NY Pub Health L § 3365 (2021)
2021 New York Laws PBH - Public Health Article 33 - Controlled Substances Title 5-A - Medical Use of Marihuana 3365 - Registering of Registered Organizations.

* §  3365. Registering of registered organizations. 1. Application for initial registration. (a) An applicant for registration as a  registered organization under section thirty-three hundred sixty-four of this title shall include such information prepared in such manner and detail as the commissioner 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 marihuana;  (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. The maintenance of such  a  labor peace agreement shall be an ongoing material condition of certification.  (iv)  the  applicant's  status  under  subdivision  one   of   section thirty-three hundred sixty-four of this title; 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 or ownership during the preceding ten years of a ten per centum or greater interest  in  any  other  business, located in or outside this state, manufacturing or distributing drugs;  (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  (C) such other information as the commissioner may reasonably require.   2.  Duty  to report. The applicant shall be under a continuing duty to report to the department 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. Granting of  registration.  (a)  The  commissioner  shall  grant  a registration  or amendment to a registration under this section if he or she is satisfied that:  (i) the applicant will be able to maintain effective  control  against diversion of marihuana;  (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; the  commissioner  may  consider  whether  the  number   of   registered  organizations  in  an  area  will be adequate or excessive to reasonably serve the area;  (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  (viii)  the  applicant satisfies any other conditions as determined by the commissioner.  (b) If the commissioner 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 commissioner or demand a hearing, or both.  (c) The  fee  for  a  registration  under  this  section  shall  be  a reasonable amount determined by the department 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  commissioner shall reasonably provide to assure compliance with this title.  (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 two hundred fifty 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 commissioner 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.  Applications  for renewal of registrations. (a) An application for the renewal of any registration issued under this section shall be filed with the department 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 commissioner, 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 commissioner 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  marihuana  manufactured  or  distributed  by  the applicant; and  (B)  compliance  by  the  applicant  with  the  laws of the state with respect to any substance listed in section thirty-three hundred  six  of this article.  (c)  An  applicant  for  renewal  shall  be under a continuing duty to report to the department 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.  (d) If the  commissioner  is  not  satisfied  that  the  applicant  is entitled  to  a  renewal  of  the registration, he or she shall within a reasonably practicable time as determined  by  the  commissioner,  serve upon  the  applicant  or  his  or her attorney of record in person or by registered or certified mail an order directing the  applicant  to  show cause  why  his or her application for renewal should not be denied. The order shall specify in detail the respects in which  the  applicant  has not satisfied the commissioner that the registration should be renewed.  (e)  Within  a  reasonably  practicable  time  as  determined  by  the commissioner of such order, the applicant may submit additional material to the commissioner or demand  a  hearing  or  both.  If  a  hearing  is demanded  the  commissioner  shall  fix  a  date  as  soon as reasonably practicable.   6. Granting of renewal of registrations. (a)  The  commissioner  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; or  (ii)  the  applicant  is  unlikely  to  comply  with  all  state  laws applicable   to  the  activities  in  which  it  may  engage  under  the registration; or  (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; or  (iv) the applicant has either violated or terminated its  labor  peace agreement.  (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,  shall  constitute  grounds  for  suspension  or termination  of the registered organization's registration as determined by the commissioner. The registered organization shall also be  under  a continuing  duty to report to the department any material change or fact or  circumstance  to  the  information  provided   in   the   registered organization's application.   7.  The  department  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 title. The  department 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 title which may violate conflicting federal law, shall not  be  grounds  to  suspend  or terminate a registration.   8.  The  department  shall  begin issuing registrations for registered organizations as soon as practicable after the  certifications  required by section thirty-three hundred sixty-nine-b of this title are given.   9.  The  commissioner  shall  register  no  more  than five registered organizations that manufacture medical marihuana with no more than  four dispensing   sites   wholly   owned  and  operated  by  such  registered organization.  The  commissioner  shall  ensure  that  such   registered  organizations and dispensing sites are geographically distributed across the   state.   The   commission   may   register  additional  registered organizations.   * NB  Repealed  July  5,  2028  and  Repealed  6 months after the full cannabis control board created by Article 2 of the cannabis law has been appointed