NY Cannabis § 35 (2021)
2021 New York Laws CAN - Cannabis Article 3 - Medical Cannabis 35 - Registering of Registered Organizations.

§ 35. Registering of registered organizations. 1. (a) An applicant for registration  as  a registered organization under section thirty-four of this article shall include such information prepared in such manner  and detail as the board may require, including but not limited to:  (i) a description of the activities in which it intends to engage as a registered organization;  (ii) that the applicant:  (A) is of good moral character;  (B)  possesses or has the right to use sufficient land, buildings, and other premises,  which  shall  be  specified  in  the  application,  and equipment   to   properly   carry  on  the  activity  described  in  the application, or in the alternative posts a bond of  not  less  than  two million dollars;  (C)  is  able  to  maintain  effective security and control to prevent diversion, abuse, and other illegal conduct relating  to  the  cannabis; and  (D)  is  able to comply with all applicable state laws and regulations relating to the activities in which  it  intends  to  engage  under  the registration;  (iii) that the applicant has entered into a labor peace agreement with a  bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees and the maintenance of such a labor peace agreement shall be an ongoing  material  condition of certification;  (iv)  the  applicant's  status  as  a  for-profit  business  entity or not-for-profit corporation; and  (v) the application shall include  the  name,  residence  address  and title  of  each of the officers and directors and the name and residence address of any person or entity that is a member of the applicant.  Each such  person,  if  an  individual,  or  lawful representative if a legal entity, shall submit an affidavit with the application setting forth:  (A) any position of  management,  interest  or  ownership  during  the preceding ten years of a ten per centum or greater interest in any other cannabis  business,  or  applicant,  located  in  or outside this state, manufacturing  or  distributing  drugs  including  indirect  management, interest, or ownership of parent companies, subsidiaries, or affiliates;  (B)  whether  such person or any such business has been convicted of a felony or had a registration or license  suspended  or  revoked  in  any administrative or judicial proceeding, and if applicable, the history of violations  or  administrative  penalties with respect to any license to cultivate, manufacture, distribute or sell adult-use cannabis or medical cannabis; and  (C) such other information as the board may reasonably require.   2. The applicant shall be under a continuing duty  to  report  to  the office any change in facts or circumstances reflected in the application or  any  newly  discovered  or  occurring  fact or circumstance which is required to be included in the application.   3. (a) The  board  shall  grant  a  registration  or  amendment  to  a registration under this section if they are satisfied that:  (i)  the  applicant will be able to maintain effective control against diversion of cannabis;  (ii) the applicant will be able to comply with  all  applicable  state laws;  (iii)  the  applicant  and its officers are ready, willing and able to properly carry on the manufacturing or distributing activity for which a registration is sought;  (iv) the applicant possesses or has the right to use sufficient  land, buildings  and  equipment to properly carry on the activity described in the application;  (v)  it  is  in the public interest that such registration be granted, including but not limited to:  (A) whether the number of registered organizations in an area will  be adequate or excessive to reasonably serve the area;  (B)  whether  the  registered  organization is a minority and/or woman owned business enterprise, a service-disabled veteran-owned business, or from  communities  disproportionally  impacted  by  the  enforcement  of cannabis prohibition;  (C)   whether  the  registered  organization  provides  education  and outreach to practitioners;  (D) whether the registered  organization  promotes  the  research  and development of medical cannabis and patient outreach;  (E)  the  affordability  of  medical  cannabis products offered by the registered organization;  (F) whether the registered organization is culturally, linguistically, and medically competent to provide services to unserved and  underserved areas; and  (G)  whether  the registered organization promotes racial, ethnic, and gender diversity in their workforce;  (vi) the applicant  and  its  managing  officers  are  of  good  moral character;  (vii)  the  applicant  has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees; and  the  maintenance of  such  a labor peace agreement shall be an ongoing material condition of registration; and  (viii) the applicant satisfies any other conditions as  determined  by the board.  (b)  If the board is not satisfied that the applicant should be issued a registration, he or she shall notify the applicant in writing of those factors upon which further evidence is required. Within thirty  days  of the  receipt  of  such notification, the applicant may submit additional material to the board or demand a hearing, or both.  (c) The fee for a registration under this section shall be  an  amount determined  by  the  board  in  regulations;  provided,  however, if the registration is issued for a period greater than two years the fee shall be increased, pro rata, for each additional month of validity.  (d) Registrations issued under this section shall  be  effective  only for the registered organization and shall specify:  (i) the name and address of the registered organization;  (ii)  which  activities  of a registered organization are permitted by the registration;  (iii) the land, buildings and facilities that  may  be  used  for  the permitted activities of the registered organization; and  (iv)  such  other information as the board shall reasonably provide to assure compliance with this article.  (e) Upon application of a registered organization, a registration  may be  amended  to allow the registered organization to relocate within the state or to add or delete permitted registered  organization  activities or  facilities.  The  fee  for such amendment shall be determined by the board in regulation and  be  based  off  the  administrative  burden  to process and review the amendment by the office, provided no fee shall be greater than two thousand dollars.   4.  A  registration  issued  under this section shall be valid for two years from the date of issue, except that in  order  to  facilitate  the  renewals   of  such  registrations,  the  board  may  upon  the  initial application for a  registration,  issue  some  registrations  which  may remain  valid  for  a  period  of  time  greater  than two years but not exceeding an additional eleven months.   5. (a) An application for the renewal of any registration issued under this  section shall be filed with the board not more than six months nor less than four months prior to  the  expiration  thereof.  A  late-filed application  for the renewal of a registration may, in the discretion of the board, be treated as an application for an initial license.  (b)  The  application  for  renewal  shall  include  such  information prepared  in  the  manner and detail as the board may require, including but not limited to:  (i) any material change in the  circumstances  or  factors  listed  in subdivision one of this section; and  (ii)  every known charge or investigation, pending or concluded during the period of the registration, by any  governmental  or  administrative agency with respect to:  (A)  each  incident  or alleged incident involving the theft, loss, or possible diversion of medical cannabis manufactured  or  distributed  by the applicant; and  (B)  compliance  by  the  applicant  with  the  laws of the state with respect to  the  cultivation,  manufacture,  distribution,  or  sale  of medical cannabis or adult-use cannabis, where applicable.  (c)  An  applicant  for  renewal  shall  be under a continuing duty to report to the board any change in facts or  circumstances  reflected  in the   application   or   any  newly  discovered  or  occurring  fact  or circumstance which is required to be included in the application and  to obtain  approval prior to any material change in management, interest or ownership.  (d) If the board is not satisfied  that  the  registered  organization applicant  is entitled to a renewal of the registration, the board shall within a reasonably practicable time  as  determined  by  the  executive director,  serve  upon  the  registered  organization or its attorney of record in person or by registered or certified mail an  order  directing the  registered  organization  to  show  cause  why  its application for renewal should not be denied. The order  shall  specify  in  detail  the respects  in  which  the  applicant has not satisfied the board that the registration should be renewed.  (e) Within a reasonably practicable time as determined by the board of such order, the applicant may submit additional material to the board or demand a hearing or both; if a hearing is demanded the board shall fix a date as soon as reasonably practicable.   6. (a)  The  board  shall  renew  a  registration  unless  he  or  she determines and finds that:  (i)  the  applicant  is  unlikely  to  maintain or be able to maintain effective control against diversion;  (ii)  the  applicant  is  unlikely  to  comply  with  all  state  laws applicable   to  the  activities  in  which  it  may  engage  under  the registration;  (iii) it is not in the  public  interest  to  renew  the  registration because  the  number of registered organizations in an area is excessive to reasonably serve the area;  (iv) the applicant has either violated or terminated its  labor  peace agreement; or  (v)  the  applicant  has  substantively  violated  the laws of another jurisdiction, in which they operate or have operated a cannabis  license or registration, related to the operation of a cannabis business.  (b)   For   purposes   of   this  section,  proof  that  a  registered organization, during the period  of  its  registration,  has  failed  to maintain  effective control against diversion, violates any provision of this article, or has knowingly or  negligently  failed  to  comply  with applicable  state  laws  relating  to the activities in which it engages under  the  registration,  may  constitute   grounds   for   suspension, termination  or limitation of the registered organization's registration or as determined by the board.  The registered organization  shall  also be  under  a continuing duty to report to the office any material change or fact or circumstance to the information provided  in  the  registered organization's application.   7. The board may suspend or terminate the registration of a registered organization,  on  grounds  and  using  procedures  under  this  article relating to a license, to the extent consistent with this  article.  The board  shall  suspend  or terminate the registration in the event that a registered organization violates  or  terminates  the  applicable  labor peace  agreement.  Conduct  in  compliance  with  this article which may violate conflicting federal law, shall not  be  grounds  to  suspend  or terminate a registration.   8.  A  registered  organization that manufactures medical cannabis may have no more than four dispensing sites wholly  owned  and  operated  by such  registered  organization. Such registered organization may have an additional four dispensing sites; provided, however, that the first  two additional  dispensing sites shall be located in underserved or unserved geographic locations, as determined by the board. The board shall ensure that  such   registered   organizations   and   dispensing   sites   are geographically  distributed  across  the  state and that their ownership reflects the demographics of the state.   9. In coordination with the  chief  equity  officer  the  board  shall register  additional  registered  organizations  to  provide services to unserved and underserved areas of the state. Pursuant to the social  and economic  equity  plan  established  by  section  eighty-seven  of  this chapter, those additional registered organizations shall  be  reflective of  the  demographics  of  the  state,  be representative of communities disproportionately impacted by cannabis prohibition, and be  culturally, linguistically,   and   medically   competent   to  serve  unserved  and underserved areas of the state. The board shall actively promote racial, ethnic, and gender  diversity  when  registering  additional  registered organizations.