Cannabis Law Section 35
Registering of registered organizations
1.(a) An applicant for registration as a registered organization under § 34 (Registered organizations)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 § 87 (Social and economic equity, minority and women-owned businesses, distressed farmers and service-disabled veterans)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.
Section 35 — Registering of registered organizations,
https://www.nysenate.gov/legislation/laws/CAN/35 (updated Apr. 9, 2021; accessed Dec. 2, 2023).