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What Would New York Cannabis Legalization Look Like?

What Would New York Cannabis Legalization Look Like?

New York cannabis legalization is being voted on today

The vote on New York cannabis legalization could happen today. What does that mean for the industry, and the country?

After reaching a landmark deal that aims to integrate a recreational cannabis industry into New York’s current medical cannabis program, the state legislature could be voting as soon as today on whether or not New York cannabis legalization will pass. The bill’s passing would be a massive decision with even bigger ramifications for the legal cannabis industry at large.

But how would a cannabis industry in New York theoretically look? One thing is for sure; the industry would be huge.

What’s in the bill

The bill potentially on its way to Governor Andrew Cuomo’s desk would allow adults in the state to buy cannabis in retail stores, and also sample it in tasting rooms similar to wine tasting venues. They would also be able to grow a limited number of marijuana plants at home – six per person and up to 12 per household.

If passed, the New York cannabis legalization law would not go into effect until late 2022, which means businesses like dispensaries may not open until after that period.

Fifty percent of the licenses to grow and sell marijuana would be set aside for what’s known as equity businesses, which includes people from disproportionately impacted communities and small farmers. They would have access to loans, grants, and incubator programs.

The funds for this program will come from a 13 percent sales tax to be charged on the sale of marijuana. State revenues could reach $350 million dollars a year and the money would be split between the community reinvestment fund, public education, and efforts to combat drug addiction.

The legislation further decriminalizes possession of marijuana, eliminating penalties for having 3 ounces or less of cannabis, or storing up to 5 pounds at home. It also would expunge the records for people with previous convictions for amounts that are no longer criminalized.

How it could impact the industry

If New York cannabis legalization passes, the state would become the 15th state to legalize cannabis, and the second largest to legalize behind California. Ranking barely third behind Texas in state GDP, the economy of New York is already massive, which would all but guarantee an equally massive legal cannabis industry.

Similar to California, New York also has a thriving illicit market already in operation in the state. Cannabis delivery services are very popular in New York City where anyone can ride their bike across the city to deliver cannabis products. While few other states allow cannabis delivery in their recreational cannabis programs, New York cannabis legalization would likely allow for delivery services to continue, if not thrive under new legal regulation.

California sold the most cannabis in 2020 at $4.4 Billion worth. However in combination with its relatively small medical cannabis industry which generated around $50 million in 2020, a New York legal cannabis industry would generate over $1 Billion by 2024. That would put New York in the top five cannabis markets in just two years of operation.

To say that New York cannabis legalization would make the state a major player with influence on the direction of the industry would be an understatement.

How it could impact the country

California alone generated over twice as much sales revenue in 2020 than all of Canada where cannabis is federally legal. With the addition of a massive industry after New York cannabis legalization, that number could easily double again, making the United States a legal cannabis behemoth despite federal law.

The massive profits will likely draw the attention of more politicians who will see the potential benefits of legalizing in their own states, or even federally. In states where cannabis is legal, opinions on legalization generally improve over time after those against it see the benefits it brings. In a massive state like New York, a sway in public opinion on legalization could create waves that reach across the east coast and even the country.

Nearly 70% of Americans already support federal cannabis legalization, with 90% supporting federally legal medical cannabis. With New York’s population the number will rise making it nearly impossible for legislators on the federal level to keep ignoring. Of course when it comes to politics, nothing is a guarantee.

A whole new world awaits

The reality is that if New York cannabis legalization passes, the entire industry is likely to change. Entrepreneurs and corporate cannabis entities will flock to New York to capitalize on the new, fresh industry. And with such a massive economy, there will be no shortage of opportunity.

A legal cannabis industry in New York is likely to jump start movement across the east coast, with Pennsylvania and Maryland likely to follow should the industry show promise. Florida has already surpassed $1 Billion in sales with medical marijuana alone, and a full recreational industry would likely explode there as well.

The dominoes of cannabis legalization have been slowly falling state after state, and New York is one BIG domino that could change everything. But just like California, New York could also fall short.

Despite its massive revenue generation and thriving cannabis industry, California has suffered immensely due to its changing regulations with lack of communication or leniency, exorbitant licensing and square footage fees that punish small farmers, and a thriving illicit market that the state can’t quash.

New York must tread lightly or risk facing a similar fate to their west coast cousin, which could have an inverse effect on the future of cannabis legalization across the country. Only the future will tell.

NY Legislators Reach Deal to Fast Track Legalization

NY Legislators Reach Deal to Fast Track Legalization

New York cannabis legalization is on the fast track to being signed into law

New York is ready to legalize recreational marijuana.

The state would impose special pot taxes and prepare to license dispensaries under an agreement reached by Gov. Andrew Cuomo and legislative leaders.

“It is my understanding that the three-way agreement has been reached and that bill drafting is in the process of finishing a bill that we all have said we support,” state Senate Finance Committee Chair Liz Krueger told Bloomberg Government on Wednesday.

 
 

The deal that legislative leaders brokered with Cuomo (D) would legalize cannabis use for adults 21 years old and up, and includes a 13% sales tax, 9% of which would go to the state and 4% to the localities, Krueger said. Distributors additionally would collect an excise tax of as much as 3 cents per milligram of THC, the active ingredient in cannabis, with a sliding scale based on the type of product and its potency.

No changes would be made to the taxes already imposed on marijuana sold for medical purposes, Krueger said.

The governor’s office estimates that a legal cannabis program could pull in about $350 million a year once fully implemented.

Sales could begin as soon as one year after enactment, said Krueger, who sponsored legislation (A.1248/S.854) with Assembly Majority Leader Crystal Peoples-Stokes (D) that was a starting point for the negotiations.

With New Jersey legalizing marijuana earlier this year, “we are literally surrounded geographically by other states that are doing it. We just need to stay ahead of the times,” Peoples-Stokes said in an interview. “Because we’re New Yorkers, we can walk and chew gum at the same time. We can speed this up.”

Cuomo earlier Wednesday said an agreement was close, and that it’s one of his budget priorities. Krueger said she expects lawmakers to vote on stand-alone legislation as soon as next week.

Legislative leaders want to separate the marijuana and budget debates, a strategy that gives them the upper hand on determining pot policy.

Neighborhood Programs

The proposed recreational marijuana tax structure is similar to the one levied on alcohol, Krueger said.

Tax revenue would first go to covering cannabis-related expenses at state agencies overseeing the regulation of cannabis, with the rest divided among programs to help people rebuild their lives after marijuana possession arrests; to help neighborhoods; education; and drug treatment.

“We understand the ramifications of decades of incarceration of a people that actually ends up costing us, as a government, money,” Peoples-Stokes said. “This community reinvestment could reverse that whole dynamic. We could reinvest in people’s lives.”

Putting those programs into the legalization law will mean that Cuomo wouldn’t be able to count on that burst of new revenue to close a $2.5 billion budget hole anticipated in the next fiscal year.

Read the Full Story from Bloomberg

Bipartisan Bill Seeks to Guarantee Cannabis Insurance Services

Bipartisan Bill Seeks to Guarantee Cannabis Insurance Services

A bipartisan cannabis insurance bill has been introduced in the Senate

A bipartisan bill to guarantee insurance services within the cannabis industry was introduced last week in the U.S. Senate. The legislation, aptly named the Clarifying Law Around Insurance of Marijuana (CLAIM) Act of 2021, is sponsored by Bob Menendez (D-NJ), Rand Paul (R-KY), and Jeff Merkley (D).

According to a press release from Sen. Menendez’s office, the bill was introduced in response to the fact that only six states in the U.S. still lack some form of medical or adult-use cannabis law. However, due to cannabis’s designation as a Schedule I narcotic under the Controlled Substances Act, these otherwise legal businesses are not generally insurable.

Rep. Nydia M. Velazquez (D-NY) introduced a companion bill in the House of Representatives on Monday, her office announced in a press release.

The voters in New Jersey spoke loud and clear this November when they overwhelmingly approved of recreational marijuana use, the governor and state legislature have acted, and now it’s time for the federal government to take the shackles off of state-authorized cannabis businesses, allowing this burgeoning industry to thrive.” — Sen. Menendez, in a statement

The CLAIM Act would allow cannabis firms in states with adult or medical cannabis to obtain insurance products like workman’s compensation, property, casualty and title insurance, the press release says. The Act has both private and public stipulations designed to protect insurers as well as the insured.

“Current federal law prevents these small business owners from getting insurance coverage, and without it, they can’t protect their property, employees or customers,” said Sen. Menendez. “Our legislation simply levels the playing field for legal cannabis businesses, allowing them to fully operate just as any other legal small business would by permitting insurance companies to provide coverage to these enterprises without risk of federal prosecution or other unintended consequences.”

The proposal is particularly timely as the House and Senate are set to reconsider the widely popular SAFE Banking Act, which would legalize the cannabis industry’s access to traditional banking and other financial services.

SAFE Banking Act Reintroduced In Senate

SAFE Banking Act Reintroduced In Senate

SAFE Banking Act is soon to voted on in the Senate

A bill to protect banks that service state-legal marijuana businesses from being penalized by federal regulators has been reintroduced in the Senate—with nearly a third of the chamber as cosponsors. It’s a development that takes on a new light now that Democrats are back in control the chamber.

This comes days after the Secure and Fair Enforcement (SAFE) Banking Act was refiled in the House, where it passed with bipartisan support as a standalone bill in 2019 and also as part of two COVID-19 relief bills.

The Senate version is being sponsored by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), and it currently has 27 other cosponsors. In the House, the legislation has more than 100 members who’ve signed on as cosponsors.

The SAFE Banking Act would ensure that financial institutions could take on cannabis business clients without facing federal penalties. Fear of sanctions has kept many banks and credit unions from working with the industry, forcing marijuana firms to operate on a cash basis that makes them targets of crime and creates complications for financial regulators.

“No one working in a store or behind a register should have to worry about experiencing a traumatic robbery at any moment,” Merkley said in a press release. “That means we can’t keep forcing legal cannabis businesses to operate entirely in cash—a nonsensical rule that is an open invitation to robbery and money laundering. Let’s make 2021 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees safe.”

Daines added that “Montana businesses shouldn’t have to operate in all cash—they should have a safe way to conduct business.”

New Massachusetts bill would legalize cannabis lounges

New Massachusetts bill would legalize cannabis lounges

Cannabis lounges could be legal as soon as 2022 in Massachusetts

Buying legal marijuana has become a convenient reality in Massachusetts but finding someplace to legally smoke it is a different story.

A bill aims to address that predicament by authorizing licensed cannabis lounges.

State Sen. Julian Cyr, who represents the Cape and Islands, proposed the bill that he believes is a practical concept.

Cyr told Boston 25 News the current situation is comparable to the state allowing liquor stores but banning bars. He said it makes sense for the state to come up with a solution that would give marijuana users designated places to legally smoke or consume cannabis.

“If we don’t address it, it’s going to become a really big headache for law enforcement and for business owners in places like Provincetown or near Fenway,” Cyr said.

Cyr said the concept particularly applies in areas that attract a lot of visitors. His district includes Provincetown. The tourist destination on the tip of Massachusetts is home to three dispensaries, and more are set to open there soon.

“I think of folks getting off the ferry, going to a dispensary and then really being faced with a conundrum that they’re not able to use the substance anyplace legally,” Cyr explained. “So, you got a problem of people ducking into alleyways, going to the beach, really creating a nuisance.”

If the bill passes, it would start as a pilot program. Licensed cannabis lounges would only be authorized in a maximum of six communities. The state would potentially consider expanding it further based on feedback from local leaders, residents and businesses.

“In those communities, I think it benefits everyone to have a place where people can gather and consume cannabis,” said Mike Ross, former Boston city councilor and attorney. “I think people have to start thinking of it and get ahead of it.”

Communities in several other states, including Colorado and California, have already moved forward with permitting social consumption venues.

It’s unclear how long it will take for the bill proposed by Cyr to move through the Massachusetts legislature. He predicts the earliest it will see traction is in the second year of the legislative session in 2022.

Thailand in green rush as government pushes Thai cannabis as cash crop

Thailand in green rush as government pushes Thai cannabis as cash crop

Thailand cannabis could become a major economy booster

BURIRAM, Thailand (Reuters) – Thais flocked to a cannabis exhibition as interest and demand in the plant surges after the government unlocked hemp use in food and cosmetics in the latest move to promote a new cash crop.

The government held a convention in Buriram province in northeastern Thailand over the weekend to educate the public on cannabis use and promote businesses. People were able to taste hemp-based noodles, ice-cream and drinks.

Hemp plants are a variety of cannabis that have higher concentrations of CBD, the non-psychoactive ingredient in marijuana, and lower levels of tetrahydrocannabinol (THC).

“Ganja (marijuana) is the rising star to bring our good quality of lives and money back in our purses as good (economy) as before and even better,” said Withid Sarideechaikoo, director of Buriram public health and organiser of the Cannabis 360° event, referring to the plant’s local name.

“It will bring good quality of lives to us and to the country.”

Thailand has been pushing cannabis as a cash crop and state drug maker the Government Pharmaceutical Organization has said it would buy a kilogram of cannabis with 12% CBD, the non-psychoactive ingredient, for 45,000 baht ($1,500).

A group of seven individuals could form a village enterprise and seek government permission to grow hemp.

Thailand, which has a tradition of using cannabis to relieve pain and fatigue, legalised marijuana for medical use and research in 2017 to boost agricultural income.

“It is in Thais’ mindset that delicious noodle soup with beef should added with ganja,” said noodle shop owner Sitthichan Wutthiphonkun.

“This thing (cannabis) will not only boost our restaurant business, but it will drive the whole economy. People will want to try it from food to cosmetics.”

(Writing by Chayut Setboonsarng, editing by Ed Osmond)

Original story from Yahoo Finance

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