New York Legalizes Adult-Use Cannabis

Breaking News – New York Legalizes Marijuana!

Gov. Andrew M. Cuomo signed the cannabis legislation on Wednesday March 31, 2021, a day after the State Legislature passed the bill following hours of debate among lawmakers in Albany. With his signature, New York became the 15th state to legalize the recreational use of cannabis, positioning itself to quickly become one of the largest markets of legal cannabis in the nation.

Previous attempts to legalize marijuana were stymied over disagreements on how the tax revenue from marijuana sales would be distributed. Democratic lawmakers, especially those who are nonwhite, insisted that a large portion of the money be earmarked for communities where Black and Latino people have been disproportionately arrested on marijuana charges; the governor wanted to retain more control over how the money was spent.

The lawmakers prevailed. Forty percent of the tax revenue from pot sales will be steered to those communities, and people with marijuana-related convictions that are no longer criminalized will have their records automatically expunged. The law also seeks to allow people with past convictions and those involved in the illicit cannabis market to participate in the new legal market.

Other changes will go into effect in the coming months when officials create the regulatory framework that will govern every aspect of a brand new, highly regulated market.

• People, for example, will eventually be able to have cannabis delivered to their homes, consume cannabis products at lounge-like “consumption sites” and cultivate up to six plants at home for personal use.
• Regulators will spend the next months creating and allocating business licenses for the cultivation, distribution and retail of cannabis which means the first sales are more than a year away.
• The state’s recreational cannabis program will be run by two new government entities:
  • the Cannabis Control Board, which will craft new regulations,
  • and the Office of Cannabis Management, which will implement the regulations.
• There will be licenses for distributors who would sell cannabis wholesale to retailers, including dispensaries where individuals will be able to buy cannabis products and “consumption sites” where people will be allowed to smoke or ingest the products.
• The tiered system of licenses is meant to create a division among those who produce, wholesale and retail the products, like in the alcohol market. Most businesses would only be allowed to have one type of license to avoid a few players from consolidating the entire market. Most dispensaries, for example, will not be able to also grow and distribute cannabis.
• Supporters said the new law has guardrails to prevent a few companies from dominating the market and to stem suspicions that wealthy, white investors would reap most of the benefits, which critics say is what has happened in other states.
• Half of business licenses, for example, are supposed to be issued to “social equity applicants.” That includes people from communities with high rates of marijuana enforcement, as well as women-owned and minority-owned businesses, distressed farmers and disabled veterans.Priority will also be given to applicants who have a marijuana-related conviction, or a close relative with such a conviction.

The new law also includes changes that would significantly expand the medical cannabis program and bring in new patients.

• Under the new law, patients would no longer be restricted from smoking cannabis flower, which is more affordable. They could also receive up to a 60-day supply of cannabis, an expansion of the current 30-day cap.
• Previously, a small number of diseases qualified patients for medical marijuana use, including AIDS, cancer and epilepsy. Now, practitioners will have the discretion to recommend medical marijuana for any condition.

The recreational market is expected to eventually generate $350 million in yearly tax revenue and billions of dollars in annual sales. New businesses and thousands of new jobs are on tap for the cultivation, distribution and sale of the drug.

The bill passed the State Senate on Tuesday by a vote of 40 to 23 and the Assembly by a vote of 94 to 56, with all Republicans and about a dozen Democrats voting against the bill.

Schedule a Consult with one of our cannabis experts to learn more about how we can help you apply for a marijuana business license in New York.

Source: https://www.nytimes.com/2021/03/31/nyregion/cuomo-ny-legal-weed.html