BILL NUMBER: S3151
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the cannabis law and the state finance law, in relation
to enacting the "cannabis adult-use transition act"
 
PURPOSE:
The purpose of this legislation, know as the "Cannabis Adult-Use Transi-
tion Act," is to increase safe and legal retail access for New York
consumers while the State continues to move toward full implementation
of the Marijuana Regulation and Taxation Act.
 
SUMMARY OF PROVISIONS:
Section 1: Establishes the title of the bill, the "Cannabis Adult Use
Transition Act."
Section 2: Legislative findings and intent.
Section 3: Amends Section 14 of the cannabis law to expand the represen-
tation on the Cannabis Advisory Board.
Section 4: Makes clarifications to Subdivision 3(c) of Section 99-ii of
the State Finance Law related to the OCM's implementation of social and
economic equity programs.
Section 5: Makes technical changes to Section 39 of the Cannabis Law.
Section 6: Amends Subdivision 1-a of Section 63 of the Cannabis Law
related to the transition of registered organizations into the adult-use
cannabis market.
Section 7. Amends Section 68-c of the Cannabis Law and adds new subdivi-
sions 16 and 17.
Section 8. Amends Section 72 of the Cannabis Law to clarify retail
dispensary setbacks.
Section 9. Establishes a new Section 85-a to establish timelines and
transparency for CAURD licensees.
Section 10. Establishes the effective date.
 
JUSTIFICATION:
In 2021, New York passed the Marijuana Regulation and Taxation Act,
which legalized and regulated cannabis for adult-use in the state. In
response to the delays in licensing, Chapter 18 of the laws of 2022
created the conditional adult-use cultivator and processor licenses to
jump start New York's adult-use cannabis market with New York farmers.
Due to a variety of circumstances beyond the control of New York's
cannabis licensees and applicants, there have been delays and unforeseen
challenges with the implementation of various components of the state's
cannabis marketplace and industry ecosystem. Conditional cultivators
cannot afford to process their cannabis or sell their finished products;
conditional processors are struggling with limited retail outlets open;
conditional adult-use retail dispensary licensees and applicants do not
have ready and timely access to capital, locations, or the resources
they need to become operational; and the state's medical registered
organizations and patients are facing a diminishing medical cannabis
market. As a result, the state's cannabis industries are losing value
and jobs, patients are being left behind, and the illicit market is
growing.
This retail-side focused bill reflects the need to amend the existing
cannabis statute in order to address the critical needs of retail entre-
preneurs and industry workers.
This bill: extends the members of the Cannabis Advisory Board to seven-
teen members; expands the retail outlets available to farmers pending a
more comprehensive adult-use cannabis roll out; mandates CAURD licensees
be provided with the support and resources envisioned in the MRTA; and
clarifies the registered organizations' transition into the adult-use
cannabis program.
There are additional policy changes needed in the cannabis industry, but
this bill attempts to address the most critical needs for the active
retail licensees and workforce. New York State cannot wait to make these
necessary changes or there may not be a legal market left to change.
 
LEGISLATIVE HISTORY:
2023-24: S.70458
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to section 68-c of the cannabis law made by section seven of
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.

Statutes affected:
S3151: 99-ii state finance law, 99-ii(3) state finance law, sixty-three cannabis law, 63 cannabis law, 63(1-a) cannabis law, 72 cannabis law, 72(6) cannabis law