{"id":83980,"date":"2021-03-31T22:49:31","date_gmt":"2021-04-01T02:49:31","guid":{"rendered":"http:\/\/www.owegopennysaver.com\/PS\/?p=83980"},"modified":"2021-03-31T22:49:31","modified_gmt":"2021-04-01T02:49:31","slug":"governor-signs-legislation-legalizing-adult-use-cannabis","status":"publish","type":"post","link":"http:\/\/www.owegopennysaver.com\/PS\/2021\/03\/31\/governor-signs-legislation-legalizing-adult-use-cannabis\/","title":{"rendered":"Governor signs legislation legalizing adult-use cannabis"},"content":{"rendered":"

Governor Andrew M. Cuomo today signed legislation (S.854-A\/A.1248-A)<\/span> legalizing adult-use cannabis<\/span>, fulfilling a key component of his 2021 State of the State agenda<\/span>. The bill signing comes after the Governor, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie announced this past Sunday, March 28, that an agreement <\/span>had been reached<\/span> on the legislation. <\/span><\/p>\n

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The bill establishes the Office of Cannabis Management to implement a comprehensive regulatory framework that covers medical, adult-use and cannabinoid hemp. The bill also expands New York State’s existing medical marijuana and cannabinoid hemp programs. The legislation provides licensing for marijuana producers, distributors, retailers, and other actors in the cannabis market, and creates a social and economic equity program to assist individuals disproportionately impacted by cannabis enforcement that want to participate in the industry.<\/span><\/p>\n

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The development of an adult-use cannabis industry in New York State under this legislation has the potential to create significant economic opportunities for New Yorkers and the State. Tax collections from the adult-use cannabis program <\/span>are projected<\/span> to reach $350 million annually. Additionally, there is the potential for this new industry to create 30,000 to 60,000 new jobs across the State. <\/span><\/p>\n

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“This is a historic day in New York – one that rights the wrongs of the past by putting an end to harsh prison sentences, embraces an industry that will grow the Empire State’s economy, and prioritizes marginalized communities so those that have suffered the most will be the first to reap the benefits.” <\/span>Governor Cuomo said<\/span>. “This was one of my top priorities in this year’s State of the State agenda and I’m proud these comprehensive reforms address and balance the social equity, safety and economic impacts of legal adult-use cannabis. I thank both the Leader and the Speaker, and the tireless advocacy of so many for helping make today’s historic day possible.”<\/span><\/p>\n

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The Governor has included legalizing adult-use cannabis in his last three budget proposals.<\/span><\/p>\n

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The New York State Cannabis\/Marijuana Regulation & Taxation Act contains the following provisions:<\/span><\/p>\n

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Establish the Office of Cannabis Management: <\/span>The Office of Cannabis Management will<\/span> be charged with enforcing a comprehensive regulatory <\/span>framework governing medical, adult<\/span>-use cannabinoid hemp. It will <\/span>be governed by a five-member board, with three members appointed by the Governor and one appo<\/span>intment by each house. OCM will be an independent office operating as part of the New York State Liquor Authority.<\/span><\/p>\n

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Medical Cannabis: <\/span>The legislation will<\/span> allow people with a larger list of medical conditions to access medical marijuana, increase the number of caregivers allowed per patient, and permit home cultivation of medical cannabis for patients.<\/span><\/p>\n

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Adult-Use Cannabis: <\/span>The legislation will create a two-tier<\/span> licensing structure that will allow for a large range of producers by separating those growers and processors from also owning retail stores. The legislation creates licenses for producers and distributors, among other entities, and the legislation will implement strict quality control, public health and consumer protections. A social a<\/span>nd economic equity program will<\/span> facilitate individuals disproportionally impacted by cannabis enforcement, including creating a goal of 50% of licenses to go to a minority or woman owned business enterprise, or distressed farmers or service-disabled veterans to encourage participation in the industry.<\/span><\/p>\n

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The Bill implements a new can<\/span>nabis tax structure that will<\/span> replace a weight-based tax with a tax per mg of THC at the distributor level with different rates depending on final product type. The wholesale excise tax <\/span>will<\/span> be moved<\/span> to the retail level with a 9 percent state excise tax.<\/span> The local excise tax rate will be 4 percent of the retail price. Counties will receive 25% of the local retail tax revenue and 75 percent will go to the municipality.<\/span><\/p>\n

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Cannabinoid Hemp: <\/span>The legislation <\/span>permits<\/span> the sale of hemp flower in the cannabinoid hemp program, and allow<\/span>s<\/span> for <\/span>smokeable forms only when adult use retail stores are operational.<\/span><\/p>\n

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Adult-Use Cannabis Tax Revenue: <\/span>All cannabis taxes <\/span>will<\/span> be deposited in the New York state cannabis revenue fund. Revenue covers reasonable costs to administer the program and implement the law. The remaining funding will <\/span>be split three ways:<\/span><\/p>\n