Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Gov. Cuomo Outlines Plans to Legalize Adult Use Cannabis in New York
Author: Daniel T. McKillop
Date: January 29, 2019
Key Contacts
Back
Highlights from Gov. Cuomo’s Recently Outlined Plans to Legalize Adult Use Cannabis in New York
Governor Cuomo recently introduced a draft of the “Cannabis Regulation and Taxation Act” (“CRTA”) as part of his new $170 billion budget plan for New York State. CRTA sets forth Governor Cuomo’s plans to legalize adult use cannabis in New York and to implement significant changes to the State’s medical marijuana program and hemp market. Here are some of the highlights.
Oversight of Cannabis in New York
- New York’s cannabis regulatory framework would be administered by a newly established Office of Cannabis Management (OCM).
- OCM would be the first state agency of its kind in America to regulate adult use, medical, industrial hemp and hemp-derived products (such as CBD).
Adult Use
- OCM would issue a discrete number of licenses for producers, processors, cooperatives, distributors and retailers (who can also apply for onsite consumption licenses).
- There would not be a vertical integration requirement, and producers, processors, and distributors would be prohibited from also have any ownership interest in retailers.
- Licensees’ officers and directors would not have to be residents of New York, but they would have to be United State citizens or permanent residents.
- OCM would give licensing priority to businesses owned by minorities, women and struggling farmers.
- Licensees would not be able to transfer their licenses.
- Dispensaries would be limited to selling one ounce of cannabis per consumer per day and five grams of cannabis concentrate per consumer per day.
- Cultivators would be taxed $1 per dry weight gram of cannabis flower and $0.25 per dry weight gram of cannabis trim. Wholesalers would be taxed at a rate of 20% of the invoice price when selling cannabis to retailers. An additional wholesale tax of 2% of the invoice price would be paid to the county in which the retail store is located.
- Larger municipalities and counties would be allowed to disallow adult use cannabis operations within their borders.
Expansion Of Medical Cannabis Program
- CRTA would allow for registration of additional Registered Organizations pursuant to an expedited registration plan, and non-New York licensed medical cannabis operators would be eligible for registration.
- Medical cannabis would be available to those suffering from additional conditions, including autism.
- Hospitals and other care facilities would be able to register as caregiver facilities, allowing them to possess and administer medical cannabis to patients.
- Patients would be able to possess a 60-day supply of medical cannabis rather than the current 30-day supply.
- Medical patients would be able to grow up to four cannabis plants at home.
Industrial Hemp
- CRTA would distinguish “industrial hemp” from “hemp cannabis” and leave industrial hemp subject to the purview of the New York Agriculture and Markets Law.
- CRTA would provide for “cannabinoid grower” licenses and “cannabinoid extractor” licenses. Cannabinoid growers would be permitted to cultivate and sell hemp cannabis to cannabinoid extractors, who would then extract and manufacture the cannabis hemp products for human consumption.
Timeline for Legalization
Gov. Cuomo hopes to legalize recreational cannabis in the first 100 days of 2019. Though aggressive, the inclusion of CRTA in Gov. Cuomo’s proposed budget – which must be approved by April – may mean that enactment will take place sooner rather than later. However, as New Jersey Governor Phil Murphy learned, enacting cannabis law is easier said than done.
We will continue to track the progress of New York’s cannabis legalization and expansion efforts and provide updates. For businesses hoping to enter New York’s cannabis market, the competition will be fierce, and it is never too early to start preparing.
If you have any questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
- Hemp Legalization & Other Top Cannabis Developments of 2018
- New Jersey Legislature Also Advances Medical Cannabis Bills
- Industrial Hemp Farming Poised for Growth Under New NJ Hemp Law
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
- Industries: Cannabis
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Gov. Cuomo Outlines Plans to Legalize Adult Use Cannabis in New York
Author: Daniel T. McKillop
Highlights from Gov. Cuomo’s Recently Outlined Plans to Legalize Adult Use Cannabis in New York
Governor Cuomo recently introduced a draft of the “Cannabis Regulation and Taxation Act” (“CRTA”) as part of his new $170 billion budget plan for New York State. CRTA sets forth Governor Cuomo’s plans to legalize adult use cannabis in New York and to implement significant changes to the State’s medical marijuana program and hemp market. Here are some of the highlights.
Oversight of Cannabis in New York
- New York’s cannabis regulatory framework would be administered by a newly established Office of Cannabis Management (OCM).
- OCM would be the first state agency of its kind in America to regulate adult use, medical, industrial hemp and hemp-derived products (such as CBD).
Adult Use
- OCM would issue a discrete number of licenses for producers, processors, cooperatives, distributors and retailers (who can also apply for onsite consumption licenses).
- There would not be a vertical integration requirement, and producers, processors, and distributors would be prohibited from also have any ownership interest in retailers.
- Licensees’ officers and directors would not have to be residents of New York, but they would have to be United State citizens or permanent residents.
- OCM would give licensing priority to businesses owned by minorities, women and struggling farmers.
- Licensees would not be able to transfer their licenses.
- Dispensaries would be limited to selling one ounce of cannabis per consumer per day and five grams of cannabis concentrate per consumer per day.
- Cultivators would be taxed $1 per dry weight gram of cannabis flower and $0.25 per dry weight gram of cannabis trim. Wholesalers would be taxed at a rate of 20% of the invoice price when selling cannabis to retailers. An additional wholesale tax of 2% of the invoice price would be paid to the county in which the retail store is located.
- Larger municipalities and counties would be allowed to disallow adult use cannabis operations within their borders.
Expansion Of Medical Cannabis Program
- CRTA would allow for registration of additional Registered Organizations pursuant to an expedited registration plan, and non-New York licensed medical cannabis operators would be eligible for registration.
- Medical cannabis would be available to those suffering from additional conditions, including autism.
- Hospitals and other care facilities would be able to register as caregiver facilities, allowing them to possess and administer medical cannabis to patients.
- Patients would be able to possess a 60-day supply of medical cannabis rather than the current 30-day supply.
- Medical patients would be able to grow up to four cannabis plants at home.
Industrial Hemp
- CRTA would distinguish “industrial hemp” from “hemp cannabis” and leave industrial hemp subject to the purview of the New York Agriculture and Markets Law.
- CRTA would provide for “cannabinoid grower” licenses and “cannabinoid extractor” licenses. Cannabinoid growers would be permitted to cultivate and sell hemp cannabis to cannabinoid extractors, who would then extract and manufacture the cannabis hemp products for human consumption.
Timeline for Legalization
Gov. Cuomo hopes to legalize recreational cannabis in the first 100 days of 2019. Though aggressive, the inclusion of CRTA in Gov. Cuomo’s proposed budget – which must be approved by April – may mean that enactment will take place sooner rather than later. However, as New Jersey Governor Phil Murphy learned, enacting cannabis law is easier said than done.
We will continue to track the progress of New York’s cannabis legalization and expansion efforts and provide updates. For businesses hoping to enter New York’s cannabis market, the competition will be fierce, and it is never too early to start preparing.
If you have any questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
- Hemp Legalization & Other Top Cannabis Developments of 2018
- New Jersey Legislature Also Advances Medical Cannabis Bills
- Industrial Hemp Farming Poised for Growth Under New NJ Hemp Law
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.