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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. LBD12117-01-4S. 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 registrationS. 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 appropriateS. 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 byS. 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; andS. 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 requireS. 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 onlyS. 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 commissionerS. 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 hundredS. 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 suchS. 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 orS. 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 payS. 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 comptrollerS. 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 reasonableS. 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.