N.Y. Cannabis Law § 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 certification and valid government-issued photo

identification for that certified patient or designated caregiver,

pursuant to section thirty-two of this article. When presented with the

certification, the registered organization shall provide to the

certified patient or designated caregiver a receipt, which may be

electronic, 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; and the

form and the quantity of medical cannabis sold. The registered

organization shall retain any copies of registry identification cards

used by certified patients or designated caregivers prior to the

effective date of the chapter of the laws of two thousand twenty-five

that amended this paragraph and the receipt for six years following the

effective date of the chapter of the laws of two thousand twenty-five

that amended this paragraph and shall make such records available to the

office upon request.

(b) The proprietor of a registered organization shall file or cause to

be filed any dispensing receipt and certification information with the

office by electronic means on a real-time basis as the board shall

require by regulation. When filing dispensing receipt and certification

information electronically pursuant to this paragraph, the proprietor of

the registered organization shall dispose of any electronically recorded

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 shall not dispense an

amount greater than the amounts authorized in section thirty-one of 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.