WHEATFIELD, N.Y. — The state's rollout of recreational cannabis has new movement five months after adult-use became legal. Within the past week state lawmakers have filled three seats on New York's cannabis control board, which will regulate how cannabis is grown, sold, and licensed.
After months of silence, the appointments are giving new hope to prospective growers who hope to get plants in the ground by spring of 2022 and licensing from the Office of Cannabis Management in the coming months.
Paal Eflstrum, CEO and founder of Wheatfield Farms, is a legacy grower who has been a part of the state's CBD pilot since 2017. His non-traditional farm in Niagara County uses hydroponic greenhouses to grow everything from acres of lettuce hemp, and he hopes to add 30,000 square feet of adult-use cannabis once state licensing begins.
"There are estimates out there that between 4 and 5 million square feet of canopy like [Wheatfield Farms] is going to be needed to meet the demand, and the room we're standing in is 220,000 square feet, so it will be a drop in the bucket," Elfstrum said.
The state estimates this budding industry could generate as much as $350 million in sales tax revenue, but without a cannabis agency to run it and a regulatory board, that won't be possible. That's why last Wednesday's key appointments by the state finance committee were so meaningful for Elfstrum and others.
"You know we were thrilled by the passage of the law, but then that was step one, and this waiting period has been somewhat stressful and has somewhat prevented investment into the space up until now, and now we're finally seeing movement," Elfstrum said.
Chris Alexander has been named the Executive Director of The Office of Cannabis Management. He previously served as a policy manager for a Canadian cannabis company and was a former associate counsel for the State Senate. Tremaine Wright, a former Democratic Assemblymember from Brooklyn, was named Chair of the Cannabis Control Board. Both were appointed by Governor Kathy Hochul.
A week later, Assembly Speaker Carl Heastie announced his pick for the board, Buffalo Attorney Adam Perry of Hodgson Russ LLP, which leaves three out of six seats vacant. Two will be chosen by Governor Hochul and one by Senate Majority Leader Andrew Stewart-Cousins.
"Then the regulations should be out within the next 12 weeks after that so we are right on schedule to make sure farmers are farming and dispensaries could open up a year from now," said Allan Gandelman, President of the New York State Cannabis Growers and Processors Association.
"We of course want to see more movement and see things happen faster but we're encouraged that these first steps were taken and we want to participate in any way we can and crafting regulations that make sense," added Elfstrum.