ALBANY — The state Cannabis Control Board is poised to pass a measure Wednesday that would temporarily allow marijuana industry stakeholders to sell stockpiled crops at venues such as fairs, festivals, concerts and other events.
The emergency measure is intended, in part, to provide relief to the cultivators, processors and retail license holders who have been stung by the state’s slow rollout of marijuana legalization. They would each receive revenue from the “growers’ showcase” events, with the retail license holders already equipped and trained to sell marijuana that is taxed.
Proponents of the showcase event sales have noted that it would also allow networking to begin between the farmers, processors and retail license holders who have been stuck in neutral for months when it comes to sales. The events would be limited to venues in municipalities that allow cannabis sales and also be subject to local zoning requirements.
The retail rollout has been further harmed by the proliferation of illicit marijuana shops that have exploded across the state. They have been fueled, in part, by the lawmakers’ decision to immediately legalize marijuana possession when the law was passed in April 2021 — long before the retail market would begin taking shape.
The Times Union reported in May that dozens of farmers who received conditional licenses to cultivate the first crops for New York’s retail marijuana market have been unable to sell thousands of pounds of product they grew last year because of the languishing set up the industry. Retail license holders who have been unable to open stores due to bureaucratic blockades also have been impacted by the delays, including many who invested in up-front costs to buy or convert properties for use as a cannabis store.
Many of the farmers have grown cannabis they cannot sell because only 20 retail or delivery only stores have opened since New York legalized marijuana two years ago. Many have been are in dire financial situations at a time when they are supposed to be growing this year’s crops. The state has not yet allowed indoor growing, which has exacerbated the situation.
Assemblywoman Donna A. Lupardo, chair of the Assembly’s Committee on Agriculture, called the board’s expected action on Wednesday “welcome news.”
Lupardo had introduced a bill earlier this year that would also allow New York’s more than 200 licensed growers — many of whom operate small farms — to sell their crops to tribal nations across the state. Several tribal nations have supported the proposal, but Gov. Kathy Hochul has not taken action on the legislation.
“I am anxious however to see what rules will need to be followed, hoping they are not too complicated or onerous,” Lupardo said of the showcase events. “I would urge the (state Office of Cannabis Management) to move as quickly as possible to help alleviate the cannabis over-supply problem and encourage the governor to greenlight the tribal nations bill.”
That proposal is complicated because laws may prevent the sale of New York-grown marijuana outside of the state. The tribal nations are separate political entities and many are already have marijuana growing, processing and retail businesses within their boundaries that are not regulated by New York.
Lupardo has noted that some tribal nations already are buying marijuana and related products that are being produced in other states or in Canada.
The Shinnecock Indian Nation on Long Island issued a memo in support of legalizing temporary cannabis sales to tribal nations, saying it is “critically important as conditional adult-use cultivator and processor licensees have a substantial amount of cannabis that has been grown, tested, packaged, sealed and ready for sale with a shelf life that is about to expire.”
The state’s efforts to accelerate the pace of the retail marketplace follows new regulations intended to strengthen enforcement efforts against the thousands of unlicensed shops that have competed with law-abiding sellers. The rules empowered the Office of Cannabis Management to work with police agencies to seize illegal product, issue fines or close shops that are not in compliance.
Allan Gandelman, president of the Cannabis Association of New York, previously said he was very supportive of the plan to allow pop-up sale events that would give farmers a venue to sell their products and retail licensees the ability to facilitate those sales and share in the revenues.
He said setting up sales at the New York State Fair that begins in August in Syracuse “would be amazing,” though it remains unclear how quickly the Office of Cannabis Management will issue the regulations allowing showcase event sales.
H/T: www.timesunion.com
