Medical Operations & Oversight

MRTA Article 3, Sections 37, 38, 39, 43, 44, 45

These sections govern how New York oversees the medical cannabis program after licensing. They cover program evaluation, research licensing, Registered Organization (RO) oversight, expansion into adult-use, regulatory authority, enforcement actions, and medical pricing controls.

This is where the State monitors performance, enforces compliance, and adjusts the medical program over time.

What This Covers

How the State evaluates and updates the medical program
Cannabis research licensing requirements
When and how ROs may enter the adult-use market
Authority to issue medical cannabis regulations
Grounds for suspension or termination of registrations
Medical cannabis pricing oversight

Program Evaluation (Section 37)

This section requires ongoing review of the medical cannabis program.

OCM and the Cannabis Control Board must:

Evaluate patient access and program performance
Assess safety, health impacts, and outcomes
Support and review cannabis research
Publish evaluations and recommendations

These reviews inform regulatory updates and future medical cannabis policy.

Cannabis Research License (Section 38)

This section creates a license for cannabis research in New York.

Applicants must:

Submit a detailed research plan
Demonstrate secure facilities
Employ qualified staff
Track all cannabis used in research
File required reports and updates with OCM

This license authorizes research only. It does not permit commercial sales or distribution.

Registered Organizations and Adult-Use Expansion (Section 39)

This section allows certain ROs to apply for limited adult-use participation.

Possible authorizations include:

Authority under §68-A (vertical adult-use participation, including retail)
Authority under §68-B (vertical adult-use participation without retail)

The Cannabis Control Board determines:

How many ROs may enter adult-use
Applicable fees
Conditions for approval
Requirements to maintain medical patient access

RO entry into adult-use is discretionary and subject to state review.

Medical Program Regulations (Section 43)

This section grants rulemaking authority over the medical program.

The Cannabis Control Board may adopt regulations governing:

Practitioner certification
Caregiver requirements
RO operations
Packaging, labeling, and testing
Recordkeeping and inventory tracking
Registration and reporting procedures

All medical operators must comply with regulations adopted under this authority.

Suspension or Termination of Registration (Section 44)

This section allows enforcement action against ROs.

The Board or OCM may suspend or revoke registration for:

Violations of law or regulation
False or misleading statements
Public health or safety risks
Failure to operate as approved
Non-reporting or ongoing non-compliance

Immediate suspension may occur in urgent situations. Other actions require notice and an opportunity to be heard.

Medical Cannabis Pricing Oversight (Section 45)

This section establishes pricing review requirements.

ROs must:

Submit pricing information to OCM
Provide justification for costs and markups
Maintain transparent pricing structures
Update pricing when required

OCM reviews pricing to ensure it is fair, consistent, and not predatory or anti-competitive.

What Operators Usually Miss

Program evaluations can trigger rule changes
Research licenses do not permit sales
Adult-use expansion is discretionary, not guaranteed
Pricing is actively reviewed, not self-set

When This Comes Up

RO audits or compliance reviews
Research project approvals
Medical-to-adult-use expansion planning
Pricing changes or complaints
Enforcement proceedings

What Happens If You Ignore This

Suspension or revocation of registration
Loss of adult-use eligibility
Pricing enforcement actions
Increased regulatory scrutiny

Source Material

Cannabis Law (MRTA), Article 3, Sections 37, 38, 39, 43, 44, 45

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