{"id":53449,"date":"2022-03-10T11:22:10","date_gmt":"2022-03-10T19:22:10","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2022\/03\/10\/new-york-regulators-unanimously-advance-rule-to-let-people-with-marijuana-convictions-open-shop-before-big-businesses-can-enter-market\/"},"modified":"2022-03-10T13:45:34","modified_gmt":"2022-03-10T21:45:34","slug":"new-york-regulators-unanimously-advance-rule-to-let-people-with-marijuana-convictions-open-shop-before-big-businesses-can-enter-market","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2022\/03\/10\/new-york-regulators-unanimously-advance-rule-to-let-people-with-marijuana-convictions-open-shop-before-big-businesses-can-enter-market\/","title":{"rendered":"New York Regulators Unanimously Advance Rule To Let People With Marijuana Convictions Open Shop Before Big Businesses Can Enter Market"},"content":{"rendered":"

<\/p>\n

New York regulators on Thursday advanced a rule to make it so people with prior marijuana convictions, or whose family members have been harmed by criminalization, will get the first round of adult-use marijuana retailer licenses\u2014ahead of existing medical cannabis businesses.<\/p>\n

The development is one part of what Gov. Kathy Hochul\u2019s (D) administration is calling the \u201cSeeding Opportunity Initiative,\u201d which she also announced on Thursday.<\/p>\n

The New York State Cannabis Control Board (CCB) unanimously voted to formally propose the retail regulations, which will soon be open for public comment. The \u201cEquity Owners Lead Program,\u201d as Hochul describes it, sets the state apart from others that have enacted legalization but faced criticism over a lack of promised results for communities that have been harmed by the drug war.<\/p>\n

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Today, we continue our work to build a fairer, more equitable New York.<\/p>\n

By putting those disproportionately impacted by the enforcement of cannabis prohibition at the forefront of our market, we’re creating a national model for the industry. Learn more: https:\/\/t.co\/7fgnB1Xx1B<\/a> pic.twitter.com\/ikBZrejpwb<\/a><\/p>\n

\u2014 Kathy Hochul (@GovKathyHochul) March 10, 2022<\/a><\/p>\n<\/blockquote>\n

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Office of Cannabis Management (OCM) Executive Director Chris Alexander said earlier this week that he expects upwards of 200 \u201cjustice involved\u201d applicants to receive the priority licenses under the proposal, with retailers potentially coming online by the year\u2019s end.<\/p>\n

During a virtual press briefing after the board\u2019s meeting on Thursday, Alexander responded to a question from Marijuana Moment about potential criticism from existing medical marijuana businesses that have been operating in the state about being put second in line to receive adult-use licenses.<\/p>\n

\u201cExisting medical operators will absolutely be able to participate\u2014but they knew and they supported the cannabis law\u201d enacted last year, he said. \u201cAnd the language included in the law that guides our actions today was that individuals who\u2019ve been most impacted will be given priority as we build this adult-use market.\u201d<\/p>\n

\u201cI think there\u2019s definitely an avenue and a pathway forward for those existing operators\u2014those folks who have been supplying the patients of the state of New York for some years and they will be able to participate,\u201d Alexander said. \u201cBut equity will lead, and those who\u2019ve been most impacted will go first.\u201d<\/p>\n

To qualify for the conditional license, an applicant would need to have been convicted of a cannabis-related offense prior to March 31, 2021, when the state\u2019s adult-use legalization law was enacted. Those who have a \u201cparent, legal guardian, child, spouse, or dependent\u201d who faced such convictions would also be eligible, as would those who were themselves dependent on someone with a conviction.<\/p>\n

\u201cNew York State is making history, launching a first-of-its-kind approach to the cannabis industry that takes a major step forward in righting the wrongs of the past,\u201d Hochul said<\/a> in a press release. \u201cThe regulations advanced by the Cannabis Control Board today will prioritize local farmers and entrepreneurs, creating jobs and opportunity for communities that have been left out and left behind. I\u2019m proud New York will be a national model for the safe, equitable and inclusive industry we are now building.\u201d<\/p>\n

There are some business-related requirements in order for eligible applicants. For example, the measure states that they must \u201chold or have held, for a minimum of two years, at least ten percent ownership interest in, and control of, a qualifying business, which means a business that had net profit for at least two of the years the business was in operation.\u201d<\/p>\n

\u2014
\nMarijuana Moment is already tracking more than 1,000 cannabis, psychedelics and drug policy bills<\/a> in state legislatures and Congress this year. Patreon supporters<\/a> pledging at least $25\/month get access to our interactive maps, charts and hearing calendar so they don\u2019t miss any developments.<\/strong>
\n\"\"<\/a>
\nLearn more about our marijuana bill tracker<\/a> and become a supporter on Patreon<\/a> to get access.
\n\u2014<\/strong><\/strong><\/p>\n

Non-profit organizations could also be eligible to hold the licenses if they \u201cintentionally serve justice involved individuals and communities with historically high rates of arrest, conviction, incarceration or other indicators of law enforcement activity for marihuana-related offenses.\u201d<\/p>\n

Existing medical marijuana operators, called \u201cregistered organizations\u201d under the state\u2019s cannabis code, would generally not be able to obtain the proposed conditional licenses. This seems to be part of the state\u2019s overall goal of ensuring that the industry that emerges is equitable and not dominated by monied multi-state operators.<\/p>\n

Applications for the conditional retail licenses under the Equity Owners Lead Program will open this summer, the governor\u2019s press release says, and the \u201cfirst licenses are expected to be distributed by late summer or early fall 2022.\u201d<\/p>\n

To further ensure that those most impacted by criminalization are able to compete as the market opens and matures, the conditional licenses would need to be reserved to applicants with at least 51 percent ownership by justice involved people as outlined in the measure.<\/p>\n

Next, the proposed regulations<\/a> will be published in the State Register and will undergo a 60-day public comment period.
\n<\/strong><\/p>\n

Conditional adult-use retail licenses would be valid for four years. Licensees would need to notify regulators of their intent to continue participating in the recreational market within 120 calendar days of the expiration of the conditional license. Regulators would conduct a review before approving them for the standard adult-use retailer licenses that will eventually be made more widely available to any interest parties.<\/p>\n

Meanwhile, the state has also taken separate steps to get the industry in a position to have products available by creating provisional marijuana cultivator and processor licenses for existing hemp businesses that take certain steps to promote equity in the emerging industry. Hochul signed that legislation late last month<\/a>. This \u201cFarmers First Program\u201d is another one of the three branches of the administration\u2019s Seeding Opportunity Initiative.<\/p>\n

Regulators on Thursday also approved<\/a> the form<\/a> for conditional cultivator applications under that law and said they will be open from March 15 June 30.<\/p>\n

\u201cOur state\u2019s Cannabis Law sets a high goal for creating an equitable industry that puts New Yorkers first,\u201d CCB Chair Tremaine Wright said. \u201cThe Seeding Opportunity Initiative puts us on a path for achieving that goal and hopefully models a way forward for reaching those goals while building a stable market.\u201d<\/p>\n

\u201cI am thankful for the support of Governor Hochul and the Legislature, which made it possible for us to get this initiative off the ground quickly, establish a supply chain from our farmers to equity, retailers, and generate the resources to help revitalize communities that were harmed by the disproportionate enforcement of cannabis prohibition,\u201d she added.<\/p>\n

Assembly Majority Leader Crystal Peoples-Stokes (D), who sponsored the legislation\u00a0that created the legalization law and recently launched an equity-focused political action committee<\/a> that will place a strong focus on electing candidates that support marijuana reform, said that \u201cwe are doing what no other state has done by focusing on the people most criminalized by cannabis prohibition, and promoting New York farmers.\u201d<\/p>\n

\u201cThe cannabis industry is going to grow our economy and create new wealth, and it is imperative that we make sure that opportunities begin with the most deserving New Yorkers,\u201d she said.<\/p>\n

As it stands, adults 21 and older can\u00a0possess and publicly consume cannabis<\/a>, as well as gift marijuana to other adults as long as they aren\u2019t being compensated. But regulators are still finalizing licensing rules, and there are currently no retailers that are authorized to sell cannabis for adult use in the state.<\/p>\n

Hochul has repeatedly emphasized her interest in\u00a0efficiently implementing the legalization law<\/a>.<\/p>\n

The governor released a State of the State book in January that called for\u00a0the creation of a $200 million public-private fund<\/a> to specifically help promote social equity in the state\u2019s burgeoning marijuana market. That funding, called the \u201cNew York Social Equity Cannabis Investment Program,\u201d is the last component of the Seeding Opportunity Initiative.<\/p>\n

Hochul said that while cannabis business licenses have yet to be approved since legalization was signed into law last year, the market stands to generate billions of dollars, and it\u2019s important to \u201ccreate opportunities for all New Yorkers, particularly those from historically marginalized communities.\u201d<\/p>\n

That proposal was\u00a0also cited in the governor\u2019s executive budget<\/a>, which was released in January. The budget also estimated that New York stands to generate more than $1.25 billion in marijuana tax revenue over the next six years.<\/p>\n

Enacting legislation that expedites licensing could help the state reduce the number of businesses that are effectively using the legal \u201cgifting\u201d provision of the state\u2019s marijuana law to give away cannabis for \u201cfree\u201d if a non-marijuana-related purchase is made.<\/p>\n

New York regulators recently\u00a0issued warnings to more than two dozen businesses<\/a>\u00a0that they allege are either illegally selling marijuana without a license or exploiting the \u201cgifting\u201d component.<\/p>\n

Here are some other ways that New York lawmakers and regulators are working to build upon the legalization law as the state prepares to implement retail sales:\u00a0<\/strong><\/p>\n

Last month, for example, a state senator filed a bill that would\u00a0promote recycling in the marijuana industry<\/a>\u00a0once retail sales officially launch.<\/p>\n

Sen. Michelle Hinchey (D) is also sponsoring that legislation, which would require cannabis shops to apply a $1 deposit for any marijuana products sold in single-use plastic containers and also reimburse consumers for that fee if they return the container.<\/p>\n

The senator is also behind a separate bill filed last year that would\u00a0prioritize hemp-based packaging over synthetic plastics<\/a>\u00a0for marijuana products.<\/p>\n

The recycling bill is\u00a0identical to an Assembly version filed<\/a>\u00a0by Assemblywoman Patricia Fahy (D) last year.<\/p>\n

Sen. Jeremey Cooney (D) is sponsoring a recently introduced bill to allow licensed cannabis companies to\u00a0deduct certain business expenses<\/a>\u00a0on their state tax returns. He\u2019s also behind the aforementioned measures to expand the marijuana law\u2019s equity definition and provide provisional licenses to get the market ready.<\/p>\n

The state Department of Labor separately announced in recent guidance that New York employers are no longer allowed to\u00a0drug test most workers for marijuana<\/a>.<\/p>\n

Meanwhile, a New York lawmaker introduced a bill in June that would require the state to establish an institute to\u00a0research the therapeutic potential of psychedelics<\/a>.<\/p>\n

Another state legislator filed legislation in December to\u00a0legalize psilocybin mushrooms for medical purposes<\/a>\u00a0and establish facilities where the psychedelic could be grown and administered to patients.<\/p>\n

Meanwhile, as New York prepares the launch of its adult-use marijuana market, OCM announced this month\u00a0a significant expansion of the existing medical cannabis program<\/a>.<\/p>\n

Now doctors will be able to issue medical marijuana recommendations to people for any condition that they feel could be treated by cannabis, rather than rely on a list of specific eligible maladies.<\/p>\n

\n

St. Louis County Lawmakers Vote To End Marijuana Testing For Most County Workers As State Moves To Legalize<\/a><\/p>\n<\/blockquote>\n

\n

Photo courtesy of Max Pixel<\/a>.<\/em><\/p>\n

The post New York Regulators Unanimously Advance Rule To Let People With Marijuana Convictions Open Shop Before Big Businesses Can Enter Market<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n


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