S05657 Summary:

BILL NOS05657B
 
SAME ASNo Same As
 
SPONSORSAVINO
 
COSPNSR
 
MLTSPNSR
 
Amd Pub Health L, generally
 
Provides that medical marihuana may be used as part of the treatment of a patient's condition and removes the "serious" designation of such condition; provides that a practitioner be authorized to prescribe controlled substances in the state and removes the requirement that a physician prescribe such medical marihuana; increases the supply amount of marihuana from thirty to sixty days; allows a designated caregiver facility or designated caregiver facility employee to possess, acquire, deliver, transfer, transport or administer medical marihuana; requires the commissioner of health to establish a medical marihuana research license; establishes a medical marihuana research program; requires the registration of designated caregiver facilities; authorizes the commissioner of health to approve and permit one or more independent laboratories to test medical marihuana; increases the number of dispensing sites of a registered organization from four to eight; and makes related provisions.
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S05657 Actions:

BILL NOS05657B
 
05/10/2019REFERRED TO HEALTH
05/22/2019AMEND AND RECOMMIT TO HEALTH
05/22/2019PRINT NUMBER 5657A
01/08/2020REFERRED TO HEALTH
02/19/2020AMEND AND RECOMMIT TO HEALTH
02/19/2020PRINT NUMBER 5657B
03/10/2020REPORTED AND COMMITTED TO FINANCE
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S05657 Committee Votes:

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S05657 Floor Votes:

There are no votes for this bill in this legislative session.
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S05657 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5657--B
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                      May 10, 2019
                                       ___________
 
        Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
          printed to be committed  to  the  Committee  on  Health  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- recommitted to the Committee on Health in accord-
          ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee
 
        AN ACT to amend the public health law, in relation to medical marihuana
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative intent. The  compassionate  care  act  provides
     2  patients  with  necessary access to medical marihuana. While the program
     3  has provided relief  to  numerous  patients,  several  improvements  are
     4  necessary.   Specifically, the program has suffered from overly restric-
     5  tive requirements regarding market participation and product regulation.
     6  Currently, the program restricts access by only permitting  one  dispen-
     7  sary for every 500,000 New Yorkers - leaving both urban and rural commu-
     8  nities  drastically  underserved.  This  act  will  improve the existing
     9  program by providing  opportunities  for  social  equity  applicants  to
    10  participate  in the marketplace in a manner that more accurately repres-
    11  ents the demographics  of  the  state.  Social  equity  applicants  will
    12  include  applicants  from  communities  disproportionately  impacted  by
    13  cannabis law enforcement.  This act will also provide  necessary  flexi-
    14  bility  for market participants to offer products that are more accessi-
    15  ble and affordable to some  of  New  York's  most  vulnerable  citizens.
    16  Specifically, current restrictions on the sale of whole flower result in
    17  medical  products  that are cost-prohibitive to many. Moreover, this act
    18  will provide greater access to individuals who are unable to  enroll  in
    19  the  program  including those with Alzheimer's disease and who have been
    20  diagnosed with autism spectrum  disorder.  Much  like  the  addition  of
    21  chronic  pain as a qualifying condition, this will allow medical practi-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11129-08-0

        S. 5657--B                          2
 
     1  tioners to recommend an alternative to addictive opiates. These  changes
     2  will give New Yorkers access to quality care they deserve.
     3    §  2. Subdivisions 1, 5, 7 and 12 of section 3360 of the public health
     4  law, subdivisions 1, 5, 7 and 12 as added by chapter 90 of the  laws  of
     5  2014,  paragraph  (a)  of subdivision 7 as amended by chapter 273 of the
     6  laws of 2018, are amended and three new subdivisions 5-a, 5-b and 19 are
     7  added to read as follows:
     8    1. "Certified medical use" means the acquisition, possession, use, or,
     9  transportation of medical marihuana  by  a  certified  patient,  or  the
    10  acquisition,  possession,  delivery, transportation or administration of
    11  medical marihuana by a designated caregiver, for  use  as  part  of  the
    12  treatment  of  the  patient's  [serious]  condition,  as authorized in a
    13  certification under this title including enabling the patient to  toler-
    14  ate treatment for the [serious] condition. [A certified medical use does
    15  not include smoking.]
    16    5.  "Designated  caregiver" means the individual or caregiver facility
    17  designated by a certified patient in a registry application. A certified
    18  patient may designate up to two designated caregivers,  not  counting  a
    19  designated caregiver facility or designated caregiver facility employee.
    20    5-a.  "Designated  caregiver  facility" means an entity that registers
    21  with the commissioner to assist one or more certified patients with  the
    22  acquisition,  possession,  delivery, transportation or administration of
    23  medical marihuana and is: a general hospital or residential health  care
    24  facility  operating under article twenty-eight of this chapter; an adult
    25  care facility operating under title two of article seven of  the  social
    26  services  law;  a  community  mental  health residence established under
    27  section 41.44 of the mental hygiene  law;  a  hospital  operating  under
    28  section  7.17 of the mental hygiene law; a mental hygiene facility oper-
    29  ating under article thirty-one of the mental hygiene law;  an  inpatient
    30  or  residential  treatment program certified under article thirty-two of
    31  the mental hygiene law; a residential facility for the care  and  treat-
    32  ment  of persons with developmental disabilities operating under article
    33  sixteen of the mental hygiene law; a residential treatment facility  for
    34  children  and  youth  operating  under  article thirty-one of the mental
    35  hygiene law; a public school  or  private  school  operating  under  the
    36  education  law;  a research institution with an internal review board; a
    37  medical marihuana research program licensed under  section  thirty-three
    38  hundred  sixty-four-a of this title; or any other facility as determined
    39  by the commissioner in regulation.
    40    5-b. "Designated caregiver facility employee" means an employee  of  a
    41  designated caregiver facility.
    42    7. (a) ["Serious condition"] "Condition" means:
    43    (i) having one of the following [severe debilitating or life-threaten-
    44  ing]  conditions:  cancer,  positive  status  for human immunodeficiency
    45  virus or acquired immune deficiency syndrome, amyotrophic lateral scler-
    46  osis, Parkinson's disease, multiple sclerosis,  damage  to  the  nervous
    47  tissue  of  the  spinal  cord  with objective neurological indication of
    48  intractable spasticity, epilepsy, inflammatory bowel  disease,  neuropa-
    49  thies,  Huntington's  disease, post-traumatic stress disorder, pain that
    50  degrades health and functional capability where the use of medical mari-
    51  huana  is  an  alternative  to  opioid  use,  substance  use   disorder,
    52  Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthritis, autism,
    53  or [as added by the commissioner; and
    54    (ii) any of the following conditions where it is clinically associated
    55  with,  or  a  complication  of,  a condition under this paragraph or its
    56  treatment: cachexia or wasting syndrome; severe or chronic pain;  severe

        S. 5657--B                          3

     1  nausea; seizures; severe or persistent muscle spasms; or such conditions
     2  as are added by the commissioner.
     3    (b)  No  later  than  eighteen  months from the effective date of this
     4  section, the commissioner shall determine whether to add  the  following
     5  serious  conditions:  Alzheimer's,  muscular  dystrophy, dystonia, post-
     6  traumatic stress disorder and rheumatoid arthritis] any other  condition
     7  certified by the practitioner.
     8    12.  "Practitioner"  means  a  practitioner  who  (i)  [is a physician
     9  licensed by New York state and practicing within the state,] is  author-
    10  ized  to prescribe controlled substances within the state; (ii) [who] by
    11  training or experience is qualified to treat a  [serious]  condition  as
    12  defined in subdivision seven of this section; and (iii) [has completed a
    13  two  to four hour course as determined by the commissioner in regulation
    14  and registered with the department;  provided  however,  a  registration
    15  shall  not  be  denied without cause. Such course may count toward board
    16  certification requirements. The commissioner shall consider  the  inclu-
    17  sion  of  nurse practitioners under this title based upon considerations
    18  including access and availability. After such consideration the  commis-
    19  sioner  is authorized to deem nurse practitioners as practitioners under
    20  this title] completes, at a minimum, a two hour course as determined  by
    21  the  commissioner.  A person's status as a practitioner under this title
    22  is deemed to be a "license" for purposes of section thirty-three hundred
    23  ninety of this article.
    24    19. "Medical marihuana research program"  means  a  medical  marihuana
    25  research   program   licensed   under   section   thirty-three   hundred
    26  sixty-four-a of this title.
    27    § 3. Subdivisions 1, 2, and 9 of section 3361  of  the  public  health
    28  law, subdivisions 1 and 2 as added by chapter 90 of the laws of 2014 and
    29  subdivision  9  as added by chapter 416 of the laws of 2015, are amended
    30  to read as follows:
    31    1. A patient certification may only be issued if: (a)  a  practitioner
    32  has  been  registered  with  the  department to issue a certification as
    33  determined by the commissioner; (b) the patient has a  [serious]  condi-
    34  tion,  which shall be specified in the patient's health care record; (c)
    35  the practitioner by training or experience is  qualified  to  treat  the
    36  [serious] condition; (d) the patient is under the practitioner's contin-
    37  uing  care  for  the  [serious] condition; and (e) in the practitioner's
    38  professional opinion and review of past treatments, the patient is like-
    39  ly to receive therapeutic or palliative  benefit  from  the  primary  or
    40  adjunctive  treatment  with  medical  use of marihuana for the [serious]
    41  condition.
    42    2. The certification shall include (a) the name,  date  of  birth  and
    43  address of the patient; (b) a statement that the patient has a [serious]
    44  condition  and  the  patient  is  under  the practitioner's care for the
    45  [serious] condition; (c) a statement attesting that all requirements  of
    46  subdivision  one  of this section have been satisfied; (d) the date; and
    47  (e) the name, address, federal registration  number,  telephone  number,
    48  and  the  handwritten  signature  of  the  certifying  practitioner. The
    49  commissioner may require by regulation that the certification  shall  be
    50  on  a form provided by the department. The practitioner may state in the
    51  certification that, in  the  practitioner's  professional  opinion,  the
    52  patient  would  benefit  from  medical  marihuana only until a specified
    53  date. The practitioner may state in the certification that, in the prac-
    54  titioner's professional opinion, the patient is terminally ill and  that
    55  the certification shall not expire until the patient dies.

        S. 5657--B                          4
 
     1    9.(a)  A  certification may be a special certification if, in addition
     2  to the other requirements for a certification, the  practitioner  certi-
     3  fies  in  the  certification  that  the patient's [serious] condition is
     4  progressive and degenerative or that delay in  the  patient's  certified
     5  medical  use  of marihuana poses a serious risk to the patient's life or
     6  health.
     7    (b) The department shall create the form to  be  used  for  a  special
     8  certification  and  shall make that form available to be downloaded from
     9  the department's website.
    10    § 4. Subdivisions 1 and 2 of section 3362 of the public health law, as
    11  added by chapter 90 of the laws of 2014, are amended and a new  subdivi-
    12  sion 3 is added to read as follows:
    13    1.  The  possession, acquisition, use, delivery, transfer, transporta-
    14  tion, or administration of medical marihuana by a certified  patient  or
    15  designated  caregiver  possessing  a valid registry identification card,
    16  for certified medical use, shall be lawful under  this  title;  provided
    17  that:
    18    (a)  the  marihuana that may be possessed by a certified patient shall
    19  not exceed a [thirty] sixty day supply of the dosage  as  determined  by
    20  the practitioner, consistent with any guidance and regulations issued by
    21  the commissioner, provided that during the last seven days of any [thir-
    22  ty]  sixty day period, the certified patient may also possess up to such
    23  amount for the next [thirty] sixty 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 marihuana that may be possessed by designated caregiver facil-
    29  ities does not exceed the quantities referred to  in  paragraph  (a)  of
    30  this  subdivision  for each certified patient under care or treatment of
    31  the facility;
    32    (d) the form or forms of medical marihuana that may  be  possessed  by
    33  the certified patient [or], designated caregiver, or designated caregiv-
    34  er  facility pursuant to a certification shall be in compliance with any
    35  recommendation or limitation by the practitioner as to the form or forms
    36  of medical marihuana or dosage for the certified patient in the  certif-
    37  ication; and
    38    [(d)]  (e) the medical marihuana shall be kept in the original package
    39  in which it was dispensed under subdivision twelve  of  section  thirty-
    40  three  hundred  sixty-four of this title, except for the portion removed
    41  for immediate consumption for certified medical  use  by  the  certified
    42  patient.
    43    2. Notwithstanding subdivision one of this section:
    44    (a)  possession  of  medical  marihuana shall not be lawful under this
    45  title if it is smoked, consumed, vaporized, or grown in a public  place,
    46  regardless  of  the  form  of  medical marihuana stated in the patient's
    47  certification.
    48    (b) a [person] certified patient or  designated  caregiver  possessing
    49  medical  marihuana  under  this  title shall possess his or her registry
    50  identification card at all times when in immediate possession of medical
    51  marihuana.
    52    (c) medical marihuana may not be smoked in any place where tobacco may
    53  not be smoked under article thirteen-E of this  chapter,  regardless  of
    54  the form of medical marihuana stated in the patient's certification.
    55    3. The possession, acquisition, delivery, transfer, transportation, or
    56  administration  of  medical marihuana by a designated caregiver facility

        S. 5657--B                          5
 
     1  or designated caregiver facility employee shall  be  lawful  under  this
     2  title provided that:
     3    (a) the designated caregiver facility registers with the department on
     4  a form provided by the commissioner;
     5    (b)  such possession, acquisition, delivery, transfer, transportation,
     6  or administration is on behalf  of  a  certified  patient  possessing  a
     7  registry identification card;
     8    (c) the designated caregiver facility maintains a copy of the registry
     9  identification  card  of  each certified patient for which it possesses,
    10  acquires, delivers, transfers, transports, or administers medical  mari-
    11  huana; and
    12    (d) a designated caregiver facility employee shall be identified as an
    13  employee when necessary, as provided by the commissioner.
    14    § 5. Subdivisions 2, 3, 5, and 11 of section 3363 of the public health
    15  law,  as added by chapter 90 of the laws of 2014, are amended to read as
    16  follows:
    17    2. To obtain, amend or renew a registry identification card, a  certi-
    18  fied  patient  or designated caregiver shall file a registry application
    19  with the department. The registry  application  or  renewal  application
    20  shall include:
    21    (a) in the case of a certified patient:
    22    (i)  the patient's certification (a new written certification shall be
    23  provided with a renewal application);
    24    (ii) the name, address, and date of birth of the patient;
    25    (iii) the date of the certification;
    26    (iv) if the patient has a registry  identification  card  based  on  a
    27  current  valid  certification,  the  registry  identification number and
    28  expiration date of that registry identification card;
    29    (v) the specified date until which  the  patient  would  benefit  from
    30  medical marihuana, if the certification states such a date;
    31    (vi)  the  name,  address,  federal registration number, and telephone
    32  number of the certifying practitioner;
    33    (vii) any recommendation or limitation by the practitioner as  to  the
    34  form  or forms of medical marihuana or dosage for the certified patient;
    35  and
    36    (viii)  other  individual  identifying  information  required  by  the
    37  department;
    38    (b)  (i) in the case of a certified patient, if the patient designates
    39  a designated caregiver, the name, address, and  date  of  birth  of  the
    40  designated  caregiver,  and  other  individual  identifying  information
    41  required by the department;
    42    (ii) if the designated  caregiver  is  a  medical  marihuana  research
    43  program,  the  name  of  the  organization  conducting the research; the
    44  address, phone number, and name of the individual leading  the  research
    45  or  appropriate  designee; and other identifying information required by
    46  the department;
    47    (c) in the case of a designated caregiver:
    48    (i) the name, address, and date of birth of the designated caregiver;
    49    (ii) if the designated caregiver has a registry  identification  card,
    50  the  registry identification number and expiration date of that registry
    51  identification card; and
    52    (iii) other individual identifying information required by the depart-
    53  ment;
    54    (d) a statement that a false statement  made  in  the  application  is
    55  punishable under section 210.45 of the penal law;

        S. 5657--B                          6
 
     1    (e)  the  date  of  the application and the signature of the certified
     2  patient or designated caregiver, as the case may be; and
     3    (f) [a fifty dollar application fee, provided, that the department may
     4  waive or reduce the fee in cases of financial hardship; and
     5    (g)] any other requirements determined by the commissioner.
     6    3. Where a certified patient is under the age of eighteen:
     7    (a)  The  application for a registry identification card shall be made
     8  by an appropriate person over twenty-one years of age.  The  application
     9  shall state facts demonstrating that the person is appropriate.
    10    (b)  The  designated caregiver shall be (i) a parent or legal guardian
    11  of the certified patient, (ii) a person designated by a parent or  legal
    12  guardian, [or] (iii) in the case of such a certified patient being cared
    13  for by a designated caregiver facility, the designated caregiver facili-
    14  ty  designated  by  the parent or legal guardian; or (iv) an appropriate
    15  person approved by the department upon  a  sufficient  showing  that  no
    16  parent or legal guardian is appropriate or available.
    17    5.  No  person may be a designated caregiver for more than five certi-
    18  fied patients at one time; provided however that this  limitation  shall
    19  not  apply  to  a  designated caregiver facility or designated caregiver
    20  facility employee.
    21    11. A certified patient or designated caregiver who has been issued  a
    22  registry  identification  card shall notify the department of any change
    23  in his or her name or address or, with respect to the patient, if he  or
    24  she  ceases  to  have the [serious] condition noted on the certification
    25  within ten days of such change. The certified  patient's  or  designated
    26  caregiver's  registry  identification  card  shall be deemed invalid and
    27  shall be returned promptly to the department.
    28    § 6. Subdivisions 3 and 5 of section 3364 of the public health law, as
    29  added by chapter 90 of the laws of 2014, are amended and a new  subdivi-
    30  sion 14 is added to read as follows:
    31    3.  Each  registered  organization  shall contract with an independent
    32  laboratory permitted under section thirty-three hundred sixty-four-c  of
    33  this  title  to  test  the  medical marihuana produced by the registered
    34  organization. The commissioner shall approve the laboratory and  require
    35  that the laboratory report testing results in a manner determined by the
    36  commissioner. The commissioner is authorized to issue regulation requir-
    37  ing the laboratory to perform certain tests and services.
    38    5.  (a)  No  registered  organization may sell, deliver, distribute or
    39  dispense to any certified patient or designated caregiver a quantity  of
    40  medical  marihuana  larger  than  that  individual  would  be allowed to
    41  possess under this title.
    42    (b) When dispensing medical marihuana to a certified patient or desig-
    43  nated caregiver, the registered organization (i) shall not  dispense  an
    44  amount  greater  than a [thirty] sixty day supply to a certified patient
    45  until the certified patient has exhausted all but  a  seven  day  supply
    46  provided  pursuant  to a previously issued certification, and (ii) shall
    47  verify the information in subparagraph (i) of this paragraph by consult-
    48  ing the prescription monitoring program registry under  section  thirty-
    49  three hundred forty-three-a of this article.
    50    (c)  Medical  marihuana dispensed to a certified patient or designated
    51  caregiver by a registered organization shall conform to any  recommenda-
    52  tion  or  limitation  by  the  practitioner  as  to the form or forms of
    53  medical marihuana or dosage for the certified patient.
    54    14. A registered organization may contract with a person or entity  to
    55  provide  facilities,  equipment  or  services  that are ancillary to the
    56  registered organization's functions or  activities  under  this  section

        S. 5657--B                          7

     1  (including,  but  not  limited  to, shipping, maintenance, construction,
     2  repair, and security),  but  not  including  any  function  or  activity
     3  directly  involving the planting, growing, tending, harvesting, process-
     4  ing,  or  packaging  of plants; or any other function directly involving
     5  manufacturing or retailing of medical  marihuana.  All  laws  and  regu-
     6  lations  applicable  to  such  facilities,  equipment, or services shall
     7  apply to the contract. The registered organization and other parties  to
     8  the contract shall each be responsible for compliance with such laws and
     9  regulations  under  the  contract. The commissioner may make regulations
    10  consistent  with  this  title  relating  to  contracts  and  parties  to
    11  contracts under this subdivision.
    12    §  7.  The public health law is amended by adding a new section 3364-a
    13  to read as follows:
    14    § 3364-a. Medical marihuana research licenses.   1.  The  commissioner
    15  shall  establish  a  medical  marihuana  research license that permits a
    16  licensee to produce, process,  purchase,  possess,  transfer,  and  sell
    17  marihuana,  subject  to this section, for the following limited research
    18  purposes:
    19    (a) to test chemical potency and composition levels;
    20    (b) to conduct clinical investigations of marihuana-derived products;
    21    (c) to conduct research on the efficacy and  safety  of  administering
    22  marihuana as part of medical treatment; or
    23    (d)  to  conduct  genomic or agricultural research relating to medical
    24  marihuana.
    25    2. As part of the application process for a medical marihuana research
    26  license, an applicant must submit to the commissioner a  description  of
    27  the  research  that is intended to be conducted as well as the amount of
    28  marihuana to be grown or purchased. The  commissioner  shall  review  an
    29  applicant's research project and determine whether it meets the require-
    30  ments  of subdivision one of this section. In addition, the commissioner
    31  shall assess the application based on the following criteria:
    32    (a) project quality, study design, value, and impact;
    33    (b) whether the applicant has the  appropriate  personnel,  expertise,
    34  facilities  and  infrastructure,  funding,  and  (to  the extent legally
    35  available) approvals relating to human or animal research, in  place  to
    36  successfully conduct the project; and
    37    (c)  whether  the  amount of marihuana to be grown or purchased by the
    38  applicant is consistent with the project's scope and goals.
    39    3. If the commissioner determines that the research project meets  the
    40  requirements  of  subdivision  one of this section, the commissioner may
    41  approve the application. If not, the application shall be denied.
    42    4. A medical marihuana research licensee may  only  sell  or  transfer
    43  marihuana  grown or produced within its operation to other medical mari-
    44  huana research licensees, or otherwise for purposes  of  the  licensee's
    45  research.
    46    5.  In  establishing a medical marihuana research license, the commis-
    47  sioner may make regulations on the following:
    48    (a) application requirements;
    49    (b)  license  renewal  requirements,  including   whether   additional
    50  research projects may be added or considered;
    51    (c) conditions for license revocation;
    52    (d)  security measures to ensure marihuana is not diverted to purposes
    53  other than research;
    54    (e) amount of plants, useable marihuana,  marihuana  concentrates,  or
    55  marihuana-infused products a licensee may have on its premises;
    56    (f) licensee reporting requirements;

        S. 5657--B                          8

     1    (g)  conditions  under which marihuana grown by licensed medical mari-
     2  huana producers and other product types from licensed medical  marihuana
     3  processors may be donated to medical marihuana research licensees; and
     4    (h) any additional requirements deemed necessary by the commissioner.
     5    6.  A  marihuana  research  license issued under this section shall be
     6  issued in the name of the applicant or applicants, specify the  location
     7  at  which  the  marihuana  researcher intends to operate, which shall be
     8  within the state, and shall not  allow  any  other  person  to  use  the
     9  license except as under subdivision four of this section.
    10    7.  Participation  by  certified  patients  in  any  medical marihuana
    11  research program shall be voluntary.
    12    8. The application fee for a medical marihuana research license  shall
    13  be determined by the commissioner on an annual basis.
    14    9.  Each  medical  marihuana  research  licensee shall issue an annual
    15  report to the commissioner. The commissioner shall  review  such  report
    16  and make a determination as to whether the research project continues to
    17  meet the research qualifications under this section.
    18    §  8.  The public health law is amended by adding a new section 3364-b
    19  to read as follows:
    20    § 3364-b. Registration of designated  caregiver  facilities.    1.  To
    21  obtain,  amend or renew a registration as a designated caregiver facili-
    22  ty, the facility shall file an application with  the  commissioner.  The
    23  application shall include:
    24    (a) the facility's full name and address;
    25    (b) operating certificate or license number where appropriate;
    26    (c)  name,  title,  and  signature of an authorized facility represen-
    27  tative;
    28    (d) a statement that the facility agrees to secure and  ensure  proper
    29  handling of all medical marihuana products;
    30    (e)  an  acknowledgement  that a false statement in the application is
    31  punishable under section 210.45 of the penal law; and
    32    (f) any other information that may be required by the commissioner.
    33    2. Prior to issuing or renewing a designated caregiver facility regis-
    34  tration, the commissioner may verify the information  submitted  by  the
    35  applicant.   The applicant shall provide, at the commissioner's request,
    36  such information and documentation, including any consents  or  authori-
    37  zations, that may be necessary for the commissioner to verify the infor-
    38  mation.
    39    3.  The application shall be approved, denied or determined incomplete
    40  or inaccurate by the commissioner within thirty days of receipt  of  the
    41  application.  If  the  application  is  approved, the commissioner shall
    42  issue a registration as soon as is reasonably practicable.
    43    4. Registrations under this section shall remain valid for  two  years
    44  from the date of issuance.
    45    §  9.  The public health law is amended by adding a new section 3364-c
    46  to read as follows:
    47    § 3364-c. Laboratory permits.  1. The commissioner shall  approve  and
    48  permit  one  or more independent laboratories to test medical marihuana.
    49  To be permitted as an independent laboratory under this section, a labo-
    50  ratory must apply to the department in a form and manner  prescribed  by
    51  the  commissioner and must demonstrate the following to the satisfaction
    52  of the commissioner:
    53    (a) the owners and directors of the laboratory are of good moral char-
    54  acter;

        S. 5657--B                          9
 
     1    (b) the laboratory and its  staff  have  the  skills,  resources,  and
     2  expertise  needed  to  accurately  and  consistently perform all testing
     3  required;
     4    (c)  the  laboratory has in place and will maintain adequate policies,
     5  procedures, and facility security to ensure proper collection, labeling,
     6  accessioning, preparation, analysis,  result  reporting,  disposal,  and
     7  storage of medical marihuana;
     8    (d) the laboratory is physically located in New York state;
     9    (e)  the  laboratory has a certificate of approval as an environmental
    10  laboratory issued by the commissioner under title one of article five of
    11  this chapter; and
    12    (f) the laboratory meets all requirements prescribed by  this  chapter
    13  and the commissioner in regulation.
    14    2. The owner of an independent laboratory permitted under this section
    15  shall not hold a registration as a registered organization and shall not
    16  have any direct or indirect ownership interest in such registered organ-
    17  ization.  No board member, manager, owner, partner, principal stakehold-
    18  er,  or  member of a registered organization, or such person's immediate
    19  family, shall have an interest or voting rights in any independent labo-
    20  ratory permittee. No registered organization shall have  any  direct  or
    21  indirect ownership interest in such laboratory.
    22    3.  An  independent laboratory shall not be required to be licensed by
    23  the federal drug enforcement administration.
    24    § 10. Subdivision 9 of section 3365 of the public health law, as added
    25  by chapter 90 of the laws of 2014, is amended to read as follows:
    26    9. [The commissioner shall register no more than  five]  A  registered
    27  [organizations]  organization  that  [manufacture]  manufactures medical
    28  marihuana [with] may have no more than  [four]  eight  dispensing  sites
    29  wholly  owned  and  operated  by  [such]  the  registered  organization.
    30  Provided, however, that any dispensing  site  opened  pursuant  to  this
    31  section  by  a  registered  organization licensed prior to the effective
    32  date of the chapter of the laws of two thousand twenty that amended this
    33  subdivision shall not be approved by the department  until  such  regis-
    34  tered  organizations establishes a subsidy program to provide assistance
    35  and increase access to patients. The commissioner shall ensure that such
    36  [registered  organizations  and]  dispensing  sites  are  geographically
    37  distributed  across the state. The commission [may] shall register addi-
    38  tional registered  organizations  reflecting  the  demographics  of  the
    39  state.
    40    (a)  The  department shall implement a social and economic equity plan
    41  and actively promote applications  from  communities  disproportionately
    42  impacted  by cannabis production, and promote racial, ethnic, and gender
    43  diversity when issuing  the  additional  four  registered  organizations
    44  licenses,  including  by  prioritizing  consideration of applications by
    45  applicants who are from communities disproportionately impacted  by  the
    46  enforcement  of  cannabis  prohibition or who qualify as a minority or a
    47  women-owned business. Such qualifications shall  be  determined  by  the
    48  department in regulation.
    49    (b) The department shall issue four additional registered organization
    50  licenses  and create a social and economic equity plan to promote diver-
    51  sity in ownership and employment in the medical marihuana  industry  and
    52  ensure inclusion of:
    53    (i)  individuals  from  communities disproportionately impacted by the
    54  enforcement of cannabis prohibition;
    55    (ii) minority-owned businesses;
    56    (iii) women-owned businesses;

        S. 5657--B                         10
 
     1    (iv) minority and women-owned businesses, as defined in paragraph  (d)
     2  of this subdivision; and
     3    (c)  The  social and economic equity plan shall require an analysis of
     4  how to prioritize opportunities for applicants that are:
     5    (i) a member of a community group  that  has  been  disproportionately
     6  impacted by the enforcement of cannabis prohibition;
     7    (ii)  was  convicted of a cannabis-related offense prior to the effec-
     8  tive date of the chapter of the laws of two thousand twenty that amended
     9  this subdivision, or had a parent, guardian, child, spouse,  or  depend-
    10  ent,  or  was  a  dependent of an individual who, prior to the effective
    11  date of the chapter of the laws of two thousand twenty that amended this
    12  subdivision, was convicted of a cannabis-related offense.
    13    (d) For the purposes of this section, the following definitions  shall
    14  apply:
    15    (i)  "minority-owned  business"  shall  mean  a  business  enterprise,
    16  including a sole proprietorship, partnership, limited liability  company
    17  or corporation that is:
    18    (1)  at  least  fifty-one  percent owned by one or more minority group
    19  members;
    20    (2) an enterprise in which such minority ownership is  real,  substan-
    21  tial and continuing;
    22    (3)  an  enterprise in which such minority ownership has and exercises
    23  the authority to control independently the day-to-day business decisions
    24  of the enterprise;
    25    (4) an enterprise authorized to do business in this  state  and  inde-
    26  pendently owned and operated; and
    27    (5) an enterprise that is a small business.
    28    (ii)  "minority  group  member"  shall mean a United States citizen or
    29  permanent resident alien who is and can demonstrate membership in one of
    30  the following groups:
    31    (1) black persons having origins in any of the  black  African  racial
    32  groups;
    33    (2)  Hispanic  persons  of  Mexican,  Puerto  Rican, Dominican, Cuban,
    34  Central or South American of either Indian or Hispanic  origin,  regard-
    35  less of race;
    36    (3) Native American or Alaskan native persons having origins in any of
    37  the original peoples of North America; or
    38    (4)  Asian  and  Pacific Islander persons having origins in any of the
    39  far east countries, south east Asia,  the  Indian  subcontinent  or  the
    40  Pacific islands.
    41    (iii) "women-owned business" shall mean a business enterprise, includ-
    42  ing  a  sole  proprietorship,  partnership, limited liability company or
    43  corporation that is:
    44    (1) at least fifty-one percent owned by  one  or  more  United  States
    45  citizens or permanent resident aliens who are women;
    46    (2)  an  enterprise  in  which the ownership interest of such women is
    47  real, substantial and continuing;
    48    (3) an enterprise in which such women ownership has and exercises  the
    49  authority  to control independently the day-to-day business decisions of
    50  the enterprise;
    51    (4) an enterprise authorized to do business in this  state  and  inde-
    52  pendently owned and operated; and
    53    (5) an enterprise that is a small business.
    54    (iv) "a firm owned by a minority group member who is also a woman" may
    55  include a minority-owned business, a women-owned business, or both.

        S. 5657--B                         11
 
     1    (v)  "communities  disproportionately impacted" shall mean, but not be
     2  limited to, a history of arrests, convictions, and other law enforcement
     3  practices in a certain geographic area, such  as,  but  not  limited  to
     4  precincts,   zip   codes,  neighborhoods,  and  political  subdivisions,
     5  reflecting  a  disparate  enforcement  of  cannabis prohibition during a
     6  certain time period, when compared to  the  rest  of  the  state.    The
     7  department  shall  issue  guidelines  to  determine  how to assess which
     8  communities have been disproportionately impacted and how to  assess  if
     9  someone is a member of a community disproportionately impacted.
    10    (e)  The    department  shall  actively promote applicants that foster
    11  racial, ethnic, and gender diversity in their workforce.
    12    § 11. Subdivision 1 of section 3365-a of the  public  health  law,  as
    13  added by chapter 416 of the laws of 2015, is amended to read as follows:
    14    1.  There is hereby established in the department an emergency medical
    15  marihuana access program (referred to in this section as the  "program")
    16  under this section. The purpose of the program is to expedite the avail-
    17  ability of medical marihuana to avoid suffering and loss of life, during
    18  the  period  before  full  implementation  of  and production under this
    19  title, especially in the case of patients whose [serious]  condition  is
    20  progressive  and  degenerative  or  is  such that delay in the patient's
    21  medical use of marihuana poses a serious risk to the patient's  life  or
    22  health. The commissioner shall implement the program as expeditiously as
    23  practicable, including by emergency regulation.
    24    § 12. Subdivision 1 of section 3369 of the public health law, as added
    25  by chapter 90 of the laws of 2014, is amended to read as follows:
    26    1.  Certified  patients,  designated  caregivers, designated caregiver
    27  facilities, designated caregiver facility employees,  medical  marihuana
    28  research  program employees, practitioners, registered organizations and
    29  the employees of  registered  organizations  shall  not  be  subject  to
    30  arrest,  prosecution,  or  penalty in any manner, or denied any right or
    31  privilege, including but not limited to civil  penalty  or  disciplinary
    32  action  by a business or occupational or professional licensing board or
    33  bureau, solely for the certified medical use or manufacture of  marihua-
    34  na, or for any other action or conduct in accordance with this title.
    35    §  13. Section 3369-d of the public health law, as added by chapter 90
    36  of the laws of 2014, is amended to read as follows:
    37    § 3369-d. Pricing. [1. Every sale of medical marihuana shall be at the
    38  price determined by the commissioner. Every charge made or demanded  for
    39  medical  marihuana  not  in  accordance with the price determined by the
    40  commissioner, is prohibited.
    41    2. The commissioner is hereby authorized to set the per dose price  of
    42  each  form  of medical marihuana sold by any registered organization. In
    43  setting the per dose price  of  each  form  of  medical  marihuana,  the
    44  commissioner  shall  consider  the fixed and variable costs of producing
    45  the form of marihuana and any other factor the commissioner, in  his  or
    46  her discretion, deems relevant to determining the per dose price of each
    47  form  of  medical  marihuana.]  Registered  organizations  shall  submit
    48  documentation of any price and change in price per dose for any  medical
    49  marihuana  product to the commissioner within fifteen days of setting or
    50  changing the price. Prior approval by  the  commissioner  shall  not  be
    51  required  for any price or change of price. However, the commissioner is
    52  authorized to modify the price per dose for any medical marihuana  prod-
    53  uct if necessary to maintain public access to appropriate medication.
    54    §  14. This act shall take effect immediately; provided, however, that
    55  the amendments to title 5-A of article 33 of the public health law  made
    56  by  sections two, three, four, five, six, seven, eight, nine, ten, elev-

        S. 5657--B                         12
 
     1  en, twelve and thirteen of this act shall not affect the repeal of  such
     2  title and shall be deemed repealed therewith. Effective immediately, the
     3  addition,  amendment  and/or  repeal of any rule or regulation necessary
     4  for the  implementation of this act on its effective date are authorized
     5  to be made and completed on or before such effective date.
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