State Senator Cooney Introduces Legislation To Address Urgent Issues In New York's Embattled Cannabis Program

State Senator Jeremy (D-Rochester) Chair of NY's Senate Subcommittee on Cannabis introduced the Cannabis Adult-Use Transition Act (CAUTA) on Wednesday in collaboration with a diverse coalition of industry and community stakeholder groups. The measure seeks to ensure New York has a smooth transition to a fully operational, safe, economically viable and equitable cannabis market.

“It is no secret that New York has faced bumps in the road to a fully-functioning adult use and medical cannabis sectors,” said Sen. Cooney. “From a thriving illicit market, limited processing capacity, to a lack of capital access for social equity retailers—the entire supply chain is struggling. CAUTA takes much-needed steps to stabilize the legal market, and create pathways for licensees and applicants while building a framework to protect consumers and patients alike.”

As a result of these and other challenges, New York’s cannabis industries are losing value and jobs and patients are being left behind, Cooney noted in a press release. Importantly, state tax revenue, intended to fund social equity programs that benefit communities disproportionately impacted by the failed War on Drugs, is being left on the table—all while the illicit market is booming.

The recently approved state budget did not completely address urgent issues facing New York’s adult-use and medical cannabis programs. Cooney’s legislation seeks to bolster and promote the long-term stability of the emerging adult-use and struggling medical cannabis markets, so these industries can realize the ambitious and important social equity assurances outlined in the 2021 legalization bill, the Marihuana Regulation and Taxation Act (MRTA). 

Everyone Included

Cooney convened stakeholders from across New York’s cannabis community, including farmers, organized labor, medical operators, patients, processors, ancillary services and retail dispensaries applicants. This group collaborated to identify the most pressing issues currently facing the cannabis industry, which have the potential to turn into significant threats, if not addressed before the end of the current legislative session. 

The wide-ranging coalition that has coalesced in support of this bill reflects the practicality and urgency of the problems it seeks to address, including:

● Cultivators cannot afford to process cannabis, due to limited processing capacity.

● Conditional cultivators and processors are struggling with limited retail outlets (dispensaries).

● Licensees and applicants are having challenges accessing capital, locations, and the resources necessary to become operational.

● Registered medical organizations and patients are facing a diminishing medical cannabis market.

● All licensees and aspiring licensees continue to face a booming illicit market, which the recently enacted enforcement efforts in the state budget will help, but additional measures are necessary during the transition to a fully operational legal market.

See Sen. Cooney's entire press release HERE

Photo: NY State Senate