Amd §130-a, Cannabis L; amd §2, Chap of 2024 (as proposed in S.9679-A & A.10398-A)
Sets forth certain provisions for the sale of adult-use cannabis and adult-use cannabis products at cannabis showcase events; requires permittees to partner with cultivators in certain situations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A418
SPONSOR: Lupardo TITLE OF BILL:
An act to amend the cannabis law, in relation to cannabis showcase event
permits; and to amend a chapter of the laws of 2024 amending the canna-
bis law relating to authorizing a cannabis showcase event permit, as
proposed in legislative bills numbers S. 9679-A and A. 10398-A, in
relation to the effectiveness thereof
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to make clarifying and technical changes to
the cannabis showcase event permit program as provided for in Chapter
669 of the Laws of 2024.
SUMMARY OF SPECIFIC PROVISIONS:
This bill would make clarifications to Chapter 669 of the Laws of 2024,
which authorizes the Office of Cannabis Management (OCM) to issue tempo-
rary showcase event permits. This bill would provide that locations for
such events would be limited to stand-alone cannabis sale "pop-up"
events, farmers' markets and public markets as defined in Agriculture
and Markets law.
This bill would require licensed retailers applying for a permit to
demonstrate a partnership with at least a minimum of one licensed culti-
vator and licensed processor as a condition to be considered for a
cannabis showcase event permit. This bill would define showcase to mean
the exhibiting or displaying at a cannabis showcase event permit by a
permittee or an authorized licensee of adult-use cannabis and cannabis
products and may include branded merchandise and educational materials.
Further, this bill would ensure that only licensed retailers would be
authorized to apply for an event permit and that each licensee at any
location would be required to have their own event permit.
The bill would also make clarifying technical changes related to the
application process and requirements as determined in regulation by OCM.
Finally, this bill would extend the effective date to 120 days.
JUSTIFICATION:
As with the underlying Chapter 669 of the Laws of 2024, this bill seeks
to create a cannabis showcase event permit patterned after the success-
ful Cannabis Growers Showcase (CGS) program that aided cannabis cultiva-
tors and retailers. Similar to the CGS program, the Cannabis Showcase
Event permits will require licensed adult-use cannabis retailers to have
a demonstrated partnership with licensed cultivators and licensed
processor of cannabis. The showcase events will provide an opportunity
to educate the consumers about their products and sell cannabis products
and branded merchandise at farmers' markets, public markets, and stand-
alone "pop-up" cannabis events.
This bill and the underlying chapter, 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 Showcase Event
permits. The permit applicant will be required to identify license hold-
ers 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, enforc-
ing 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 location to the public and from gaining unfair market advan-
tage by operating and/or advertising an event as if it were an addi-
tional permanent licensed location. Permit fees have been added to cover
the cost incurred by the OCM for resources required to review and proc-
ess the application. Finally, to protect the health and safety of the
public, inventory and sales reporting mandates will provide transparen-
cy.
PRIOR LEGISLATIVE HISTORY:
New legislation.
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
This act shall take effect the one hundred twentieth day.
