S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3151
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2025
                                ___________
 
 Introduced  by  Sens. COONEY, BAILEY, CLEARE, COMRIE, FERNANDEZ, PARKER,
   RAMOS, SALAZAR, SCARCELLA-SPANTON -- read twice and  ordered  printed,
   and  when  printed  to be committed to the Committee on Investigations
   and Government Operations
 
 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.

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

 S. 3151                             2
 
   §  3.  Subdivisions  2  and  3  of  section 14 of the cannabis law are
 amended to read as follows:
   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].
 S. 3151                             3
 
   §  6.  Subdivision 1-a of section 63 of the cannabis law is amended to
 read as follows:
   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:
 S. 3151                             4
 
   §  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
 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.