§ 3365 — Registering of registered organizations

* § 3365. Registering of registered organizations. 1. Application for\ninitial registration. (a) An applicant for registration as a registered\norganization under section thirty-three hundred sixty-four of this title\nshall include such information prepared in such manner and detail as the\ncommissioner may require, including but not limited to:\n (i) a description of the activities in which it intends to engage as a\nregistered organization;\n (ii) that the applicant:\n (A) is of good moral character;\n (B) possesses or has the right to use sufficient land, buildings, and\nother premises (which shall be specified in the application) and\nequipment to properly carry on the activity described in the\napplication, or in the alternative posts a bond of not less than two\nmillion dollars;\n (C) is able to maintain effective security and control to prevent\ndiversion, abuse, and other illegal conduct relating to the marihuana;\n (D) is able to comply with all applicable state laws and regulations\nrelating to the activities in which it intends to engage under the\nregistration;\n (iii) that the applicant has entered into a labor peace agreement with\na bona-fide labor organization that is actively engaged in representing\nor attempting to represent the applicant's employees. The maintenance of\nsuch a labor peace agreement shall be an ongoing material condition of\ncertification.\n (iv) the applicant's status under subdivision one of section\nthirty-three hundred sixty-four of this title; and\n (v) the application shall include the name, residence address and\ntitle of each of the officers and directors and the name and residence\naddress of any person or entity that is a member of the applicant. Each\nsuch person, if an individual, or lawful representative if a legal\nentity, shall submit an affidavit with the application setting forth:\n (A) any position of management or ownership during the preceding ten\nyears of a ten per centum or greater interest in any other business,\nlocated in or outside this state, manufacturing or distributing drugs;\n (B) whether such person or any such business has been convicted of a\nfelony or had a registration or license suspended or revoked in any\nadministrative or judicial proceeding; and\n (C) such other information as the commissioner may reasonably require.\n 2. Duty to report. The applicant shall be under a continuing duty to\nreport to the department any change in facts or circumstances reflected\nin the application or any newly discovered or occurring fact or\ncircumstance which is required to be included in the application.\n 3. Granting of registration. (a) The commissioner shall grant a\nregistration or amendment to a registration under this section if he or\nshe is satisfied that:\n (i) the applicant will be able to maintain effective control against\ndiversion of marihuana;\n (ii) the applicant will be able to comply with all applicable state\nlaws;\n (iii) the applicant and its officers are ready, willing and able to\nproperly carry on the manufacturing or distributing activity for which a\nregistration is sought;\n (iv) the applicant possesses or has the right to use sufficient land,\nbuildings and equipment to properly carry on the activity described in\nthe application;\n (v) it is in the public interest that such registration be granted;\nthe commissioner may consider whether the number of registered\norganizations in an area will be adequate or excessive to reasonably\nserve the area;\n (vi) the applicant and its managing officers are of good moral\ncharacter;\n (vii) the applicant has entered into a labor peace agreement with a\nbona-fide labor organization that is actively engaged in representing or\nattempting to represent the applicant's employees; and\n (viii) the applicant satisfies any other conditions as determined by\nthe commissioner.\n (b) If the commissioner is not satisfied that the applicant should be\nissued a registration, he or she shall notify the applicant in writing\nof those factors upon which further evidence is required. Within thirty\ndays of the receipt of such notification, the applicant may submit\nadditional material to the commissioner or demand a hearing, or both.\n (c) The fee for a registration under this section shall be a\nreasonable amount determined by the department in regulations; provided,\nhowever, if the registration is issued for a period greater than two\nyears the fee shall be increased, pro rata, for each additional month of\nvalidity.\n (d) Registrations issued under this section shall be effective only\nfor the registered organization and shall specify:\n (i) the name and address of the registered organization;\n (ii) which activities of a registered organization are permitted by\nthe registration;\n (iii) the land, buildings and facilities that may be used for the\npermitted activities of the registered organization; and\n (iv) such other information as the commissioner shall reasonably\nprovide to assure compliance with this title.\n (e) Upon application of a registered organization, a registration may\nbe amended to allow the registered organization to relocate within the\nstate or to add or delete permitted registered organization activities\nor facilities. The fee for such amendment shall be two hundred fifty\ndollars.\n 4. A registration issued under this section shall be valid for two\nyears from the date of issue, except that in order to facilitate the\nrenewals of such registrations, the commissioner may upon the initial\napplication for a registration, issue some registrations which may\nremain valid for a period of time greater than two years but not\nexceeding an additional eleven months.\n 5. Applications for renewal of registrations. (a) An application for\nthe renewal of any registration issued under this section shall be filed\nwith the department not more than six months nor less than four months\nprior to the expiration thereof. A late-filed application for the\nrenewal of a registration may, in the discretion of the commissioner, be\ntreated as an application for an initial license.\n (b) The application for renewal shall include such information\nprepared in the manner and detail as the commissioner may require,\nincluding but not limited to:\n (i) any material change in the circumstances or factors listed in\nsubdivision one of this section; and\n (ii) every known charge or investigation, pending or concluded during\nthe period of the registration, by any governmental or administrative\nagency with respect to:\n (A) each incident or alleged incident involving the theft, loss, or\npossible diversion of marihuana manufactured or distributed by the\napplicant; and\n (B) compliance by the applicant with the laws of the state with\nrespect to any substance listed in section thirty-three hundred six of\nthis article.\n (c) An applicant for renewal shall be under a continuing duty to\nreport to the department any change in facts or circumstances reflected\nin the application or any newly discovered or occurring fact or\ncircumstance which is required to be included in the application.\n (d) If the commissioner is not satisfied that the applicant is\nentitled to a renewal of the registration, he or she shall within a\nreasonably practicable time as determined by the commissioner, serve\nupon the applicant or his or her attorney of record in person or by\nregistered or certified mail an order directing the applicant to show\ncause why his or her application for renewal should not be denied. The\norder shall specify in detail the respects in which the applicant has\nnot satisfied the commissioner that the registration should be renewed.\n (e) Within a reasonably practicable time as determined by the\ncommissioner of such order, the applicant may submit additional material\nto the commissioner or demand a hearing or both. If a hearing is\ndemanded the commissioner shall fix a date as soon as reasonably\npracticable.\n 6. Granting of renewal of registrations. (a) The commissioner shall\nrenew a registration unless he or she determines and finds that:\n (i) the applicant is unlikely to maintain or be able to maintain\neffective control against diversion; or\n (ii) the applicant is unlikely to comply with all state laws\napplicable to the activities in which it may engage under the\nregistration; or\n (iii) it is not in the public interest to renew the registration\nbecause the number of registered organizations in an area is excessive\nto reasonably serve the area; or\n (iv) the applicant has either violated or terminated its labor peace\nagreement.\n (b) For purposes of this section, proof that a registered\norganization, during the period of its registration, has failed to\nmaintain effective control against diversion, violates any provision of\nthis article, or has knowingly or negligently failed to comply with\napplicable state laws relating to the activities in which it engages\nunder the registration, shall constitute grounds for suspension or\ntermination of the registered organization's registration as determined\nby the commissioner. The registered organization shall also be under a\ncontinuing duty to report to the department any material change or fact\nor circumstance to the information provided in the registered\norganization's application.\n 7. The department may suspend or terminate the registration of a\nregistered organization, on grounds and using procedures under this\narticle relating to a license, to the extent consistent with this title.\nThe department shall suspend or terminate the registration in the event\nthat a registered organization violates or terminates the applicable\nlabor peace agreement. Conduct in compliance with this title which may\nviolate conflicting federal law, shall not be grounds to suspend or\nterminate a registration.\n 8. The department shall begin issuing registrations for registered\norganizations as soon as practicable after the certifications required\nby section thirty-three hundred sixty-nine-b of this title are given.\n 9. The commissioner shall register no more than five registered\norganizations that manufacture medical marihuana with no more than four\ndispensing sites wholly owned and operated by such registered\norganization. The commissioner shall ensure that such registered\norganizations and dispensing sites are geographically distributed across\nthe state. The commission may register additional registered\norganizations.\n * NB Repealed July 5, 2028 and Repealed 6 months after the full\ncannabis control board created by Article 2 of the cannabis law has been\nappointed\n