NY State Senate Bill 2023-S6470

Senate Bill S6470

2023-2024 Legislative Session

Authorizes conditional adult-use cultivator licensees to sell their own cannabis products and authorizes the office of cannabis management to create a program for licensees to process cannabis into distillate

download bill text pdf

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to investigations and government operations
Apr 21, 2023	referred to investigations and government operations

2023-S6470 (ACTIVE) - Details

See Assembly Version of this Bill:: A6593
Current Committee:: Senate Investigations And Government Operations
Law Section:: Cannabis Law
Laws Affected:: Amd §68-c, Cannabis L

2023-S6470 (ACTIVE) - Summary

Authorizes conditional adult-use cultivator licensees to sell their own cannabis products; authorizes the office of cannabis management to create a loan or grant program to help such adult-use cultivator licensees to process cannabis into distillate.

2023-S6470 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6470

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the cannabis law, in relation to authorizing conditional
adult-use cultivator licensees to sell their own cannabis products and
authorizing the office of cannabis management to create a loan or grant
program to help such adult-use cultivator licensees to process cannabis
into distillate

 
PURPOSE:

The purpose of this legislation, know as the "Cannabis Crop Rescue Act,"
is to provide the opportunity for conditional adult-use cultivator
licensees to sell or have processed unsold cannabis products.

 
SUMMARY OF PROVISIONS:

Section 1: Establishes the title of the bill, the "Cannabis Crop Rescue
Act."

Section 2: Legislative findings.

Section 3: Amends section 68-c of the Cannabis Law by adding two new
subdivisions 16 and 17.

Section 4: Clarifies that a conditional adult-use cultivator licensee
may operate under either new subdivision until September 30, 2023.

Section 5: Establishes the effective date.

 
JUSTIFICATION:

Chapter 18 of the laws of 2022 created the conditional adult-use culti-
vator license. This license allows select fanners to grow cannabis for
the purpose of adult-use under conditional regulations for a temporary,
2-year growing period. These licenses were offered with the understand-
ing that growers would not be permitted to sell their product outside of
state lines, but that a robust state market would exist during the
conditional license timeframe Due to a variety of circumstances beyond
the control of New York's cannabis farmers, many licensees are unable to
sell their finished products or afford to process their cannabis. As a
result, their 2022 crops are losing potency, color, and aroma in stor-
age, greatly reducing their value. Without the ability to sell their
product, many are in severe financial distress and will be unable to
afford to plant a crop this vowing season.

This bill authorizes certain emergency solutions to protect New York's
cannabis growers and industry to ensure a healthy local cannabis economy
into the future. These solutions include allowing for conditional
adult-use cultivator licensees to allow on-farm sales for some cannabis
products; and the authorization of a loan or grant from OCM for growers
to use to process their product.  The conditional license will expire
for all licensee holders in 2024, and these solutions will not be
authorized for use after that time and only provides these options for
cannabis products grown prior to September 30, 2023.

 
LEGISLATIVE HISTORY:
This is new legislation.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S6470 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6470
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 2023
                                ___________
 
 Introduced  by  Sen. HINCHEY -- 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 authorizing conditional
   adult-use cultivator licensees to sell their own cannabis products and
   authorizing the office of cannabis management  to  create  a  loan  or
   grant  program  to help such adult-use cultivator licensees to process
   cannabis into distillate
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "cannabis
 crop rescue act".
   § 2. Legislative findings. Chapter 18 of the laws of 2022 created  the
 conditional  adult-use  cultivator  license. Due to a variety of circum-
 stances beyond the control of New York's cannabis farmers,  many  licen-
 sees  cannot  afford  to  process  their cannabis or sell their finished
 products. As a result, their 2022 crops are losing value while in  stor-
 age due to diminished potency, color and aroma.  Without sales, many are
 unable  to  plant  a  crop  for  the upcoming growing season, and are in
 severe financial stress.
   § 3. Section 68-c of the cannabis law is amended  by  adding  two  new
 subdivisions 16 and 17 to read as follows:
   16. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, A CONDITIONAL
 ADULT-USE  CULTIVATOR  LICENSEE SHALL BE AUTHORIZED TO SELL THEIR OWN OR
 ANOTHER CONDITIONAL  ADULT-USE  CULTIVATOR  LICENSEE  HOLDER'S  CANNABIS
 PRODUCTS  DIRECTLY TO CONSUMERS UNTIL NO LATER THAN SEPTEMBER THIRTIETH,
 TWO THOUSAND TWENTY-THREE. SUCH AUTHORITY SHALL ALLOW FOR ON-FARM  SALES
 OF  TESTED,  PACKAGED  AND SEALED PRODUCTS.  THE OFFICE IS AUTHORIZED TO
 ISSUE EMERGENCY REGULATIONS, IF NECESSARY, TO  IMPLEMENT  THIS  SUBDIVI-
 SION.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10606-05-3
 S. 6470                             2

 
   17. THE OFFICE IS AUTHORIZED TO CREATE A LOAN OR GRANT PROGRAM FOR THE
 PURPOSE  OF  HAVING  ANY  CANNABIS  GROWN  UNDER A CONDITIONAL ADULT-USE
 CULTIVATOR LICENSE PRIOR TO SEPTEMBER THIRTIETH,  TWO  THOUSAND  TWENTY-
 THREE  PROCESSED  INTO  DISTILLATE.  THE  END-PRODUCT OF SUCH PROCESSING
 SHALL BE RETURNED TO THE LICENSEE FOR FUTURE USE.
   § 4. A conditional adult-use cultivator licensee may select to operate
 under  subdivisions  16 and 17 of section 68-c of the cannabis law until
 September 30, 2023.
   § 5.  This act shall take effect immediately; provided, however,  that
 the amendments to section 68-c of the cannabis law made by section three
 of  this  act  shall  not affect the repeal of such section and shall be
 deemed repealed therewith.

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