§ 10 — Powers and duties of the cannabis control board

§ 10. Powers and duties of the cannabis control board. The cannabis\ncontrol board or "board" shall have the following functions, powers and\nduties as provided for in this chapter:\n 1. Discretion to issue or refuse to issue any registration, license or\npermit provided for in this chapter, as follows: the chairperson, after\nreceiving a recommendation and relevant application information from the\noffice and providing such information to all board members, shall issue\na preliminary determination on whether the license, registration or\npermit shall be granted, denied, or held for further action. Within\nfourteen days of the chairperson's preliminary determination, any board\nmember may object to the chairperson's preliminary determination, or\nrequest the matter be brought before the full board for consideration.\nAny preliminary determination by the chairperson shall take effect\nfourteen days after it has been issued by the chairperson, provided that\nno board member objects or requests the matter be considered by the full\nboard, as adopted by the board through resolution.\n 2. Sole discretion to limit, or not to limit, the number of\nregistrations, licenses and permits of each class to be issued within\nthe state or any political subdivision thereof, in a manner that\nprioritizes social and economic equity applicants with the goal of fifty\npercent awarded to such applicants, and considers small business\nopportunities and concerns, avoids market dominance in sectors of the\nindustry, and reflects the demographics of the state.\n 3. To revoke, cancel or suspend, after notice and an opportunity to be\nheard, any registration, license, or permit issued under this chapter\nfor a violation of this chapter or any regulation pursuant thereto.\n 3-a. To impose or recover a civil penalty, as otherwise authorized\nunder this chapter, against any person found to have violated any\nprovision of this chapter, whether or not a registration, license, or\npermit has been issued to such person pursuant to this chapter.\n 4. To fix by rule and regulation the standards and requirements of\ncultivation, processing, packaging, marketing, and sale of medical\ncannabis, adult-use cannabis and cannabis product, and cannabinoid hemp\nand hemp extract, including but not limited to, the ability to regulate\nexcipients, and the types, forms, and concentration of products which\nmay be manufactured and/or processed, in order to ensure the health and\nsafety of the public and the use of proper ingredients and methods in\nthe manufacture of all medical, adult-use, cannabinoid hemp and hemp\nextract to be sold or consumed in the state and to ensure that products\nare not packaged, marketed, or otherwise sold in a way which targets\nminors or promotes increased use or cannabis use disorders.\n 5. To limit or prohibit, at any time of public emergency and without\nprevious notice or advertisement, the cultivation, processing,\ndistribution or sale of any or all cannabis products, medical cannabis\nor cannabinoid hemp and hemp extract, for and during the period of such\nemergency.\n 6. To hold hearings, subpoena witnesses, compel their attendance,\nadminister oaths, to examine any person under oath and in connection\ntherewith to require the production of any books or records relative to\nthe inquiry. A subpoena issued under this section shall be regulated by\nthe civil practice law and rules.\n 7. To appoint any necessary directors, deputies, counsels, assistants,\ninvestigators, and other employees within the limits provided by\nappropriation. Directors, deputies and counsels, including the chief\nequity officer, and confidential secretaries to board members shall be\nin the exempt class of the civil service. The other assistants,\ninvestigators and employees of the office shall all be in the\ncompetitive class of the civil service and shall be considered for\npurposes of article fourteen of the civil service law to be public\nemployees of the state, and shall be assigned to the appropriate\nbargaining unit. Investigators so employed by the office shall be deemed\nto be peace officers only for the purposes of enforcing the provisions\nof this chapter or judgments or orders obtained for violation thereof,\nwith all the powers set forth in section 2.20 of the criminal procedure\nlaw. Employees transferred to the office shall be transferred without\nfurther examination or qualification to the same or similar titles and\nshall remain in the same collective bargaining units and shall retain\ntheir respective civil service classifications, status and rights\npursuant to their collective bargaining units and collective bargaining\nagreements. Employees serving in positions in newly created titles shall\nbe assigned to the appropriate collective bargaining unit as they would\nhave been assigned to were such titles created prior to the\nestablishment of the office of cannabis management. Any action taken\nunder this subdivision shall be subject to and in accordance with the\ncivil service law. The executive director shall appoint a deputy\ndirector for health and safety who shall be a licensed health care\npractitioner within the state and who shall oversee all clinical aspects\nof the office.\n 8. To conduct regulatory inspections of any place of business,\nincluding a vehicle used for such business, where medical cannabis,\nadult-use cannabis, cannabis, cannabis product, cannabinoid hemp, hemp\nextract products, or any products marketed or labeled as such, are\ncultivated, processed, stored, distributed or sold by any person holding\na registration, license, or permit under this chapter, or by any person\nwho is engaging in activity for which a license would be required under\nthis chapter. For the purposes of this subdivision, "place of business"\nshall not include a residence or other real property not otherwise held\nout as open to the public or otherwise being utilized in a business or\ncommercial manner or any private vehicle on or about the same such\nproperty, unless probable cause exists to believe that such residence,\nreal property, or vehicle are being used in such business or commercial\nmanner for the activity described herein.\n 9. To prescribe forms of applications for registrations, licenses and\npermits under this chapter and of all reports deemed necessary by the\nboard.\n 10. To appoint such advisory groups and committees as deemed necessary\nto provide assistance to the board to carry out the purposes and\nobjectives of this chapter.\n 11. To exercise the powers and perform the duties in relation to the\nadministration of the board and the office of cannabis management as are\nnecessary but not specifically vested by this chapter, including but not\nlimited to budgetary and fiscal matters.\n 12. To develop and establish minimum criteria for certifying employees\nto work in the cannabis industry in positions requiring advanced\ntraining and education.\n 13. To enter into contracts, memoranda of understanding, and\nagreements as deemed appropriate to effectuate the policy and purpose of\nthis chapter.\n 14. To advise the office of cannabis management and/or urban\ndevelopment corporation in making low interest or zero-interest loans to\nqualified social and economic equity applicants as provided for in this\nchapter.\n 15. If public health, safety, or welfare imperatively requires\nemergency action, and incorporates a finding to that effect in an order,\nsummary suspension of a license may be ordered, effective on the date\nspecified in such order or upon service of a certified copy of such\norder on the licensee, whichever shall be later, pending proceedings for\nrevocation or other action. These proceedings shall be promptly\ninstituted and determined. In addition, the board may be directed to\norder the administrative seizure of product, issue a stop order, or take\nany other action necessary to effectuate and enforce the policy and\npurpose of this chapter.\n 16. To draft and provide for public comment and issue regulations,\ndeclaratory rulings, guidance and industry advisories.\n 17. To draft and provide an annual report on the effectiveness of this\nchapter. The annual report shall be prepared, in consultation with the\ndivision of the budget, the urban development corporation, the\ndepartment of taxation and finance, the department of health, department\nof agriculture and markets, office of addiction services and supports,\noffice of mental health, New York state police, department of motor\nvehicles and the division of criminal justice services. The report shall\nprovide, but not be limited to, the following information:\n (a) the number of registrations, licenses, and permits applied for by\ngeographic region of the state; the number of registrations, licenses,\nand permits approved or denied by geographic region of the state;\n (b) the economic and fiscal impacts associated with this chapter,\nincluding revenue from licensing or other fees, fines and taxation\nrelated to the cultivation, distribution and sale of cannabis for\nmedical and adult-use and cannabinoid hemp and hemp extract in this\nstate;\n (c) specific programs and progress made by the cannabis control board\nand the office of cannabis management in achieving the goals of the\nsocial and economic equity plan, and other social justice goals\nincluding, but not limited to, restorative justice, minority- and\nwomen-owned businesses, distressed farmers and service disabled\nveterans;\n (d) demographic data on owners and employees in the medical cannabis,\nadult-use cannabis and cannabinoid hemp and hemp extract industry;\n (e) impacts to public health and safety, including substance use\ndisorder;\n (f) impacts associated with public safety, including, but not limited\nto, traffic-related issues, law enforcement, under-age prevention in\nrelation to accessing adult-use cannabis, and efforts to eliminate the\nillegal market for cannabis products in New York;\n (g) any other information or data deemed significant; and\n (h) the board shall make recommendations regarding the appropriate\nlevel of taxation of adult-use cannabis, as well as changes necessary\nto: improve registration, licensing and permitting; promoting and\nencouraging social and economic equity applicants; improve and protect\nthe public health and safety of New Yorkers; improve access and\navailability for substance abuse treatment programs; and any other\nrecommendations deemed necessary and appropriate. Such report shall be\npublished on the office's website and presented to the governor, the\nmajority leader of the senate and the speaker of the assembly, no later\nthan January first, two thousand twenty-three and annually thereafter.\n 18. When an administrative decision is appealed to the board by an\napplicant, registered organization, licensee or permittee, issue a final\ndetermination of the office.\n 19. Approve the opening of new license application periods, and when\nnew or additional licenses are made available pursuant to this chapter,\nprovided, however, that the initial adult-use cannabis retail dispensary\nlicense application period shall be opened for all applicants at the\nsame time.\n 20. Approve any price quotas or price controls set by the executive\ndirector as provided by this chapter.\n 21. Approve the office's social and economic equity plan pursuant to\nsection eighty-four of this chapter.\n 22. To enter into tribal-state compacts and other agreements with the\nNew York state Indian nations and tribes, as defined by section two of\nthe Indian law, authorizing such Indian nations or tribes to acquire,\npossess, manufacture, sell, deliver, transport, distribute or dispense\nadult-use cannabis and/or medical cannabis.\n 23. With the exception of promulgating rules and regulations, the\nboard shall have the power to delegate any functions, powers and duties\nas provided for in this section to the executive director of the office\nof cannabis management. Any such delegation shall be through a\nresolution voted on and approved by the board members.\n 24. The board shall, two years after the first retail sale pursuant to\nthis chapter, review the impact of licenses issued pursuant to article\nfour of this chapter with substantial market share for any category of\nlicensure, to determine if such licensees are impairing the achievement\nof the goals of inclusion of social equity licensees, fairness for small\nbusinesses and distressed farmers, adequate supplies of cannabis and\nprevention of dominant marketplace participation in the cannabis\nindustry. The board may modify the terms of the licensee's license\nconsistent with the determination and to better achieve those goals. Any\nsuch modification may be appealed by the licensee for a formal hearing\nas provided in section seventeen of this article. For any licensee such\nreview shall include violations of New York state labor law and labor\npeace agreements. Further, an existing collective bargaining agreement\nshall not be infringed or voided by any licensee who after such review\nsuffers from a reduction in market share.\n