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Happy weekend, everyone!
As you’re keeping track of your March Madness bracket this weekend, why not check out the stories we at NY Cannabis insider published last week.
Let’s take a look:
We ran an item that provides all the details about NY Cannabis Insider’s first live event of 2024, which will be held at Madam Mikette’s in Manhattan’s Midtown East neighborhood from 6 to 9 p.m. on April 2. The conference will feature a speaker panel that includes Brittany Carbone of Tricolla Farms, Brian Lane of NOWAVE, Coss Marte of CONBUD and Ellen Parkin of Green Analytics NY.
This “State of the State” will dive into what’s working, what’s not, what needs to happen next, and what those looking to get into the industry should consider before making the leap. There will be a chance for attendees to interact directly with the speakers during and after a Q&A, along with open networking time to meet others in the industry.
Following an investigation into allegations of retaliation and selective enforcement by Office of Cannabis Management Chief Equity Officer Damian Fagon, reporter Wes Parnell wrote that the OCM placed Fagon on administrative leave.
“To ensure a transparent, thorough investigation into the allegations made, the Office placed Mr. Fagon on leave,” OCM Executive Director Chris Alexander said.
We ran a story about a hemp-related federal lawsuit, which a judge in the Southern District of New York dismissed earlier this month. In the lawsuit, nine hemp companies allege that state officials violated their civil rights by issuing and enforcing strict rules on hemp products.
Plaintiffs refiled the case after the dismissal. A ruling in their favor could limit states’ abilities to regulate intoxicating hemp-derived cannabinoids, while a ruling in favor of New York regulators would bolster all states’ authority to regulate or ban hemp products as they wish, notwithstanding the 2018 Farm Bill, which legalized hemp and extracts from the plant.
Several guest columnists shared their insights with NY Cannabis Insider readers this week. Pilar DeJesus, a cannabis advocate and connoisseur who played a pivotal role in the passage of the MRTA, wrote about the need for more funding directed toward social equity cannabis entrepreneurs in New York.
“One of the fundamental pillars of [the MRTA] is the promise of social and economic equity for communities disproportionately impacted by the War on Drugs,” DeJesus wrote. “However, the reality is stark: there is a severe lack of financial support for those who need it most.”
Nicolas Guarino, founder and CEO of Naturae – a licensed New York cannabis processor and manufacturer – contributed a column that argues that the state’s quarterly tax payments for cannabis businesses ‘threatens the viability’ of all operators.
“The existing ‘quarterly payment system’ is problematic for two main reasons: it requires businesses to pay taxes in advance, before collecting payments for the tax period, and it imposes a tax nearing 25% of sales on an industry yet to establish stable profit margins, unheard of in any other new industry,” Guarino wrote.
Cannabis tax attorney Paula Collins wrote a piece arguing that New York weed businesses should not follow the example of several large multi-state operators that have chosen to amend prior year tax returns as if the companies were non-plant-touching, and subsequently applying those savings to their current year’s tax liabilities. Companies have said they’re doing this in anticipation of federal rescheduling or descheduling of cannabis.
“My strong suggestion: play it safe. Wait until rescheduling or descheduling. It will happen one day. Some day. But wait,” Collins wrote. “You will be glad you saved the money on the accountants and lawyers and preserved your peace of mind.”
Colin Decker, owner and founder of 7 SEAZ, New York’s first legacy-to-legal adult-use cannabis brand, contributed a column about the future of New York cannabis distribution in the wake of OCM’s delinquent list.
“The long-awaited Office of Cannabis Management “delinquent list” – which names retailers who are delinquent in paying for cannabis products purchased on credit from licensed suppliers – is supposed to be coming to us on April 3,” Decker wrote.
We ran a story by reporter Mel Hyman that takes a look at differences between proposals in the New York State Senate and Assembly regarding changes to cannabis taxation policy.
The Senate proposal calls for a multiyear, phased-in system, starting at 5% of wholesale sales in 2024, then graduating to 7% of sales in 2028, and culminating in 9% of sales starting Jan. 1, 2031, Hyman wrote. Meanwhile, the Assembly is proposing a permanent 7% wholesale tax rate going forward.
Lastly, we also added a new entry to our “People to know in NY cannabis” series: Darren Gleeman, the managing partner of MBO Ventures, the cannabis industry’s only investment bank dedicated to Employee Stock Ownership Plans.
Have a great weekend everyone, we’ll be back with plenty more next week.