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New York bill would allow conditional licenses for cannabis cultivation

New York bill would allow conditional licenses for cannabis cultivation

New York bill for conditional cannabis licenses

While the Office of Cannabis Management lags behind establishing a regulation and licensing process for recreational cannabis in New York, lawmakers are trying to find a workaround in the meantime.

In an effort to ensure that equity applicants — those who will open dispensaries first in the state — have product on their shelves when they open, a bill has been introduced to permit limited cultivation of recreational cannabis via already licensed hemp farmers in the state. Assembly Bill A2682A and Senate Bill S8084A propose the use of “conditional adult-use cultivator licenses” that would give cannabis-adjacent growers (i.e. hemp growers) the ability to plant and process recreational marijuana.

Assembly Speaker Crystal Peoples-Stokes was a sponsor of the bill and one its biggest proponents.

“It provides a conditional license to make sure when licensing is in place that equity business will have a product to put on their shelves,” she said. The legislation would only permit recreational cultivation licenses to valid industrial hemp growers that have been authorized from the Department of Agriculture and Markets, as of December 31, 2021.

With the outdoor planting season beginning in May in New York, legislators are hoping that the bill will pass before then. Should the bill pass, the conditional licenses would eventually expire, requiring the grower to apply for a full license.

New York legalized cannabis for adult use in 2021. However the state has yet to establish a regulated market and regulators say legal sales likely won’t begin until 2023.

 
Over 100 towns and villages opt out of New York recreational cannabis

Over 100 towns and villages opt out of New York recreational cannabis

towns and villages opt out of New York recreational cannabis industry
As the pieces begin falling into place to allow the New York recreational cannabis industry to begin operations, some local towns and villages are saying no to legal weed.

New data provided by the Associations of Towns of New York State indicates that around 9% of communities have opted out of the zoning portion of recreational marijuana legalization. How many towns is that? Across the state there are 84 of them that have opted out of both retail sale of marijuana and on-site consumption of cannabis.

The same can be said for villages. Around 9%, or 46 villages in New York have opted out of the law, leaving potentially millions in revenue on the table as New York recreational cannabis expands across the state.

For towns and villages that opt out of the New York recreational cannabis program, businesses will not be able to open if they sell or allow patrons to consume cannabis in their establishments.

There is still time for towns and villages opt out, however it does not look like the majority feel the same as the hundred or so that have already. “At this point, it appears there is not a major wave of opt-outs sweeping across the state,” Chris Anderson, research director for the Association of Towns recently said.

“We expect to see some more activity, but it’s certainly pretty late in the game. We have a good indication now it will be a low opt-out percentage statewide.”

There are hundreds of towns and villages across New York state, with the 120+ that have opted out making up a very small minority. It is likely that these towns and villages will see their surrounding communities generate revenue from recreational business while they miss out.

The towns and villages that have opted out will still have the opportunity to opt in once the New York recreational cannabis industry takes off. However the window for more to opt out is closing as the state gets closer to implementing a legal industry.

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.

Cannabis growing facility proposed for former New York prison

Cannabis growing facility proposed for former New York prison

A New York prison that closed in 2011 may be repurposed for cannabis and hemp production.

When Mid-Hudson Correctional Facility closed in 2011, it freed up 740 acres of prime property that its host community, Warwick, readily bought for $3.1 million.

During the past decade, the town has actively worked to repurpose the property and has seen positive results from its efforts. With Covid-19 fading and the state reopening, business is again percolating on the former prison property, now known as Wickham Woodlands.

Along with a new Warwick Valley Office and Technology Corporate Park on the campus, where the town’s business accelerator is working with three-startup companies, business is growing along its winding State School Road: a former administration building has become the trendy Drowned Lands Brewery; the prison’s old guard tower is now the gateway to Hudson Sports Complex; and the land surrounding Wickham Lake, which inmates could view from behind barbed wire fencing, has been turned into a town park.

The Warwick Valley’s fertile landscape also offers ample opportunities for those who grow hemp and its soon-to-be-street legal counterpart, marijuana, and is seeing that business beginning to boom within Wickham Woods’ borders.

When the United States eased federal regulations on growing hemp in 2018, the floodgates of products produced from hemp’s byproduct, cannabidiol — better known to the public as CBD — started hitting the shelves.

Medical marijuana has been legal since 2016, and the state also relaxed its regulations for CBD-infused food and beverages. In April, 2021, the New York state Legislature approved the legalization of recreational marijuana, which has opened a whole new revenue stream for cultivators.

Those measures have propelled Wickham Woods into the spotlight for those with a vested interest in both legal hemp/cannabis cultivation and CBD production.

Chicago-based Fiorello Pharmaceuticals/Green Thumb Industries is poised to build a 100,000-square-foot cannabis growing and processing facility on 40 acres in the technology park.

The company received approval in May from the Orange County Industrial Development Agency for subsidies that include a sales and tax use exemption, mortgage recording tax exemption and a 15-year payment in lieu of taxes, as well as approval for the issuance of taxable revenue bonds.

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.