NY State Senate Bill 2025-S8189

Senate Bill S8189

2025-2026 Legislative Session

Authorizes a microbusiness licensee to change their license type to an adult use cannabis cultivation license, upon the approval of the office of cannabis management

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 20, 2025	referred to investigations and government operations

2025-S8189 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Cannabis Law
Laws Affected:: Amd §73, Cannabis L

2025-S8189 (ACTIVE) - Summary

Authorizes a microbusiness licensee to change their license type to an adult use cannabis cultivation license, upon the approval of the office of cannabis management; directs the office to promulgate regulations allowing a microbusiness licensee to be licensed and operate without opening a retail storefront.

2025-S8189 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8189

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the cannabis law, in relation to microbusiness licenses

 
PURPOSE:

To allow microbusiness licensees to convert to an adult use cannabis
cultivation license.

 
SUMMARY OF PROVISIONS:

Section one adds two new paragraphs to section 73 of the cannabis law,
which grant OCM the authority to allow microbusiness licensees to
convert their license into an adult use cultivation license. If a micro-
business licensee wishes to convert, they have to relinquish control
over any property they obtained for the purpose of adult use retail
sales. In addition, this bill authorizes OCM to allow for a cultivation
only microbusiness for those licensees that do not plan on opening a
retail storefront.

Section two state the effective date.

 
JUSTIFICATION:

This bill would authorize current microbusinesses to relinquish poten-
tial retail locations in order to convert to a cultivation license. The
Office of Cannabis Management authorized cultivators to change their
license type from cultivation to microbusiness during the 2023 applica-
tion period. Many cultivators sought to do so, due to the lower cost of
business, the reduced applidtioii fee and uncertainty surrounding the
market. The market dynamic has since changed: more supply is needed and
the opportunities to secure the retail storefronts necessary to operate
as microbusinesses are dwindling. Many cultivators that became micro-
businesses did so out of financial need, and with the market expanding,
wish to forego any retail business and focus on their expertise in
cultivation.  Currently, there is no mechanism by which a microbusiness
can become a cultivation license.

This bill would create this mechanism by granting the Office of Cannabis
Management the authority to recognize this type of license transition.
This change would also benefit microbusinesses that become successful in
developing their craft brand and allow them to seek additional canopy
through transitioning to a cultivation license. Finally, this bill would
authorize the Office of Cannabis Management to allow for a cultivation
only microbusiness for those licensees that do not plan on opening a
retail storefront.  Authorizing a cultivation only microbusiness license
would reduce barriers to entry for persons of color and clarify that
microbusinesses that operate only as cultivators are subject to culti-
vation and not retail regulations.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8189 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8189
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 20, 2025
                                ___________
 
 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 microbusiness licenses
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 73 of the cannabis law is amended by adding two new
 subdivisions 4 and 5 to read as follows:
   4.  LICENSEES  UNDER  THIS  SECTION  MAY, UPON APPROVAL BY THE OFFICE,
 CHANGE THEIR LICENSE TYPE  FROM  MICROBUSINESS  TO  ADULT  USE  CANNABIS
 CULTIVATION.    A  LICENSEE UNDER THIS SECTION WHO CHANGES THEIR LICENSE
 TYPE TO ADULT USE CANNABIS CULTIVATION SHALL BE REQUIRED  TO  RELINQUISH
 CONTROL,  IF ESTABLISHED, OVER ANY PROPERTY OBTAINED FOR THE PURPOSES OF
 CONDUCTING ADULT USE RETAIL SALES IN ACCORDANCE WITH THIS  SECTION.  THE
 OFFICE MAY ALLOW SUCH LICENSEE TO MAINTAIN AN INTEREST IN THE REAL PROP-
 ERTY  IF  THE  LICENSEE DEMONSTRATES, TO THE SATISFACTION OF THE OFFICE,
 THAT SUCH REAL PROPERTY WILL NOT BE UTILIZED BY  THE  LICENSEE  FOR  THE
 PURPOSES  OF  ADULT  USE RETAIL SALES. SUCH PROOF MAY BE SUPPLIED BY THE
 LICENSEE IN THE FORM OF AN ATTESTATION, AFFIRMATION OR OTHER OATH TO THE
 SAME EFFECT.
   5. THE OFFICE SHALL PROMULGATE REGULATIONS  ALLOWING  A  MICROBUSINESS
 LICENSEE UNDER THIS SECTION TO BE LICENSED AND OPERATE WITHOUT OPENING A
 RETAIL  STOREFRONT;  PROVIDED, HOWEVER, THAT NOTHING IN THIS SUBDIVISION
 SHALL AUTHORIZE A LICENSEE UNDER  THIS  SECTION  TO  PROVIDE  DIRECT  TO
 CONSUMER  SALES  WITHOUT OBTAINING A RETAIL STOREFRONT AND APPROVAL FROM
 THE OFFICE TO COMMENCE SALES FROM SUCH STOREFRONT.
   § 2. This act shall take effect immediately.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13185-01-5

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