In 2021, New York legalized adult-use cannabis through the Marijuana Regulation and Taxation Act, leading to expectations of positive changes. This included putting an end to the over-policing of communities, providing support to individuals affected by cannabis prohibition, and generating significant tax revenue.
However, two years later, these noble intentions have yet to be fulfilled due to the failures of the state Office of Cannabis Management (OCM) and the Cannabis Control Board in implementing and regulating the legislation.
One of the goals of the law is to invest significantly in communities disproportionately affected by the war on drugs. This involves allocating 40% of adult-use cannabis tax revenue for grants to benefit these communities. The Hochul administration estimated that the state would collect $1.25 billion in cannabis taxes and fees over six years, starting with $56 million in 2023. However, a recent report from the Coalition for Access to Regulated & Safe Cannabis highlights the significant gap between New York’s actual revenue and its projected revenue.
During the first six months of adult-use cannabis sales, New York collected only $17 million in tax revenue. In comparison, Illinois, with 65% of New York’s population, generated nearly $298 million in its first year of legal recreational sales. The following year, Illinois collected $445.3 million in tax revenue and allocated $113.5 million in grants to underserved communities.
So, why is New York falling behind Illinois in terms of progressivism? The answer is simple: the OCM has made a deeply flawed decision to delay the rollout of the adult-use program.
This delay in awarding licenses has negatively impacted various stakeholders in the cannabis industry, including potential dispensary operators and consumers who are unable to access safe cannabis products. Additionally, farmers are left with large quantities of harvested cannabis crops with no outlet for legal sales.
Furthermore, OCM has failed to adequately enforce regulations and shut down unlicensed operators. As a result, there are over 1,500 unlicensed retailers selling illicit, untested, unsafe, and untaxed cannabis products in New York City alone. This not only undermines the state’s revenue but also disproportionately affects communities that have already borne the brunt of the war on drugs.
To address these issues, the state must immediately issue licenses to all priority classes outlined in the Marijuana Regulation and Taxation Act, including women, disabled veterans, and individuals impacted by cannabis prohibition. Additionally, enforcement efforts need to be intensified beyond minor confiscations and fines.
OCM cannot claim to support “justice-involved individuals” while denying them the authority to grow, produce, distribute, and sell cannabis. Furthermore, allowing the state Dormitory Authority to compete for eligible real estate with licensees undermines the agency’s supposed commitment to Black and brown communities.
These misguided decisions by OCM have not only harmed communities affected by the war on drugs but also cost taxpayers significant amounts of money that could be used to address the long-standing harm caused by cannabis prohibition.
OCM has deviated from its intended role as a beacon of state-sanctioned restorative justice and has become an agency that fails to take action. However, it is not too late to correct course by implementing the law as written.
Rev. Kirsten John Foy, founder, president, and CEO of The Arc of Justice and spokesperson for the Coalition for Access to Regulated & Safe Cannabis, urges OCM to fulfill its responsibilities and support applicants excluded from New York’s adult-use market.
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