Arrested for weed and living in New York? You get first dibs on cannabis licenses!

The New York government, led by Kathy Hochul, has announced that the first licenses for the new recreational market will be awarded to social justice applicants. This is the first time a rule of law has done so. The state cannabis regulator has decided to prioritize small equity applicants over large corporations for initial dispensary licenses.

Social justice claimants in question include ex-convicts, their families, and members of New York City communities who have been hardest hit by the criminalization of cannabis over the past six to seven decades.

In a country where over thirty states have some form of cannabis reform in place, New York has made a bold decision to favor victims of the war on cannabis. People convicted of non-violent cannabis-related crimes will have an advantage over the big cannabis companies that populate when the recreational market is fully established.

The announcement

New York State has the ability to make history with this unprecedented initiative. In most states where cannabis is legal, regulators have barred convicts with cannabis-related charges from entering — that is, from finding employment or starting a business in the market.

The announcement, released last Thursday, reveals the latest development in the Seeding Opportunity Initiative. New York State Gov. Kathy Hochul wrote that the first batch of market licenses for adult use will focus on communities hardest hit by cannabis prohibition. Hochul says these efforts would serve as a head start in the state’s proposed billion-dollar sector.

Gov. Hochul said a new wave has begun in the state to right the wrongs of past strict cannabis laws. The statement further revealed that a few hundred licenses would be issued before November 1, 2022. Sales are also scheduled to begin in late fall. Interested applicants for priority licenses have until the summer to begin submitting applications.

Chris Alexander noted that the state has taken its time in introducing the new market. He explained that the government aims to get things right the first time. During the press conference, Alexander, who serves as executive director of the New York City Office of Cannabis Management, said the state is committed to putting those who are most impacted at the front and center of the legal adult-use market.

He admitted it’s a more challenging and unexplored path the state has taken. He added that the state cannabis regulator believes that the same existing operators who are currently at the forefront of the national cannabis space don’t deserve to be the stars of the new sector.

Lots of potential applicants to choose from

The pool of applicants is quite deep and wide. Over the years, millions of New Yorkers have been directly or indirectly affected by the unjust drug war. Alexander says thousands of these individuals are either convicts or parents, guardians, spouses, children, or relatives of the convicts.

Over the past twenty years, around a million people have been arrested or imprisoned for cannabis-related crimes. The arrests were only reduced after the Marijuana Regulation and Taxation Act went into effect nearly a year ago, on March 31, 2021. If you are related in any way to any of these people, you are eligible for a license. The New York regulations will also establish rules for other retail license applicants. Individual applicants must demonstrate that they have a presence in New York and that they have at least a 10% interest in a company that has made net profits for two years.

According to Liz Krueger, as many people as possible are selected for the New York program. She said the state is serious about helping people transition from the illegal sector to the legal recreational program. Krueger fought for more than five years to get the Marijuana Regulation and Taxation Act passed. During her last interview, she said that if the state isn’t serious about bringing some of these illegal operators into the legal market, the problem of a growing black market in cannabis could persist in New York.

Growing the New York State Economy with Weed

Cannabis market experts predict that the New York recreational program will be worth approximately $4 billion before 2028. The program is likely to be one of the largest markets in the country based on sales before the decade is out. While the state is yet to fully kickstart the recreational market, many entrepreneurs are taking advantage of the law’s gray area to sell cannabis products directly to cannabis users. This gray market for adult use will remain until the government issues the first licenses.

A little less than a month ago, Gov. Kathy Hochul signed legislation into law allowing hemp farmers in New York to grow cannabis. The state’s plan calls for these farmers to supply small cannabis businesses with high-quality marijuana products. A few days ago, the Cannabis Control Board sealed this development by announcing that hemp farmers could start applying for conditional licenses to grow adult-use cannabis starting March 15th.

More details on the Seeding Opportunity Initiative

The Seeding Opportunity Initiative is a social justice cannabis investment program that the government plans to fund with an approximately $200 million grant. This program will establish select licensed equity applicants with the leasing and refurbishment of storefronts for cannabis stores.

The state plans to make the entry of social justice applicants as seamless as possible. According to Assembly Majority Leader Crystal People-Stokes, the Empire State is focused on attracting residents most criminalized by the state’s cannabis criminalization. Peoples-Stokes stressed that the state is doing what no other person has ever done by standing firmly behind New York farmers and ex-convicts of nonviolent cannabis crimes.

last words

Less than a year after being admitted to the 15th regulated adult market in the United States, New York is almost ready to start selling. The recreational market could generate at least $1 billion in revenue in its first year of operation, while the state earns about $350 million in annual tax revenue. The state’s announcement that it will give capital applicants a head start over large companies is a big step. Hundreds of New York City cannabis ex-convicts are hoping for one of these licenses for a smooth transition into the legal cannabis market. The initiative has given residents of disadvantaged communities hope for a bright and prosperous future!

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