Funding needed for Cannabis social equity in New York budget
On March 31, 2023, the second anniversary of New York’s groundbreaking Marijuana Regulation and Taxation Act (MRTA) arrived with little fanfare.
Instead of marking the occasion with celebration, CannaBronx — a leading voice for social equity in the cannabis industry — convened a group of advocates in Albany to call on the state legislature and the governor to fulfill the promises embedded in the MRTA. Despite New York’s $200 billion budget, lawmakers have yet to allocate funds to communities disproportionately impacted by the War on Drugs.
The MRTA had been hailed as a landmark piece of legislation, with its ambitious goals of channeling billions of dollars toward racial, criminal, economic, and health justice while generating significant tax revenue. By 2027, the industry was projected to produce $4 billion and create 50,000 jobs. However, the communities most affected by the War on Drugs have found it the most challenging to obtain the licenses and resources necessary to compete in the market.
New York’s 2024 budget reveals the state legislature’s failure to allocate funds to these communities (for the third budget cycle in a row), and there has been scant attention paid to the needs of individuals incarcerated or otherwise impacted by the drug war. The absence of financial and technical support for social equity applicants erects barriers to entry, which, if left unaddressed, could lead to corporate dominance over the market. The window to ensure this doesn’t happen is narrowing rapidly.
CannaBronx and fellow advocates have urgently called for immediate financial and technical assistance for social equity applicants, especially as the licensing application process is slated to begin in the fall. The state is legally obligated to implement the MRTA in a manner that supports social equity, and the current dearth of resources falls far short of fulfilling that responsibility.
To prevent the market from succumbing to corporate interests and to uphold their legal obligations to foster social equity and redress past injustices, the governor and state legislature must take decisive action.
Though the Office of Cannabis Management (OCM) is crafting plans and regulations to assist social equity applicants, it is vital that the state legislature and governor invest in the industry to guarantee that affected communities have a fair shot at success.
The OCM has demonstrated receptiveness to community feedback and is developing plans for technical support, capital advocacy, and social equity prioritization. The forthcoming regulations must be fair and accessible to social equity applicants, dismantling unnecessary barriers that exclude marginalized communities. Present regulations are not only challenging to comprehend but also contain unrealistic requirements for applicants, which display insensitivity to the challenges these communities face.
As the application process opening approaches, the state must offer tangible support to potential applicants, ensuring access to the necessary resources and assistance to thrive in the market. Advocates are steadfast in their belief that social equity in the cannabis industry is far from a lost cause.
To actualize social equity, the state must take several crucial steps.
First, it must immediately allocate a portion of its budget to support social equity applicants by providing essential capital and technical assistance. Second, the state must collaborate with the OCM to guarantee that upcoming regulations prioritize social equity and dismantle barriers for marginalized communities. This involves simplifying regulations, extending comment periods, and revising unrealistic requirements. Third, the state must ensure that the OCM continues responding to community feedback and integrating it into planning processes, actively engaging stakeholders in policy development. Finally, regulations must be enforced fairly and without involving the police, save for extreme circumstances.
The MRTA presented New York with a unique opportunity to spearhead social equity and reparations in the cannabis industry. To capitalize on this potential, legislators must act swiftly and commit to supporting social equity applicants and licensees in the 2024 budget. This 4/20, legislators must set up social equity operators to succeed with resources that allow them to compete. It is not too late to make a difference, but the window to act is narrowing. Failing to do so will allow corporate interests to prevail and, once again, leave the communities most harmed by the War on Drugs to languish in the margins.
