In 2021, New York passed groundbreaking legislation for the adult-use cannabis market, aiming to correct the failures of a century of prohibition and create a fair and thriving environment for small businesses and consumers. The Marihuana Regulation and Taxation Act, developed over eight years, sets the stage for the industry’s growth and ensures the availability of safe and legal cannabis products.
In implementing the legislation, the state Cannabis Control Board and the Office of Cannabis Management have been introducing the program in line with its objectives. However, ongoing legal disputes regarding the Conditional Adult-Use Retail Dispensary (CAURD) license are putting New York’s equitable cannabis market at risk. As the primary sponsors of the bill, we feel the need to clarify its intentions amidst these lawsuits.
The legislation granted the board and OCM the authority to establish rules and regulations that would expedite the opening of the new cannabis market while also offering opportunities to those most affected by prohibition. In line with this, the board created the CAURD license for disproportionately impacted individuals, aligning with the legislation’s spirit without contradicting its provisions. Drawing from the experiences of other states where adult-use cannabis is legal, we learned that specialized licensing programs like CAURD are crucial in providing entrepreneurial opportunities to those with limited access to capital.
The language subject to the lawsuits, which states that all initial retail license applications should open “at the same time,” does not intend to restrict the OCM but rather emphasizes the prioritization of equity. This ensures that existing medical operators, who already have dispensaries and were given priority in every other state before New York, do not take precedence. It is evident that the CAURD program created by the Cannabis Control Board aligns with the law’s spirit and purpose. This is further reinforced by the continual recognition and support of this program by the Legislature, as exemplified by the allocation of $50 million in last year’s state budget to cover capital costs associated with establishing conditional adult-use cannabis retail dispensaries operated by social equity licensees.
The board and OCM are now actively preparing to open the application period for general licenses, making them available to all while maintaining the prioritization of social and economic equity applicants. This includes distressed farmers, service-disabled veterans, minority and women-owned businesses, and individuals disproportionately affected by cannabis prohibition enforcement.
Despite our clear intention to promote social equity and economic justice through cannabis, national corporate interests are working against New York’s market. They claim to advocate for fairness but are actually endangering the very individuals who suffered from racially motivated enforcement practices and lost their freedom and opportunities. These corporate giants are ignoring the will of elected legislators and attempting to reshape the playing field through legal action, after their lobbying efforts failed to produce favorable outcomes.
The Marihuana Regulation and Taxation Act is not just an end to prohibition; it is a robust piece of legislation meant to address the wrongs of the past. Our approach was deliberate, and we remain committed to those who bore the brunt of cannabis prohibition. Instead of supporting our efforts to rectify historical injustices and allow those most affected by New York’s drug laws to finally benefit, corporate interests are prioritizing their own profits. We must not allow them to cause further harm to New Yorkers – including farmers, small business owners, and struggling communities – who stand to gain from a thriving and equitable cannabis market.
State Sen. Liz Krueger of Manhattan represents the 28th Senate District. Assembly Majority Leader Crystal Peoples-Stokes of Buffalo represents the 141st Assembly District.
