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New York Will Not Issue Adult-Use Licenses Until 2023

New York Will Not Issue Adult-Use Licenses Until 2023

New York recreational cannabis licenses delayed until 2023

The head of New York’s Cannabis Control Board said last week she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest.

The head of New York’s Cannabis Control Board said last week that she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest, WXXI News reports. Tremaine Wright’s comments came during a cannabis conference at Comedy at the Carlson in Rochester.

“What we do control is getting (dispensaries) licensing and giving them all the tools so they can work within our systems. That’s what we are saying will be achieved in 18 months. Not that they’re open, not that they’ll be full-blown operations, because we don’t know that.” — Wright via WXXI

The state’s legalization law included a launch date of April 1, 2022, at the earliest and Gov. Kathy Hochul (D) only appointed members to the Cannabis Control Board in September. Hochul was not governor when lawmakers passed the broad legalization bill last March; she would replace Gov. Andrew Cuomo in August following his resignation over sexual misconduct allegations.

During the board’s meeting in late October, Wright declared the practice of “gifting” cannabis including it with the purchase of another, often overpriced product — illegal and that violations could be met with “severe financial penalties.”

While state regulators have been slow to get the cannabis licensing process underway, adult-use cannabis sales have already commenced under the jurisdiction of several New York tribes, including the St. Regis Mohawks.

bill has also been introduced that would allow licensed cannabis cultivators to start growing their crops prior to the launch of the formal program, creating provisional licenses that would allow businesses to operate if the Office of Cannabis Management doesn’t propagate program rules by January 1. That bill remains in the Senate Rules Committee.

New York to prohibit workplace discrimination due to cannabis use

New York to prohibit workplace discrimination due to cannabis use

New York to prohibit employers from drug testing for cannabis use

New York will be one of the first states in country to prevent public and private businesses from discriminating based on cannabis usage.

With cannabis now legal for recreational use in New York, employers and employees are wondering how the new law will impact cannabis use and work. It is extremely common for a business to drug test a potential new hire.

These tests can check for a wide range of illicit substances, and almost all of them look for THC, the main psychoactive compound in cannabis. However the New York Department of Labor has released FAQ guidance making clear what employers and would be employees can expect.

The Marijuana Regulation and Taxation Act passed in 2021 legalized the use of recreational marijuana for individuals ages 21 and older. Notably for employers, the law also amended Section 201-d of the New York Labor Law – which prohibits discrimination by an employer against an employee because of certain lawful outside work activities – to include protections for recreational cannabis use.

More specifically, employers are now prohibited from discriminating against employees based on their use of cannabis outside of the workplace, outside of work hours, and where use does not involve the employer’s equipment or property. This change also applies to workplace drug testing with some exceptions.

New York cannabis drug testing changes

As employers are prohibited from taking adverse action against cannabis use by employees outside of the workplace, this includes drug testing for cannabis. However there are three cases in which drug testing for cannabis may still be permitted:

  1. An employers is required to take such action by state or federal law;
  2. The employer would otherwise be in violation of federal law or would lose a federal contract or federal funding; or
  3. The employee, while working, manifests specific articulable symptoms of impairment that either decrease or lessen the employee’s performance or interfere with the employer’s obligation to provide a health and safe workplace.

In the case of the second exception, guidance states that employers may only test an employee for cannabis if a state or federal law requires drug testing or makes it a mandatory requirement of the position. Employers cannot rely upon this exception to test an employee for cannabis merely because it is allowed or not prohibited by law.

To summarize this aspect, employers are in most cases prohibited from discriminating against an employee (i.e. drug testing) for cannabis use outside of the work place. Despite legalization however there are still prohibitions on cannabis use in the workplace.

Cannabis use in the workplace

The guidance released by the NYDOL gives employers broad discretion to prohibit cannabis use in the workplace. In other words, the employer has the choice whether to prohibit it or not.

The employer also has the option to prohibit possession of cannabis on company property, and has the explicit right to prohibit cannabis use under two circumstances:

  1. Time that an employee is on-call or “expected to be engaged in work;” and
  2. Time, “including paid and unpaid breaks and meal periods, that the employee is suffered, permitted or expected to be engaged in work, and all time the employee is actually engaged in work.”

Additionally, the NYDOL does not consider an employee’s private residence used for remote work to be a “worksite” within the meaning of the statute. However employers do have the ability to institute policy prohibiting cannabis use during work hours and take action against employees exhibiting impairment, even while an employee is working remotely.

Overall, the new guidelines released by the NYDOL clear up a lot of confusion surrounding cannabis use and workplace testing, and bring ease to many who are looking forward to the new legal access to cannabis in New York, whenever it becomes available.

New York cannabis board holds first meeting

New York cannabis board holds first meeting

new york cannabis board holds first meeting

New York marijuana regulators on Tuesday sought to make up for delays in the drug’s rollout by approving a chief equity officer and making immediate changes to the medical cannabis program during the inaugural meeting of the state Cannabis Control Board.

The five-member board charged with implementing marijuana legalization and advancing the state’s cannabis industry set a clear tone: They wanted to move past delays in implementing the Marijuana Regulation and Taxation Act.

The state law legalizing marijuana took effect in March, but infighting between then-Gov. Andrew Cuomo and the state Legislature exacerbated delays in getting members appointed to the board, slowing down the work of getting regulations for legal sales in place.

“The MRTA was signed into law on March 31. But we were not able to begin the work of establishing New York’s cannabis market until Sept. 22, when the full cannabis control board was appointed. As such, there was a six-month delay to make up,” Christopher Alexander, executive director of the Office of Cannabis Management, told the board Tuesday afternoon.

The state legislature ended its regular session without making appointments to the board because lawmakers had been entangled in a fight with Cuomo over appointments to the Metropolitan Transportation Authority.

Since Cuomo left office in August, Gov. Kathy Hochul has made getting the board going central to her early administration, saying in a statement announcing several new members of the board: “New York’s cannabis industry has stalled for far too long.”

The impact of the slow rollout could be felt. A portion of the law that would allow marijuana cardholders to grow plants six months after the law went into effect was delayed because the board was not in place, the Times Union in Albany reported.

But on Tuesday, the regulators moved ahead with several changes to the medical cannabis program. They include permanently waiving a $50 registration fee for patients and caregivers and making the whole flower an approved form of medical cannabis product.

Another provision allows for a 60-day supply of medical cannabis to be given to a certified patient or designated caregiver instead of a month supply.

New York man smokes pot in front of two NYPD police officers in celebration of legal marijuana

New York man smokes pot in front of two NYPD police officers in celebration of legal marijuana

In The Big Apple, a man celebrated legal weed by smoking marijuana in front of two NYPD officers — all caught on camera.

“Happy quarantine!” the man greets the cops as he inhales and exhales.

New York adults over the age of 21 can now possess and use marijuana — even in public — under a legalization bill signed Wednesday by Gov. Andrew Cuomo, though legal sales of recreational-use cannabis won’t start for an estimated 18 months until regulations are set.

Passed after several years of stalled efforts, the measure makes New York the 16th state in the nation to legalize adult use of the drug.

New York becomes the second-most populous state after California to legalize recreational marijuana.

Legalization backers hope the Empire State will add momentum and set an example with its efforts to redress the inequities of a system that has locked up people of color for marijuana offenses at disproportionate rates.

 

The legislation provides protections for cannabis users in the workplace, housing, family court, schools, colleges and universities, and sets a target of providing half of marijuana licenses to individuals from underrepresented communities. And police could no longer use the odor of cannabis as a reason for searching someone’s car for contraband.

New York will start automatically expunging some past marijuana-related convictions, and people won’t be arrested or prosecuted for possession of pot up to 3 ounces. A 2019 law already expunged many past convictions and reduced the penalty for possessing small amounts.

In a unique provision, New Yorkers 21 and over can now smoke cannabis in public, including on sidewalks.

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.