As legal cannabis begins to take shape in New York, efforts to involve those most impacted by the War on Drugs are also coming into focus.
Tremaine Wright, chair of the New York State Cannabis Control Board, said this week that legal cannabis sales will likely begin by the end of 2022 as the state continues to build its regulatory system for what is expected to be a billion-dollar industry.
“We’re like a startup…we’re just trying to be careful,” Wright said at a panel in New York City on Wednesday, 4/20. The panel was comprised of women who seek to make an impact on social equity.
New York State, according to Wright, intends to issue licenses to people with cannabis-related offenses, enabling them to be among the first to open legal adult-use pot shops. As part of that program, the state is reviewing those applications and requiring some business experience in order to get a much-desired license.
Business Experience Of A Different Sort, But Nonetheless Experience
Marie Montmarquet, a former legacy cannabis operator and now co-founder of MD Numbers Inc, a family of vertically integrated cannabis brands, told a panel at the Benzinga Cannabis Capital Conference this week that New York's “business requirement is quite absurd” and that thankfully California did ask for it. “Do they want us to show our taxes and business plans from the past three years?”
Wright admits that New York is getting similar responses.
“We’ve gotten some pushback on the business experience requirement, but the money [from the fund given to applicants] has to be paid back,” Wright said.
Need A Job?
New York is seeking to hire a manager to handle the state’s $200 million social equity fund, reported Market Watch. The state has committed $50 million of a pledged fund and plans to raise the rest from outside investors as a private equity or venture capital fund.
New York's Social Equity Program
According to the program, 50% of all licenses will be awarded to equity applicants, including individuals from impacted communities, as well as minority- and women-owned businesses (MWBEs), distressed farmers, justice-involved individuals and service-disabled veterans.
To that end, Gov. Kathy Hochul signed a bill in February that would give provisional cannabis growing and processing licenses to hemp businesses that are currently engaged in promoting equity in the industry. The state is also creating a state-run business incubator.
