Senate Bill S9442

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9442
 
                             I N  S E N A T E
 
                               May 15, 2024
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the cannabis law, in relation to adult-use cultivators
 
   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 cultivator fairness 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 hemp farmers.
 Only certain New York hemp farmers were eligible to receive  conditional
 adult-use cultivation licenses. 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  chal-
 lenges  with  the  implementation  of  various components of the state's
 cannabis markets. Specifically, conditional cultivators cannot afford to
 process their cannabis or sell their finished products; and  conditional
 cultivators  and  processors are struggling with limited state-legal and
 licensed retail outlets and significant  competition  from  the  illicit
 market. The conditional adult-use cultivator and processor licenses were
 designed  to  give a new economic opportunity and advantage for New York
 hemp farmers but have unfortunately resulted in worse economic prospects
 for New York hemp farmers, through no fault of  their  own.  Conditional
 adult-use  cultivators  were  also  disadvantaged in the latest round of
 adult-use applications and licenses, as conditional  adult-use  cultiva-
 tors  were  prohibited  from seeking certain canopy Tiers of cultivation
 licenses that are available to all other applicants and were required to
 compete with the general population for a limited  number  of  adult-use
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15620-01-4
 S. 9442                             2
 
 processor  licenses  despite  an advantage in the conversion application
 process provided to such conditional adult-use cultivators in the  Mari-
 juana  Regulation  and  Taxation  Act. As a result of the foregoing, New
 York's  former  conditional  adult-use cultivator licensees, who have or
 are in the process transitioning to adult-use cultivators, are  entitled
 to certain benefits enumerated herein.
   §  3.  Section  68-c  of  the  cannabis law is amended by adding a new
 subdivision 16 to read as follows:
   16. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS ARTICLE OR  ASSO-
 CIATED  REGULATIONS, ANY ADULT-USE CULTIVATOR LICENSEE THAT WAS FORMERLY
 A CONDITIONAL ADULT-USE CULTIVATOR LICENSEE MAY, IN ITS SOLE  DISCRETION
 AND  WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION, ELECT
 TO CULTIVATE UP TO TWENTY-FIVE THOUSAND SQUARE FEET OF FLOWERING  CANOPY
 IN  A GREENHOUSE OR AQUAPONICS FACILITY, DEFINED AS A MIXED LIGHT TIER 3
 UNDER 9 NYCRR § 120.3(B)(2)(III), WITH IMMEDIATE  AUTHORIZATION  TO  USE
 UNLIMITED  ARTIFICIAL  LIGHTING  IN  ACCORDANCE  WITH  ANY ENVIRONMENTAL
 SUSTAINABILITY STANDARDS AS MAY BE SET OUT BY THE  BOARD  IN  REGULATION
 WITHIN. ANY ELIGIBLE ADULT-USE CULTIVATOR LICENSEE THAT ELECTS TO UNDER-
 TAKE SUCH OPTION WILL BE RESPONSIBLE FOR THE DIFFERENCE IN THE FEE ASSO-
 CIATED  WITH  ITS  CURRENT  CANOPY AND THE FEE ASSOCIATED WITH THE NEWLY
 ELECTED CANOPY UNDER 9 NYCRR § 120.4(A)(2).
   § 4. This act shall take effect immediately.