Authorizes conditional adult-use cultivator licensees to sell their own cannabis products; authorizes the office of cannabis management to create a loan or grant program to help such adult-use cultivator licensees to process cannabis into distillate.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6593
SPONSOR: Lupardo TITLE OF BILL:
An act to amend the cannabis law, in relation to authorizing conditional
adult-use cultivator licensees to sell their own cannabis products and
authorizing the office of cannabis management to create a loan or grant
program to help such adult-use cultivator licensees to process cannabis
into distillate
PURPOSE:
The purpose of this legislation, know as the "Cannabis Crop Rescue Act,"
is to provide the opportunity for conditional adult-use cultivator
licensees to sell or have processed unsold cannabis products.
SUMMARY OF PROVISIONS:
Section 1: Establishes the title of the bill, the "Cannabis Crop Rescue
Act."
Section 2: Legislative findings.
Section 3: Amends section 68-c of the Cannabis Law by adding two new
subdivisions 16 and 17.
Section 4: Clarifies that a conditional adult-use cultivator licensee
may operate under either new subdivision until September 30, 2023.
Section 5: Establishes the effective date.
JUSTIFICATION:
Chapter 18 of the laws of 2022 created the conditional adult-use culti-
vator license. This license allows select farmers to grow cannabis for
the purpose of adult-use under conditional regulations for a temporary,
2-year growing period. These licenses were offered with the understand-
ing that growers would not be permitted to sell their product outside of
state lines, but that a robust state market would exist during the
conditional license timeframe. Due to a variety of circumstances beyond
the control of New York's cannabis fanners, many licensees are unable to
sell their finished products or afford to process their cannabis. As a
result, their 2022 crops are losing potency, color, and aroma in stor-
age, greatly reducing their value. Without the ability to sell their
product, many are in severe financial distress and will be unable to
afford to plant a crop this growing season.
This bill authorizes certain emergency solutions to protect New York's
cannabis growers and industry to ensure a healthy local cannabis economy
into the future. These solutions include allowing for conditional
adult-use cultivator licensees to allow on-farm sales for some cannabis
products; and the authorization of a loan or grant from OCM for growers
to use to process their product. The conditional license will expire for
all licensee holders in 2024, and these solutions will not be authorized
for use after that time and only provides these options for cannabis
products grown prior to September 30, 2023.
LEGISLATIVE HISTORY:
This is new legislation.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6593
2023-2024 Regular Sessions
IN ASSEMBLY
April 20, 2023
___________
Introduced by M. of A. LUPARDO, PEOPLES-STOKES -- read once and referred
to the Committee on Economic Development
AN ACT to amend the cannabis law, in relation to authorizing conditional
adult-use cultivator licensees to sell their own cannabis products and
authorizing the office of cannabis management to create a loan or
grant program to help such adult-use cultivator licensees to process
cannabis into distillate
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "cannabis
2 crop rescue act".
3 § 2. Legislative findings. Chapter 18 of the laws of 2022 created the
4 conditional adult-use cultivator license. Due to a variety of circum-
5 stances beyond the control of New York's cannabis farmers, many licen-
6 sees cannot afford to process their cannabis or sell their finished
7 products. As a result, their 2022 crops are losing value while in stor-
8 age due to diminished potency, color and aroma. Without sales, many are
9 unable to plant a crop for the upcoming growing season, and are in
10 severe financial stress.
11 § 3. Section 68-c of the cannabis law is amended by adding two new
12 subdivisions 16 and 17 to read as follows:
13 16. Notwithstanding any other provision of this section, a conditional
14 adult-use cultivator licensee shall be authorized to sell their own or
15 another conditional adult-use cultivator licensee holder's cannabis
16 products directly to consumers until no later than September thirtieth,
17 two thousand twenty-three. Such authority shall allow for on-farm sales
18 of tested, packaged and sealed products. The office is authorized to
19 issue emergency regulations, if necessary, to implement this subdivi-
20 sion.
21 17. The office is authorized to create a loan or grant program for the
22 purpose of having any cannabis grown under a conditional adult-use
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10606-05-3
A. 6593 2
1 cultivator license prior to September thirtieth, two thousand twenty-
2 three processed into distillate. The end-product of such processing
3 shall be returned to the licensee for future use.
4 § 4. A conditional adult-use cultivator licensee may select to operate
5 under subdivisions 16 and 17 of section 68-c of the cannabis law until
6 September 30, 2023.
7 § 5. This act shall take effect immediately; provided, however, that
8 the amendments to section 68-c of the cannabis law made by section three
9 of this act shall not affect the repeal of such section and shall be
10 deemed repealed therewith.
