So far May has been quite interesting for New York’s cannabis community! We’ve had proposed regs come out from the OCM, industry stakeholders coming together to search for solutions to the problems undermining the program, and more. Here’s a recap of the biggest news:
I published another article in the Cannabis Insider!
May 19, 2023
Brief Summary: Not really breaking news, but my latest article was published last week in the New York Cannabis Insider. Titled “Pyrrhus, pot, and the state of possibilities,” in it I warn against leaping before you look and “winning yourself to defeat” chasing the cannabis dream. Just my way of warning folks as we approach another licensing window that not all roads in the industry end in pots of gold and sometimes just broken hearts (and bank accounts) alike.
NY Cannabis Insider Hosts Problems and Solutions Summit
May 18, 2023
Brief Summary: NY Cannabis Insider hosted a Problems and Solutions summit which brought together 200 stakeholders to discuss NY’s issues and ways forward. I’m sure we will see interesting proposals taken on a more formalized form in the days ahead.
Accountants accuse state of monopoly
May 17, 2023
Brief Summary: It was made public that 45 members of the New York State Society of Certified Public Accountants sent a letter claiming that the Dormitory Authority of the State of New York (DASNY) is seemingly endorsing exclusive control over accounting practices for cannabis dispensaries. CAURD licensees, the letter claims, are being told to work with one specific accounting and advisory firm or risk looking access to the social equity fund.
New Proposed Regulations Released
May 11, 2023
Brief Summary: The Office of Cannabis Management releases updated rules and regulations that are now subject to a public comment period. The meeting became tense at moments as members of the CCB and OCM sparred on proposed regulations and progress. Among the changes, the new rules revamp the investor limits on what constitutes a “True Party of Interest,” gives the OCM more discretion on buffer zones, allows the bigger ROs to sell cannabis after 12/29 (as opposed to 3 years as was previously the case), and grants dispensaries the right to host onsite consumption spaces. The OCM also released its Social and Economic Equity Plan though CCB board member Reuben McDaniel criticized it for lacking action items.
CANY alleges conflict of interest around Reuben McDaniel
May 11, 2023
Brief Summary: The New York Cannabis Association penned a letter to the Office of Cannabis Management (OCM), the Cannabis Control Board (CCB), the Dormitory Authority of the State of New York (DASNY), and the office of Governor Hochul, alleging to a conflict of interest related to CCB Board Member Reuben McDaniel who is also Executive Director of DASNY. The correspondence also expressed concerns about the DASNY and its failure to properly manage the Social Equity Cannabis Investment Fund. The underfunded fund was developed to finance the identification, leasing, and establishment of 150 Cannabis Adult-Use Retail Dispensary (CAURD) locations throughout the state.
CAURD Licensees Speak Up
May 10, 2023
Brief Summary: A handful of CAURD licensees send a letter alleging lack of transparency and communication from the Dormitory Authority of the State of New York (DASNY) which is supposed to be working with CAURD applicants to secure retail locations.
Cornell release manual for growing cannabis
May 4th, 2023
Brief Summary: Cornell released their “New York State Cannabis sativa L. Production Manual” which I suggest everyone check out because it’s a great resource.
Training and Education
May 4th, 2023
Brief Summary: James Rogers, OCM Director of Business Development, suggests that New York State is creating a direct path from the state’s 10-week Cannabis Compliance Training and Mentorship Program – which is aimed at legacy operators – to receiving a license. The state also announced it is building 10 centers across New York State for potential cannabis entrepreneurs to receive help planning their businesses and applying for licenses.
Governor Hochul Strikes Back
May 3rd, 2023
Brief Summary: Governor Kathy Hochul has signed new legislation that intensifies civil and tax penalties for unlicensed and illicit cannabis sales in New York, included in the FY 2024 Budget. This law empowers the Office of Cannabis Management to levy up to $20,000 a day in fines for severe violations, perform enhanced regulatory inspections, and seize untested products. It also allows the Department of Taxation and Finance to conduct inspections to ensure tax compliance and levy penalties for non-compliance. The legislation also criminalizes deliberate evasion of required cannabis tax collection or sales of untaxed cannabis. Indirect sellers like “sticker shops” are also targeted, and legal actions can be pursued against unlicensed commercial tenants. Critics claim it’s the start of a new war on drugs while others argue the measures don’t go far enough to combat the illicit market.
And that’s a wrap! More exciting developments forthcoming in the next issue.
Cheers,
Mike