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.