NIAGARA COUNTY, N.Y. — State regulators on the Cannabis Control Board approved new regulations and licensing guidelines Tuesday that are set to expand New York's fledging weed industry.
The guidelines include an adult-use licensing application that will open to the public on October 4 for a 60-day window.
In her opening statement, board Chairwoman Tremaine Wright said the changes would mean entering a "new chapter" in the state's rollout, which has thus far lagged behind expectations.
According to the state's Office of Cannabis Management cultivator, processor, distributor, microbusiness, and retail dispensary licenses will be available through the New York Business Express (NYBE) platform.
Existing adult-use conditional cultivators (AUCCs) and adult-use conditional processors (AUCPs) in "good standing" will also be able to apply and transition to permanent licenses once the applications open.
"You know it doesn't solve a lot of the problems but it means we can get the licensing going," said Tom Szulist, CEO of Singer Farm Naturals, an AUCC in Niagara County.
Szulist plans to apply for general licensing in hopes of opening his own micro-business to sell his cannabis directly to customers.
"There is nothing that a farmer likes best than to be able to see the consumer and be able to tell the consumer about what they're consuming and this will allow me to do that," Szulist said.
While cultivating cannabis hasn't been easy Szulist added, this next step by the state comes as a relief.
"It was a step that had to happen sooner or later. You know what New York tried to do appears to be unconstitutional and that's why we keep having lawsuits and now we need to get past that hurdle, this is the best way to get past that hurdle," he said.
As of the posting of this article, a lawsuit filed by a group of veterans is currently stalling the state's conditional adult-use retail dispensary or CAURD program, applicants to which must have a prior cannabis conviction. Back in November 2022, a now-settled lawsuit filed by Michigan-based company Variscite stalled the same licensing program.
Both lawsuits have argued in their own way that the program is unfair and their litigation has delayed rollout.
That reality has left some cultivators or farmers on the hook for hundreds of thousands of dollars in products that they planted, cared for, and harvested thinking they'd have enough places to sell them.
Of the state's 463 CAURD licensees, however, only 23 are in operation.
Office of Cannabis Management Executive Director Chris Alexander encouraged conditional cultivators and processors during Tuesday's board meeting to apply for general licensing as soon as the 60-day application window opens.
"To ensure they can transition to full licenses before their conditional licenses expire in June of 2024," said Alexander.
Alexander added that OCM will review some applications within 30 days if applicants already have a location secured.
During the public comment portion of the meeting, numerous small growers also spoke of another concern that they believe could undercut their business even more: ROs or registered organizations, large multi-state cannabis businesses.
Regulators approved a separate measure that opens the door to accepting licensing applications from ROs during a window "to be set by the Office." Existing New York medical marijuana companies will also be able to apply for licensing.
While an expanded market may ultimately benefit cultivators, if they can hang on through turbulence, CAURD recipients continued to ask Tuesday what this all means for them amid an ongoing lawsuit.
"There is a real risk that CAURD and all of us who followed the rules, regulations, and guidance will potentially be ruined financially, emotionally, and mentally," said Jillian Dragutsky of Astro Management Inc.
The state's next court appearance in the veteran lawsuit is scheduled for Friday, September 15 at 10 a.m.
