The New York Senate released an amended version
of the Marihuana Regulation and Taxation Act for consideration
ahead of the Legislature’s 2019 session end on June 19th. The
legislation was originally introduced in January and will regulate,
tax and control marihuana like alcohol. Most notably, the amended
version incorporates the provisions related to the cultivation of
hemp required to implement the 2018 Farm Bill.
According to the legislation, there are roughly
1.5 million regular marijuana users in New York with half living in
New York City. The state estimates that the market for marijuana in
New York is $3.1 billion. The state also projects an estimated $436
million in tax revenue with an additional $336 million in tax
revenue in New York City.
What changed in the amended version?
The legislation changes the term marihuana
(as used in Michigan) to cannabis.
The state must identify and expunge eligible
convictions six (6) months of the law’s effective date, and vacate
or dismiss any terminated proceedings. Persons who are currently
serving a prison sentence may ask to be re-sentenced if the person
would be subject to a lesser offense under the new law.
A twenty percent (20%) tax is charged on the
transfer of adult-use cannabis from a wholesaler to a retail
dispensary or from a retail dispensary to the consumer.
An additional 2 percent (2%) tax is charged
on the transfer of adult-use cannabis from a wholesaler to a retail
dispensary or from a retail dispensary to the consumer for the
county in which the dispensary is located.
The Office of Cannabis Management is charged
with establishing a licensing an oversight regime for the growth,
extraction, processing, and manufacturing of hemp for derivatives,
extracts, cannabinoids, isomers, acids, salts and salts or isomers
and/or hemp products for human or animal consumption.
The legislation authorizes the development of
regulations governing the cultivation, sale, distribution, and
transportation of industrial hemp in the state. The legislation
will treat hemp products that are intended for consumption by
humans or animals like cannabis.
The New York state cannabis revenue fund will
allocate money will fund the cost associated with running the
office of cannabis management. The money will also be allocated for
the collection of data related to the cannabis market and to fund
research on the health and safety issues related to the consumption
of cannabis.
Susan Ameel is a co-founder and
partner at Global Regulatory Risk Advisors, which offers a cannabis
service,THC Regs.
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