NY Cannabis § 34 (2021)
2021 New York Laws CAN - Cannabis Article 3 - Medical Cannabis 34 - Registered Organizations.

§  34. Registered organizations. 1. A registered organization shall be a for-profit business entity or not-for-profit corporation organized for the  purpose   of   acquiring,   possessing,   manufacturing,   selling, delivering,   transporting,  distributing  or  dispensing  cannabis  for certified medical use.   2.   The   acquiring,   possession,   manufacture,   sale,   delivery, transporting,  distributing  or  dispensing  of  medical  cannabis  by a registered organization  under  this  article  in  accordance  with  its registration  under  this  article  or a renewal thereof shall be lawful under this chapter.   3. Each registered organization shall  contract  with  an  independent laboratory  permitted by the board to test the medical cannabis produced by the registered organization. The board shall approve the laboratories used by the registered  organization,  including  sampling  and  testing protocols  and  standards used by the laboratories, and may require that the registered organization use a  particular  testing  laboratory.  The board  is  authorized  to  issue regulations requiring the laboratory to perform certain tests and services.   4. (a) A registered organization may lawfully, in  good  faith,  sell, deliver,  distribute or dispense medical cannabis to a certified patient or designated caregiver upon presentation to the registered organization of a valid registry identification card for that  certified  patient  or designated  caregiver.  When  presented with the registry identification card, the registered organization shall provide to the certified patient or designated caregiver a receipt, which shall state: the name, address, and registry identification number of the registered  organization;  the name and registry identification number of the certified patient and the designated  caregiver,  if  any;  the  date  the  cannabis was sold; any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient;  and  the  form and  the  quantity of medical cannabis sold. The registered organization shall retain a copy of the registry identification card and the  receipt for six years and shall make such records available to the office.  (b) The proprietor of a registered organization shall file or cause to be  filed  any  receipt and certification information with the office by electronic means on a real-time basis as  the  board  shall  require  by regulation.   When   filing   receipt   and   certification  information electronically  pursuant  to  this  paragraph,  the  proprietor  of  the registered  organization  shall  dispose  of any electronically recorded prescription information in such manner as the board shall by regulation require.   5. (a) No registered organization may  sell,  deliver,  distribute  or dispense  to any certified patient or designated caregiver a quantity of medical cannabis larger than that individual would be allowed to possess under this chapter.  (b) When  dispensing  medical  cannabis  to  a  certified  patient  or designated   caregiver,  the  registered  organization:  (i)  shall  not dispense an amount greater  than  a  sixty-day  supply  to  a  certified patient  until  the  certified patient has exhausted all but a seven day supply provided pursuant to a previously issued certification; and  (ii) shall  verify  the  information in subparagraph (i) of this paragraph by consulting the  prescription  monitoring  program  registry  under  this article.  (c)  Medical  cannabis  dispensed to a certified patient or designated caregiver  by  a  registered   organization   shall   conform   to   any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient.    6.  When  a  registered  organization  sells, delivers, distributes or dispenses  medical  cannabis  to  a  certified  patient  or   designated caregiver,  it  shall  provide  to  that  individual  a  safety  insert, developed by the registered organization subject to  regulations  issued by the board and include, but not be limited to, information on:  (a) methods for administering medical cannabis,  (b) any potential dangers stemming from the use of medical cannabis,  (c) how to recognize what may be problematic usage of medical cannabis and obtain appropriate services or treatment for problematic usage, and  (d) other information as determined by the board.   7.  Registered  organizations shall not be managed by or employ anyone who has been convicted within three years of the date of  hire,  of  any felony  related  to  the  functions  or  duties of operating a business, except that if the board determines that  the  manager  or  employee  is otherwise suitable to be hired, and hiring the manager or employee would not  compromise public safety, the board shall conduct a thorough review of the nature of the crime, conviction, circumstances, and  evidence  of rehabilitation  of  the  manager  or  employee,  and  shall evaluate the suitability of the manager or  employee  based  on  the  evidence  found through  the  review.  In  determining  which offenses are substantially related to the functions or duties of operating a  business,  the  board shall include, but not be limited to, the following:  (a) a felony conviction involving fraud, money laundering, forgery and other unlawful conduct related to owning and operating a business; and  (b)  a  felony  conviction  for  hiring, employing or using a minor in transporting, carrying, selling, giving away,  preparing  for  sale,  or peddling,  any  controlled  substance,  or  selling,  offering  to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.   A felony conviction for the sale or possession of drugs, narcotics, or controlled substances is not  substantially  related.  This  subdivision shall  only apply to managers or employees who come into contact with or handle medical cannabis.   8. Manufacturing of medical  cannabis  by  a  registered  organization shall only be done in a secure facility located in New York state, which may  include  a  greenhouse.  The  board  shall  promulgate  regulations establishing requirements for such facilities.   9. Dispensing of medical cannabis by a registered  organization  shall only be done in an indoor, enclosed, secure facility located in New York state.  The board shall promulgate regulations establishing requirements for such facilities.   10. A registered organization may contract with a person or entity  to provide  facilities,  equipment  or  services  that are ancillary to the registered organization's functions or  activities  under  this  article including,  but  not  limited  to,  shipping, maintenance, construction, repair, and security, provided that  the  person  or  entity  shall  not perform  any  function  or  activity  directly  involving  the planting, growing, tending,  harvesting,  processing,  or  packaging  of  cannabis plants, medical cannabis, or medical cannabis products being produced by the  registered  organization;  or any other function directly involving manufacturing or retailing of medical cannabis. All laws and regulations applicable to such facilities, equipment, or services shall apply to the contract. The registered organization and other parties to the  contract shall  each be responsible for compliance with such laws and regulations under the contract. The board may make regulations consistent with  this article  relating  to  contracts  and  parties  to  contracts under this subdivision.    11. A registered organization shall,  based  on  the  findings  of  an independent laboratory, provide documentation of the quality, safety and clinical  strength  of the medical cannabis manufactured or dispensed by the registered organization to the office and to any person or entity to which the medical cannabis is sold or dispensed.   12.  A  registered  organization  shall be deemed to be a "health care provider" for the purposes of title two-D of article two of  the  public health law.   13.  Medical  cannabis  shall  be  dispensed to a certified patient or designated caregiver in a  sealed  and  properly  labeled  package.  The labeling  shall  contain: (a) the information required to be included in the receipt provided to the certified patient or designated caregiver by the registered organization; (b) the packaging date; (c) any  applicable date  by  which  the  medical  cannabis  should  be  used; (d) a warning stating, "This product is for  medicinal  use  only.  Women  should  not consume  during pregnancy or while breastfeeding except on the advice of the  certifying  health  care  practitioner,  and   in   the   case   of breastfeeding mothers, including the infant's pediatrician. This product might  impair the ability to drive. Keep out of reach of children."; (e) the amount of individual doses contained within; and (f) a warning  that the  medical cannabis must be kept in the original container in which it was dispensed.   14. The board is authorized to make rules and regulations  restricting the advertising and marketing of medical cannabis.   15. A registered organization shall operate in accordance with minimum operating  and  recordkeeping  requirements  determined  by the board in regulation.