BILL NUMBER: S7354

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the cannabis law, in relation to extending certain
authorizations to minimally process and distribute cannabis products

 
PURPOSE:

The purpose of this bill is to extend the authorization of Chapter 18 of
2022 for one additional year.

 
SUMMARY OF PROVISIONS:

Section 1 would amend section 88-c to the Cannabis Law to extend a
conditional adult-use cultivator license for one year. This conditional
license would permit licensees to temporarily cultivate adult-use canna-
bis outdoors, or in a greenhouse with up to twenty artificial lights
unless otherwise authorized by OCM. The license caps the amount of
cannabis that may be grown based on the square footage of the flowering
canopy, and is valid until June 30th 2024. Eligible applicants would
              

need to have possessed a valid industrial hemp grower authorization from
the Department of Agriculture and Markets as of December 31, 2021, be in
good standing, and have grown and harvested hemp for at least two of the
last four years. Licensees would be temporarily allowed to minimally
process and distribute cannabis products without needing a separate
processor or distributor license, provided that such products are in the
form of cannabis flower, until June 1, 2024, at which point any condi-
tional adult-use cultivator seeking to process and distribute cannabis
products shall be required to apply for and receive a processor and/or
distributor license to continue to conduct this activity. Conditional
cannabis cultivation would only be permitted within the same or an adja
cent county in which the conditional adult-use cultivator licensee had
previously been authorized by the Department of Agriculture and Markets
to grow hemp.

Section 2 would amend section 69-a to the Cannabis Law to extend a
conditional adult-use processor license that would permit licensees to
temporarily manufacture or process cannabis products, which would be
valid until June 30th 2024. Eligible applicants would need to have
applied for a cannabinold hemp processor license as of December 31,
2021, and hold such license when applying. Licensees would only be
allowed to produce extracts if already permitted to do so under their
existing hemp processor license. The conditional processing of cannabis
would only be permitted at the same location in which the conditional
adult-use processor licensee is authorized to process hemp, unless
expressly authorized by OCM. Conditional processor licensees would have
the authority to distribute cannabis Products without holding an adult-
use distributor until June 1, 2024, at which point any conditional
processor seeking to distribute cannabis products would be required to
apply for and receive a distributor license.

Section 3 effective date

 
JUSTIFICATION:

This bill Is necessary to allow for the cannabis Industry to keep func-
tioning in lieu of formal application processes being developed and
instituted by the governing state agency. This legislation is vital to
protectt those cultivatom and processors that have invested in this
burgeoning Industry in New York.

 
LEGISLATIVE HISTORY:;

New Bill

 
BUDGET IMPLICATIONS:

 
EFFECTIVE DATE:;
This act shall take effect immediately; provided, however, that the
amendments to subdivision 6 of section 68-c and subdivision 6 of section
69-a of the cannabis law made by sections one and two of this act shall
not affect the expiration of such sections and shall be deemed to repeal
therewith.