Cuomo signs cannabis legislation
New York is 15th state to legalize recreational marijuana for adults
New York became the 15th state to legalize recreational marijuana when Gov. Andrew M. Cuomo signed the Marijuana Regulation and Taxation Act into law on Wednesday.
“This is a historic day in New York — one that rights the wrongs of the past by putting an end to harsh prison sentences, embraces an industry that will grow the Empire State’s economy, and prioritizes marginalized communities so those that have suffered the most will be the first to reap the benefits,” Cuomo said in announcing his signing of the bill.
The bill passed the state Assembly and Senate Tuesday evening after hours of debate.
Marijuana legalization has been a priority for Cuomo this year. He opposed legalization until 2018, when Democrats took over the state Senate, and he has since pushed for legalization through the annual budget process. Assembly Majority Leader Crystal Peoples-stokes and state Sen. Liz Krueger have for years carried legislation to legalize marijuana; this year they were able to win concessions from Cuomo on distributing the tax revenues from marijuana sales in communities that have been disproportionately affected by drug enforcement and mass incarceration.
The law immediately legalizes possession of up to three ounces of marijuana for adults 21 and over. It’s also legal to smoke marijuana in public anywhere that cigarette smoking is allowed, subject to future restrictions that localities might put in place. It’s expected to raise hundreds of millions in tax revenue for the state, and money is being invested in training police officers to detect marijuana use among drivers and to develop ways to test for real-time intoxication. Roughly 40 percent of the revenue raised will be reinvested in communities disproportionately affected by the war on drugs.
The legislation also establishes a government agency to regulate the industry and dole out licenses for retailers and cafes where cannabis products will be able to be consumed. The new agency is expected to take about 18 months to set up, officials said, with retail sales of marijuana to follow.
There are four types of licenses set out under the law: growers, processors, delivery/distribution and retail. Businesses can hold any combination of the first three of those licenses, but not if they have a retail interest. That restriction is designed to stop large businesses from dominating the new industry through what’s called “vertical integration.” Localities can opt out of having retail locations in their jurisdiction but not from the first three kinds of licenses.
Households can grow up to six mature and immature plants, but the sale of marijuana from home-grown plants is not allowed. It’s not clear how buying seeds will work; that may be decided by the regulatory process.
The agency overseeing the industry will be run by a fiveperson board, with the governor selecting three members and majority leaders in the Assembly and Senate each selecting one member. The agency’s powers will include deciding the number of licenses distributed.
Steve Malito, chair of the state government relations practice for the firm Davidoff Hutcher & Citron, works with clients in the alcohol industry and in marijuana. He noted there are 3,500 liquor stores in the state — 2,500 downstate and 1,000 above Westchester County. If that’s any indication for the potential of the marijuana industry, he said, there potentially could be hundreds of marijuana retailers across the state.
“Once this gets up and running, it’s likely that you will not have a hard time finding an adult cannabis store in New York,” he said.