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SB+7283 Actions:

BILL NOS07283A
 
05/02/2012REFERRED TO HEALTH
06/08/2012AMEND AND RECOMMIT TO HEALTH
06/08/2012PRINT NUMBER 7283A
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SB+7283 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7283--A
 
                    IN SENATE
 
                                       May 2, 2012
                                       ___________
 
        Introduced  by  Sens.  SAVINO, BRESLIN, CARLUCCI, DILAN, DUANE, KRUEGER,
          MONTGOMERY, OPPENHEIMER, SQUADRON -- read twice and  ordered  printed,
          and when printed to be committed to the Committee on Health -- commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee
 
        AN ACT to amend the public health law and the general business  law,  in

          relation to medical use of marihuana
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative findings and intent. The legislature finds that
     2  thousands of New Yorkers have serious medical  conditions  that  can  be
     3  improved  by  medically-approved  use  of  marihuana. The law should not
     4  stand between them and treatment necessary for  life  and  health.  This
     5  legislation follows the well-established public policy that a controlled
     6  substance  can have a legitimate medical use. Many controlled substances
     7  that are legal for medical use (such as morphine and steroids) are ille-
     8  gal for any other use. The purposes of article 33 of the  public  health
     9  law  include  allowing legitimate use of controlled substances in health

    10  care, including palliative care. This policy and this legislation do not
    11  in any way diminish New York  state's  strong  public  policy  and  laws
    12  against illegal drug use, nor should it be deemed in any manner to advo-
    13  cate, authorize, promote, or legally or socially accept the use of mari-
    14  huana  for children or adults, for any non-medical use. This legislation
    15  is an appropriate exercise of the state's legislative power  to  protect
    16  the  health of its people under article 17 of the state constitution and
    17  the tenth amendment of the United States constitution.
    18    It is the legislative intent that this act be implemented consistently
    19  with these findings and principles, through a  reasonable  and  workable
    20  system with appropriate oversight, evaluation and continuing research.
    21    §  2.  Article  33 of the public health law is amended by adding a new
    22  title 5-A to read as follows:

    23                                  TITLE V-A
    24                          MEDICAL USE OF MARIHUANA
    25  Section 3360. Definitions.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02415-11-2

        S. 7283--A                          2
 
     1          3361.   Certification of patients.
     2          3362.   Lawful medical use.
     3          3363.   Registry identification cards.
     4          3364.   Registered organizations.
     5          3365.   Registering of registered organizations.
     6          3366.   Reports by registered organizations.

     7          3367.   Evaluation; research programs; report by department.
     8          3368.   Registered organization assessments.
     9          3369.   Relation to other laws.
    10          3369-a. Protections for the medical use of marihuana.
    11          3369-b. Severability.
    12    §  3360. Definitions. As used in this title, the following terms shall
    13  have the following meanings, unless the context clearly requires  other-
    14  wise:
    15    1.  "Certified  medical  use"  means the acquisition, possession, use,
    16  delivery, transfer, transportation, or administration of  medical  mari-
    17  huana  by a certified patient or designated caregiver for use as part of
    18  the treatment of the patient's serious condition specified in a  certif-

    19  ication  under  section  thirty-three  hundred  sixty-one of this title,
    20  including enabling the patient to tolerate  treatment  for  the  serious
    21  condition.
    22    2.  "Caring for" means treating or counseling a patient, in the course
    23  of which the  practitioner  has  completed  a  full  assessment  of  the
    24  patient's medical history and current medical condition.
    25    3.  "Certified patient" means a patient who is certified under section
    26  thirty-three hundred sixty-one of this title.
    27    4. "Certification" means a certification, made under  section  thirty-
    28  three hundred sixty-one of this title.
    29    5.  "Designated caregiver" means the individual designated by a certi-
    30  fied patient in a registry application.

    31    6. "Public place" means a public place as defined in section 240.00 of
    32  the penal law, a motor vehicle as defined in section one  hundred  twen-
    33  ty-five  of  the  vehicle  and  traffic  law,  an aircraft as defined in
    34  section two hundred forty of the general business law  or  a  vessel  as
    35  defined in section two of the navigation law.
    36    7. "Serious condition" means a severe debilitating or life-threatening
    37  condition,  or  a  condition associated with or a complication of such a
    38  condition or its treatment (including but not limited  to  inability  to
    39  tolerate food, nausea, vomiting, dysphoria or pain).
    40    8. "Medical marihuana" means marihuana as defined in subdivision twen-
    41  ty-one  of section thirty-three hundred two of this article intended for

    42  a certified medical use.
    43    9. "Registered organization" means  a  registered  organization  under
    44  sections   thirty-three  hundred  sixty-four  and  thirty-three  hundred
    45  sixty-five of this title.
    46    10. "Registry application" means an application properly completed and
    47  filed with the department by a certified patient under  section  thirty-
    48  three hundred sixty-three of this title.
    49    11.  "Registry identification card" means a document that identifies a
    50  certified patient or designated caregiver,  as  provided  under  section
    51  thirty-three hundred sixty-three of this title.
    52    12.  "Practitioner" means a practitioner who is a physician, physician
    53  assistant, or  nurse  practitioner,  acting  within  the  practitioner's

    54  lawful scope of practice.
    55    § 3361. Certification of patients. 1. A patient certification may only
    56  be  issued if a practitioner who is caring for the patient for a serious

        S. 7283--A                          3
 
     1  condition certifies that: (a) the patient has a serious condition, which
     2  shall be specified in the patient's health care record; (b) the  patient
     3  is  under  the practitioner's care for the serious condition; and (c) in
     4  the  practitioner's  professional  opinion,  the  patient  is  likely to
     5  receive therapeutic or palliative benefit from the primary or adjunctive
     6  treatment with medical use of marihuana for the serious condition.
     7    2. The certification shall be in writing and  include  (a)  the  name,

     8  date  of  birth  and  address  of  the patient; (b) a statement that the
     9  patient has a serious condition; the patient is under the practitioner's
    10  care for the serious condition and, in the  practitioner's  professional
    11  opinion,  the  patient  is  likely  to receive therapeutic or palliative
    12  benefit from the primary or adjunctive treatment  with  medical  use  of
    13  marihuana  for  the  serious  condition; (c) the date; and (d) the name,
    14  address, federal registration number, telephone number,  and  the  hand-
    15  written  signature of the certifying practitioner.  The commissioner may
    16  require by regulation that the certification shall be on a form provided
    17  by the department if the commissioner determines that the department  is

    18  making certification forms adequately available.
    19    3.  The  practitioner  shall  give  the certification to the certified
    20  patient, and place a copy in the patient's health care record.
    21    4. No practitioner shall issue a certification under this section  for
    22  himself or herself.
    23    5.  A  registry  identification  card  based  on a certification shall
    24  expire one year after the date the certification is signed by the  prac-
    25  titioner; except that where a certified patient has a registry identifi-
    26  cation card based on a current valid certification, a new registry iden-
    27  tification card based on a new certification shall expire one year after
    28  the  expiration of the registry identification card based on the current

    29  valid certification. However, if the practitioner states in the  certif-
    30  ication  that  he or she believes the patient would benefit from medical
    31  marihuana only until a specified earlier date, then the  registry  iden-
    32  tification card shall expire on that date.
    33    §  3362.  Lawful  medical  use.  1.  The possession, acquisition, use,
    34  delivery, transfer, transportation, or administration of  medical  mari-
    35  huana  by a certified patient or designated caregiver possessing a valid
    36  registry identification card, for certified medical use, shall be lawful
    37  under this title; provided that:
    38    (a) the marihuana that may be possessed by a  certified  patient  does
    39  not  exceed a total aggregate weight of two and one-half ounces of mari-

    40  huana; and
    41    (b) the marihuana that may be possessed by a designated caregiver does
    42  not exceed the quantities referred to in paragraph (a) of this  subdivi-
    43  sion for each certified patient for whom the caregiver possesses a valid
    44  registry identification card, up to five certified patients.
    45    2.  Notwithstanding subdivision one of this section: (a) possession of
    46  marihuana shall not be lawful under this title if it is consumed,  grown
    47  or  displayed in a public place; (b) medical marihuana may not be smoked
    48  in any place where tobacco may not be smoked under article thirteen-E of
    49  this chapter; (c) except that in a health care facility,  medical  mari-
    50  huana  may  be  smoked  by  a  patient of the facility, subject to other

    51  provisions of this title, in an area, and under circumstances, permitted
    52  by the facility, provided that the patient does not smoke in  the  pres-
    53  ence of patients who are not certified under this title.
    54    3.  It  shall be lawful under this article to give or dispose of mari-
    55  huana, obtained under this title, for  certified  medical  use,  between
    56  certified  patients  and  other certified patients, and between a desig-

        S. 7283--A                          4
 
     1  nated caregiver and the designated caregiver's certified  patient  where
     2  nothing  of  value is transferred in return, or to offer to do the same.
     3  This prohibition on transferring or offering  to  transfer  a  thing  of

     4  value shall not (a) apply to sale of medical marihuana to or by a regis-
     5  tered  organization  under  this  article;  nor (b) prevent a designated
     6  caregiver from being  reimbursed  for  reasonable  costs  or  activities
     7  relating  to  caring for a certified patient, including, but not limited
     8  to, reimbursement for legitimate expenses relating to  the  purchase  of
     9  medical  marihuana  from a registered organization under section thirty-
    10  three hundred sixty-six of this title.
    11    § 3363. Registry identification cards.  1. The department shall  issue
    12  registry  identification  cards  for  certified  patients and designated
    13  caregivers. A registry identification card shall expire as  provided  in

    14  section  thirty-three  hundred  sixty-one  of this title or as otherwise
    15  provided in this section. The department shall  begin  issuing  registry
    16  identification  cards no later than one year after the effective date of
    17  this section.  The department may specify a form for a registry applica-
    18  tion, in which case the department shall provide the  form  on  request,
    19  reproductions  of  the form may be used, and the form shall be available
    20  for downloading from the department's website.
    21    2. To obtain or renew a  registry  identification  card,  a  certified
    22  patient  shall  file  a  registry  application  with the department. The
    23  registry application or renewal application shall include:

    24    (a) the original patient's certification (a new written  certification
    25  shall be provided with a renewal application);
    26    (b)  (i) the name, address, and date of birth of the patient; (ii) the
    27  date of the certification; (iii) if the patient has a registry identifi-
    28  cation card based on a current valid certification, the  registry  iden-
    29  tification  number  and  expiration date of that registry identification
    30  card; (iv) the specified date until which the patient would benefit from
    31  medical marihuana, if the certification states  such  a  date;  (v)  the
    32  name,  address, federal registration number, and telephone number of the
    33  certifying practitioner; and (vi) other individual identifying  informa-
    34  tion required by the department;

    35    (c)  if  the  patient  designates  a  designated  caregiver, the name,
    36  address, and date of birth of the designated caregiver, and other  indi-
    37  vidual  identifying  information required by the department; a certified
    38  patient may designate up to two designated caregivers;
    39    (d) a statement that a false statement  made  in  the  application  is
    40  punishable under section 210.45 of the penal law;
    41    (e)  the  date  of  the application and the signature of the certified
    42  patient; and
    43    (f) a reasonable application fee, as  determined  by  the  department;
    44  provided,  that  the  department may waive or reduce the fee in cases of
    45  financial hardship.
    46    3. Where a certified patient is under the age of eighteen:

    47    (a) The application for a registry identification card shall  be  made
    48  by  an  appropriate person over twenty-one years of age. The application
    49  shall state facts demonstrating that the person is appropriate.
    50    (b) The designated caregiver shall be (i) a parent or  legal  guardian
    51  of  the certified patient, (ii) a person designated by a parent or legal
    52  guardian, or (iii) an appropriate person approved by the department upon
    53  a sufficient showing that no parent or legal guardian is appropriate  or
    54  available.
    55    4.  No  person  may  be  a designated caregiver if the person is under
    56  twenty-one years of age unless a  sufficient  showing  is  made  to  the

        S. 7283--A                          5
 

     1  department  that the person should be permitted to serve as a designated
     2  caregiver.
     3    5.   No person may be a designated caregiver for more than five certi-
     4  fied patients at one time. A designated caregiver shall carry a separate
     5  registry identification card for each certified patient for whom  he  or
     6  she  is  a designated caregiver. Each registry identification card shall
     7  contain the  same  registry  identification  number  specified  in  this
     8  section.
     9    6.  The  department shall issue separate registry identification cards
    10  for the certified patient and the designated caregiver (if one is desig-
    11  nated in the registry application) within thirty  days  of  receiving  a

    12  complete  application  under this section, unless it determines that the
    13  application is incomplete or facially inaccurate, in which case it shall
    14  promptly notify the applicant.
    15    7.  If the department does not approve the designation of an  individ-
    16  ual as a designated caregiver, that shall not affect the approval of the
    17  application as to the certified patient.
    18    8. A registry identification card shall contain:
    19    (a) the name of the certified patient and the designated caregiver (if
    20  one is designated in the registry application);
    21    (b) the date of issuance and expiration date of the registry identifi-
    22  cation card;
    23    (c)  a  registry identification number for the certified patient and a

    24  registry identification number for the designated caregiver (if  one  is
    25  designated in the registry application); and
    26    (d) a photograph of the individual to whom the registry identification
    27  card  is  being  issued,  which shall be obtained by the department in a
    28  manner specified by the commissioner in regulations; provided,  however,
    29  that if the department required certified patients to submit photographs
    30  for this purpose, there shall be a reasonable accommodation of certified
    31  patients who are confined to their homes due to their medical conditions
    32  and may therefore have difficulty procuring photographs.
    33    9.  A  certified patient or designated caregiver who has been issued a

    34  registry identification card shall notify the department of  any  change
    35  in  his or her name or address or, with respect to the patient, or if he
    36  or she ceases to have the serious condition noted on  the  certification
    37  within ten days of such change.
    38    10.  If  a  certified patient or designated caregiver loses his or her
    39  registry identification card, he or she shall notify the department  and
    40  submit  a  ten dollar fee within ten days of losing the card to maintain
    41  the registration.  The department may establish higher fees for  issuing
    42  a  new  registry  identification card for second and subsequent replace-
    43  ments for a lost card, provided, that the department may waive or reduce

    44  the fee in cases of financial hardship.   Within five  days  after  such
    45  notification  and  payment,  the  department  shall issue a new registry
    46  identification card, which may contain  a  new  registry  identification
    47  number,  to  the  certified patient or designated caregiver, as the case
    48  may be.
    49    11. The department shall maintain a confidential list of  the  persons
    50  to whom it has issued registry identification cards.  Individual identi-
    51  fying  information  obtained by the department under this title shall be
    52  confidential and exempt from disclosure under article six of the  public
    53  officers law. Notwithstanding this subdivision, the department may noti-
    54  fy any appropriate law enforcement agency of information relating to any

    55  violation or suspected violation of this title.

        S. 7283--A                          6
 
     1    12.  The  department  shall  verify to law enforcement personnel in an
     2  appropriate case whether a registry identification card is valid.
     3    13.  If a certified patient or designated caregiver willfully violates
     4  any provision of this title as determined by the department, his or  her
     5  registry  identification card may be revoked. This is in addition to any
     6  other penalty that may apply.
     7    14. (a) Registry implementation date. As used in this subdivision, the
     8  "registry implementation date" is the date determined by the commission-
     9  er when the department is ready to  receive  and  expeditiously  act  on

    10  applications for registry identification cards under this section.
    11    (b)  On and after the registry implementation date, upon receipt of an
    12  application for a registry identification  card,  the  department  shall
    13  send  to  the  applicant  a letter acknowledging such receipt. While the
    14  application for a registry identification card is pending, a copy of the
    15  registry application, together with a copy of the  certification  and  a
    16  copy  of  the  letter of receipt from the department, shall serve as and
    17  have the same effect as a registry identification card for the certified
    18  patient and designated caregiver if any, provided that  a  certification
    19  and  application shall not serve as a valid registry identification card

    20  after the initial thirty  day  period  under  subdivision  six  of  this
    21  section.   This paragraph shall expire and have no effect one year after
    22  the registry implementation date.
    23    15. If the department fails to begin issuing  registry  identification
    24  cards no later than one year after the effective date of this section, a
    25  patient's  certification shall serve as the registry identification card
    26  for both the patient and the patient's designated caregiver.
    27    § 3364. Registered organizations. 1. A registered  organization  shall
    28  be:
    29    (a) a pharmacy;
    30    (b) a facility licensed under article twenty-eight of this chapter;
    31    (c)  a not-for-profit corporation organized for the purpose of acquir-

    32  ing, possessing, manufacturing,  selling,  delivering,  transporting  or
    33  distributing marihuana for certified medical use; or
    34    (d)  a  registered  producer,  which shall be a person or entity, with
    35  appropriate expertise in agriculture,  registered  for  the  purpose  of
    36  acquiring or manufacturing marihuana and selling, delivering, transport-
    37  ing,  or distributing it to another registered organization; a certified
    38  producer shall not sell, deliver or distribute marihuana to a  certified
    39  patient or designated caregiver for that person's use.
    40    2.  The acquiring, possession, manufacture, sale, delivery, transport-
    41  ing or distributing of marihuana by a registered organization under this

    42  title in accordance with its  registration  under  section  thirty-three
    43  hundred  sixty-five  of  this title or a renewal thereof shall be lawful
    44  under this title.
    45    3. A registered organization (other than a  registered  producer)  may
    46  lawfully,  in  good faith, sell, deliver or distribute medical marihuana
    47  to a certified patient or designated caregiver upon presentation to  the
    48  registered organization of a valid registry identification card for that
    49  certified  patient  or  designated  caregiver.  When  presented with the
    50  registry identification card, the registered organization shall  provide
    51  to  the certified patient or designated caregiver a receipt, which shall
    52  state: the name, address, and  registry  identification  number  of  the

    53  registered  organization;  the  registry  identification  number  of the
    54  certified patient and the designated caregiver (if any); and the quanti-
    55  ty of marihuana sold. The registered organization shall retain a copy of
    56  the registry identification card and the receipt for one year.

        S. 7283--A                          7
 
     1    4. No registered organization may sell, deliver or distribute  to  any
     2  certified patient or designated caregiver a quantity of medical marihua-
     3  na  larger  than  that individual would be allowed to possess under this
     4  title.
     5    5.  When  a  registered  organization  sells,  delivers or distributes
     6  medical marihuana to a certified patient  or  designated  caregiver,  it

     7  shall  provide  to that individual a safety insert, which will be devel-
     8  oped and approved by the commissioner and include, but  not  be  limited
     9  to, information on: (a) methods for administering medical marihuana, (b)
    10  any  potential  dangers  stemming from the use of medical marihuana, and
    11  (c) how to recognize what may be problematic usage of medical  marihuana
    12  and obtain appropriate services or treatment  for problematic usage.
    13    §  3365.  Registering  of registered organizations. 1. Application for
    14  initial registration. (a) An applicant for registration as a  registered
    15  organization under section thirty-three hundred sixty-four of this title
    16  shall furnish to the department a description of the activities in which

    17  it  intends  to  engage as a registered organization and any information
    18  the department shall reasonably require and evidence that the applicant:
    19    (i) and its managing officers are of good moral character;
    20    (ii) possesses or has the right to use sufficient land, buildings  and
    21  equipment  to  properly  carry on the activity described in the applica-
    22  tion;
    23    (iii) is able to maintain effective control against diversion  of  the
    24  marihuana; and
    25    (iv)  is able to comply with all applicable state laws and regulations
    26  relating to the activities in which  it  intends  to  engage  under  the
    27  registration.
    28    (b) The application shall establish the applicant's status under para-

    29  graph  (a),  (b),  (c) or (d) of subdivision one of section thirty-three
    30  hundred sixty-four of this title, or  its  intention  to  qualify  under
    31  paragraph  (c) or (d) of subdivision one of section thirty-three hundred
    32  sixty-four of this title.
    33    (c) The application shall include  the  name,  residence  address  and
    34  title  of  each of the officers and directors and the name and residence
    35  address of any person or entity that is a member of the applicant.  Each
    36  such person, if an individual, or lawful representative if a legal enti-
    37  ty, shall submit an affidavit with the application setting forth:
    38    (i)  any  position of management or ownership during the preceding ten
    39  years of a ten per centum or greater interest  in  any  other  business,

    40  located in or outside this state, manufacturing or distributing drugs;
    41    (ii)  whether  such  person  or  any such business has been convicted,
    42  fined, censured or had a registration suspended or revoked in any admin-
    43  istrative or judicial proceeding relating to or arising out of the manu-
    44  facture, distribution, sale, or possession of drugs; and
    45    (iii) such  other  information  as  the  commissioner  may  reasonably
    46  require.
    47    (d)  The  applicant  shall be under a continuing duty to report to the
    48  department any change in facts or circumstances reflected in the  appli-
    49  cation  or  any newly discovered or occurring fact or circumstance which
    50  is required to be included in the application.

    51    2. Granting of registration. (a) The commissioner shall grant a regis-
    52  tration or amendment to a registration under this section if he  or  she
    53  is satisfied that:
    54    (i)  the  applicant will be able to maintain effective control against
    55  diversion of marihuana;

        S. 7283--A                          8
 
     1    (ii) the applicant will be able to comply with  all  applicable  state
     2  laws;
     3    (iii)  the  applicant  and its officers are ready, willing and able to
     4  properly carry on the manufacturing or distributing activity for which a
     5  registration is sought;
     6    (iv) the applicant possesses or has the right to use sufficient  land,

     7  buildings  and  equipment to properly carry on the activity described in
     8  the application;
     9    (v) it is in the public interest that such registration be granted; in
    10  the case of an applicant under  paragraph  (c)  of  subdivision  one  of
    11  section  thirty-three hundred sixty-four of this title, the commissioner
    12  may consider whether the number of registered organizations in  an  area
    13  will be adequate or excessive to reasonably serve the area; and
    14    (vi) the applicant and its managing officers are of good moral charac-
    15  ter.
    16    (b)  If the commissioner is not satisfied that the applicant should be
    17  issued a registration, he or she shall notify the applicant  in  writing

    18  of  those factors upon which further evidence is required. Within thirty
    19  days of the receipt of such notification, the applicant may submit addi-
    20  tional material to the commissioner or demand a hearing, or both.
    21    (c) The fee for a registration under this section shall be  a  reason-
    22  able amount determined by the department in regulations; provided howev-
    23  er,  if  the  registration is issued for a period greater than two years
    24  the fee shall be increased, pro  rata,  for  each  additional  month  of
    25  validity.
    26    (d)  Registrations  issued  under this section shall be effective only
    27  for and shall specify:
    28    (i) the name and address of the registered organization; and

    29    (ii) which activities of a registered organization  are  permitted  by
    30  the registration.
    31    (e)  Upon application of a registered organization, a registration may
    32  be amended to allow the registered organization to relocate  within  the
    33  state  or to add or delete permitted registered organization activities.
    34  The fee for such amendment shall be two hundred fifty dollars.
    35    3. A registration issued under this section shall  be  valid  for  two
    36  years  from  the  date  of issue, except that in order to facilitate the
    37  renewals of such registrations, the commissioner may  upon  the  initial
    38  application  for  a  registration,  issue  some  registrations which may
    39  remain valid for a period of time greater than two years but not exceed-

    40  ing an additional eleven months.
    41    4. Applications for renewal of registrations. (a) An  application  for
    42  the renewal of any registration issued under this section shall be filed
    43  with  the  department not more than six months nor less than four months
    44  prior to the  expiration  thereof.  A  late-filed  application  for  the
    45  renewal of a registration may, in the discretion of the commissioner, be
    46  treated as an application for an initial license.
    47    (b)  The  application  for  renewal  shall  include  such  information
    48  prepared in the manner and  detail  as  the  commissioner  may  require,
    49  including but not limited to:
    50    (i)  any  material  change  in  the circumstances or factors listed in
    51  subdivision one of this section; and

    52    (ii) every known charge or investigation, pending or concluded  during
    53  the  period of the registration, by any governmental agency with respect
    54  to:

        S. 7283--A                          9
 
     1    (A) each incident or alleged incident involving the  theft,  loss,  or
     2  possible  diversion  of  marihuana  manufactured  or  distributed by the
     3  applicant; and
     4    (B)  compliance  by  the  applicant  with  the  laws of the state with
     5  respect to any substance listed in section thirty-three hundred  six  of
     6  this article.
     7    (c)  An  applicant  for  renewal  shall  be under a continuing duty to
     8  report to the department any change in facts or circumstances  reflected

     9  in  the application or any newly discovered or occurring fact or circum-
    10  stance which is required to be included in the application.
    11    (d) If the commissioner is not satisfied that the applicant  is  enti-
    12  tled to a renewal of the registration, he or she shall within forty-five
    13  days after the filing of the application serve upon the applicant or his
    14  or  her  attorney of record in person or by registered or certified mail
    15  an order directing the applicant to show cause why his or  her  applica-
    16  tion for renewal should not be denied. The order shall specify in detail
    17  the  respects  in which the applicant has not satisfied the commissioner
    18  that the registration should be renewed.
    19    (e) Within thirty days of service of such  order,  the  applicant  may

    20  submit  additional  material  to the commissioner or demand a hearing or
    21  both. If a hearing is demanded the commissioner shall  fix  a  date  for
    22  hearing  not  sooner  than fifteen days nor later than thirty days after
    23  receipt of the demand, unless such time  limitation  is  waived  by  the
    24  applicant.
    25    5.  Granting  of  renewal of registrations. (a) The commissioner shall
    26  renew a registration unless he or she  determines  and  finds  that  the
    27  applicant:
    28    (i)  is  unlikely to maintain or be able to maintain effective control
    29  against diversion; or
    30    (ii) is unlikely to comply with  all  state  laws  applicable  to  the
    31  activities in which it may engage under the registration; or

    32    (iii)  is  an  applicant  under  paragraph  (c)  of subdivision one of
    33  section thirty-three hundred sixty-four of this title, in which case the
    34  commissioner may consider whether the number of registered organizations
    35  in an area is adequate or excessive to reasonably serve the area.
    36    (b) For purposes of this section, proof that  a  registered  organiza-
    37  tion,  during  the  period  of  its registration, has failed to maintain
    38  effective control against diversion  or  has  knowingly  or  negligently
    39  failed  to  comply with applicable state laws relating to the activities
    40  in which it engages under the registration, shall constitute substantial
    41  evidence that the applicant  will  be  unlikely  to  maintain  effective

    42  control  against diversion or will be unlikely to comply with the appli-
    43  cable state statutes during the period of proposed renewal.
    44    6. The department may suspend  or  terminate  the  registration  of  a
    45  registered  organization,  on  grounds  and  using procedures under this
    46  article relating to a license, to the extent consistent with this title.
    47  Conduct in compliance with this title, but which may violate conflicting
    48  federal law, shall not be grounds to suspend or  terminate  a  registra-
    49  tion.
    50    7.  A  registered  organization  is  entitled  to  all  of the rights,
    51  protections, and procedures provided to a licensee under this article.
    52    8. The department shall begin  issuing  registrations  for  registered

    53  organizations  no  later  than one year after the effective date of this
    54  section.
    55    § 3366. Reports  by  registered  organizations.  1.  The  commissioner
    56  shall,  by  regulation, require each registered organization that sells,

        S. 7283--A                         10
 
     1  delivers or distributes medical marihuana  to  a  certified  patient  or
     2  designated  caregiver  to  file reports of all such sales, deliveries or
     3  distributions by the registered organization during a particular period,
     4  on forms provided by the department. Reports shall be not more frequent-
     5  ly than every six months.  Each report shall include for each such sale,
     6  delivery  or  distribution:  the  date,  the quantity sold, delivered or

     7  distributed; and the name, address and registry identification number of
     8  the certified patient and the designated caregiver (if any).
     9    2. The commissioner shall,  by  regulation,  require  each  registered
    10  producer  to  file  reports of all sales, deliveries or distributions of
    11  medical marihuana by the registered producer during a particular period,
    12  on forms provided by the department. Reports shall be not more frequent-
    13  ly than every month. Each report  shall  include  for  each  such  sale,
    14  delivery  or  distribution:  the  date,  the quantity sold, delivered or
    15  distributed; and the name and address of the registered organization  to
    16  which the sale, delivery or distribution was made.

    17    §  3367.  Evaluation;  research programs; report by department. 1. The
    18  commissioner may provide for the analysis and evaluation of  the  opera-
    19  tion  of this title. The commissioner may enter into agreements with one
    20  or more persons, not-for-profit corporations or other organizations, for
    21  the performance of an evaluation of the implementation and effectiveness
    22  of this title.
    23    2. The department may develop, seek  any  necessary  federal  approval
    24  for, and carry out research programs relating to medical use of marihua-
    25  na.    Participation  in any such research program shall be voluntary on
    26  the part of practitioners, patients, and designated caregivers.
    27    3. The department shall report every two years,  beginning  two  years

    28  after the effective date of this title, to the governor and the legisla-
    29  ture on the medical use of marihuana under this title and make appropri-
    30  ate recommendations.
    31    § 3368. Registered organization assessments. 1. Each registered organ-
    32  ization  shall  be charged an assessment in the amount of seven and one-
    33  tenth percent of its gross receipts received from all medical  marihuana
    34  sold,  delivered  or  distributed,  less  refunds, on a cash basis.  The
    35  assessment shall be submitted by or on behalf of the  registered  organ-
    36  ization  to  the commissioner or his or her designee on a schedule to be
    37  determined by the commissioner.
    38    2. The gross receipts tax owed  by  a  registered  organization  under

    39  section  twenty-eight  hundred  seven-d of this chapter, attributable to
    40  the sale, delivery or  distribution  of  medical  marihuana  under  this
    41  title, shall be deductible by the registered organization from any gross
    42  receipts assessment owed by it under this title.
    43    3. The registered organization shall maintain the documentation neces-
    44  sary  to establish what amount is owed pursuant to this section and such
    45  records shall be subject to audit by the  commissioner  or  his  or  her
    46  designee.
    47    §  3369.  Relation  to  other  laws. 1. The provisions of this article
    48  shall apply to this title, except that where a provision of  this  title
    49  conflicts  with  another  provision  of  this  article, this title shall
    50  apply.

    51    2. Nothing in this title shall be construed to require or prohibit  an
    52  insurer  or  health  plan  under  this  chapter  or the insurance law to
    53  provide coverage for medical marihuana. Nothing in this title  shall  be
    54  construed  to require coverage for medical marihuana under article twen-
    55  ty-five of this chapter or article five of the social services law.

        S. 7283--A                         11
 
     1    3. A person or entity shall  not  be  subject  to  criminal  or  civil
     2  liability  or  professional discipline for acting reasonably and in good
     3  faith pursuant to this title.
     4    §  3369-a. Protections for the medical use of marihuana. 1.  Certified
     5  patients, designated caregivers, practitioners, registered organizations

     6  and the employees of registered organizations shall not  be  subject  to
     7  arrest,  prosecution,  or  penalty in any manner, or denied any right or
     8  privilege, including but not limited to civil  penalty  or  disciplinary
     9  action  by a business or occupational or professional licensing board or
    10  bureau, solely for the certified medical use or manufacture of  marihua-
    11  na,  or  for  any other action or conduct in accordance with this title.
    12  State or local law enforcement agencies  shall  not  cooperate  with  or
    13  provide  assistance to the government of the United States or any agency
    14  thereof in enforcing the Controlled Substances Act, 21 U.S.C. § 801  et.
    15  seq.,  solely for actions and conduct consistent with this title, except

    16  as pursuant to a valid court order.
    17    2. Affirmative defense. A patient and a patient's caregiver  who  have
    18  failed  to  obtain a registry identification card may assert an affirma-
    19  tive defense to any prosecution under state law for actions and  conduct
    20  that is otherwise consistent with the certified medical use of marihuana
    21  as defined under this title.
    22    3.  Incidental  amount  of  marihuana. Any incidental amount of seeds,
    23  stalks, and unusable roots shall not be included in the  amounts  speci-
    24  fied  in  subdivision  one  of section thirty-three hundred sixty-two of
    25  this title.
    26    4. School, employer, or  landlord  may  not  discriminate.  A  school,
    27  employer,  or landlord may not refuse to enroll or employ or lease to or

    28  otherwise penalize a person solely for that person's status as a  certi-
    29  fied  patient  or designated caregiver unless failing to do so would put
    30  the school, employer, or landlord in violation of federal law  or  cause
    31  it to lose a federal contract or funding.
    32    5.  Person may not be denied medical care, including organ transplant.
    33  For the purposes of medical care, including organ transplants, a  certi-
    34  fied  patient's medical use of marihuana shall not constitute the use of
    35  an illicit substance and may only be considered with respect to evidence
    36  based clinical criteria.
    37    6. Person may not be denied custody or visitation of minor.  A  person
    38  shall  not  be  denied  custody  or  visitation of a minor for acting in

    39  accordance with this title unless the person's behavior is such that  it
    40  creates  an  unreasonable danger to the minor that can be clearly artic-
    41  ulated and substantiated.
    42    7. Effect of registry identification card issued by another  jurisdic-
    43  tion.  A registry identification card, or its equivalent, that is issued
    44  under the laws of another state, district, territory,  commonwealth,  or
    45  possession of the United States that allows the medical use of marihuana
    46  has  the  same force and effect as a registry identification card issued
    47  by the department, so long as the visiting patient's  serious  condition
    48  would  qualify  for  the  certified  medical use of marihuana under this
    49  title.

    50    § 3369-b. Severability. If any provision of this title or the applica-
    51  tion thereof to any person or circumstance is held invalid,  such  inva-
    52  lidity  shall  not affect other provisions or applications of this title
    53  which can be given effect without the invalid provision or  application,
    54  and to this end the provisions of this title are severable.
    55    §  3.  Section  853 of the general business law is amended by adding a
    56  new subdivision 3 to read as follows:

        S. 7283--A                         12
 
     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    § 4. This act shall take effect immediately.
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