Authorizes the cannabis control board to issue a cannabis showcase event permit to certain licensees authorized to conduct retail sales of adult-use cannabis, cannabis products and cannabis merchandise.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10398A
SPONSOR: Rules (Lupardo) TITLE OF BILL:
An act to amend the cannabis law, in relation to authorizing a cannabis
showcase event permit
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to provide the NYS Office of Cannabis
Management with the authority to draft new regulations that will update
and improve upon the regulatory structure of the successful Cannabis
Growers Showcase program, which automatically sunset on January 1, 2024.
SUMMARY OF PROVISIONS:
This bill would create a Cannabis Showcase Event Permit.
JUSTIFICATION:
The Office of Cannabis Management's Cannabis Growers Showcase (CGS)
program was created in 2023 to aid cannabis cultivators who had strug-
gled with the lack of legal markets for their products. Thousands of
pounds of unsold cannabis products resulted from litigation-related and
other delays that enjoined the State from issuing retail dispensary
licenses and prevented the opening of new dispensaries where the canna-
bis could be sold.
The CGS program was a novel way to partner cultivators with dispensary
licensees, so that they could educate the market about their offerings,
sell their product, generate much needed income, and provide legal
access to consumers who were too distant to legal dispensaries or who
didn't want to purchase their cannabis from illicit sources. As an
experimental policy, the CGS program was designed to sunset on January
1, 2024, to allow the OCM to review the program's successes, analyze
issues and challenges, and use the lessons learned to inform the devel-
opment of future event authorizations.
By all accounts, the program was a success, bringing cultivators,
processors, and retail licensees together in a way where they could
directly interact with and educate consumers, build brand recognition,
and orient consumers to the legal market's offerings. In all, the
program approved 60 CGSs; 75 AUCCs, 19 AUCPs, and 12 CAURDs for a total
of 106 licensees participating. Local municipalities, who had opted into
retail sales, had also played a major role in approving and assisting
operators in setting up the Showcases. There were no reports of problems
in any of the localities where a CGS was held, ensuring that all stake-
holders, including local law enforcement and State and local elected
officials, saw the Showcases as a success and liked that they kept
patrons out of the illegal shops.
To establish a successful program that builds on the successes of the
Showcases, the OCM will need to draft and present to the public a full
set of regulations that would establish clear and concise guideposts to
protect the cannabis market and the public, create a streamlined proc-
esses for application submission, review, and approval, establish clear
mechanisms for compliance enforcement, and ensure that all cannabis
products, and tax revenues will be accounted for. At the December 8,
2023, Cannabis Control Board meeting, the OCM committed to releasing a
new set of regulations to cover an updated version of the Showcases. To
maintain the required separation of the two tiers of the cannabis
market, only retailers who are licensed to sell cannabis products will
be allowed apply for permits. The permit applicant will be required to
identify license holders from the supply tier who will participate in
the event to "showcase" or provide education about their cannabis
products. Other rules will limit the duration that a temporary cannabis
event can operate, enforcing the "temporary" nature of the sale of
cannabis at the approved event or location and preventing the permittee
from presenting the event as a permanent or pop-up location to the
public and from gaining unfair market advantage by operating and/or
advertising an event as if it were an additional permanent licensed
location. Permit fees have been added to cover the cost incurred by the
OCM for resources required to review and process the application.
Finally, to protect the health and safety of the public, inventory and
sales reporting mandates will provide transparency in tracking and trac-
ing in case any cannabis products are involved in a product recall or
quarantine. Strong compliance and reporting requirements will be essen-
tial to protect the public's health and safety.
PRIOR LEGISLATIVE HISTORY:
This is a new legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.
EFFECTIVE DATE:
Immediately.
