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Law New York

Here’s how many Cannabis Licences New York will initially Award


Regulators plan to award up to 150 licences across 14 regions in New York State​

New York regulators are a few short months away from launching legal cannabis sales. Over the past year, responsible parties have been preparing laws and setting the stage for this launch.


Last week, the Office of Cannabis Management (OCM) released a regional breakdown of possible dispensaries, showing just how many licences would be awarded per area.

The OCM reports it will award as many as 150 licences across 14 regions in New York State. Big boroughs such as Manhattan and Brooklyn have more licences and, thus, are likely to have more dispensaries. The region with the most room for licences is Manhattan, with 22 in all. Just on the heels of that are Long Island and Brooklyn, with 20 and 19 licences, respectively. Other highly populated areas like Queens and the Bronx follow with 16 and 10 licences each.

The OCM is currently gearing up to provide Conditional Adult Use Retail Dispensary (CAURD) licences to applicants, which are the ones provided to people who have been “justice-involved.”

The CAURD spots will be the first licences to be provided to the public, with the goal being to benefit those who have been harmed the most because of the penalization of cannabis. “CAURD licensees are positioned to make New York’s first legal cannabis sales before the end of 2022, speeding the delivery of investments into communities across New York State that were impacted by the disproportionate enforcement of cannabis prohibition,” reads OCM’s official website.

The application process is supposed to be simple and cheap, requiring no outside help from lawyers or other parties.

“The primary goal of the CAURD licence is to create opportunities for New Yorkers harmed most by the prohibition of cannabis,” OCM spokesperson Aaron Ghitelman told Marijuana Moment. “Part of that is granting up to 150 CAURD licences to individuals who, themselves, or their close family members, have had past eligible cannabis-related offences and have ownership stakes in profitable businesses,” Ghitelman reportedly added.

New York was set to start accepting dispensary applications on Aug. 25, with the goal of having affected businesses up and running by the end of 2022.
 
"It is reported that these parents are often minorities"

Yes, but "reported" by who? And where are the data and facts? Where is any proof that of this? And how were people selected for "interviews" to ensure a random sampling needed to reflect society at large and justify this claim?

I don't see any of that in this brief article

Despite cannabis now being legal in N.Y., child welfare agencies are still using weed to separate families


“Half of those interviewed at length were parents who said it has felt impossible to extricate themselves from deeply rooted biases in the child welfare system surrounding marijuana use, specifically toward people of colour”​


Despite the legalization of cannabis in New York, child welfare agencies continue to cite use of the substance in family courts, with parents sometimes being separated from their children because of marijuana consumption.

It is reported that these parents are often minorities, who were disproportionately adversely affected during the War on Drugs.


When marijuana was legalized earlier this year in New York State, many lawmakers argued that racial equity was one of the main potential benefits behind this decision. But available data doesn’t seem to support the view.


“Half of those interviewed at length were parents who said it has felt impossible to extricate themselves from deeply rooted biases in the child welfare system surrounding marijuana use, specifically toward people of colour,” the website reported. “Those interviews, along with records from family court cases, suggest marijuana continues to be used both to help separate children from their parents and keep families apart in long-running family court cases,” it added.


New York’s Administration for Children’s Services (ACS) notes that cannabis is never the sole reason why a child is separated from his or her parents. According to the agency, drug and alcohol claims are often lumped together, thereby making the influence of each issue difficult to determine.


An agency spokesperson reportedly said the purpose of their investigations is to “assess the impact any misuse has on child safety.” This data is then reviewed by a family judge, who may, if necessary, decide to put the child in foster care.


Many lawyers and family members who were interviewed via Gothamist claimed the ACS’s attitude regarding marijuana hasn’t changed in years, even when talking about medical marijuana, which was approved in New York in 2014.


They further argue there appears to be an assumption by the agency that using cannabis of any sort is linked with mental instability.


When talking about racial equity, a topic that’s been cited as a priority in New York, it’s pivotal for the government to do its part to fulfill its promises.
 
"the real reason New York State legalized adult-use recreational cannabis is due to the potential tax revenue it will produce."

How refreshingly insightful of the nature of real politics.


This is how much Tax New York State places on Marijuana sales

Let's be honest; the real reason New York State legalized adult-use recreational cannabis is due to the potential tax revenue it will produce.​


Although marijuana was decriminalized, the state fast-tracked approval of the legalization of marijuana after COVID-19 wreaked havoc on the budget. So much money was provided for COVID-19 relief and to protect residents, that the state had few options to recoup the money. Then those in power realized that cannabis (and online sports betting) were the answer. Vices usually are, lol. People spend a lot of money on things like gambling, alcohol, tobacco, sex, drugs, and marijuana.


How Much Money Can New York State Make From Marijuana Sales?​


Let's take a look at the tax revenue California generated this year from adult-use marijuana sales. According to the California Department of Tax and Fee Administration, Cali has made almost $600 million this year alone (in two quarters).


Calendar Year1Quarter2Excise TaxCultivation TaxSales TaxTotal TaxTaxable Sales
2022Q2$143,888,334$26,446,783$109,371,137$279,706,254$1,223,785,700
2022Q1$154,718,983$37,963,070$106,576,307$299,258,360$1,189,405,643



As you can see, marijuana sales have the potential to be very lucrative for New York State.

How Much Does New York State Tax Marijuana​


New York predicts that the adult-use cannabis industry will generate millions, possibly billions of dollars in revenue for the state from taxes and other fees. The state has a robust taxation plan in place to make sure it maximizes the legalization of marijuana. In addition to taxing distributors of adult-use marijuana products in the state, there are two taxes that consumers will pay. These taxes will be active once the first legal retail dispensaries and lounges open,

There is a state excise tax imposed on the sale of cannabis products by a retail dispensary to a cannabis consumer at 9 percent of the products’ price.

Second, there is a state excise tax imposed on the sale of cannabis products by a retail dispensary
to a cannabis consumer at 9 percent of the products’ price.

Third, there is a local excise tax imposed on the sale of cannabis products by a retail dispensary to a cannabis consumer at four (4) percent of the products’ price. This tax is distributed to local governments based on where the retail dispensary is located.

As you can see, the legalization of marijuana will pay New York State handsomely. The tax revenue doesn't even include the fees imposed for licenses and other requirements for businesses participating in the marketplace.

But, it's not just marijuana. New York makes a lot of tax revenue from our bad habits.
 

New York Regulators Vote To Let Medical Marijuana Patients Grow Their Own Starting Next Month


As New York marijuana regulators continue to accept applications for the first adult-use cannabis retailer licenses from people directly impacted by the drug war, officials on Tuesday voted to adopt home grow rules for medical cannabis patients, as well as another round of conditional marijuana processor and cultivator business applications.

The Cannabis Control Board (CCB) accepted a resolution to have the state adopt rules for medical cannabis patients to grow their own plants for personal use. They also accepted updated hemp cannabinoid regulations and gave the green light to a limited partnership agreement between the Dormitory Authority of the State of New York (DASNY) and Social Equity Impact Ventures to advance industry equity.

The adoption of the medical cannabis home grow resolution comes about a year after draft regulations were first proposed and several months after the board accepted revised rules following a public comment period. Now CCB has directed the Office of Cannabis Management (OCM) to formally send the approved regulations to the New York State Department of State.



In general, the rule will allow registered patients and caregivers to grow up to six plants, only three of which could be mature. They could possess up to five pounds of cannabis derived from those plants, which is consistent with the state’s adult-use legalization law.

The home grow rules for medical cannabis patients and caregivers will take effect on October 5. CCB Chair Tremaine Wright said this development marks “an exciting milestone for our medical cannabis program.”

OCM Executive Director Chris Alexander said at the close of the hearing that the office has “prioritized patient access in this program,” and “it’s going to continue to be a priority.”

“I’m just really excited that we’re able to provide this more affordable option to patients to get access to that medicine,” he said.

Regulators on Tuesday also approved 10 more cannabis processor licenses, for a total of 25 that have been approved since last month.



They also accepted 19 more cultivator applications from existing hemp businesses under a seeding initiative and legislation that was signed by Gov. Kathy Hocul (D) in February. There are now more than 250 approved cultivators.

Meanwhile, OCM is still taking applications for conditional adult-use retail dispensary (CAURD) licenses through September 26. Accepted licenses who have been disproportionately impacted by cannabis criminalization will have the first opportunity to serve recreational consumers, as early as this year.

Last month, OCM unveiled a regional breakdown of the maximum 150 CAURD licenses that it plans to accept.

In anticipation of the CAURD license applications opening, the mayor of New York City recently announced the launch of a new program to promote cannabis industry equity by supporting entrepreneurs most impacted by the drug war.

The Cannabis NYC initiative aims to initially help would-be dispensary operators complete the licensing application process, but is also promising to provide “support beyond the license” by connecting “aspiring cannabis entrepreneurs to no-cost services, along with technical assistance, to support successful businesses.”

With respect to retailers, OCM’s Alexander said in July that the office diligently reviewed and responded to public comments on the proposed rules for conditional retailers, but there’s still been some frustration among stakeholders who feel that the input was not thoughtfully incorporated.

For what it’s worth, a poll found that most New Yorkers voters are against that proposal to prioritize retail licenses for justice-involved people.

Separately, OCM also recently publicized dozens of cease and desist letters that they have sent to businesses accused of illegally selling marijuana as the state prepares to launch its adult-use market.

But there’s been skepticism about the accuracy of the office’s enforcement targets. Some businesses that were named as operating illicit marijuana shops say they never received the notice; others, including one event and catering business, say that were wrongfully targeted, denying that they’ve been involved in cannabis sales.

As it stands, adults 21 and older can possess and publicly consume cannabis, as well as gift marijuana to other adults as long as they aren’t being compensated.

In June, CCB also approved a series of proposed rules for marijuana packaging, labeling, advertising and testing requirements.

Meanwhile, New York lawmakers recently sent a budget proposal to the governor’s desk that includes provisions to let marijuana businesses take state tax deductions that are available to other industries despite an ongoing federal ban on cannabis. That was signed into law.

Sen. Jeremy Cooney (D) filed a standalone bill in December seeking a similar carve-out for the state’s burgeoning cannabis market. Assemblymember Donna Lupardo (D) followed suit in her chamber. Cooney also filed a bill in May to allow regulators to disclose certain information about cannabis licensees to financial institutions to promote marijuana banking.

Hochul has repeatedly emphasized her interest in efficiently implementing the legalization law.

The governor released a State of the State book in January that called for the creation of a $200 million public-private fund to specifically help promote social equity in the state’s burgeoning marijuana market.

That funding will support the limited partnership agreement between DASNY and Social Equity Impact Ventures that the board approved on Tuesday.

That funding proposal was also cited in the governor’s executive budget, which was released in January. The budget also estimated that New York stands to generate more than $1.25 billion in marijuana tax revenue over the next six years.

Hochul said that while cannabis business licenses have yet to be approved since legalization was signed into law last year, the market stands to generate billions of dollars, and it’s important to “create opportunities for all New Yorkers, particularly those from historically marginalized communities.”

OCM has also been putting out PSAs to promote public education about the marijuana policy change, including a first-of-its-kind taxpayer-funded marijuana ad that aired in most of New York during an NBA Finals game last month. The PSA boldly addressed the racially discriminatory harms of cannabis criminalization and highlighted steps that state regulators are taking to right the wrongs of prohibition.

CCB also wants the opportunity to showcase its marijuana PSA campaign on the social media app TikTok, but it was told by the company previously that it could not use the platform because of its existing ban on the use of the word “cannabis.” The department recently sent a letter to TikTok, requesting a policy change for government marijuana-related ads that concern public education.

Here are some other ways that New York lawmakers and regulators are working to promote drug policy reform as the state prepares to implement retail marijuana sales:

In July, Hochul announced that the state had awarded $5 million in funding to community colleges to support the development and improvement of courses and programs specifically meant to help people secure jobs in the marijuana industry.

The New York Senate approved a bill in June that would require public health insurance programs to cover medical marijuana expenses and clarify that private insurers are allowed to do the same.

Both chambers of the state legislature have passed a measure to encourage businesses to use hemp materials for packaging, construction and other industrial purposes.

The state Department of Labor separately announced in recent guidance that New York employers are no longer allowed to drug test most workers for marijuana. Even prior to the enactment of legalization, New York City officials had established a local ban on pre-employment drug testing for cannabis.

A recent legal directive from the New York City Law Department (NYCLD) has put police and firefighter drug testing policy in the spotlight after a document that was leaked from the New York Police Department (NYPD) signaled that officers would no longer be subject to pre-employment, random or scheduled screening for cannabis because of the legal analysis.

A firefighters union claimed credit for the new directive, saying that it was responsive to inquires that it made to the city.

Separately, Adams says he’s looking into the idea of authorizing marijuana to be grown in greenhouses on the rooftops of public housing buildings—an ambitious proposal that’s unlikely to sit well with the federal government, which provides funding to support the NYC Housing Authority (NYCHA).

A New York senator filed a bill in May that would legalize what would essentially be licensed community marijuana gardens for people who aren’t able to cultivate cannabis at their own homes.

Also that month, a New York Assembly committee advanced a bill to establish a statewide safe consumption site program, allowing regulators to authorize facilities where people could use currently illicit drugs in a medically supervised environment.

Meanwhile, a New York lawmaker introduced a bill last year that would require the state to establish an institute to research the therapeutic potential of psychedelics.

Another state legislator filed a bill in December to legalize psilocybin mushrooms for medical purposes and establish facilities where the psychedelic could be grown and administered to patients.
 
Not here in the communist state of Maryland.

NY home grown regs from NY office of Cannabis Mang

Home Cultivation of Cannabis
New Yorkers 21 years of age and older can grow up to 6 cannabis plants in their home for personal
use (3 mature plants and 3 immature plants) and a maximum of twelve plants per household (6
mature plants and 6 immature plants). Please be aware the home cultivation of cannabis is not
allowed immediately. Pursuant to the MRTA, the home cultivation of cannabis is only permitted
after the OCM issues regulations governing home cultivation of cannabis, which will occur within
18 months of the first adult-use retail sale. The MRTA also permits the home cultivation of medical
cannabis for certified patients registered in the Medical Cannabis Program. Home cultivation
for certified patients has an accelerated timeline, but is not authorized until the OCM issues
regulations, which will occur on or before September 30, 2021.

 

Oneida Indian Nation to Launch New York Cannabis Enterprise

The Oneida Indian Nation has announced plans to establish a seed-to-sale cannabis facility on its land in central New York.

The Oneida Indian Nation announced on Monday that it is launching a new cannabis enterprise in central New York, with plans to begin construction next month on a 50,000 square foot facility to house the operation. The seed-to-sale venture will include cannabis cultivation and production at the new facility in Verona, New York, to be run entirely by the Oneida Indian Nation. Retail cannabis stores, which will be announced at a later date and located exclusively on tribal lands, are projected to open in late 2023.

Ray Halbritter, a representative of the Oneida Indian Nation and the CEO of Oneida Nation Enterprises, said that the Oneida Indian Nation is launching operations in the cannabis industry to take advantage of new economic opportunities created by the legalization of marijuana in New York and the surrounding area.

“As more and more states across the country enter into the cannabis business, including neighboring states and other tribal nations, it is important that the Oneida people not be left out from taking advantage of this economic opportunity,” Halbritter said in a statement from the Oneida Indian Nation. “We are excited about this new venture and are confident based on our expertise and proven track record within other highly regulated industries that we will be able to set the standard for developing a safe and successful adult recreational cannabis business on Oneida Indian Nation lands.”

Weed Is Now Legal in New York​

New York legalized recreational marijuana last year with the passage of the Marijuana Taxation and Regulation Act, which was signed into law on March 31, 2021. Regulators are currently in the process of developing the regulatory system to govern the cannabis industry, with the first retail adult-use cannabis dispensaries expected to open by the end of the year.

Officials in New York have acknowledged that sovereign Native American nations are free to participate in the state’s legal cannabis market. The Cayuga Nation has established a cannabis growing and processing facility in Seneca County and a retail store in Cayuga County. The Akwesasne Mohawk Nation has retail cannabis outlets on its land in northern New York, while the Seneca Nation has about 20 retailers on its territory in the western part of the state.

For its newly announced cannabis enterprise, the Oneida Indian Nation has adopted a cannabis ordinance and regulations to govern the cannabis enterprise and hold it to standards comparable to New York State’s cannabis laws and regulations, including comparable age restrictions and limitations on purchase amounts, employee licensure requirements and assurances of product safety and quality.

The Oneida Indian Nation will own and operate all of the businesses associated with the cannabis enterprise, rather than issuing licenses to independent operators. The nation has discussed the tribe’s plans for the cannabis enterprise with the New York Office of Cannabis Management and is open to further talks, according to Joel Barkin, the nation’s vice president for communications.

The Oneida Indian Nation has engaged in discussions with the New York State Office of Cannabis Management to create a joint inspection partnership of their cannabis products. The nation will apply the same tax rate on marijuana sales as the state to “avoid competition questions,” Barkin said. All tax revenues will go to support the tribe and its municipal government services on the nation territory. Those include health care, education, public safety, and cultural preservation.

The Oneida Indian Nation is a federally recognized Indian nation in central New York, consisting of about 1,000 enrolled tribal members. The Oneida Indian Nation’s enterprises, which employ more than 4,500 people, include hotels, casinos, retail shops, an RV Park, and three boat marinas. Proceeds from these enterprises are used to develop the tribe’s economic base and provide essential services to its members, including housing, health care, and education incentives and programs.
 

New York Loosens Strict Testing Requirements for Cannabis Cultivators

New York growers objected to the rules.

Regulators in New York this week lifted a stringent requirement that cannabis growers in the state had decried as an “existential threat” to their operations.

NY Cannabis Insider reports that the state’s Office of Cannabis Management on Tuesday sent an email to cultivators to note that it had “updated its Laboratory Testing Limits document to remove the pass/fail limits associated with the Total Viable Aerobic Bacteria Count and Total Yeast and Mold Count for unextracted cannabis products (e.g. cannabis flower, pre-roll, etc.).”

New York cannabis growers lamented that the testing limits for bacteria, yeast, and mold were far too onerous, and jeopardized their ability to get the product in front of customers.

The state gave conditional licenses to cultivators earlier this year to begin growing the first adult-use cannabis crop outdoors.

But growing outdoors made those testing limits difficult to attain.

“This is a step in the right direction for the success of this new market,” said Aaron Leentjes, a conditional cultivator and co-founder and owner of UNIFI Cannabis, as quoted by NY Cannabis Insider. “Because growers were not given an option to cultivate indoors, it’s nice to see OCM adjusting their testing guidelines to be more in line with the realities of outdoor cultivation.”


In its email sent on Tuesday, the Office of Cannabis Management said that, although testing will still be conducted, “there will not be a defined limit for unextracted cannabis products in the adult-use program.”

“It is the responsibility of the licensee to consider these results and any impact to the stability and expiration dating of the product, as well as any risks to the health of consumers,” the OCM said in the email, as quoted by NY Cannabis Insider.

Recipients of the first two-year “conditional cultivator” licenses were given the green light to grow up to an acre’s worth of weed outdoors, although they were also permitted to keep some plants in greenhouses.

“There’s a market that we’re building for small players, for big players, for medium-sized players, for family businesses, for big corporations as well,” Chris Alexander, executive director of the Office of Cannabis Management, said of the first round of cultivation this summer. “We do think it will be sufficient to provide that initial supply to our dispensary locations that we get up and running.”

New York Gov. Kathy Hochul, who is facing re-election next week, said last month that the first state-regulated marijuana dispensaries are still on track to open by the end of this year.

“We expect the first 20 dispensaries to be open by the end of this year,” Hochul said at the time. “And then every month or so, another 20. So, we’re not going to just jam it out there. It’s going to work and be successful.”

In that same interview, Hochul took credit for getting the legal marijuana program up and running after she took over for former New York Gov. Andrew Cuomo last August.

“Talk about the rollout being jammed up,” she said. “When I became governor, nothing had happened. Nothing. It was shut down because there was a battle between the administration and the legislature over who would be the executive director and the chairs of the cannabis review boards,” she said. “So, I was given a lot of credit because within one week, I named people. I got things going. So, when I speak to people about being part of this industry, the first thing they say is ‘thank you.’ Because otherwise we could still be waiting and waiting and waiting, even for the most basic steps to be taken. So we’ve been moving along quickly.”
 

Federal Judge Blocks New York Regulators From Issuing Pot Shop Licenses

A federal judge has issued a temporary injunction barring New York regulators from issuing cannabis retail licenses in five regions in a case challenging the state’s eligibility requirements on constitutional grounds.

A federal judge in New York has issued a temporary injunction barring the state from issuing licenses for cannabis retailers in five regions after a Michigan-based business filed a lawsuit challenging the process for awarding the highly coveted permits. U.S. District Court Judge Gary Sharpe issued the injunction on Thursday in response to a lawsuit filed by Variscite NY One Inc., a company that was denied a retail dispensary license by the New York Office of Cannabis Management (OCM).

In August, the OCM announced that the first Conditional Adult-Use Retail Dispensary (CAURD) licenses would be issued to companies headed by individuals with past convictions for marijuana-related crimes. Regulators are currently processing applications, with plans for the retail sales of adult-use cannabis to begin before the end of the year. Successful applicants will receive aid from a $200 million Social Equity Cannabis Investment Fund, which was created to help finance the leasing and outfitting of up to 150 recreational marijuana dispensaries across the state.

“We think that leaning into folks who are not only justice-involved, but have that business experience means that we’re going to find a bunch of applicants who have gone through some significant challenges to still open and operate successful businesses,” OCM executive director Chris Alexander told Politico when the policy was announced. “We just took a different approach.”

Dispensary Licenses Reserved For Those With Weed Convictions​

To qualify for a cannabis retail license, applicants must be based in New York, as evidenced by a personal or corporate address included on the application. Additionally, a principal applicant or relative must have been convicted of a cannabis-related offense in New York. Those who were arrested but not convicted and those with federal or out-of-state convictions are not eligible.

Variscite is majority owned by Kenneth Gay, who was convicted of a marijuana offense in the state of Michigan. The application was rejected by the OCM, however, because Variscite “is [51%] owned by an individual who has a cannabis conviction under Michigan law” and “has no significant connection to New York,” according to a report in local media.

The company filed suit challenging the retail cannabis license eligibility criteria, arguing that restricting the licenses to applicants with New York convictions discriminates against applicants from out of state and violates provisions of the U.S. Constitution that protect interstate commerce.

Ruling Affects Five New York Regions​

In a ruling handed down on Thursday, the judge said that the state, represented by the attorney general’s office, had not convincingly argued how New York’s cannabis legalization law and regulations were narrowly tailored to serve a legitimate purpose. He noted that Variscite “has also demonstrated a clear likelihood of success on the merits.”

Sharp also issued a temporary injunction barring the OCM from issuing cannabis retail licenses in the Finger Lakes, central New York, western New York, the Mid Hudson, and Brooklyn regions of the state, which Variscite had listed on its application as preferred business locations. Approximately 63 of the anticipated 150 CAURD licenses were put on hold by the ruling. Licenses to be issued in 11 other regions, including the Bronx, Manhattan, Queens, Staten Island, and Long Island, were not affected by the injunction.

Although the injunction was limited to the five specified regions, David C. Holland, a partner at Prince Lobel and a member of the law firm’s business litigation and cannabis practice groups, said that the case could eventually affect a broader area of New York.

“This could have a wider impact across the entire state as the same state-specific contact and conviction requirements were imposed in 14 regions in New York, which are designated to set up a CAURD dispensary and may have prevented justice-involved individuals from other states from applying for a conditional license because of the state’s efforts to protect and promote its emerging cannabis industry,” Holland wrote in an email to High Times.

In a statement, OCM spokesman Freeman Klopott declined to comment on the case or Sharp’s injunction.

“We don’t comment on pending litigation. The Office of Cannabis Management is committed to the Marijuana Regulation and Taxation Act’s goals of including those impacted by the state’s enforcement of cannabis prohibition in the market that we are building and we are additionally committed to getting New York’s cannabis supply chain fully operational,” said Klopott. “The Cannabis Control Board will soon have before it applications for the Conditional Adult Use Retail Dispensary license which will start closing that supply chain.”

The spokesman also added that the OCM would still review the initial licenses recommended for approval at its next meeting on November 21. Christian Kernkamp, an attorney representing Variscite in the case, declined to comment on the temporary injunction when contacted via email by The New York Times.
 
Nearly 40 New York stores across the state will soon be allowed to legally sell weed. Why was the Hudson Valley not included?

The New York State Cannabis Control Board approved the first Conditional Adult-Use Retail Dispensary Licenses, on Monday.



 

Upstate New York Officials Clash Over New Cannabis Regulations

Officials in Niagara Falls are in disagreement.

City and county officials in upstate New York are at odds over the implementation of rules governing the sale and cultivation of marijuana in the community.

The dispute is between the Niagara Falls City Council and members of the Niagara County Planning Board, and it centers around how the community will enforce the sale of recreational marijuana, which was legalized by the state of New York in 2021.

The Niagara Gazette reports: “The Niagara County Planning Board unanimously decided to disapprove a zoning text amendment the Niagara Falls City Council approved a month ago, which allows for the cultivation, production and sale of recreational cannabis within the city. Despite this decision, the members knew their actions would have little effect on the city’s implementation. The county board members’ objections ranged from not being specific on locations to the city seeing little financial benefit from having these businesses operate in the Falls.”

Under the ordinance that was approved by the Niagara Falls City Council last month, “cannabis dispensaries engaging in sales only can operate between 8 a.m. and 2 a.m., those that allow on-site consumption may operate from 8 a.m. to 4 a.m., and may not operate more than 70 hours a week,” and retail “dispensaries may not be located within 500 feet of a community facility while consumption dispensaries may not be within 200 feet of a house of worship, 500 feet of a school or ‘community facility,’ and 1,000 feet of similar operations,” according to the Niagara Gazette.

New York’s Office of Cannabis Management issued 36 recreational marijuana dispensary licenses to various businesses and nonprofits in the state in November, but so far, only two retailers––both located in Manhattan––have opened to customers.

The Office of Cannabis Management says that cities, towns, and villages could have opted out of allowing adult-use cannabis retail dispensaries or on-site consumption licenses from operating within their jurisdictions, but those municipalities needed to “pass a local law by December 31, 2021 or nine months after the effective date of the legislation.”

The agency explains: “If a municipality does not opt-out by December 31, 2021, the municipality will be unable to opt-out at a future date. However, a municipality may opt back in, to allow either, or both, adult-use retail dispensary or on-site consumption license types by repealing the local law which established the prohibition. All local laws passed by municipalities opting out of allowing adult-use retail dispensaries or on-site consumption licenses are subject to a permissive referendum as outlined in section twenty-four of the Municipal Home Rule Law. This creates a process allowing voters of the municipality to petition the outcome of a local law, which if successful, will trigger the question of whether or not to approve the local law, to be placed on the ballot at the next general election of state or local government officials for the municipality.”

No municipality can “opt-out of adult-use legalization,” according to the Office of Cannabis Management.

According to the Niagara Gazette, Kevin Forma, the city planning director of Niagara Falls, “said the directions that all municipalities received from the state are similar to liquor ordinances and the requirements for having a bar,” and that the “state was also restrictive in what the city can do for allowing and disallowing uses.”

“The state is telling us that we cannot restrict this,” Forma said during the planner’s meeting on Monday, as quoted by the Gazette. “We’re developing this to the best of our ability, managing this in conjunction with the state rules and regulations.”
 
81082293.jpg



New York’s political leaders silent about state’s failure to raise cannabis funds


New York’s political leaders will not speak about the state’s failure to raise $150 million for the equity-focused portion of its legal marijuana market rollout, even though those same leaders were front and center in calling for a socially just cannabis industry.


Gov. Kathy Hochul has announced every milestone in the state’s legalization efforts, but wouldn’t respond to questions about what happens now that the Dormitory Authority of the State of New York (DASNY) has admitted that – despite eight months of effort – its fund managers haven’t raised a dollar for the Social Equity Cannabis Investment Fund.


Reuben McDaniel, the CEO of DASNY and one of five members of the state’s Cannabis Control Board, told a reporter late last month that despite a “great investor base,” the agency hasn’t had its “final close yet.”


A DASNY spokesperson confirmed that statement to NY Cannabis Insider again last week.


Gov. Hochul charged DASNY nearly a year ago with finding a fund manager to raise $150 million from private investors. That money, combined with $50 million pledged by the state, will go toward finding, securing and retrofitting locations for the Conditional Adult-Use Retail Dispensary (CAURD) program.


The $200 million in total is supposed to pay for the build outs and loans to roughly 150 CAURD licensees, who are all “justice-involved individuals.”


The Office of Cannabis Management has awarded 66 CAURD licenses since November – 10 to nonprofits and the rest to individuals. To date, only one DASNY dispensary, Smacked Village in Manhattan, has opened.


The other three licensed stores – two in Manhattan and one in Binghamton – are run by nonprofits, which are not eligible for the DASNY loans or locations.


A DASNY spokesperson told NY Cannabis Insider that the agency remains “optimistic that the fund, which continues its capital-raising efforts, will be successful as New York State continues to build a groundbreaking cannabis retail program grounded in equity.”


Jayson Tantalo and his wife Britni co-own Flower City Dispensary, and are among the hundreds of CAURD applicants waiting to hear whether they were picked for the program.


The pair have invested more than $12,000 into the gamble so far, Jayson said, and are also looking to operate in a region that is now under a partial injunction as a result of a lawsuit alleging that CAURD discriminates against out-of-state residents in violation of the US Dormant Commerce Clause.


“We don’t see any light at the end of the tunnel,” he told NY Cannabis Insider. “For us, as applicants, resources were the primary objective to even get into the CAURD program ... But even if there was no injunction, there’s still no capital.”


He added, “We exhausted and leveraged everything we had to chase this program that was supposed to be turnkey, and to find out that there’s only $50 million on the high side – will there even be any money leftover for us if the injunction takes a year?”


In addition to Gov. Hochul, Senator Liz Krueger, who introduced the Marijuana Regulation and Taxation Act and whose district covers parts of Manhattan, would not respond to questions about whether the state has a “Plan B” if the fund remains empty.


Neither would Assemblymember Crystal Peoples-Stokes, whose district covers parts of Buffalo and who has been front-and-center in the state’s rollout.


The lack of acknowledgement isn’t new: neither Hochul, Krueger nor Peoples-Stokes have publicly acknowledged NY Cannabis Insider’s recent investigation that found the headliners DASNY picked to manage the social equity fund have repeatedly failed to deliver on their past promises.


Social Equity Impact Ventures is made up of former NBA player Chris Webber, entrepreneur Lavetta Willis, and a team from investment firm Siebert Williams Shank, which includes CEO Suzanne Shank and former NYC Comptroller Bill Thompson.


DASNY announced Impact Ventures as their top pick in June. Shortly after the announcement, questions began to circulate among New York’s cannabis industry: what were the team’s qualifications? Were they raising any money?


In an investigation published in December, NY Cannabis Insider found Webber and Willis had a history of making misleading or false claims about their accomplishments, including the construction of a nine-acre cannabis “compound” in Detroit and investing in entrepreneurs of color with a $100 million fund.


NY Cannabis Insider also requested documents from DASNY that would show how the agency selected Impact Ventures to raise and manage money that is essential to the state’s promise of equity in its future cannabis marketplace.


DASNY delayed producing those records for more than three months, and did so only after NY Cannabis Insider published stories about the agency’s non-responsiveness every day for weeks, and after enlisting the Committee on Open Government to intervene.


Once provided in January, the documents confirmed that Impact Ventures did submit information to the state that was not true or, at best, was a stretch.


The records also showed Impact Ventures had warned DASNY in June that the agency’s deadline to raise $150 million by September was aggressive.


Last week, a DASNY spokesperson told NY Cannabis Insider that, “as a point of clarity, Social Equity Impact Ventures is responsible for raising capital for the New York State Cannabis Social Equity Investment Fund.


“Neither DASNY nor the State are responsible for raising the funds,” the spokesperson said.
 
As the New York cannabis system actually starts shaping up, I am happy, hopeful and disappointed. Happy that the process has started, disappointed at the overall slow pace, and hopeful the state will leave small growers alone. I would like to hear what other NY users feel about the topic.
 

New York Will Double Number of Cannabis Retailer Licenses

New York Regulators announced on Thursday that the state would double the number of cannabis retailer licenses awarded in the state, bringing the total of recreational marijuana dispensary permits to 300.

Regulators in New York announced this week that the state would double the number of cannabis retailer licenses, bringing the total number of Conditional Adult-Use Retail Dispensary (CAURD) Licenses for recreational marijuana dispensaries to 300 instead of the 150 originally planned. The new licenses, which will be selected from an existing pool of qualified business applicants, will be issued proportionally throughout New York, doubling the number of licenses in each of 14 regions of the state.

In a statement released on Tuesday, the Cannabis Control Board and the Office of Cannabis Management announced that increasing the number of licenses “will further advance New York State’s Seeding Opportunity Initiative, which provides for the state’s first legal adult-use retail dispensaries to be operated by those most impacted by the prohibition of cannabis or by nonprofit organizations whose services include support for the formerly incarcerated.”

“With this expansion, more entrepreneurs will be able to participate in the first wave of this industry, allowing them to capitalize on the growing demand for cannabis products,” said Tremaine Wright, chair of the Cannabis Control Board. “As more businesses enter this market, the innovation and competition will increase, leading to better quality experiences for consumers. The expansion of New York’s cannabis market will benefit everyone involved in this exciting industry.”

New York’s Office of Cannabis Management (OCM) received about 900 applications for CAURD licenses from prospective business owners. To date, the Cannabis Control Board has issued 66 provisional CAURD licenses, with the first shop opening in late December. In April, the OCM will make recommendations to the board on the majority of the remaining applications in the areas of the state not impacted by a November court injunction blocking the agency from awarding retail dispensary licenses in five regions of the state.

$200 Million Fund To Support New York Licensees​

The CAURD program, which provides licenses to justice-involved individuals, initially allowed for up to 150 businesses to receive a provisional CAURD license. This effort was enhanced through the creation of the New York State Social Equity Cannabis Fund, a $200 million public-private partnership providing renovated, ready-to-open retail locations to the 150 licensees. The OCM characterized the fund as a first-of-its-kind effort in the nation designed to help reduce the barriers independent entrepreneurs face in raising capital to launch a business in the cannabis industry.

“Doubling the amount of available Conditional Adult-Use Dispensary Licenses will help kickstart the growth of New York’s cannabis industry,” said Damian Fagon, the OCM’s chief equity officer. “More stores means more locations for New York farmers to sell their harvests, more convenience for New York customers to make the right decisions and purchase safer and legal products, and twice as many opportunities for New Yorkers harmed by over-policing during cannabis prohibition.”


In December, the OCM announced that CAURD licensees would also be allowed to secure their own business locations without seeking support from the social equity fund, potentially freeing up resources for some of the newly authorized CAURD licenses announced today. The initial 150 approved CAURD licensees will be prioritized to receive resources if they choose a location supported by the fund. Applicants chosen for the additional 150 CAURD licenses announced this week will be given access to any remaining fund resources.

“New York is doing something special when it comes to launching our cannabis industry, and now we’re doubling the impact of our Conditional Adult-Use Retail Dispensary program,” said Chris Alexander, executive director of the Office of Cannabis Management. “It’s been truly exciting to see the positive energy around our efforts to support entrepreneurs who previously suffered at the hands of New York State. We will continue creating real opportunities for qualified applicants who’ve been shut out from legal cannabis markets across the country.”

Michelle Bodian, a partner at the cannabis and psychedelics law firm Vicente LLP, said that Thursday’s announcement offers new opportunities for entrepreneurs eager to enter New York’s cannabis industry.

“Doubling the number of available CAURD licenses drastically changes the calculus for hopeful CAURD applicants,” Bodian wrote in an email to High Times. “As only a limited number of licenses have been awarded to date, this expansion provides a huge first mover advantage for the remaining approximate 230 licenses to be awarded.”
 

Ithaca's first, licensed marijuana dispensary opens for business


TWIN TIERS, N.Y. (WENY) -- One of the first, licensed marijuana dispensaries, outside of New York City, opened in Ithaca, Thursday afternoon. William Durham, the owner of “William Jane,” is opening his business in a field that is already crowded with sticker shops in the Twin Tiers.

Durham is one of the first business owners, outside of New York City, to earn a Conditional Adult Use Dispensary License from New York State.

“I definitely think there's a difference in between what's going on at sticker shops and... the new dispensaries at the end of the day,” he said. “We do have a lot of students and tourists...and people like to know what you're working with if you're going to be smoking cannabis. Of course, we inspect the cannabis...I mean, that itself is the difference...right there, alone.”

Durham said he wants people to see a difference in his legal dispensary as opposed to sticker shops. He wants to educate the Ithaca community and spread positive awareness towards cannabis.

“It's more of an experience when you're coming in here,” he said. “We've got it set up to the point where you actually enjoy the environment.”


Bottom line, Durham said he is not worried about sticker shops in the area negatively affecting his business. He feels good about the fact that he is able to sell cannabis at a legal dispensary.

“I know New York State is definitely working to make this a good thing for the small entrepreneurs,” he said. “I believe they're working behind the scenes to get things to where it could be profitable and it can be a good business...no matter what so, I'm not worried about it all.”

Aya Morgan has been working at “World Piece,” a sticker shop in Elmira, since it opened last year. Morgan said the store is always trying to raise its standards to one day also become a licensed dispensary.

“Our long-term goal for the shop is to be a dispensary...so, the fact that New York is finally being able to open them across the state means things are looking good for our close future,” she said.

Morgan added, she is not worried about legal dispensaries negatively affecting their profits.


“There's such a high demand for the product, all across New York State, that the current, legal dispensaries are overwhelmed and so...a store opening isn't really putting a dent in the market,” she said.

"William Jane" is located at 119 E State Street in the Ithaca Commons.

“World Piece” is located at 207 W Water Street in Elmira.
 

New York Bill To Require Health Insurance Coverage Of Medical Marijuana Clears Assembly Committee


New York lawmakers have approved a bill that would require public health insurance providers in the state to include medical marijuana as a covered prescription drug and authorize private insurers to do the same.

The Assembly Health Committee passed the legislation from Majority Leader Crystal Peoples-Stokes (D) in an 18-7 vote on Tuesday. It now heads to the Ways & Means Committee before potentially advancing to the floor.

The measure would amend state statute to define cannabis as a “prescription drug,” “covered drug” or “health care service” for health insurance purposes. Medical marijuana would need to be covered by public insurance entities “regardless of federal financial participation” in their services.

State Medicaid, Child Health Plus, workers compensation and EPIC programs would be required to treat cannabis from certified dispensaries the same as other conventional pharmaceuticals for the purposes of coverage.

Private health insurers, on the other hand, wouldn’t be forced to provide coverage for medical marijuana, but the bill clarifies that they can if they choose to.

The commissioner of the state Department of Health would also be authorized to “certify a dispensing site…as a medical assistance provider, solely for the purpose of dispensing medical marihuana,” the bill text says.

“For thousands of patients, medical marijuana is a safer and more effective medication than other drugs, especially opioids,” a justification memo attached to the bill says. “While it can be prohibitively expensive for many patients, especially in the absence of insurance coverage, it may often be less expensive than what their insurance coverage pays for other medications. Cost is the primary barrier to patient access in New York’s medical marijuana program.”

“Medicaid, other public health plans, and commercial health insurance plans do not cover medical marijuana, forcing patients to pay out of pocket,” it continues. “Some patients begin treatment only to stop due to inability to pay, while others turn to the black market. Efforts by registered organizations to offer discounts have helped but are inadequate for many low-income patients.”

“Access to medical marijuana should not be limited to those who can pay out of pocket. This bill adds medical marijuana to four publicly funded health programs—Medicaid, Child Health Plus, workers compensation, and EPIC—and the heavily publicly funded Essential Plan. For Medicaid and Child Health Plus, there would presumably not be federal matching funds until the federal government changes its policies, but New York’s Medicaid and Child Health Plus programs have always covered people and services for which we do not receive federal match.”

A Senate companion bill from Sen. Jeremy Cooney (D) has been referred to that chamber’s Health Committee but hasn’t yet been scheduled for action.

An earlier version of the legislation was approved in the Senate last year but it did not advance through the Assembly before the end of the session. A similar measure was also filed in the Assembly in a prior session, but it did not move out of committee.
 

"who’s seeking to protect the state’s fledgling legal market for recreational marijuana."

IMO, what she. and every other politician in this country, want to protect is their incoming tax money stream. If they could tax the shit out of asparagus, they would.

Hochul proposes major crackdown against illegal Cannabis shops in New York City


New York authorities would be given expanded power to shut down illegal pot shops and levy fines of up to $200,000 under legislation proposed Wednesday by Governor Kathy Hochul, who’s seeking to protect the state’s fledgling legal market for recreational marijuana.​


New York is trying to get its potentially massive adult legal market into high gear, but has just three shops opened so far in New York City, two in upstate New York and more shops planned. Legal operations in the city are being undermined by a proliferation of unlicensed stores.


New York authorities would be given expanded power to shut down illegal pot shops and levy fines of up to $200,000 under legislation proposed Wednesday by Governor Kathy Hochul, who's seeking to protect the state's fledgling legal market for recreational marijuana.


City officials have already gone after landlords who have allowed illicit shops to operate. The new bill before Legislature would give the state Office of Cannabis Management and state tax officials new powers to crack down on unlicensed activity.


The bill would give the cannabis office expanded authority to seize illicit products and establish procedures for the government to shut down unlicensed businesses. Violations could lead to fines of $200,000 for illicit cannabis plants or products and businesses could be fined $10,000 a day for selling cannabis without a license, according to the Hochul administration.


“The continued existence of illegal dispensaries is unacceptable, and we need additional enforcement tools to protect New Yorkers from dangerous products and support our equity initiatives,” Hochul said in prepared statement.


New York has moved slowly since legalizing recreational marijuana use in March 2021.


Unlike many other states, New York has reserved its first round of retail licenses for nonprofits, applicants with marijuana convictions and their relatives. The steps are designed to address inequities produced by the country’s war on drugs.


However, a federal judge has temporarily blocked the state from issuing recreational marijuana dispensary licenses in Brooklyn and parts of upstate New York while a legal challenge to the state’s selection process is being considered. The company Variscite NY One is arguing that the state’s selection process favors New York residents over out-of-state residents in violation of constitutional interstate commerce protections.


Veteran cannabis investor Emily Paxhia credits New York with good intentions on social equity but said the state was shortsighted about the need to set up enforcement early on against illegal shops. Paxhia, a co-founder and managing partner of Poseidon Investment Management, sees the legalization rollout so far as “a disaster,” but not a lost cause.
 
The changes being discussed would also rewrite the tax structure. As it stands now, some believe it’s prohibitively expensive.

“Yes, it would simplify the process. For the producers, for the laboratories, and actually for the businesses,” Peoples-Stokes said. “Generally, if the producers have an additional cost, if the labs have an additional cost, they are going to pass that on to the businesses who will pass it on to the consumers. So, we are reducing the cost of the product as well as reducing the product.”

As for how the law passed with so many deficiencies, there are different theories on what happened.

“I do believe part of the problem here is we passed the law, but we had a governor named Andrew Cuomo who didn’t start the agency and get rolling,” Krueger said. “So, people were sitting there going ‘where are you? Where are you?’ And we were trying to get him to do something, and he wasn’t.”

New York also set up its law to give preferential treatment for opening legal cannabis shops to those who had previous marijuana related arrests. There are now two lawsuits challenging that both at the federal and state level.

Curious minds.
So is the lawsuit going to slow down the cannabis shops opening? Im talking about those that have been convicted of cannabis felony being able to have preference to open a cannabis business with a lisence.
CK
 
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