A10398 Summary:

SPONSORRules (Lupardo)
COSPNSRPeoples-Stokes, Stirpe, Woerner
Add §130-a, Cannabis L
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.
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A10398 Actions:

05/21/2024referred to economic development
05/30/2024amend and recommit to economic development
05/30/2024print number 10398a
06/07/2024reference changed to ways and means
06/07/2024reported referred to rules
06/07/2024rules report cal.654
06/07/2024substituted by s9679a
 06/06/2024PASSED SENATE
 06/06/2024referred to economic development
 06/07/2024substituted for a10398a
 06/07/2024ordered to third reading rules cal.654
 06/07/2024passed assembly
 06/07/2024returned to senate
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A10398 Floor Votes:

There are no votes for this bill in this legislative session.
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A10398 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
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.
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A10398 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                      May 21, 2024
        Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Lupardo,
          Peoples-Stokes, Stirpe) -- read once and referred to the Committee  on
          Economic  Development  --  committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
        AN ACT to amend the cannabis law, in relation to authorizing a  cannabis
          showcase event permit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.  The cannabis law is amended by adding a new section  130-a
     2  to read as follows:
     3    § 130-a. Cannabis showcase event permit. 1. When used in this section,
     4  "cannabis showcase event" shall mean an event where:
     5    a  licensee  authorized to conduct retail sales of adult-use cannabis,
     6  cannabis products, and cannabis merchandise  engages  in  the  sale  and
     7  showcase  of  such  products  away  from the licensed premises in demon-
     8  strated partnership with a licensed New York  state  adult-use  cannabis
     9  cultivator  or processor, at showcase events located at farmers' markets
    10  and public markets as defined in section two hundred sixty of the  agri-
    11  culture  and markets law or similar such locations, as authorized by the
    12  office.
    13    2. A licensee authorized under this chapter to conduct retail sales of
    14  adult-use cannabis may apply to the office for a cannabis showcase event
    15  permit and shall be required to demonstrate that they are in partnership
    16  with a licensed cultivator or processor.  An application for a  cannabis
    17  showcase  event permit shall identify licensees who are authorized under
    18  this chapter to showcase at such cannabis showcase event.
    19    3. A cannabis showcase event permit shall authorize: (a) the permitted
    20  licensee, authorized under this  chapter  to  conduct  retail  sales  of
    21  adult-use  cannabis,  adult-use cannabis products, and cannabis merchan-
    22  dise, and (b) the permitted licensee, authorized under this  chapter  to
    23  cultivate  and  process  adult-use cannabis, to showcase their adult-use
    24  cannabis  and cannabis products, for a temporary period of  time,  at  a
    25  cannabis showcase event.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 10398--A                         2
     1    4.  A  separate  cannabis  showcase event permit shall be required for
     2  each showcase event at which a cannabis showcase event is being held.
     3    5.  No  cannabis  showcase  event permit shall authorize more than one
     4  cannabis showcase event at one time. A licensee may participate in  more
     5  than one cannabis showcase event so long as each cannabis showcase event
     6  has a corresponding separate cannabis showcase event permit.
     7    6.  Notwithstanding  any  other  provision of this chapter, a cannabis
     8  showcase event permit shall be valid for no more than fourteen days.
     9    7. The board may set  reasonable  fees  for  cannabis  showcase  event
    10  permits.  Such  fees may be based on the type of cannabis showcase event
    11  permit sought, size, length,  duration,  or  any  other  factors  deemed
    12  reasonable  and  appropriate  by  the  board  to  achieve the policy and
    13  purpose of this chapter.
    14    8. Permitted licensees shall comply with all  reporting  requirements,
    15  including required sales reporting, and all other requirements set forth
    16  in  regulations, and any noncompliance by such permitted licensees shall
    17  subject such permitted licensees to applicable fees,  fines  and  penal-
    18  ties.
    19    9. The board shall promulgate regulations to implement this section.
    20    § 2. This act shall take effect immediately.
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