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New York OCM behind on staffing essential cannabis positions

by Travis C | Jun 14, 2022 | Blog, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

With plans for equity license holders to open recreational cannabis dispensaries as early as fall of this year, New York is behind schedule on forming the needed agencies.

To start, the New York Office of Cannabis Management, the main agency overseeing the legal cannabis industry in New York, has yet to hire a Chief Equity Officer. This position would oversee the equity licensees that are slated to open their dispensaries at the end of this year.

Additionally, the 13-member advisory board meant to assist the OCM and the Cannabis Control Board has yet to be filled. The Marijuana Regulation and Taxation Act (MRTA) specified in its legislation that these positions should have already been filled.

Despite the vacancies, the OCM is still committing to rolling out regulations and beginning adult-use cannabis sales this fall.

An OCM spokesman said that the agency is “hard at work” searching for a chief equity officer candidate and that they are “almost at the end of that process.” However there has been little updates on the advisory board which was supposed to start meeting in May.

Aside from issues with filling the various positions needed to begin developing and implementing regulations, there has also been some pushback from the state’s existing medical cannabis industry.

In an investigative piece conducted by Syracuse.com, patients have been experiencing long delays to enroll in the medical program. Many are unable to get the care they need.

Meanwhile, the OCM has had a slew of technology issues and has been ignoring patient concerns (according to the patients) while trying to catch up after a delayed start in establishing the recreational marketplace.

Last but certainly not least, the state has handed out nearly 150 conditional cannabis cultivation licenses to hemp farmers across the state, in an effort to produce recreational cannabis so that dispensaries could actually have product in the fall.

With more than half of those licensees being permitted in just the last month, it will be a tight timeline to harvest and process enough cannabis to meet the demand of what will likely become the largest cannabis industry in the country.

Original story from Greener Consulting Group

All New York Cannabis Business License Types

by The Real Dirt | Dec 30, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization

Cannabis legalization in New York has many entrepreneurs looking to capitalize on what will likely become the largest cannabis industry in the country. However, the state’s Cannabis Control Board [CCB] has already announced delays to the cannabis business license process.

Little has been revealed in terms of the application process and regulations, which won’t be released until 2022. However the Marijuana Regulation and Tax Act, which legalized cannabis in New York, outline what cannabis business licenses will be available.

In total, there are nine separate cannabis business licenses for New York. These licenses are:

Cultivator
Processor
Cooperative
Distributor
Retail Dispensary
Microbusiness
Delivery
Nursery
On-site Consumption

New York Cultivator License

A Cultivator license allows everything involved with growing and harvesting cannabis plants for the purpose of sale to licensed processors. However a business with a Cultivator license can also perform minimal processing themself without a processing license.

Additionally a Cultivator licensee can have one Processor license and one Distributor license. Anyone with a Cultivator license cannot have any ownership connection to a cannabis retail dispensary.

New York Cannabis Processor License

A cannabis processing business purchases cannabis from cultivators and finishes production. This includes extraction, infusing, packaging, labeling and branding. A processor can only sell their finished product to a distributor.

However a process can also have a distributor license as long as they company is selling their own products. Just like the Cultivator license, a Processor Licensee cannot have any connection to a cannabis retail dispensary.

New York Cannabis Cooperative License

A cannabis cooperative in New York can cultivate, process and distribute their own cannabis products. Additionally a cooperative can sell to other distributors, on-site consumption businesses, registered organizations and retail dispensaries.

A Cooperative Licensee cannot sell directly to consumers, must have democratically elected leadership consisting of New York state residents and must be registered as an LLC or LLP. As with other New York cannabis business licenses, cooperatives can’t have an ownership connection to a retail dispensary, microbusiness or on-site consumption site.

Anyone who is a member of the co-op is prohibited from having any ownership connection to any recreational cannabis license.

New York Cannabis Distributor License

A Distributor licensee can purchase cannabis products from cultivators, processors, cooperatives, micro-businesses or registered organizations. They can then sell the products to retail dispensaries or consumption sites.

A distributor can’t be tied to any microbusiness, dispensary, consumption site or registered organization.

New York Cannabis Retail Dispensary License

A Retail Dispensary License allows someone to open a retail location which can purchase cannabis products from distributors and sell them to consumers. No one person is allowed more than three retail licenses.

This license includes strict zoning requirements. A retail store must be on ground level in a business district, and cannot be within 500 feet of a school or 200 feet of a religious organization. Any municipalities that want to opt out of allowing retail locations must do so before 2022, and hundreds of counties in the state have opted out already.

New York Cannabis Microbusiness License

A micro-business licensee will be allowed to cultivate, process, distribute, deliver and sell a limited amount of its own cannabis products. The CCB has yet to determine the size, scope, and eligibility criteria for micro-businesses, but they are prioritizing social and economic equity applicants.

Micro-business owners can’t have connections to more than one micro-business or any other type of cannabis business.

New York Cannabis Delivery License

A Cannabis Delivery licensee can deliver cannabis products from a retail store, micro-business or delivery business directly to the consumer. Each delivery business can have up to the equivalent of 25 full-time workers per week.

The CBB will provide more information about the application process, criteria, and scope of licensed activities in 2022. Licensees may not have any ownership connection to more than one delivery business.

New York Cannabis Nursery License

A cannabis nursery owner is permitted to produce clones, immature plants, seeds and other agricultural products used specifically for the cultivation process. The nursery can sell these products to cultivators, co-ops, micro-businesses or registered organizations.

Cultivators may have a nursery license in order to sell products to other cultivators, co-ops or microbusinesses.

New York On-site Consumption License

On-site consumption licensees can purchase cannabis products and sell them to consumers for use in a designated area. Commonly called cannabis lounges or cannabis clubs, these sits will be similar to a hookah bar, but for cannabis.

The legislation outlines several strict regulations about the license application process, the physical site, and how business should be conducted at the site, similarly to retail dispensary locations. Licensees may not have any ownership connection to more than one site or any other type of cannabis business.

Michigan Cannabis Recall May Affect $200M In Cannabis Products

by Travis C | Nov 19, 2021 | Blog, Business, Cannabis Business, Cannabis Law and Compliance, Cannabis News, Growing, Industry News, Legalization, Science & Technology

Michigan cannabis regulatory agency has recalled products impacting 400 retail locations across the state

In the largest product recall since the state legalized cannabis in 2019, the Michigan cannabis regulatory agency (Marijuana Regulatory Agency) has recalled enough products to impact over 400 retail locations around the state.

While the exact amount of products that are being recalled hasn’t been specified, the Marijuana Regulatory Agency (MRA) recalled all marijuana flower product that passed safety testing at Viridis Laboratories between Aug. 10 and Nov. 16. The agency released a full list of all locations impacted by the recall after calling lab test results “inaccurate and/or unreliable” in a notice issued just before 5 p.m. on Wednesday November 17, but provided no further explanation.

The recall Michigan cannabis recall only impacts flower products

“While we strongly disagree with this decision and firmly stand by our test results, we are fully cooperating with the MRA and working closely with our customers to minimize interruptions and retest affected products at no cost,” Viridis said in a prepared statement. “We have been cleared to continue testing at both of our state-of-the-art facilities. We look forward to continuing to serve our amazing customers using the best, most cutting-edge scientific methods available so we can fulfill our mission of promoting the health and safety of patients and adult-use consumers.”

According to a notice sent out by the MRA, customers who have the recalled product should return it to the retailer they purchased it from “for proper disposal.” “Consumers with weakened immune systems or lung disease are at the highest risk for health-related incidents such as aspergillosis, which can impact lung function, if these potentially harmful products are consumed,” the agency said Wednesday evening.

All Michigan cannabis products are required to have safety labels that contain the date product passed testing and the lab where it was tested. Viridis Laboratories, founded by former Michigan state police forensic scientists, operates labs in Bay City and Lansing. The license identification numbers for Viridis labs that should appear on labels are: “SC-000009, AU-SC-000113″ and “SC-000014, AU-SC-000103.”

The MRA is giving retailers holding the defective product three options: destroy the product and send the agency proof, resubmit the products for testing, or send the products back to the original source to be retested as part of a larger batch.

Three in four California cannabis companies aren’t licensed

by The Real Dirt | Oct 18, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization

Only 1 in 4 California cannabis companies have a permanent business license

State will give 17 cities and counties grants to help license cannabis businesses. But many say bigger problems remain.

Nearly four years after California started regulating its cannabis industry, three in four businesses still operate on provisional licenses.

As temporary license holders, 75% of the state’s cannabis industry lacks protections and privileges that come with holding full licenses — a situation that worries some in the business. Those temporary operators also haven’t passed extensive environmental reviews required of full licensing — a fact that concerns environmental groups.

Cannabis licensing is slow for a number of reasons, ranging from the sometimes dizzying complexity of California’s environmental rules to conflicting language between state and local cannabis laws to the high costs for permits and a shortage of government workers needed to process the paperwork.

The weed licensing glitch also isn’t new. For several years, state legislators have extended the permitting process so that thousands of businesses don’t become unlicensed overnight.

But now, California is pushing to change the situation. The state has set aside $100 million to help 17 cities and counties transition their cannabis businesses from temporary to full licensees. Los Angeles is eligible for $22.3 million of that money, while five other Southern California cities — Long Beach, San Diego, Commerce, Adelanto and Desert Hot Springs — are in the running for a combined $6.9 million. Applications are due by Nov. 15.

Eligible cities say they’ll use the money to hire staff and, in some cases, to offer direct support to businesses. They’re confident that over the next few months they can make a significant dent in the problem.

“I know it will help,” said Edgar Cisneros, city manager for Commerce, which has seven fully licensed cannabis businesses and 12 others waiting to get through the process.

“There is a real need for staff and also consultants… to get these permits to permanent licensing at a much faster pace.”

Still, while business owners and others applaud the one-time state funding, they say it doesn’t go far enough. Many cities and counties remain left out of the applicant pool, and there is no statewide plan to ease the business hurdles that caused the backlog in the first place.

“No amount of money is going to change the significant amount of time it takes to come up to speed for local approval,” said Hilary Bricken, a cannabis industry attorney out of Los Angeles who said some businesses have failed during the multi-year wait to get licensed.

Read Full Story on OC Register

Michigan Governor Signs Legislation to Regulate Delta-8 THC

by The Real Dirt | Jul 14, 2021 | 420 News, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Hemp Law, Industry News, Legalization

MICHIGAN — Today Gov. Whitmer signed legislation that will regulate, and cover delta-8 THC derived starting October 11, 2021.

This bill will update definitions regarding cannabis plant products making sure all intoxicating substances will be safety-tested and tracked through the MRA’s statewide monitoring system Michigan Executive Office of the Governor.

“This package of bills continues to show Michigan is the model for the nation in regard to protecting its residents and making sure that those who consume marijuana products do so in a safe manner,” said Gov. Whitmer. “I am glad to see Michigan continuing to lead on the implementation and regulation of a safe, secure marijuana industry, which has already brought tens of millions of dollars in new tax revenue to the state, as well as thousands of well-paying jobs.”

“The team at the MRA has always been committed to transparency and forward thinking and this was once again the case regarding delta-8,” said MRA Executive Director Andrew Brisbo. “We were proud to work with legislators and industry stakeholders to pro-actively address this issue and move an untested, unlicensed intoxicating synthetic product into our licensed and regulated system.”

“The voters of Michigan chose to legalize and regulate marijuana in the interests of justice and public health,” said Rep. Yousef Rabhi, D-Ann Arbor. “We know that banning these substances is not the best way to keep the public safe. But we also know that these psychoactive compounds are currently being sold with no public health standards to anyone, regardless of age. Instead of allowing these new hemp derivatives like Delta 8 to circumvent our world-class regulated system, this new law will apply the same rigorous testing and commercial standards that currently protect consumer safety in the legal marijuana marketplace.”

“I appreciate the support of Governor Whitmer and my legislative partner Representative Rabhi in helping Michigan take an important step in streamlining regulations for the safety of cannabis businesses and people around our state,” said Rep. Jim Lilly, R-Park Twp. “By mirroring Michigan’s existing liquor dram shop law and clearly defining the requirements for a proper injury lawsuit, we are bringing clarity to a previously murky area of our cannabis laws. I am extremely excited to see the Governor not only sign these bills, but also sign bills to protect Michigander’s from unregulated and untested Delta-8 hemp products. This legislation does the right thing by taking these products out of the unregulated marketplace and bringing them under the purview of a well-functioning Marijuana Regulatory Agency.”