Political ‘infighting’ means more delay for New York’s legal marijuana business

Albany, N.Y. — The New York State Legislature ended its official 2021 session today without taking action on a vital piece of the state’s recent law legalizing marijuana.

There is still no control board or agency that can create the specific rules and regulations for a legal marijuana industry.

Neither Gov. Andrew Cuomo nor state lawmakers submitted official nominations for the agency that will oversee the cannabis industry, so no votes were taken before the session ended. That appears to indicate some level of political disagreement over the appointments.

Possession of small amounts of marijuana (up to three ounces) has been legal since April 1. But without specific agency regulations, there is no legal way to buy it or grow it yourself.

Even if the agency and board nominations had been dealt with this week, estimates were that it could take up to a year for the new Office of Cannabis Management to write the rules and issue licenses.

This could mean more delay, cannabis industry advocates say.

Filling positions in the new office and related advisory boards has been the No. 1 priority for the New York Cannabis Growers and Processors Association, which is currently active in the hemp cannabis industry and is eager to start moving in recreational marijuana.

“Everything really has to flow from there,” said NYCGPA president Allan Gandelman, who also runs the Head & Heal cannabis company in Cortland. “Without the (OCM and board) there are no regulations, and without the regulations we can’t get started.”

Related: End of NY legislative session a mixed bag as lawmakers wrap up

It is possible the legislature could return for a special session later this month, but that is uncertain.

“It’s just a bad sign,” said Kaelan Castetter of the Castetter Cannabis Group and partner in Empire Standard, a Binghamton area hemp/CBD processor.

“If there’s this much infighting just to get the nominations done, than what does that mean for the board itself?” Castetter said. “How much infighting will there be when the board finally gets together? It’s not a good way to start. The one year or so delay we were already looking at is ridiculous.”

On the other hand, Castetter and others said, separating the cannabis nominations from other issues at the typically frenzied end of the regular session, which some dub the “Big Ugly,” could have a silver lining.

“While a delay in the appointments is extremely concerning, I hope removing this issue from the ‘Big Ugly’ give us a greater level of transparency within this highly political nomination procedure,” said Troy Smit, deputy director at Empire State NORML, which has advocated legal marijuana for decades.

The new Office of Cannabis Management currently exists as little more than a web site. Cuomo does have his own director of cannabis programs, who is widely seen as the governor’s preferred candidate to direct the new agency. But there has been pushback against Birenbaum from some in the industry.

Once it’s up and running, the OCM will oversee all aspects of cannabis, including medical and recreational marijuana and the existing hemp / CBD business.

Under the new law, OCM will be governed by a a Cannabis Control Board. The governor appoints the control board chair — who needs state Senate approval — and two other members. The state Senate and Assembly each appoint one member.

The governor will appoint the office’s executive director, who also needs to be confirmed by the Senate.

The office will also have a 13-member advisory board, which will be able to offer insights and opions on proposed rules and policies. Seven are appointed by the governor and three each by the Senate and Assembly.

The advisory board has the specific role of weighing in on the social equity aspects of the new law, which are aimed repairing the damage caused to disadvantaged, mostly minority, communities by the prosecution of marijuana laws in the past. It’s also supposed to provide opportunities for minority- and women-owned businesses, disabled veterans and “distressed” farmers.

That’s one of the many reasons Gandelman and other are disappointed in the delay.

“That’s really unfortunate,” he said. “The longer they wait the longer the program will take to get going which only harms small businesses and the social equity part of the program.”

More on cannabis in New York:

NY Cannabis Insider: Social equity is the key to New York’s new marijuana law

New York to ban hot new cannabis product Delta 8, striking a blow to some CBD retailers

New York’s marijuana tax might not be the nation’s highest. But it may be the most complex

See all stories at syracuse.com/marijuana

Got questions about marijuana in New York and what legalization means? Send them to Don Cazentre at dcazentre@syracuse.com or Kevin Tampone at ktampone@syracuse.com. We’re going to spend the next few months (years?) trying to answer as many as we can.

Don Cazentre writes for NYup.com, syracuse.com and The Post-Standard. Reach him at dcazentre@nyup.com, or follow him at NYup.com, on Twitter or Facebook.

Author: CSN