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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 medical cannabis home-grows left in the dust by regulators

New York medical cannabis home-grows left in the dust by regulators

New York medical cannabis home-growers won't be able to grow their own any time soon.
Six months after New York passed its landmark bill legalizing marijuana for adult use and creating a regulatory framework for the cannabis industry overall, the state is violating the law’s deadline for home cannabis cultivation rules.

The Marijuana Regulation and Taxation Act allows limited home cultivation of medical cannabis. But it also specifies that patients will not enjoy that right until after the Office of Cannabis Management issues regulations governing it, which it was obligated to do “no later than six months after the effective date” of the law. But after a series of delays, staffing of that office is still underway.

That means lawmakers’ intention for the law to allow medical marijuana card holders to begin growing plants this week is on hold indefinitely.

The delay is the latest in a series of stumbles in the medical cannabis program, and they are occurring in spite of the explicit intent of legislators who drafted and championed the new law.

In the months following the law’s passage, patients and doctors also complained that key updates to the program which legislators insisted were meant to apply right away had yet to take effect, including increasing patients’ supply limits to 60 days, permitting physicians to have discretion on the reasons they certify for patients’ cannabis use, and allowing the sale of whole flower.

Dr. Mark Oldendorf, who runs a general practice in Albany and has developed significant expertise on the medical applications of cannabis, is frustrated that he has patients who should have been eligible months ago for medical cannabis certification but have yet to receive the treatment in New York.

“I’ve had quite a few people who I’ve turned away because they wanted it specifically for insomnia, that’s the big need, and it’s not a qualifying condition” at the moment, he said. “So all of those people are headed off to Massachusetts to buy something.”

Oldendorf said this delay has pushed some doctors to search for additional relevant ailments that might tick a box on the state’s outdated online form, in order to get around the restrictive list of conditions a provider must select from.

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.