VOLNEY — The Volney Town Board unanimously voted in favor of a local law Thursday that would have the municipality opt out of allowing adult-use cannabis dispensaries and on-site consumption lounges within town limits.
At Thursday’s town board meeting, officials noted they would like to take a wait-and-see approach to the implementation of provisions in New York’s Marijuana Regulation and Taxation Act (MRTA) that allow the issuance of licenses for dispensaries and on-site consumption businesses.
“Part of it is that the law is so new,” Town Supervisor Gregory Hartranft told The Palladium-Times after the meeting, which included a public hearing that drew no community input. “There are all kinds of provisions in the bill. We just felt we did not want to support it at this time.”
Municipalities like Volney have until Dec. 31 to opt out of allowing said businesses within their limits. Currently, more than 400 localities in New York have opted out of the issuance of these licenses, according to an opt-out tracker compiled by SUNY’s Rockefeller Institute of Government. Localities interested in opting out are asked to file that decision with the office of the Secretary of State of New York, according to a provision found in the MRTA.
The bill — which introduced a system for the state and municipalities to regulate manufacturing of cannabis products, establish ways to tax sales and production, and oversee the commercial sale of recreational marijuana through the Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) — was signed by former Gov. Andrew Cuomo in March.
“Municipalities cannot prohibit the legalization of marijuana in general; residents can still possess and consume within the municipality,” according to a policy analysis from SUNY’s Rockefeller Institute Director of Operations Heather Trela. “Prohibition is limited to the two types of retail businesses exclusively and does not apply to cultivation or manufacturing facilities.”
Tax revenues could serve as an incentive for undecided localities.
“Those municipalities that do decide to opt out will not be eligible to receive any of the revenue generated from adult-use marijuana sales,” Trela says. “MRTA establishes a 13 percent tax on adult-use marijuana sales, 4 percent of which is split between the county (25 percent of the 4 percent) and municipalities (75 percent of that 4 percent).”
For Hartranft, not being allowed to opt-out beyond the Dec. 31 deadline was a reason for caution.
“We understand there is sales tax involved and there may be a loss of some revenue,” he said. “What we want to do is be cautious. We did not want to get into it and not be able to get out of it.”
Hartranft noted the town might look to opt back in next year.
“Being so close to the city of Fulton, if people need a dispensary, they can go to Fulton,” he said. “Realistically, we only have a few stores in our town that would be trying to sell marijuana products. We are a small town staying on the sidelines and seeing how things develop.”
There is currently an online opt-out portal municipal leaders can visit to go through the process.
“This web-portal will enable localities to file their local law opt-out requests and ensure that the Cannabis Control Board has this key information as we consider license applications and the siting of cannabis businesses,” New York State CCB Chair Tremaine Wright said in a statement. “I encourage localities requesting to opt-out of hosting dispensary and on-site consumption licensees to file their requests promptly so we can build an accessible, safe and equitable industry in New York.”
OCM Executive Director Chris Alexander said the opt-out measure allows residents to have their voices heard at the state level.
“Ultimately, understanding these decisions will be critical for those seeking a license to understand where opportunities are available and for the (CCB) to understand the initial geographic picture of participation. We look forward to continuing to work with our local partners, as together we strive to build an equitable market,” Alexander said.
Other municipalities in Oswego County that have decided to opt out of these MRTA provisions include the town and the village of Mexico, the town of Orwell, and the town of Constantia.
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