In the final week of March, several New York state legislators and government officials reached an agreement to move forward with legalized recreational cannabis. Notable supporters of the agreement include Governor Andrew M. Cuomo, Senate Majority Leader Andrea Stewart-Cousins, and Assembly Speaker Carl Heastie.
The resulting agreement brings forth sweeping changes to a state distinct for its questionable past of “stop and frisk” policing that routinely targeted BIPOC for decades. Mistrust and skepticism aside, these changes to the law will significantly impact the incarcerated population. A wave of pardons is expected and criminal records for cannabis possession will be expunged. Many citizens believe that New York has a long way to go in righting the wrongs played out in the War on Drugs. However, this latest advancement it’s a step in the right direction.
In a statement from the governor’s office, Gov. Cuomo said, “For generations, too many New Yorkers have been unfairly penalized for the use and sale of adult-use cannabis, arbitrarily arrested and jailed with harsh mandatory minimum sentences. After years of tireless advocacy and extraordinarily hard work, that time is coming to an end in New York State. Legalizing adult-use cannabis isn’t just about creating a new market that will provide jobs and benefit the economy — it’s also about justice for long-marginalized communities and ensuring those who’ve been unfairly penalized in the past will now get a chance to benefit. I look forward to signing this legislation into law.”
Senate Majority Leader Andrea Stewart-Cousins, a major proponent of the bill, sated in parallel, “There were many important aspects of this legislation that needed to be addressed correctly — especially the racial disparities that have plagued our state’s response to marijuana use and distribution as well as ensuring public safety — and I am proud we have reached the finish line. Thank you to the Senate sponsor, Senator Liz Krueger, for her tireless efforts to get this legislation advanced and done right. I am glad we are stepping up to give New Yorkers the fair and equitable adult-use marijuana market they deserve.”
Assembly Speaker Carl Heastie went on to add, “When we decriminalized adult use of marijuana in 2019, the Assembly Majority knew that legalization had to be done the right way – in a way that would help not harm our communities that have been devastated by the state’s drug laws. This bill will do that and I thank Majority Leader Crystal Peoples-Stokes for her tireless efforts. The MRTA does not just legalize the adult use of marijuana, but it rights decades of disproportionately targeting people of color, ensures they are included in the legal marijuana industry, and reinvests in education and in communities that have been harmed.”
“For years I have been working toward legalizing marijuana in a way that ensured a safe product, that we would be able to invest in the lives of people who suffered as a result of mass incarcerations, and to allow us to invest in our communities,” Assembly Majority Leader Crystal Peoples-Stokes said. “I have been committed to getting this done correctly and justly. I believe that the MRTA does all of those things.”
Now, on to the actual language of The New York State Cannabis/Marijuana Regulation & Taxation Act, or Senate Bill 854-A. Here’s a breakdown of how New York plans to go about managing medical use, legalizing adult-use cannabis, and incorporating cannabinoid hemp.
From a foundational level, the legislation, officially S.854-A/A.1248-A, will legalize adult-use cannabis. There will need to be a framework for how cannabis use from a medial, recreational, and derivative standpoint will proceed. To address this need and manage oversight, Senate Bill 854-A will establish the Office of Cannabis Management (OCM).
The OCM will be tasked specifically with the licensing of marijuana growers, refiners, and other producers, distributors, retailers, and additional participants in the state’s new cannabis industry. The office will be governed by a board of five members. Three will be appointed by Governor Andrew Cuomo and one member by each legislative house of the New York government. The OCM will be run as an independent office, though it will operate as part of the New York State Liquor Authority.
Additionally, it will be tasked with establishing a social and economic equity program. This program will ensure that those adversely impacted by prior cannabis laws and law enforcement will have an equal opportunity to participate in the industry.
As part of the legislation, excise taxes collected at the state level on retail cannabis sales will be 9%, with an additional 4% excise tax allotted to local governments. 25% of that will be reserved for counties and the remaining 75% will go directly to municipalities. It is estimated that these taxes will generate as much as $350 million annually statewide.
Estimates based on projections and how other state’s cannabis markets have developed, between 30,000 and 60,000 new jobs could be created statewide.
Senate Bill 854-A requires that all collected cannabis taxes be within the New York state cannabis revenue fund.
Part of these collected funds will be used towards upkeep costs of the associated cannabis programs and to implement the law as it is prescribed. The remaining funds are then split between three recipients. These are:
40% allotted to Education
40% allotted to the Community Grants Reinvestment Fund
20% allotted to the Drug Treatment and Public Education Fund
While medical marijuana has been available in New York for some time, 854-A expands the list of covered conditions. This will allow more patients to benefit from cannabis as a medication, as opposed to other prescription medications. The total number of caregivers allowed per patient will be increased and medical cannabis patients will be allowed to cultivate their own cannabis at home.
Now, the meat and potatoes of 854-A.
Adult-Use cannabis will have to be procured from a licensed producer, distributor, or retailer within the state of New York. That infrastructure will be comprised of two tiers for licensing. This way, processors will be separate from vertically integrating into their own retails locations. Licenses for producers and distributors will require strict quality control. These public health and consumer protection considerations will ensure a product devoid of adulterants or other unsafe substances.
Additionally, the social and economic equity program covered above will include a provision requiring 50% of licenses to go to a minority or woman-owned business enterprise. Distressed farmers or service-disabled veterans may also receive licensing under the provision, should they wish to enter the market.
Also included in the language of the bill is the legalized sale of cannabinoid Hemp flower. Smokeable forms of the plant will be allowed only once adult-use retail locations are fully operational.
While 854-A does provide for legalized cannabis use among adults in New York, Municipalities are afforded the option to Opt-Out. This means that any city, town, or village can bar the opening of adult-use cannabis retail dispensaries or on-site consumption licenses within their jurisdiction. To do so, those governments would have to submit and pass a local law by December 31, 2021, or nine months after the effective date of the legislation. That said, these local governments cannot bar the use of cannabis by adults. That provision is statewide and adults will not face repercussions so long as they act within the language of the law.
Driving while intoxicated is a difficult and nuanced topic to navigate when it comes to cannabis. The use of cannabis will be explicitly prohibited by drivers.
The legislation includes funding for “drug recognition experts” and law enforcement specific to maintaining safe roadways.
Like any drug, cannabis impacts users differently. Not only this, but cannabis can appear in the blood, saliva, and hair long after its effects can be felt. So, The New York State Department of Health has committed to working in tandem with institutions of higher education to narrow down effective methods and technologies to help detect cannabis-impaired driving. This will include an extensive research study that will later be presented to the Department of Health (DOH). The DOH will use that data to create and implement approved and certified tests designed to detect the presence of cannabis in drivers.
According to the language of the law, adults are allowed to possess a personal amount, outside of the home, up to 3 ounces of cannabis and 24 grams of cannabis concentrate.
While possession within the home is provided no specific amount, the bill states any and all cannabis products must be kept in a secure location, away from children.
Medical patients can realize the benefit of the new law sooner than recreational cannabis users. Under the legislation, Medical users will be permitted to grow their own cannabis in the home within 6 months. All others will have to wait 18 months before cultivation can begin.
For each individual over 21 years of age, 3 mature plants and 3 immature plants can be cultivated.
For each household, a maximum of 6 mature plants and 6 immature plants can be cultivated.
Under prohibition, cannabis criminalization was rampant. The criminal justice approach to cannabis will be reformed under the new law with reduced penalties for illegal possession and sale.
As part of the new law, cannabis will be regulated using a baseline determined by the Clean Indoor Air Act as to its safety when smoked or vaped in an indoor setting, such as a retail location or dispensary.
With this in mind, Municipalities and local governments are given the power to go further than what is outlined by the CIAA.
Various additional provisions are included in the bill to ensure that cannabis is viewed as a lawful substance by law enforcement with the prevention of discriminatory enforcement in mind.
The new law will provide a framework whereby automatic expungement or resentencing will be carried out for anyone with a previous marijuana conviction that would now be legal under 854-A. The necessary funding for these activities is included in the bill.
While recreational cannabis use will be viewed as fully legal under state law. Private entities may not view the pastime favorably. The law will provide protection against unlawful discrimination and implements workplace safety protections.
