Sixty six members of the New York legislature, or about a third of state legislators, are urging Gov. Kathy Hochul (D), to sign a law that allows licensed marijuana producers to be able to sell their products to tribal retailers. The plan will provide a way for cannabis farmers to release their surpluses, but they have nowhere to sell them.
In an open letter sent to Hochul by bipartisan Senate and Assembly Members on Monday, they wrote: “At the moment, over 200 cannabis growers are trying to sell their crop but there are only 23 dispensaries in operation statewide.” This has led to more than 250,000 lbs of cannabis remaining unsold. Farmers who borrowed money and used all of their assets to grow these crops face financial ruin if we don’t act fast to find them an alternative market.
The bill, which the new letter describes as a “financial lifeline” for farmers, would provide growers with another legal avenue to offload products amid lawsuits and other delays that have caused a bottleneck in the a href=”https://www.marijuanamoment.net/new-yorks-first-legal recreational marijuana shop will open at 420 today – officials announce/” rel=”noopener” target=”_blank”>legal market The new letter, in which the bill is described as a “financial safety net” for farmers would give growers another legal way to sell their products, amid lawsuits and delays that have created a bottleneck on the market which opened officially last December.
The letter states that “regulation delays, litigation, logistical and financial challenges, and state timelines have been missed.” “However the cultivators are the ones who pay the highest price.”
The message was signed by Crystal People-Stokes, the Assembly Majority leader (D), and Liz Krueger, Chair of the Senate Finance Committee (D), both of whom are co-sponsors of New York’s marijuana legalization bill. Also included is Sen. Jeremy Cooney, a Democrat who chairs the Senate’s subcommittee for marijuana.
The group stated that “New York’s Cannabis Farmers, who took a risk to help establish the legal market in the state, shouldn’t be facing financial ruin due to regulatory delays.” “We should give them every opportunity to stay afloat as they wait for the development of the legal market that was promised,” the group said.
This new letter was written just a few weeks after , four of the most influential lawmakers in New York State issued a public statement urging Hochul to sign. The letter was signed by the chairs for New York’s Senate Agriculture Committee and Assembly Agriculture Committee — Sen. Michelle Hinchey, Donna Lupardo and George Borrello, along with the ranking members Senator George Borrello and Assemblyman Chris Tague. The new letter was also signed by all four legislators.
In an earlier statement, these lawmakers stated that “while lawsuits are being litigated” and illegal stores flourish, NY’s marijuana farmers are suffering. “Crops were planted last year in the expectation that there would be an available legal market to sell them… We urge the governor to sign this temporary solution that will provide some relief to what has quickly become an agricultural crisis.”
Growers and processors struggle to sell millions of dollars worth of marijuana products because there are few retail outlets. During a state Cannabis Control Board (CCB meeting this month, growers claimed they had poured their entire money into their farms to only watch the surplus product rot. One grower even mentioned suicide.
Hinchey’s sponsor memo on bill acknowledges the original conditional cultivation licences were issued “under the understanding that growers wouldn’t be allowed to sell their products outside of the state borders, but that there would be a robust market within the state during the timeframe for the conditional licensing.”
Many licensees, who are in severe financial distress, are unable sell their product. They will also be unable to plant a crop this growing season. Many are in financial trouble and won’t be able to plant a harvest this season because they can’t sell their product.
Around 280 New York cultivators currently hold conditional licenses. These were originally offered to those who participated in the state’s pilot hemp program. The sponsor memo states that allowing growers and processors the opportunity to sell their products to retailers licensed by tribes will “protect New York’s Cannabis Industry, including distressed growers to ensure a local cannabis economy in the future.”
Since New York legalized marijuana in march 2021, tribal governments have been ahead. Saint Regis Mohawk Tribe later that year, accepted the first adult-use licence applications.
In an effort to help producers find legal ways to offload their products and to increase consumer access to marijuana, the New York Office of Cannabis Management’s (OCM) regulators also launched the Cannabis Growers’ Showcase program that allows licensed growers to sell directly to customers.
accepted applications as soon as approved the program. On August 10, the Hudson Valley hosted its first pop-up. Another was held near the state fair.
During the CCB’s meeting in early this month, regulators approved a plan to open up the adult-use marijuana industry of the state to more businesses. During the CCB meeting earlier this month, regulators also approved a plan to a href=”https://www.marijuanamoment.net/new-york-to-open adult use marijuana market to all businesses including large multistate operators and medical cannabis companies/” rel=”noopener” target=”_blank”>open the state’s adult use marijuana market to more business participants/a>.
This move, while it could speed up the market roll-out, also caused outrage among small business owners, social equity licensees and other stakeholders. They claimed that they had been promised time to set themselves up before being forced to compete against large multi-state operators who have far greater financial resources.
The Cannabis Association of New York (CANY), which represents small and medium-sized businesses, stated that the decision “opened the doors for big cannabis to enter and compete with New York businesses.”
As more states legalize marijuana, tribal governments have started to enter the business. Notably, in Minnesota, where state lawmakers passed an adult-use marijuana program earlier this year, tribes are leading the way.
White Earth Nation, which also began sales in August, recently announced plans to launch a mobile marijuana retailer. And the Red Lake Nation, which also began sales in August, recently announced plans to launch a mobile marijuana retailer–effectively a cannabis “food truck” that can travel and do business on tribal land throughout the state. The Leech Lake Band of Ojibwe is another tribe in the state that’s also moving towards legalization.
Minnesota’s marijuana law allows the governor to enter into agreements with tribal governments that allow them to operate in non-tribal areas of the state. This option has been seen as a means to sell legal cannabis before the state license, which is expected in 2025. The cannabis regulators said that “several tribes” have shown interest in this arrangement.
The Eastern Band of Cherokee Indians in North Carolina voted this month to legalize cannabis for adult use, even though the state continues to ban all forms of marijuana.
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Photo by Mike Latimer.
The article 66 New York lawmakers urge Governor to sign bill allowing bulk marijuana sales to tribal retailers first appeared on Marijuana Moment.
