The first dispensary licenses in New York go to those with pot beliefs

The cannabis regulator in New York announced that at least 100 of the state’s first cannabis dealer licenses to use cannabis will go to applicants with prior marijuana-related convictions. The policy, announced Thursday by New York Gov. Kathy Hochul, would also apply to applicants whose family members have been convicted of cannabis-related offenses.

Chris Alexander, the executive director of the New York City Bureau of Cannabis Management, told the New York Times that by focusing on “those who would otherwise have been left behind,” the state is able to “do something that hasn’t already been done.” Before.” He said he expects between 100 and 200 of the first recreational dispensary licenses to be issued to applicants with cannabis offense convictions or to those who have “a parent, guardian, child, spouse or dependent” with such a conviction.

“These individuals involved in the justice system are entitled to four-year conditional retail licenses to sell cannabis in the market for adult use,” said Michelle Bodian, co-chair of the hemp and cannabinoids practice at the law firm Vicente Sederberg.

“Creating a first round of licensing that prioritizes these individuals is intended to give them a first-mover advantage that will help them capitalize on what is expected to become one of the largest legal cannabis markets in the world. It is critical that the individuals and communities most affected by cannabis prohibition are given the opportunity to participate in this new industry.”

According to the Marijuana Regulation and Taxation Act, the landmark statute legalizing recreational cannabis passed in New York last year, half of the state’s cannabis licenses for retailers, growers, processors and other businesses went to women, minority, distressed farmers , veterans and “ individuals who have lived in communities disproportionately affected by the failed War on Drugs. Alexander said that keeping Social Justice applicants ahead of better-funded applicants will give them a chance to succeed in a competitive market.

“I could hit the green button right now and have 40 dispensaries online,” Alexander said, referring to the existing medical cannabis retailers in the state. “But instead, we decided that the people most affected actually have the space and the real runway to meaningfully participate.”

$200 million social equity fund in NYC

The decision by New York policymakers to reserve retail recreational cannabis licenses for those who believe in marijuana is not the first step they have taken to promote an equitable cannabis industry in the state. In January, Hochul allocated $200 million in the state budget to set up a fund to help social justice claimants meet some of the costs of starting a business.

“The legalized cannabis industry in New York is evolving, and the state expects to issue licenses for adult recreational use,” the governor’s office wrote in a handbook detailing its budget proposals. “But the rise of an industry worth an estimated $4.2 billion must create opportunities for all New Yorkers, especially those from historically marginalized communities.”

The fund is designed to help social justice applicants locate, lease and renovate commercial properties to develop into recreational cannabis dispensaries. George Mancheril, CEO of Bespoke Financial, told the High Times that the fund and this week’s announcement that initial retail licenses will be reserved for those passionate about cannabis “level the playing field.” He contrasted New York’s plan with California, where social justice regulations have so far made little progress in creating a diverse cannabis industry.

“In the California social justice program we see too often that licenses are given to those adversely affected by the war on drugs, but then they are doomed by being licensed but not endowed with the capital to compete with their well-funded competitors.” Maneril said. “This NY social equity program is a great example of taking lessons from the shortcomings of previous states to further improve the effectiveness of empowering these entrepreneurs.”

New York regulators’ decision to revoke recreational retail licenses for social justice claimants was welcomed by cannabis activists and representatives of the legal cannabis industry. Kassandra Frederique, the executive director of the Drug Policy Alliance, said New York is “making a big push” with the initiative.

“We don’t know what’s going to work,” she said, but “what New York is showing here is that they’re willing to try and they’re willing to do things differently. . . . This is a genuine attempt to achieve justice.”

Matt Hawkins, managing partner and founder of cannabis private equity firm Entourage Effect Capital, called the policy “a step in the right direction to help legitimize the cannabis industry.”

“New York is creating career opportunities for people who have had marijuana convictions and have been affected by the War on Drugs,” Hawkins said in an email to High Times. “It is encouraging for the state to take a strong stance on this.”