Governor Kathy Hochul has vetoed the “Cannabis Crop Rescue Act”.
Governor Hochul vetoed Senate Bill 7295 today, despite widespread support among state lawmakers. The measure was approved through the Senate 53 to 8 vote, and it passed the full Assembly 134 to 6.
The proposed law would allow recreational marijuana cultivators and processors “to sell tested, packaged, and sealed cannabis products or biomass to a cannabis dispensing facility licensed or permitted by a tribal nation for retail sale.” Tribal nations would “not be subject to or limited by aggregate sales or consumption limits otherwise provided for in this chapter”.
The legislation states that “Notwithstanding any other provision of this chapter, a conditional adult-use cultivator or processor licensee shall be authorized to sell tested, packaged and sealed cannabis products directly to consumers; provided that for purposes of this subdivision consumer shall mean an authorized representative of a tribal nation.”
In September a bipartisan coalition of 66 state lawmakers sent a letter to Governor Hochul urging her to sign the Cannabis Crop Rescue Act into law.
“On behalf of struggling cannabis farmers across New York State, we are urging you to sign S.7295A/A.7375A, known as the “Cannabis Crop Rescue Act”, states the letter. “Very simply, the extended timeline of New York State’s troubled rollout of the licensing and regulations establishing a safe, legal market for adult-use cannabis has had a significant negative impact on New York’s licensed cannabis farmers who invested in crops they now have limited places to sell. The crop is also losing value by the day. Regulatory delays, lawsuits, and logistical and financing challenges have caused the state to miss its timelines and targets. However, cultivators are the group paying the steepest price.”
The letter continued: “Right now, there are over 200 cannabis farmers trying to sell their crops but only 23 dispensaries open statewide. This has resulted in more than 250,000 pounds of unsold cannabis. Farmers who took out loans and leveraged all their assets to cultivate these crops are demoralized and facing financial disaster unless we act quickly to provide them with an alternate market.”
The lawmakers said that “Allowing these farmers to sell their cannabis to purchasing agents from New York’s Tribal Nations can be a short-term solution. These Tribal dispensaries would benefit from access to a source of local, safe, laboratory-tested products. Farmers would benefit from a new pathway to sell their products. Along with the Cannabis Grower’s Showcases, it could be the financial lifeline they need right now.”
