New York state officials this week released an extensive report on the implementation of the state's marijuana legalization law, signed by then-Gov. Andrew Cuomo (Democrat) in 2021.
The Office of Cannabis Control (OCM) report details what regulators describe as “successful efforts to realize the intent” of the law. “Promote equity and expand opportunities for communities disproportionately impacted by cannabis prohibition, promote a thriving and growing cannabis market, and protect and promote the economic opportunities, public health and safety it provides.” , enforcing cannabis laws and regulations, and protecting the environment.”
The new report comes after New York faced many obstacles in the first years of legalization, including slow market rollout, leadership disputes, and so-called “predatory transactions” surrounding the state's cannabis social capital fund. Those involved said they were confident. New York is poised for success.
“This implementation report reflects our commitment to equity and transparency, and we are proud of the progress we have made over the past three years to build a strong foundation for New York’s cannabis market.” said Tremaine Wright, chair of the Cannabis Regulation Commission. The board said in a statement: “Since our inception, our focus has always been on building an equitable and inclusive cannabis industry that repairs and restores the harms of the past while building opportunities for the future.”
There are currently 200 retail stores licensed in the state, with a total of more than 1,300 adult-use business licenses, according to the report.
New York State Cannabis Control Board
The regulator also found that more than half (54.7 percent) of adult-use licenses were granted to social and economic equity applicants, which would hand ownership of new industries to those most harmed by the ban. This is part of the legalization law's goal to ensure that people have the opportunity to enter the legalization industry. .
Regulators say most cannabis consumers now also shop at legal stores, with two-thirds (67%) of New Yorkers who have consumed cannabis in the past year saying they purchased it from a legal retailer. We are reporting it.”
Additionally, more than 200,000 cannabis-related convictions have been sealed due to legalization, and an additional 107,000 are “suppressed while awaiting sealing.” And the report says more than 400,000 criminal convictions would also be eligible for expungement under the legalization law, known as the Marijuana Regulation and Taxation Act.
Additionally, the report states, “No one in New York State remains incarcerated solely for marijuana-related offenses.”
When it comes to consumer behavior, the document shows that as of 2022, 14.9% of New Yorkers over the age of 18 will report consuming cannabis monthly, and 7% will report consuming it daily. Just over half (52%) of consumers said they consumed marijuana solely for non-medical reasons, and 13.5% said they were only medical marijuana users. More than a third (34.5%) said they used cannabis for both medical and non-medical reasons.
“As stewards of cannabis law and its promise, OCM takes seriously its responsibility to New Yorkers,” OCM Acting Director Felicia AB. We have made staffing changes across departments and are focused on adapting.” About the changes and shifts in New York's legal cannabis market. ”
But regulators acknowledged that the market launch was not without problems.
“Frankly, OCM knows there is much work to do and we remain undaunted by the challenges ahead,” she wrote. “OCM continues to refine its data collection methods, improve customer service and consumer education, prioritize public health efforts, and work diligently with stakeholders to shut down the illegal cannabis market. As public servants, OCM also understands that humility and openness to challenge are part of being a responsive, coordinated and relevant government agency.”
Mr Wright added: “It is no secret that we have experienced growing pains. We recognize the opportunity to build on what we have started and to meet the rapidly evolving needs of the cannabis community and industry. We look forward to continued improvement and adaptation.”
New York State Cannabis Control Board
The section of the report dealing with enforcement efforts against illegal cannabis operators says enforcement “plays a critical role in ensuring the rules apply to everyone.”
The report states, “Current law enforcement efforts protect the integrity and investments of entrepreneurs in legal markets while holding accountable individuals who sell illegal, untested, and unsafe products to communities across the state.” We are pursuing it.”
Other priorities include environmental sustainability and climate change, the agency said, noting that “OCM will ensure that the state's cannabis industry's negative environmental impacts are minimized and that the NYS cannabis regulatory framework “We are promulgating regulations and developing support for licensees to ensure they are consistent with changing leadership and community protection.” Activities. “
The report comes after New York Gov. Kathy Hochul (D) praised the state's “smokin' hot” marijuana market earlier this year. Since the market opened, retailers in the state have generated more than $500 million in legal sales. .
“Thanks to our efforts to close down illegal stores and support legal dispensaries,” she said. “New York's legal cannabis industry is at an all-time high, with sales exceeding $500 million!”
That's not a small amount, but it pales in comparison to other smaller states where marijuana is legal. In Illinois, for example, approximately $2 billion in legal cannabis products were sold in 2023 alone.
Hochul and New York regulators attribute at least some of this growth to efforts to root out illegal operators and expand the licensed market. Hochul said in June that the state had tightened its crackdown on illegal marijuana stores, and legal sales at licensed retailers had increased significantly.
The governor made the comments amid criticism from equity-focused activists over what they see as a “corporate takeover” of the cannabis market, and concerns from state officials about “predatory” private equity financing deals approved by the state. He cited reports that the government had rejected the proposal. Funding startup cannabis retailers.
Some supporters say Mr. Hochul is not taking responsibility for the government's role and is “falsely” blaming the government's illegal market problems on the legalization law itself. For this reason, there was criticism of the governor's firing of OCM executive director Chris Alexander earlier this year.
To curb unlicensed sales, the governor in February ordered big tech companies, including Google and Meta, to “do the right thing” and stop promoting the state's proliferation of illegal marijuana dispensaries. I called out.
Meanwhile, New York state officials are rolling out far-reaching plans to promote environmental sustainability and set energy use standards within the state's legal cannabis industry. This is part of the regulator's broader aim to promote economic, environmental and social sustainability in emerging sectors.
In June, state regulators also formally approved rules allowing adults 21 and older to grow cannabis plants for personal use.
In June, a prominent New York lawmaker introduced a bill that would legalize psilocybin for adult use, provided the drug is licensed after a medical exam and educational course.
Meanwhile, the state last month announced it was preparing to spend up to $5 million in grants funded by marijuana tax revenue as part of reinvestment in areas disproportionately affected by the drug war. did. OCM said the award aims to “solve a wide range of community needs, from housing to child care to job training and many areas in between.”
Under state law, 40% of all cannabis tax revenue is earmarked for community reinvestment, “in areas of the state that have historically been under-resourced, underserved, and over-policed.” ”, OCM pointed out.
New Jersey bill would ban people from entering marijuana retail stores
Photo by Philip Stephan.
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