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.
STATE OF NEW YORK
________________________________________________________________________
418
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. LUPARDO -- read once and referred to the Commit-
tee on Economic Development
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
cannabis 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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 130-a of the cannabis law, as added by a chapter of
2 the laws of 2024 amending the cannabis law relating to authorizing a
3 cannabis showcase event permit, as proposed in legislative bills numbers
4 S. 9679-A and A. 10398-A, is amended to read as follows:
5 § 130-a. Cannabis showcase event permit. 1. When used in this
6 section[, "cannabis]:
7 (a) "Cannabis showcase event" shall mean an event where[:] a licensee
8 authorized to conduct retail sales of adult-use cannabis, cannabis
9 products, and cannabis merchandise engages in the sale and showcase of
10 such products away from the licensed premises in [demonstrated] partner-
11 ship with [a] at minimum one licensed New York state adult-use cannabis
12 cultivator [or] and at minimum one licensed New York state adult-use
13 cannabis processor, at showcase events that are located at stand-alone
14 cannabis sale "pop-up" events, farmers' markets and public markets as
15 defined in section two hundred sixty of the agriculture and markets law
16 or similar such locations, as authorized by the office.
17 (b) "Showcase" shall mean the exhibiting or displaying at a cannabis
18 showcase event by a permittee or an authorized licensee of adult-use
19 cannabis and cannabis products and may include branded merchandise and
20 educational materials.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02891-01-5
A. 418 2
1 2. A licensee authorized under this chapter to conduct retail sales of
2 adult-use cannabis may apply to the office for a cannabis showcase event
3 permit and shall be required to demonstrate that they are in partnership
4 with a licensed cultivator [or] and a licensed processor pursuant to
5 subdivision one of this section. An application for a cannabis showcase
6 event permit shall identify [licensees] such licensed cultivators and
7 processors who are authorized under this chapter to showcase at such
8 cannabis showcase event.
9 3. A cannabis showcase event permit shall authorize: (a) the permitted
10 licensee, authorized under this chapter to conduct retail sales of
11 adult-use cannabis, adult-use cannabis products, and cannabis merchan-
12 dise, and (b) the permitted licensee[,] and licensees who are authorized
13 under this chapter to cultivate [and] or process adult-use cannabis, to
14 showcase their adult-use cannabis and cannabis products, for a tempo-
15 rary period of time, at a cannabis showcase event. The permittee shall
16 offer for sale the adult-use cannabis and adult-use cannabis products
17 cultivated or processed by the licensees authorized on the permit to
18 showcase at such cannabis showcase event, provided, however, the permit-
19 tee shall not be limited to selling the products of such authorized
20 licensees.
21 4. All adult-use cannabis and cannabis product sales at a cannabis
22 showcase event shall be executed by the permittee. No other licensee,
23 person or entity shall be authorized to engage in cannabis or cannabis
24 product sales at a cannabis showcase event.
25 5. A separate cannabis showcase event permit shall be required for
26 each showcase event at which a cannabis showcase event is being held.
27 [5.] 6. A separate cannabis showcase event permit shall be required
28 for each licensee authorized under this chapter to conduct retail sales
29 of adult-use cannabis and cannabis products.
30 7. In the event a cannabis showcase event contains more than one
31 permittee, each permittee shall nevertheless be required to partner with
32 at minimum one cultivator, pursuant to subdivision two of this section.
33 8. Each permittee shall be limited to partnering with no more than one
34 licensed processor for each licensed cultivator authorized on their
35 cannabis showcase event permit application.
36 9. No cannabis showcase event permit shall authorize more than one
37 cannabis showcase event at one time. A licensee may participate in more
38 than one cannabis showcase event so long as each cannabis showcase event
39 has a corresponding separate cannabis showcase event permit.
40 [6.] 10. Notwithstanding any other provision of this chapter, a canna-
41 bis showcase event permit shall be valid for no more than fourteen days.
42 [7.] 11. The board may set reasonable fees for cannabis showcase event
43 permits. Such fees may be based on [the type of] cannabis showcase event
44 permit [sought,] size, length, duration, or any other factors deemed
45 reasonable and appropriate by the board to achieve the policy and
46 purpose of this chapter.
47 [8.] 12. Permitted licensees shall comply with all reporting require-
48 ments, including required sales reporting, and all other requirements
49 set forth in regulations[, and any]. Any noncompliance by such permitted
50 licensees or licensees authorized on the permit to showcase shall
51 subject such [permitted] licensees to applicable fees, fines and penal-
52 ties.
53 [9.] 13. The board shall promulgate regulations to implement this
54 section.
55 § 2. Section 2 of a chapter of the laws of 2024 amending the cannabis
56 law relating to authorizing a cannabis showcase event permit, as
A. 418 3
1 proposed in legislative bills numbers S. 9679-A and A. 10398-A, is
2 amended to read as follows:
3 § 2. This act shall take effect [immediately] on the one hundred twen-
4 tieth day after it shall have become a law. Effective immediately, the
5 addition, amendment, and/or repeal of any rule or regulation necessary
6 for the implementation of this act on its effective date are authorized
7 to be made and completed on or before such date.
8 § 3. This act shall take effect immediately; provided, however, that
9 section one of this act shall take effect on the same date and in the
10 same manner as a chapter of the laws of 2024 amending the cannabis law
11 relating to authorizing a cannabis showcase event permit, as proposed in
12 legislative bills numbers S. 9679-A and A. 10398-A, takes effect.
