2023 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.