NY Cannabis Insider (NYCI) is hosting the state’s first industry “summit” and conference of 2023 at The Desmond Hotel in Albany, N.Y. on May 18 from 9:00 a.m. to 6:00 p.m. Details and tickets available here.
Industry professionals – from growers, processors and retailers to attorneys, consultants and politicians – will gather for a day of venting, problem-solving, and learning.
NYCI has partnered up with a professional mediation firm to help guide discussions on frustrations that industry members are experiencing here in New York State. Attendees will have a chance to speak openly and have their voice heard. Once we dive deep into the issues, we’ll spend the afternoon finding solutions and ways to solve some of the most pressing issues. Concurrent to the open forum, we’ll host informative breakout sessions where you can learn more about what’s next in the industry and best practices for cannabis business owners.
The following gives a comprehensive overview of the challenges/topics being discussed on site, along with some additional context on what industry groups are primarily affected as well as additional resources and articles that will help to explain a bit more in depth into the topic at hand.
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Industry challenges that we’ll be discussing during the interactive workshop include:
Problem #1: The Dormitory Authority of the State of New York (DASNY)
DASNY is a massive but opaque quasi-government agency that has a huge hand in the initial rollout of NY’s cannabis industry: they were tasked with finding a fund manager to raise $200M for the CAURD program; with finding a bank for these retailers to use; for hiring design/build firms for CAURD real estate; and for contracting with a point-of-sale technology company to service CAURD stores.
But DASNY has failed at both the $200M fundraising and banking. As a result, much of the current collective frustration among the state’s retailers (and others) is directed toward the agency.
And just last week, a group of CAURD licensees laid out in detail 13 grievances they have with the agency, including the lack of funds available, how the agency competes against license holders for real estate, the slow speed at which DASNY approves sites, the lack of loan terms available, high rents, exorbitant and unnecessarily large real estate options, and much more. The next day, the Cannabis Association of New York backed the CAURD letter, and added in an allegation of a conflict of interest for DASNY’s President Reuben McDaniel, who also sits on the Cannabis Control Board.
Who this affects primarily:
● Every aspect of the supply chain in addition to ancillary service providers
Related: ‘Discontent and despair’: NY cannabis entrepreneurs fed up with state’s problematic industry rollout
Related: Cannabis Association of NY alleges conflict of interest for Reuben McDaniel, backs criticism of DASNY
Related: New York’s political leaders silent about state’s failure to raise cannabis funds
Related: With DASNY dropping the ball, NYS just changed course on its cannabis retail rollout
Problem #2: June 1 deadline
Early last year, New York State legislators passed a statute which created two license types: Adult-Use Conditional Cultivator and Adult-Use Conditional Processor. These licenses enabled the Empire State to establish a limited cannabis supply chain before regulators fleshed out the entire legal weed program.
But the laws also say that AUCCs and AUCPs can only distribute their products to retailers until June 1, 2023. Currently, the OCM is months away from opening full licensing, and if there’s no legislative fix by June 1, there will be no legal way to get product from the supply tier to the retail tier.
The OCM said on April 25 that they’re mindful about the June 1 date and are working on a solution, but we are now less two weeks from deadline and there’s no fix in sight. What needs to happen to fix this problem?
Who this affects primarily:
● Before June 1: Growers and processors.
● After June 1: The entire supply chain in addition to ancillary service providers
Related: Clock ticking for NY cannabis growers: legal sales threatened by June 1st deadline
Related: Big trouble lies ahead for New York’s legal cannabis supply chain (guest column)
Problem #3: Crumbling medical program
Seven years after medical sales began, there are only 38 medical dispensaries across the state of New York. Some of the state’s medical cannabis companies and others are suing over the CAURD program and their inability to enter the recreational market, and those companies are also laying off workers and cutting hours.
New York medical cannabis patients are frustrated and are suffering from a lack of access, product types and affordability.
Who this affects primarily:
● The more than 121,000 registered medical cannabis patients in New York State
● The hundreds of thousands more who aren’t registered, but use cannabis for medical reasons
● CAURD license holders
● The ten registered medical cannabis organizations in the state, along with their thousands of employees
Related: NY’s cannabis regulators sued again, this time by the big players
Related: NY’s medical marijuana program suffering as state focuses on a recreational market
Related: Acreage lays off New York employees, PharmaCann may be next
Problem #4: The 4/20 bill
Assemblywoman Donna Lupardo and Senator Michelle Hinchey have introduced legislation that would allow cultivators to sell their products directly to consumers until Sept. 30, 2023. It would also authorize the Office of Cannabis Management to create a loan or grant program to help these farmers process cannabis into distillate.
However, this legislation has stoked division between CAURD licensees and growers, and may not even be feasible given the time constraints and lack of capital among growers to institute a “mini retail store” on their property.
Who this affects primarily:
● Conditionally licensed cultivators
● CAURD license holders
Related: ‘Cannabis Crop Rescue Act’ ignites debate on supporting struggling New York cannabis farmers
Problem #5: Enforcement & Legacy
Gov. Kathy Hochul’s enforcement bill has made it into this year’s budget. It aims to increase fines against unlicensed businesses and gives broader authorities to OCM and the Department of Taxation and Finance. But how likely is it to work? And will this effort target Black and brown business owners, reopen the War on Drugs, or miss an opportunity for onboarding these businesses and their tax revenues?
Also, how does the legacy industry successfully onboard into legal without necessary support, financial aid, banking, and other services? Is that a priority for this industry?
Who this affects primarily:
● Legacy
● Illicit and/or “grey market” shops
● Member-only clubs
● CAURD license holders
● Ancillary providers, such as attorneys, accountants and others
Related: https://www.newyorkupstate.com/cannabis-insider/2023/02/a-detailed-plan-for-a-transitional-marijuana-license-for-new-yorks-smoke-shops-guest-column.html
Related: Gov. Hochul proposes increased enforcement on illicit cannabis businesses (guest column)
Related: Here’s (mostly) everything in Gov. Hochul’s recent cannabis bill (guest column)
Related: NYS Society of CPAs weighs in on Gov. Hochul’s cannabis enforcement bill (guest column)
Related: Reflections on Gov. Hochul’s proposed cannabis legislation (guest column)
Related: How Gov. Hochul’s cannabis enforcement bill could target consumers
Related: Gov. Kathy Hochul’s cannabis crime bill will destroy lives and restart the War on Drugs (guest column)
Problem #6: Open topic table
Your chance to bring up any other problems we’re missing from the list above.
After we work to unpack the various challenges and root causes, the group will work to discuss ideas and solutions to move the burgeoning cannabis market forward.
Meet the sponsors and vendors offering onsite advice and support
Sponsors and vendors are the businesses shaping and supporting the industry. Look for them at the event for advice and help with your cannabis business:
· Cannaspire provides the products, services, and consulting you need to succeed in the cannabis industry from application to expansion.
· New York State Dispute Resolution Association, Inc. is a not-for-profit membership organization committed to the promotion of quality conflict management and peaceful dispute resolution.
· New York Medical Cannabis Industry Association’s mission is to protect and serve the patients in New York’s medical cannabis program while working collaboratively to establish a responsible, inclusive and competitive adult-use cannabis program.
· Ground Game Cannabis is a New York State sales and distribution agency created to help cannabis brands get their products on dispensary shelves and keep them there.
· Local 338 RWDSU/UFCW is a labor union that proudly represents working people in a variety of different industries, including New York’s cannabis workers who are employed across the industry’s full supply chain from seed to sale.
· Citrin Cooperman is one of the nation’s largest professional services firms, with a dedicated Cannabis Advisory Services (CAS) team that utilizes their specialized knowledge to help companies thrive.
· Dickinson & Avella knows the cannabis industry inside and out from their work on the implementation of medical marijuana to the emerging adult-use market.
· The Bluntness is one of the fastest growing independent digital media and marketing platforms exploring, examining and elevating the intersection of cannabis & psychedelic culture, community & commerce.
· Allspace is thoughtful space design meets full-service fabrication & installation; we work with your to develop a concept that encompasses everything from aesthetics to functionality.
· McNeil & Co. in conjunction with the New York State Insurance Fund (NYSIF) and the Cannabis Association of New York are excited to launch a safety group to provide a sustainable workers’ compensation solution for members of the New York State cannabis industry.
· Cannabis Workforce Initiative has a mission to promote and support social equity in the adult-use cannabis market by providing quality workforce development and legal education.
· HUB International Limited has specialized cannabis insurance experts and risk consultants help you manage the emerging risks that face your cannabis business with the right risk transfer and mitigation.
· New York Consortium of Cannabis Accountants has a mission to promote financial literacy among New York’s legacy market leaders and social equity entrepreneurs.
· StaffBuffalo and HRBuffalo are ancillary businesses to the cannabis industry, optimizing the People Operations to enable growing businesses to thrive.
· East Coast Cannabis Insurance offers experienced insurance solutions for everything in the cannabis industry, from workers comp to crop coverage.
· Cannabis360 is a full-service cannabis marketing partner focused on crafting your brand story, finding your best audience and driving brand awareness for your business.
· Hybrid Marketing focuses on business outcomes to move the needle in the areas of revenue, risk, cost, cashflow, and asset utilization.
Our next event will be an afternoon networking and production facility tour hosted by Beak & Skiff/1911 Establish/ayrloom held on June 8 in CNY (tickets and details here). Contact Lindsay Wickham at [email protected] to learn more about sponsor and vendor opportunities.
As entrepreneurs and cannabis professionals are moving forward in the billion-dollar legal weed industry, NY Cannabis Insider events allow participants to learn about regulations, discuss topics essential to New York State, make connections, establish teams and foundations, and continue business planning.