New York Social Equity Fund

An investment firm led in part by NBA Hall of Famer Chris Webber will manage New York’s $200 million social equity cannabis investment fund, Gov. Kathy Hochul’s office announced.

The fund, set up as part of the state budget this year, is part of a partnership between the state government and the private sector meant to spur investment to help finance leasing and equipping up to 150 conditional retail dispensaries in New York.

Those dispensaries will be operated by people affected by the enforcement of prior cannabis laws.

The regulatory agency shall create and implement a social and economic equity plan and actively promote applicants from communities disproportionately impacted by cannabis prohibition, and promote racial, ethnic, and gender diversity when issuing licenses for adult-use cannabis-related activities.

A goal shall be established to award 50% of adult-use cannabis licenses to social and economic equity applicants and ensure the inclusion of:

• individuals from communities disproportionately impacted by the enforcement of cannabis prohibition
• minority-owned businesses
• women-owned businesses
• minority and women-owned businesses
• distressed farmers
• service-disabled veterans

The social and economic equity plan shall require the consideration of additional criteria in its licensing determinations. Under the social and economic equity plan, extra priority shall be given to applications that demonstrate that an applicant:

• is a member of a community disproportionately impacted by the enforcement of cannabis prohibition
• has an income lower than 80% of the median income of the county in which the applicant resides
• Was convicted of a marijuana-related offense or had a parent, guardian, child, spouse, or dependent, or was a dependent of an individual who, before the effective date of this bill, was convicted of a marijuana-related offense.

Governor Hochul also announced the appointment of new members to New York’s Cannabis Advisory Board, which will serve with the Office of Cannabis Management to establish an equitable and inclusive legal cannabis industry in New York.

New York legalized adult-use marijuana on March 31, 2021, passing Senate Bill S854A. New York is the 17^thstate (including D.C.) within the U.S. to legalize adult-use marijuana, allowing for marijuana possession and consumption for individuals 21 years and older.

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Learn more about New York’s Cannabis Program on our state page!