S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7646
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 4, 2025
                                ___________
 
 Introduced  by  M.  of A. BRONSON, REYES, CRUZ, ZACCARO -- read once and
   referred to the Committee on Economic Development
 
 AN ACT to amend the cannabis law and the state finance law, in  relation
   to enacting the "cannabis adult-use transition act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "cannabis adult-use transition act".
   §  2. Legislative findings and intent. Chapter 92 of the laws of 2021,
 known as the Marijuana Regulation and Taxation Act, legalized and  regu-
 lated cannabis for adult-use; expanded and improved the medical cannabis
 program and the hemp program; established the Cannabis Control Board and
 the  Office  of  Cannabis Management, and codified historical social and
 economic equity policies. 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 small New York farmers.
   The legislature recognizes that 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  markets.  Conditional
 cultivators  cannot  afford  to  process  their  cannabis  or sell their
 finished products; conditional processors are  struggling  with  limited
 retail  outlets;  conditional  adult-use retail dispensary licensees and
 applicants do not have 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.
   §  3.  Subdivisions  2  and  3  of  section 14 of the cannabis law are
 amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03184-01-5
              

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   2. The state cannabis  advisory  board  shall  consist  of  [thirteen]
 SEVENTEEN voting appointed members, along with a representative from the
 department  of environmental conservation, the department of agriculture
 and markets, the office of children and family services, the  department
 of labor, the department of health, the division of housing and communi-
 ty  renewal,  the  office  of  addiction  services and supports, and the
 department of education, serving as non-voting ex-officio  members.  The
 governor shall have [seven] ELEVEN appointments, the temporary president
 of  the  senate  and  the  speaker of the assembly shall each have three
 appointments to the board.  The members shall be appointed to each serve
 three year terms and in the event of a vacancy,  the  vacancy  shall  be
 filled  in  the  manner of the original appointment for the remainder of
 the term. The appointed members and  representatives  shall  receive  no
 compensation  for  their  services but shall be allowed their actual and
 necessary expenses incurred in the performance of their duties as  board
 members.
   3.  Advisory  board  members shall have statewide geographic represen-
 tation that is  balanced  and  diverse  in  its  composition.  Appointed
 members  shall  have  an  expertise  in  public  and  behavioral health,
 substance use disorder treatment, effective rehabilitative treatment for
 adults and juveniles, homelessness and  housing,  economic  development,
 environmental   conservation,   job  training  and  placement,  criminal
 justice, and drug policy. Further,  the  advisory  board  shall  include
 residents,  ONE  RETAILER,  ONE  CERTIFIED PATIENT, ONE SERVICE DISABLED
 VETERAN, AND ONE SUPPLY TIER LICENSEE from communities most impacted  by
 cannabis  prohibition,  people with prior drug convictions, the formerly
 incarcerated, and representatives from the  farming  industry,  cannabis
 industry, and organizations serving communities impacted by past federal
 and state drug policies.
   §  4.  Paragraph  (c)  of  subdivision 3 of section 99-ii of the state
 finance law, as added by chapter 92 of the laws of 2021, is  amended  to
 read as follows:
   (c)  Actual  and  necessary  costs  incurred by the office of cannabis
 management and the cannabis control board,  and  the  urban  development
 corporation,  related  to  the  administration  of  incubators and other
 assistance to qualified social and economic equity applicants  including
 the administration, capitalization, and provision of low and zero inter-
 est  loans  to  such applicants [pursuant to], INCLUDING THE CONDITIONAL
 ADULT-USE RETAIL DISPENSARY LICENSEES. THE OFFICE OF CANNABIS MANAGEMENT
 SHALL ADMINISTER THESE RESOURCES IN ACCORDANCE WITH  THE  SOCIAL  EQUITY
 AND  ECONOMIC PLAN MANDATED PURSUANT TO ARTICLE FOUR OF THE CANNABIS LAW
 AND IN ACCORDANCE WITH  section  sixteen-ee  of  the  urban  development
 corporation  act.  Such  costs  shall  be paid out of revenues received,
 including, but not limited to, from special one-time fees paid by regis-
 tered organizations pursuant to section sixty-three of the cannabis law.
   § 5. Section 39 of the cannabis law is amended to read as follows:
   § 39. Registered organizations and adult-use cannabis. The board shall
 [have the authority to] grant [some or all of the] registered  organiza-
 tions  [registered  with  the department of health and] currently regis-
 tered and in good standing  with  the  office,  the  ability  to  obtain
 adult-use cannabis licenses pursuant to article four of this chapter AND
 subject  to any [fees, rules or conditions] REGULATION prescribed by the
 board [in regulation].
   § 6. Subdivision 1-a of section 63 of the cannabis law is  amended  to
 read as follows:
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   1-a.  The  [board shall also have the authority to assess a registered
 organization with a] one-time special licensing  fee  for  a  registered
 organization  adult-use cultivator processor, distributor retail dispen-
 sary [license. Such fee shall be assessed at an  amount  to  adequately]
 LICENSED  PURSUANT  TO  SECTION  SIXTY-EIGHT-A OF THIS ARTICLE, SHALL BE
 TWENTY MILLION DOLLARS, AN AMOUNT TO BE USED EXCLUSIVELY TO fund  social
 and  economic  equity  and incubator assistance pursuant to this article
 and paragraph (c) of subdivision three of section ninety-nine-ii of  the
 state  finance  law.  FIVE  MILLION DOLLARS OF SUCH FEE SHALL BE PAYABLE
 UPON LICENSURE, AND ONE MILLION DOLLARS THEREAFTER WITHIN THIRTY DAYS OF
 EACH TWENTY MILLION DOLLARS IN REVENUE GENERATED BY SUCH LICENSEE  UNTIL
 PAID  IN  FULL, OR SUCH OBLIGATION EXPIRES ON DECEMBER THIRTY-FIRST, TWO
 THOUSAND THIRTY-TWO, WHICHEVER OCCURS FIRST.  AT LEAST FIFTY PERCENT  OF
 THE  TOTAL  FEES COLLECTED SHALL BE ADMINISTERED BY THE OFFICE AS GRANTS
 OR ZERO OR LOW  INTEREST  LOANS  TO  THE  CONDITIONAL  ADULT-USE  RETAIL
 DISPENSARY  LICENSEES. CONDITIONAL ADULT-USE RETAIL DISPENSARY LICENSEES
 WHO ACCEPT ZERO OR LOW INTEREST LOANS SHALL BE ALLOWED  TO  PREPAY  SUCH
 LOANS WITHOUT PENALTY. Provided, however, that the board shall not allow
 registered  organizations  to dispense adult-use cannabis from more than
 three of their medical cannabis dispensing locations.  [The  timing  and
 manner  in  which registered organizations may be granted such authority
 shall be determined by the board in regulation.] AN ELIGIBLE  REGISTERED
 ORGANIZATION  SHALL BE AUTHORIZED AS A REGISTERED ORGANIZATION ADULT-USE
 CULTIVATOR PROCESSOR DISTRIBUTOR RETAIL DISPENSARY PURSUANT  TO  SECTION
 SIXTY-EIGHT-A  OF  THIS  ARTICLE  UPON APPROVAL OF AN APPLICATION TO THE
 OFFICE THAT MUST BE AVAILABLE TO SUCH REGISTERED ORGANIZATIONS NO  LATER
 THAN  AUGUST FIRST, TWO THOUSAND TWENTY-FIVE AND REMAIN AVAILABLE THERE-
 AFTER.  THE OFFICE MUST APPROVE OR DENY SUCH APPLICATION  WITHIN  THIRTY
 DAYS  OF  ITS  SUBMISSION  OR  IT SHALL BE DEEMED APPROVED. A REGISTERED
 ORGANIZATION ADULT-USE CULTIVATOR PROCESSOR DISTRIBUTOR  RETAIL  DISPEN-
 SARY  LICENSEE SHALL BE AUTHORIZED TO CULTIVATE, PROCESS, AND DISTRIBUTE
 IN THE ADULT-USE CANNABIS MARKET, PROVIDED HOWEVER, THAT EACH LICENSEE'S
 FIRST CO-LOCATED DISPENSARY  SHALL  NOT  OFFER  ADULT-USE  CANNABIS  FOR
 RETAIL  SALE  UNTIL OR AFTER DECEMBER TWENTY-NINTH, TWO THOUSAND TWENTY-
 FIVE; THE SECOND CO-LOCATED DISPENSARY SHALL NOT OFFER ADULT-USE  CANNA-
 BIS  FOR  RETAIL SALE UNTIL OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
 SIX; AND THE THIRD  CO-LOCATED  DISPENSARY  SHALL  NOT  OFFER  ADULT-USE
 CANNABIS  FOR RETAIL SALE UNTIL OR AFTER APRIL FIRST, TWO THOUSAND TWEN-
 TY-SIX. THESE LICENSEES MUST SUBMIT A PLAN TO THE  OFFICE  DEMONSTRATING
 THEIR  COMMITMENT  TO DIVERSIFYING THE CO-LOCATED DISPENSARY SHELF SPACE
 FOR ADULT-USE WITH CANNABIS  PRODUCTS  FROM  ADULT-USE  CULTIVATORS  AND
 PROCESSORS  LICENSED  PURSUANT  TO  SECTIONS SIXTY-EIGHT, SIXTY-EIGHT-B,
 SIXTY-EIGHT-C, SIXTY-NINE, SIXTY-NINE-A, SEVENTY, AND  SEVENTY-THREE  OF
 THIS  ARTICLE  IN  ACCORDANCE  WITH  ANY  REGULATIONS PROMULGATED BY THE
 BOARD.
   § 7. Subdivision 6 of section 72 of the cannabis  law  is  amended  to
 read as follows:
   6.  No  cannabis retail licensee shall locate a storefront within five
 hundred feet of a school grounds as such term is defined in  the  educa-
 tion  law  or  within  two hundred feet of a house of worship. THE BOARD
 AND/OR OFFICE SHALL NOT ESTABLISH ADDITIONAL SETBACK REQUIREMENTS.
   § 8. The cannabis law is amended by adding a new section 85-a to  read
 as follows:
   §  85-A.  PROVISIONS GOVERNING CONDITIONAL ADULT-USE RETAIL DISPENSARY
 LICENSES. 1. THE OFFICE  SHALL  APPROVE,  DENY,  OR  REQUEST  ADDITIONAL
 INFORMATION  IN  REGARDS  TO  A  CONDITIONAL ADULT-USE RETAIL DISPENSARY
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 LICENSEE'S SUBMISSION FOR  LOCATION  APPROVALS  WITHIN  THIRTY  DAYS  OF
 RECEIPT  OR THE LOCATION REQUEST SHALL BE AUTOMATICALLY APPROVED SO LONG
 AS IT COMPLIES WITH THE SETBACK REQUIREMENTS OF THIS CHAPTER.
   2. THE OFFICE AND DORMITORY AUTHORITY SHALL MAKE THE LIST OF ADDRESSES
 FOR ANY EXECUTED LEASE AGREEMENTS ENTERED INTO AND POTENTIALLY AVAILABLE
 TO  ELIGIBLE  CONDITIONAL ADULT-USE RETAIL DISPENSARY LICENSEES PUBLICLY
 AVAILABLE ON THEIR WEBSITES, AND UPON  REQUEST.    SUCH  LIST  SHALL  BE
 UPDATED  EACH  WEEK  TO  MAXIMIZE THE TRANSPARENCY FOR RETAIL DISPENSARY
 LICENSEES SECURING STORE LOCATIONS AND SHALL NOT INCLUDE  OR  BLOCK  ANY
 LOCATIONS WITHOUT AN EXECUTED LEASE.
   § 9. This act shall take effect immediately.