When New York’s cannabis office released draft rules earlier this month reserving the first wave of marijuana dispensary licenses for those most affected by the War on Drugs, politicians and progressives alike praised the state for its bold move.
“Offering the first retail licenses to people who have been convicted of marijuana-related offenses is a big step in the right direction,” said State Sen. Liz Krueger, “and will set the marketplace on a path where social equity applicants can compete successfully.”
Yet attorneys, business owners, and other industry experts told NY Cannabis Insider that the proposed regulations need a lot of work, and as currently written, don’t welcome into the fold the very people the state aims to uplift.
“I think that they have succumbed to the pressure of ‘go, go, go,’ instead of ‘take the time and get it right,’” said Ruben Lindo, the founder of BlakMar Farms and a former director of the Hudson Valley Cannabis Industry Association.
“This is the result of giving a baby that’s been screaming for 40 days a pacifier,” he said.
“Meanwhile, the baby’s starving — a pacifier is not going to do.”
NY Cannabis Insider forwarded many of the experts’ concerns to Freeman Klopott, the spokesperson for the Office of Cannabis Management. Klopott responded:
“We’re thrilled to hear the ideas and response from New Yorkers about the regulations we proposed earlier this month and look forward to an ongoing dialogue when they post on the state registry for a 60-day public comment period, which is expected to occur March 30.”
He continued, “Still, we’d remind everyone that this is just a start as we’re working on regulations for the entire market and building support across all license types to ensure equity applicants have every opportunity to not only obtain a license, but also build businesses that succeed over the long-term.”
Experts interviewed acknowledged the unique challenge facing the state: Developing a first-of-its-kind program that addresses the disparate impact overenforcement has had on Black and brown populations while also setting up for success a complex ecosystem that is influenced by a variety of stakeholders — political, corporate and legacy, to name a few.
However, all those interviewed — six cannabis attorneys, a legacy operator, a consultant, and a business leader and advocate — want to see the state address their concerns with the draft regulations as soon as possible.
Some believe it’s essential to save an industry that has barely begun.
“If we get it right, the world is watching us,” Lindo said.
“If we don’t get it right, it’s a failed, flawed program and it will never, ever, ever take shape.”
A new class
Front and center in the state’s proposed rules for conditional retail licensing is priority for “justice involved” individuals or businesses, roughly summarized as someone formerly convicted (not arrested) of a marijuana-related offense, or someone with a direct relationship to that type of person.
However, the voluminous Marijuana Regulation and Taxation Act passed last year makes no mention of this applicant pool.
Therefore, the state’s recent actions may create a new license class — one reserved for a narrowly defined subset of people — and open the door to potential…
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