In March 2021, the Marijuana Regulation and Tax Act (MRTA) was finally passed after it was first proposed in 2013. Assembly Majority Leader Crystal D. Peoples-Stokes (D) and Sen. Liz Krueger (D) sponsored the act and have kept social equity at its center since its introduction.
“The illegal marijuana economy is alive and well, and our unjust laws are branding nonviolent New Yorkers, especially young adults, as criminals, creating a vicious cycle that ruins lives and needlessly wastes taxpayer dollars.” said Senator Liz Krueger back in 2013.
She echoed that same sentiment on stage at Business of Cannabis: New York last year, Senator Krueger spoke about how she has witnessed, first hand, the disparity between the number of arrests of people of color and white people, and has seen the damage done to peoples’ lives by convictions for cannabis offences, explaining why she sponsored the MRTA through the State Senate, a process which took a total of seven years, noting that “some things take a long time, but are worth doing”.
Now the first fully legal adult-use sales are just around the corner and eyes are on New York to follow through with their promises. As it stands New York’s retail license applications are open and reserved especially for people impacted by the drug war. On top of this there are regulations in place to expunge or suppress records, provisions routinely used to over criminalize people of color were removed as well as a commitment to use 40% of cannabis tax revenues supporting the communities most impacted by disproportionate enforcement.
Tremaine Wright, Chair of the state’s Cannabis Control Board and speaker at the upcoming Business of Cannabis conference in New York, said: “When we open New York’s first (adult-use) stores, owned and operated by New Yorkers harmed by the misguided criminalization of cannabis, the shelves will be lined with infused edibles, topical creams and concentrated oils.”
There are of course concerns for this new market, with some wondering if these goals will ever be met in reality. Whilst there are low interest loans and a $200m fund for helping applicants, these are funded by licensing fees and adult-use taxes, leaving some wondering if they will be able to help equity applicants early in the market. The other issue is competition, how will new and ‘micro’ businesses be able to compete with existing MSO’s?
At last year’s Business of Cannabis: New York, Julia Germaine, Operating Partner at Kindtap, brought her operations and regulatory insight to the panel. Speaking on the possible competition that social equity versus non equity licensing can bring, she expressed the need for a “community where the people with the knowledge and the know how, the management expertise, want to help the equity applicants instead of creating an oppositional relationship where ‘if they succeed, we can’t succeed’’”
Germaine admitted that she didn’t have all the answers and it’s “a tough one from a regulatory perspective,” but that she hoped that in an equitable New York market, “ownership reflects and lives in the community.”
Social equity was a heavy focus for speakers at last year’s Business of Cannabis: New York, it is unlikely to be any less prominent this year. The work to make New York the epitome of a fair and just cannabis industry is a constant effort going forward.. “I’m excited to update attendees at Business of Cannabis: New York on our efforts in the Empire State to build a cannabis market that works for all New Yorkers.” said Tremaine Wright.
Join us at this year’s Business of Cannabis: New York as we discuss how the industry can ensure that social equity remains at the heart of building this new market on the ‘Building an Ethical Industry’ panel. See the full agenda here.
