New Yorkers already convicted of cannabis will get first sales licenses

New York authorities want to support people who have previously been convicted of cannabis possession, or whose family members have been harmed by prohibition and criminalization, and enable them to obtain first cannabis retail licenses, before existing medical cannabis companies enter the market.

The proposal to create these conditional licenses will be reviewed and announced today by the New York State Cannabis Control Board (CCB). This measure would allow the state to set itself apart from other states that have legalized cannabis but have been criticized for failing to deliver on their promises of social justice.

Promoting Equity

To obtain a conditional license, the applicant must have been convicted of a cannabis-related offense before March 31, 2021, the date on which the state law on the legalization of adult use has been enacted. Individuals whose «parent, legal guardian, child, spouse, or dependent» has been convicted of such an offense are also eligible, as are those who are themselves dependents of a convicted person.

Eligible applicants must meet other requirements. For example, the measure stipulates that they must «hold, or have held for at least two years, an ownership interest of at least 10% in an eligible business and exercise control over it, that is, a business that has earned a net profit in at least two of the years it was in operation.».

Nonprofit organizations may also be eligible to hold licenses if they «intentionally serve individuals and communities involved in the criminal justice system and experiencing historically high rates of arrest, conviction, incarceration, or other indicators of law enforcement activity related to marijuana offenses.».

Existing medical cannabis operators, referred to as «registered organizations» under the state’s Cannabis Code, would not be eligible to obtain the proposed conditional licenses. This appears to be part of the state’s overall goal of ensure that the emerging industry is equitable and not be dominated by multi-state operators.

«I could press the green button right now and have 40 dispensaries up and running,» said Chris Alexander, executive director of the CCB, referring to the state’s medical cannabis businesses.

«But instead, we decided to give those most affected the space and flexibility they needed to participate meaningfully.»

To ensure that the people most affected by criminalization To ensure that these businesses can remain competitive as the market opens up and matures, conditional licenses must be reserved for applicants in which at least 51 % of the shares are held by individuals affected by the criminalization of cannabis, as provided for in the measure.