N.Y. CAN Law § 34 — New York Code / Act CAN / Article 3 / Section 34
Registered organizations
Status: in_force

§ 34. Registered organizations. 1. A registered organization shall be\na for-profit business entity or not-for-profit corporation organized for\nthe purpose of acquiring, possessing, manufacturing, selling,\ndelivering, transporting, distributing or dispensing cannabis for\ncertified medical use.\n  2. The acquiring, possession, manufacture, sale, delivery,\ntransporting, distributing or dispensing of medical cannabis by a\nregistered organization under this article in accordance with its\nregistration under this article or a renewal thereof shall be lawful\nunder this chapter.\n  3. Each registered organization shall contract with an independent\nlaboratory permitted by the board to test the medical cannabis produced\nby the registered organization. The board shall approve the laboratories\nused by the registered organization, including sampling and testing\nprotocols and standards used by the laboratories, and may require that\nthe registered organization use a particular testing laboratory. The\nboard is authorized to issue regulations requiring the laboratory to\nperform certain tests and services.\n  4. (a) A registered organization may lawfully, in good faith, sell,\ndeliver, distribute or dispense medical cannabis to a certified patient\nor designated caregiver upon presentation to the registered organization\nof a valid certification and valid government-issued photo\nidentification for that certified patient or designated caregiver,\npursuant to section thirty-two of this article. When presented with the\ncertification, the registered organization shall provide to the\ncertified patient or designated caregiver a receipt, which may be\nelectronic, which shall state: the name, address, and registry\nidentification number of the registered organization; the name and\nregistry identification number of the certified patient and the\ndesignated caregiver, if any; the date the cannabis was sold; and the\nform and the quantity of medical cannabis sold. The registered\norganization shall retain any copies of registry identification cards\nused by certified patients or designated caregivers prior to the\neffective date of the chapter of the laws of two thousand twenty-five\nthat amended this paragraph and the receipt for six years following the\neffective date of the chapter of the laws of two thousand twenty-five\nthat amended this paragraph and shall make such records available to the\noffice upon request.\n  (b) The proprietor of a registered organization shall file or cause to\nbe filed any dispensing receipt and certification information with the\noffice by electronic means on a real-time basis as the board shall\nrequire by regulation. When filing dispensing receipt and certification\ninformation electronically pursuant to this paragraph, the proprietor of\nthe registered organization shall dispose of any electronically recorded\ninformation in such manner as the board shall by regulation require.\n  5. (a) No registered organization may sell, deliver, distribute or\ndispense to any certified patient or designated caregiver a quantity of\nmedical cannabis larger than that individual would be allowed to possess\nunder this chapter.\n  (b) When dispensing medical cannabis to a certified patient or\ndesignated caregiver, the registered organization shall not dispense an\namount greater than the amounts authorized in section thirty-one of this\narticle.\n  (c) Medical cannabis dispensed to a certified patient or designated\ncaregiver by a registered organization shall conform to any\nrecommendation or limitation by the practitioner as to the form or forms\nof medical cannabis or dosage for the certified patient.\n  6. When a registered organization sells, delivers, distributes or\ndispenses medical cannabis to a certified patient or designated\ncaregiver, it shall provide to that individual a safety insert,\ndeveloped by the registered organization subject to regulations issued\nby the board and include, but not be limited to, information on:\n  (a) methods for administering medical cannabis,\n  (b) any potential dangers stemming from the use of medical cannabis,\n  (c) how to recognize what may be problematic usage of medical cannabis\nand obtain appropriate services or treatment for problematic usage, and\n  (d) other information as determined by the board.\n  7. Registered organizations shall not be managed by or employ anyone\nwho has been convicted within three years of the date of hire, of any\nfelony related to the functions or duties of operating a business,\nexcept that if the board determines that the manager or employee is\notherwise suitable to be hired, and hiring the manager or employee would\nnot compromise public safety, the board shall conduct a thorough review\nof the nature of the crime, conviction, circumstances, and evidence of\nrehabilitation of the manager or employee, and shall evaluate the\nsuitability of the manager or employee based on the evidence found\nthrough the review. In determining which offenses are substantially\nrelated to the functions or duties of operating a business, the board\nshall include, but not be limited to, the following:\n  (a) a felony conviction involving fraud, money laundering, forgery and\nother unlawful conduct related to owning and operating a business; and\n  (b) a felony conviction for hiring, employing or using a minor in\ntransporting, carrying, selling, giving away, preparing for sale, or\npeddling, any controlled substance, or selling, offering to sell,\nfurnishing, offering to furnish, administering, or giving any controlled\nsubstance to a minor.\n  A felony conviction for the sale or possession of drugs, narcotics, or\ncontrolled substances is not substantially related. This subdivision\nshall only apply to managers or employees who come into contact with or\nhandle medical cannabis.\n  8. Manufacturing of medical cannabis by a registered organization\nshall only be done in a secure facility located in New York state, which\nmay include a greenhouse. The board shall promulgate regulations\nestablishing requirements for such facilities.\n  9. Dispensing of medical cannabis by a registered organization shall\nonly be done in an indoor, enclosed, secure facility located in New York\nstate. The board shall promulgate regulations establishing requirements\nfor such facilities.\n  10. A registered organization may contract with a person or entity to\nprovide facilities, equipment or services that are ancillary to the\nregistered organization's functions or activities under this article\nincluding, but not limited to, shipping, maintenance, construction,\nrepair, and security, provided that the person or entity shall not\nperform any function or activity directly involving the planting,\ngrowing, tending, harvesting, processing, or packaging of cannabis\nplants, medical cannabis, or medical cannabis products being produced by\nthe registered organization; or any other function directly involving\nmanufacturing or retailing of medical cannabis. All laws and regulations\napplicable to such facilities, equipment, or services shall apply to the\ncontract. The registered organization and other parties to the contract\nshall each be responsible for compliance with such laws and regulations\nunder the contract. The board may make regulations consistent with this\narticle relating to contracts and parties to contracts under this\nsubdivision.\n  11. A registered organization shall, based on the findings of an\nindependent laboratory, provide documentation of the quality, safety and\nclinical strength of the medical cannabis manufactured or dispensed by\nthe registered organization to the office and to any person or entity to\nwhich the medical cannabis is sold or dispensed.\n  12. A registered organization shall be deemed to be a "health care\nprovider" for the purposes of title two-D of article two of the public\nhealth law.\n  13. Medical cannabis shall be dispensed to a certified patient or\ndesignated caregiver in a sealed and properly labeled package. The\nlabeling shall contain: (a) the information required to be included in\nthe receipt provided to the certified patient or designated caregiver by\nthe registered organization; (b) the packaging date; (c) any applicable\ndate by which the medical cannabis should be used; (d) a warning\nstating, "This product is for medicinal use only. Women should not\nconsume during pregnancy or while breastfeeding except on the advice of\nthe certifying health care practitioner, and in the case of\nbreastfeeding mothers, including the infant's pediatrician. This product\nmight impair the ability to drive. Keep out of reach of children."; (e)\nthe amount of individual doses contained within; and (f) a warning that\nthe medical cannabis must be kept in the original container in which it\nwas dispensed.\n  14. The board is authorized to make rules and regulations restricting\nthe advertising and marketing of medical cannabis.\n  15. A registered organization shall operate in accordance with minimum\noperating and recordkeeping requirements determined by the board in\nregulation.\n