Everything you must know about the New York Cannabis Market

New York Cannabis Market
Dillon Dubois

Dillon Dubois

A New York Cannabis Insider has identified that the NY legislature has proposed 106 different cannabis bills. When it comes to cannabis policies, NYS Sen. Diane Savino sees her final legislative session as a complex project to take on.

Five different cannabis-related bills were recently passed into law, which included budget measures to allow cannabis businesses to have generous tax deductions, with some bills related to the Marijuana Regulation and Taxation Act being left out.

New York lawmakers recently proposed 93 cannabis-related bills, and have made some progress on issues facing the legal cannabis market.  Some of the issues include 280E, conditional licenses being created for cultivators, and social equity retailers.  Topics like banking and policy holes are still up for investigation.  

In this blog, we’ll share the current cannabis regulatory bills and potential changes to expect as Governor Kathy Hochul continues to spearhead the New York cannabis market expansion.  

When will New York start accepting  Retail License Applications:

New York cannabis regulators will start accepting New York cannabis retail licenses on August 25th, 2022 according to the Office of Cannabis Management.  This is an important development for the New York cannabis marketplace with projections to exceed $1 billion dollars in the upcoming years.  The license applications will be accepted for a month after the online portal opens with priority given to those impacted by the strict drug laws.

Recent New York Cannabis Regulatory Actions:

Senator Jeremy Cooney has focused his attention on bills requiring that financial institutions must receive information about legal cannabis companies, so that they can assess their financial situation properly.  Cooney also has every intention to re-introduce his bill which he hoped would lead to the creation of personal cannabis cultivation facilities, which would essentially be public gardens for personal-use cannabis. 

Cooney spoke recently on the issue:  “…I’m hearing frustration from the banking community saying, ‘Hey, we want to be involved, we want to be engaged, but we’re not able to do compliance and due diligence.’”  Cooney insisted that more can be done in that regard.

Governor Hochul has released (in addition to budget items that help cannabis businesses pay fewer taxes), conditional cannabis cultivation and processing licenses.  She has also set up a  $200 million social equity fund for New York’s cannabis market. Hochul has spearheaded the opening of New York’s legal cannabis market.

Donna Lupardo, state assembly member, had high praise for the 280E problem solving and the creation of several conditional cannabis licenses in New York.  

Although Lupardo recently failed in her efforts to introduce a bill that would expand “agricultural crops” to include cannabis, she is nonetheless planning to re-submit her motion due to the residual impacts it had on tax assessments. 

“Right now, we have farmers who may be converting from one crop to another, and they are used to getting a tax assessment based on the previous crop”, said Lupardo. “That goes away when they start to grow cannabis. If they’re a new farmer, they’re not eligible for the agricultural assessment.” 

Lupardo also intends to address insurance coverage for medical patients, as medical cannabis isn’t covered in NY.

New York Spends $200 Million on Social Equity Properties:

Cannabis In New York

The local New York cannabis market is getting a $200 million boost, resulting in 150 leased retail properties.  Brokerages like the CBRE Group have started looking for promising locations on behalf of the Dormitory Authority of the State of New York (DASNY).  According to spokesperson Jeffrey Gordon, “….CBRE representatives are looking for good retail locations throughout the state, in municipalities that have opted in to allow retail dispensaries.”

Regulators have granted a firm run by former NBA Sacramento Kings star Chris Webber control over the state’s $200 million Cannabis Social Equity Investment Fund, after which an additional firm will be needed to oversee the construction at each leased location.  The latter decision can be expected to be announced on July 11, 2022.  The properties will be leased for 10-year terms and will be used solely for retail cannabis stores.  The program’s ultimate goal is to have the first social equity retailer open for business by the end of 2022, with all 150 locations having been identified by the 2nd quarter of 2022.

To have any additional questions answered about the ripple effects of the program and much more, click here:

What can you do right now?

At Cannabis License Experts, we provide you with the guidance to plan your cannabis business, acquire funding, navigate the legal requirements, and acquire the appropriate cannabis license for your operations.  As the New York cannabis industry develops, more and more licensed producers will be needed to meet the demands of consumers.

Cannabis License Experts offers support from day one of starting your cannabis business, including strategic planning, floor plan preparation, site audits, SOPs, Preventive Control Plans (PCP), and more.

Our Edibles Compliance division can provide you with a solid plan for your edibles business to help get your products on store shelves.

Contact us today to discover how we can license and legalize your cannabis business to meet federal or provincial regulations.

0/5 (0 Reviews)