter shall be
2 deposited daily in one account with such responsible banks, banking
3 houses or trust companies as may be designated by the comptroller, to
4 the credit of the comptroller. Such an account may be established in one
5 or more of such depositories. Such deposits shall be kept separate and
6 apart from all other money in the possession of the comptroller. The
7 comptroller shall require adequate security from all such depositories.
8 Of the total revenue collected or received under such articles of this
9 chapter, the comptroller shall retain in the comptroller's hands such
10 amount as the commissioner may determine to be necessary for refunds or
11 reimbursements under such articles of this chapter and article ten ther-
12 eof out of which amount the comptroller shall pay any refunds or
13 reimbursements to which taxpayers shall be entitled under the provisions
14 of such articles of this chapter and article ten thereof. The commis-
15 sioner and the comptroller shall maintain a system of accounts showing
16 the amount of revenue collected or received from each of the taxes
17 imposed by such articles. The comptroller, after reserving the amount to
18 pay such refunds or reimbursements, shall, on or before the tenth day of
19 each month, pay into the state treasury to the credit of the general
20 fund all revenue deposited under this section during the preceding
21 calendar month and remaining to the comptroller's credit on the last day
22 of such preceding month, (i) except that the comptroller shall pay to
23 the state department of social services that amount of overpayments of
24 tax imposed by article twenty-two of this chapter and the interest on
25 such amount which is certified to the comptroller by the commissioner as
26 the amount to be credited against past-due support pursuant to subdivi-
27 sion six of section one hundred seventy-one-c of this chapter, (ii) and
28 except that the comptroller shall pay to the New York state higher
29 education services corporation and the state university of New York or
30 the city university of New York respectively that amount of overpayments
31 of tax imposed by article twenty-two of this chapter and the interest on
32 such amount which is certified to the comptroller by the commissioner as
33 the amount to be credited against the amount of defaults in repayment of
34 guaranteed student loans and state university loans or city university
35 loans pursuant to subdivision five of section one hundred seventy-one-d
36 and subdivision six of section one hundred seventy-one-e of this chap-
37 ter, (iii) and except further that, notwithstanding any law, the comp-
38 troller shall credit to the revenue arrearage account, pursuant to
39 section ninety-one-a of the state finance law, that amount of overpay-
40 ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir-
41 ty-A, thirty-B, thirty-two or thirty-three of this chapter, and any
42 interest thereon, which is certified to the comptroller by the commis-
43 sioner as the amount to be credited against a past-due legally enforcea-
44 ble debt owed to a state agency pursuant to paragraph (a) of subdivision
45 six of section one hundred seventy-one-f of this article, provided,
46 however, he shall credit to the special offset fiduciary account, pursu-
47 ant to section ninety-one-c of the state finance law, any such amount
48 creditable as a liability as set forth in paragraph (b) of subdivision
49 six of section one hundred seventy-one-f of this article, (iv) and
50 except further that the comptroller shall pay to the city of New York
51 that amount of overpayment of tax imposed by article nine, nine-A, twen-
52 ty-two, thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
53 chapter and any interest thereon that is certified to the comptroller by
54 the commissioner as the amount to be credited against city of New York
55 tax warrant judgment debt pursuant to section one hundred seventy-one-l
56 of this article, (v) and except further that the comptroller shall pay
S. 7923 20
1 to a non-obligated spouse that amount of overpayment of tax imposed by
2 article twenty-two of this chapter and the interest on such amount which
3 has been credited pursuant to section one hundred seventy-one-c, one
4 hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-
5 one-f or one hundred seventy-one-l of this article and which is certi-
6 fied to the comptroller by the commissioner as the amount due such non-
7 obligated spouse pursuant to paragraph six of subsection (b) of section
8 six hundred fifty-one of this chapter; and (vi) the comptroller shall
9 deduct a like amount which the comptroller shall pay into the treasury
10 to the credit of the general fund from amounts subsequently payable to
11 the department of social services, the state university of New York, the
12 city university of New York, or the higher education services corpo-
13 ration, or the revenue arrearage account or special offset fiduciary
14 account pursuant to section ninety-one-a or ninety-one-c of the state
15 finance law, as the case may be, whichever had been credited the amount
16 originally withheld from such overpayment, and (vii) with respect to
17 amounts originally withheld from such overpayment pursuant to section
18 one hundred seventy-one-l of this article and paid to the city of New
19 York, the comptroller shall collect a like amount from the city of New
20 York.
21 § 7. Subdivision 1 of section 171-a of the tax law, as amended by
22 section 54 of part A of chapter 59 of the laws of 2014, is amended to
23 read as follows:
24 1. All taxes, interest, penalties and fees collected or received by
25 the commissioner or the commissioner's duly authorized agent under arti-
26 cles nine (except section one hundred eighty-two-a thereof and except as
27 otherwise provided in section two hundred five thereof), nine-A,
28 twelve-A (except as otherwise provided in section two hundred eighty-
29 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
30 section three hundred twelve thereof), eighteen, nineteen, twenty
31 (except as otherwise provided in section four hundred eighty-two there-
32 of), twenty-B, twenty-one, twenty-two, twenty-six, twenty-six-B, twen-
33 ty-eight (except as otherwise provided in section eleven hundred two or
34 eleven hundred three thereof), twenty-eight-A, thirty-one (except as
35 otherwise provided in section fourteen hundred twenty-one thereof),
36 thirty-three and thirty-three-A of this chapter shall be deposited daily
37 in one account with such responsible banks, banking houses or trust
38 companies as may be designated by the comptroller, to the credit of the
39 comptroller. Such an account may be established in one or more of such
40 depositories. Such deposits shall be kept separate and apart from all
41 other money in the possession of the comptroller. The comptroller shall
42 require adequate security from all such depositories. Of the total
43 revenue collected or received under such articles of this chapter, the
44 comptroller shall retain in the comptroller's hands such amount as the
45 commissioner may determine to be necessary for refunds or reimbursements
46 under such articles of this chapter out of which amount the comptroller
47 shall pay any refunds or reimbursements to which taxpayers shall be
48 entitled under the provisions of such articles of this chapter. The
49 commissioner and the comptroller shall maintain a system of accounts
50 showing the amount of revenue collected or received from each of the
51 taxes imposed by such articles. The comptroller, after reserving the
52 amount to pay such refunds or reimbursements, shall, on or before the
53 tenth day of each month, pay into the state treasury to the credit of
54 the general fund all revenue deposited under this section during the
55 preceding calendar month and remaining to the comptroller's credit on
56 the last day of such preceding month, (i) except that the comptroller
S. 7923 21
1 shall pay to the state department of social services that amount of
2 overpayments of tax imposed by article twenty-two of this chapter and
3 the interest on such amount which is certified to the comptroller by the
4 commissioner as the amount to be credited against past-due support
5 pursuant to subdivision six of section one hundred seventy-one-c of this
6 article, (ii) and except that the comptroller shall pay to the New York
7 state higher education services corporation and the state university of
8 New York or the city university of New York respectively that amount of
9 overpayments of tax imposed by article twenty-two of this chapter and
10 the interest on such amount which is certified to the comptroller by the
11 commissioner as the amount to be credited against the amount of defaults
12 in repayment of guaranteed student loans and state university loans or
13 city university loans pursuant to subdivision five of section one
14 hundred seventy-one-d and subdivision six of section one hundred seven-
15 ty-one-e of this article, (iii) and except further that, notwithstanding
16 any law, the comptroller shall credit to the revenue arrearage account,
17 pursuant to section ninety-one-a of the state finance law, that amount
18 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
19 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
20 thereon, which is certified to the comptroller by the commissioner as
21 the amount to be credited against a past-due legally enforceable debt
22 owed to a state agency pursuant to paragraph (a) of subdivision six of
23 section one hundred seventy-one-f of this article, provided, however, he
24 shall credit to the special offset fiduciary account, pursuant to
25 section ninety-one-c of the state finance law, any such amount credita-
26 ble as a liability as set forth in paragraph (b) of subdivision six of
27 section one hundred seventy-one-f of this article, (iv) and except
28 further that the comptroller shall pay to the city of New York that
29 amount of overpayment of tax imposed by article nine, nine-A, twenty-
30 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any
31 interest thereon that is certified to the comptroller by the commission-
32 er as the amount to be credited against city of New York tax warrant
33 judgment debt pursuant to section one hundred seventy-one-l of this
34 article, (v) and except further that the comptroller shall pay to a
35 non-obligated spouse that amount of overpayment of tax imposed by arti-
36 cle twenty-two of this chapter and the interest on such amount which has
37 been credited pursuant to section one hundred seventy-one-c, one hundred
38 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or
39 one hundred seventy-one-l of this article and which is certified to the
40 comptroller by the commissioner as the amount due such non-obligated
41 spouse pursuant to paragraph six of subsection (b) of section six
42 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
43 a like amount which the comptroller shall pay into the treasury to the
44 credit of the general fund from amounts subsequently payable to the
45 department of social services, the state university of New York, the
46 city university of New York, or the higher education services corpo-
47 ration, or the revenue arrearage account or special offset fiduciary
48 account pursuant to section ninety-one-a or ninety-one-c of the state
49 finance law, as the case may be, whichever had been credited the amount
50 originally withheld from such overpayment, and (vii) with respect to
51 amounts originally withheld from such overpayment pursuant to section
52 one hundred seventy-one-l of this article and paid to the city of New
53 York, the comptroller shall collect a like amount from the city of New
54 York.
55 § 7-a. Section 853 of the general business law is amended by adding a
56 new subdivision 3 to read as follows:
S. 7923 22
1 3. This article shall not apply to any sale, furnishing or possession
2 which is for a lawful purpose under title five-A of article thirty-three
3 of the public health law.
4 § 8. Section 221.00 of the penal law, as added by chapter 360 of the
5 laws of 1977, is amended to read as follows:
6 § 221.00 Marihuana; definitions.
7 Unless the context in which they are used clearly otherwise requires,
8 the terms occurring in this article shall have the same meaning ascribed
9 to them in article two hundred twenty of this chapter. Any act that is
10 lawful under title five-A of article thirty-three of the public health
11 law is not a violation of this article.
12 § 9. The penal law is amended by adding a new article 179 to read as
13 follows:
14 ARTICLE 179
15 CRIMINAL DIVERSION OF MEDICAL MARIHUANA
16 Section 179.00 Criminal diversion of medical marihuana; definitions.
17 179.05 Criminal diversion of medical marihuana; limitations.
18 179.10 Criminal diversion of medical marihuana in the first
19 degree.
20 179.11 Criminal diversion of medical marihuana in the second
21 degree.
22 179.15 Criminal retention of medical marihuana.
23 § 179.00 Criminal diversion of medical marihuana; definitions.
24 The following definitions are applicable to this article:
25 1. "Medical marihuana" means medical marihuana as defined in subdivi-
26 sion eight of section thirty-three hundred sixty of the public health
27 law.
28 2. "Certification" means a certification, made under section thirty-
29 three hundred sixty-one of the public health law.
30 § 179.05 Criminal diversion of medical marihuana; limitations.
31 The provisions of this article shall not apply to:
32 1. a practitioner authorized to issue a certification who acted in
33 good faith in the lawful course of his or her profession; or
34 2. a registered organization as that term is defined in subdivision
35 nine of section thirty-three hundred sixty of the public health law who
36 acted in good faith in the lawful course of the practice of pharmacy; or
37 3. a person who acted in good faith seeking treatment for medical
38 condition or assisting another person to obtain treatment for a medical
39 condition.
40 § 179.10 Criminal diversion of medical marihuana in the first degree.
41 A person is guilty of criminal diversion of medical marihuana in the
42 first degree when he or she is a practitioner, as that term is defined
43 in subdivision twelve of section thirty-three hundred sixty of the
44 public health law, who issues a certification with knowledge of reason-
45 able grounds to know that (i) the recipient has no medical need for it,
46 or (ii) it is for a purpose other than to treat a serious condition as
47 defined in subdivision seven of section thirty-three hundred sixty of
48 the public health law.
49 Criminal diversion of medical marihuana in the first degree is a class
50 E felony.
51 § 179.11 Criminal diversion of medical marihuana in the second degree.
52 A person is guilty of criminal diversion of medical marihuana in the
53 second degree when he or she sells, trades, delivers, or otherwise
54 provides medical marihuana to another with knowledge or reasonable
S. 7923 23
1 grounds to know that the recipient is not registered under title five-A
2 of article thirty-three of the public health law.
3 Criminal diversion of medical marihuana in the second degree is a
4 class B misdemeanor.
5 § 179.15 Criminal retention of medical marihuana.
6 A person is guilty of criminal retention of medical marihuana when,
7 being a certified patient or designated caregiver, as those terms are
8 defined in subdivisions three and five of section thirty-three hundred
9 sixty of the public health law, respectively, he or she knowingly
10 obtains, possesses, stores or maintains an amount of marihuana in excess
11 of the amount he or she is authorized to possess under the provisions of
12 title five-A of article thirty-three of the public health law.
13 Criminal retention of medical marihuana is a class A misdemeanor.
14 § 10. The opening paragraph of subdivision 1 of section 216.00 of the
15 criminal procedure law, as added by section 4 of part AAA of chapter 56
16 of the laws of 2009, is amended to read as follows:
17 "Eligible defendant" means any person who stands charged in an indict-
18 ment or a superior court information with a class B, C, D or E felony
19 offense defined in article one hundred seventy-nine, two hundred twenty
20 or two hundred twenty-one of the penal law or any other specified
21 offense as defined in subdivision four of section 410.91 of this chap-
22 ter, provided, however, a defendant is not an "eligible defendant" if he
23 or she:
24 § 11. Subdivision 5 of section 410.91 of the criminal procedure law,
25 as amended by section 8 of part AAA of chapter 56 of the laws of 2009,
26 is amended to read as follows:
27 5. For the purposes of this section, a "specified offense" is an
28 offense defined by any of the following provisions of the penal law:
29 burglary in the third degree as defined in section 140.20, criminal
30 mischief in the third degree as defined in section 145.05, criminal
31 mischief in the second degree as defined in section 145.10, grand larce-
32 ny in the fourth degree as defined in subdivision one, two, three, four,
33 five, six, eight, nine or ten of section 155.30, grand larceny in the
34 third degree as defined in section 155.35 (except where the property
35 consists of one or more firearms, rifles or shotguns), unauthorized use
36 of a vehicle in the second degree as defined in section 165.06, criminal
37 possession of stolen property in the fourth degree as defined in subdi-
38 vision one, two, three, five or six of section 165.45, criminal
39 possession of stolen property in the third degree as defined in section
40 165.50 (except where the property consists of one or more firearms,
41 rifles or shotguns), forgery in the second degree as defined in section
42 170.10, criminal possession of a forged instrument in the second degree
43 as defined in section 170.25, unlawfully using slugs in the first degree
44 as defined in section 170.60, criminal diversion of medical marihuana in
45 the first degree as defined in section 179.10 or an attempt to commit
46 any of the aforementioned offenses if such attempt constitutes a felony
47 offense; or a class B felony offense defined in article two hundred
48 twenty where a sentence is imposed pursuant to paragraph (a) of subdivi-
49 sion two of section 70.70 of the penal law; or any class C, class D or
50 class E controlled substance or marihuana felony offense as defined in
51 article two hundred twenty or two hundred twenty-one.
52 § 12. This act shall take effect immediately and shall expire and be
53 deemed repealed seven years after such date; provided that the amend-
54 ments to section 171-a of the tax law made by section seven of this act
55 shall take effect on the same date and in the same manner as section 54
56 of part A of chapter 59 of the laws of 2014 takes effect; and provided,
S. 7923 24
1 further, that the amendments to subdivision 5 of section 410.91 of the
2 criminal procedure law made by section eleven of this act shall not
3 affect the expiration and repeal of such section and shall expire and be
4 deemed repealed therewith.
