New York needs to develop into the second largest pot market within the USA

New York took the first step in creating the second largest market for legal marijuana in the nation on Tuesday when the Senate passed laws that would impose special pot taxes and allow pharmacies to be licensed.

The measure (S.854A / A.1248A) would allow cannabis shop fronts to open as early as next year and allow home builders to grow their own pot. This would limit the number of licenses available to large companies and impose sales and excise taxes, which are estimated to bring in an estimated $ 350 million annually.

The legislation would initiate automatic deletion of records for those with previous convictions for activities that would no longer be criminalized if marijuana is legalized for adults 21 and older.

The Senate voted for measure 40-23. The meeting is due to vote later in the day.

“There were many important aspects of this legislation that needed to be properly addressed – particularly the racial disparities that have plagued our state’s response to the use and distribution of marijuana, as well as ensuring public safety – and I am proud that we are through a close collaboration have reached the finish line, ”said Andrea Stewart-Cousins ​​(D), Senate Majority Leader, in a press release.

Governor Andrew Cuomo (D) has announced that he will sign the bill that he negotiated with the legislature last week as part of a handshake agreement.

Once the New York program is fully in place, it is projected to create tens of thousands of jobs and approximately $ 4.2 billion in revenue, surpassing Washington state to only leave California, which last year had revenue of around $ 4 billion. Raised $ 4 billion.

“A liability”

Several lawmakers in both Houses, mostly Republicans, have raised concerns about people who are under the influence of marijuana, drive or go to work and use heavy machinery.

“This legislation will be a liability,” said Senator Mario R. Mattera (R). “Our contractors are against it, the construction industry is against it.”

Mattera, who voted ‘no’ on the bill, also expressed concern about the dangers of drug use, especially for young people. He described how he experienced this problem in his own family and called marijuana a “gateway drug”.

“This is a disaster waiting to happen,” he said.

Taxes, revenue

The legislation includes two types of new taxes: a sales tax of 13%, with the money raised being split between the state (9%) and municipalities (4%), and an excise tax of up to 3 cents per milligram of THC; the active ingredient in cannabis using a sliding scale based on the type of product and its effectiveness.

Tax revenue would be used to direct and oversee the state’s cannabis program, with the remaining money being split between programs designed to help people rebuild their lives after arrests of marijuana possession, as well as their communities. The proceeds would also be used for education and drug treatment in the state.

Cities and villages would have time until the end of this year to sign off from pharmacies and pot cafes in their communities.

The Curaleaf New York medical marijuana grow facility in Ravenna, NY

Photographer: Keshia Clukey Government / Bloomberg

Delivery, pot cafes

Up to 3 ounces of cannabis and 24 grams of cannabis concentrate are legal for personal outside possession. Up to 5 pounds of cannabis is allowed in a private household, provided it is in a safe place by law that is out of the reach of anyone under the age of 21.

The proposal provides for the personal cultivation of cannabis, with an adult 21 and over being allowed to have up to three mature plants and three immature plants. Per household, the limit would be six of each type of plant. Home growing would be legal for medical marijuana patients in six months and legal for others no later than 18 months after initial stores open, depending on government regulations.

The legislation would also expand the eligibility for medical marijuana.

US Legal Cannabis Sales Surge Rises as States Struggle to Allow It

The bill would enable pot delivery services, with each licensee being able to have the equivalent of up to 25 full-time employees. And it would allow pots to be consumed on site as long as the cannabis cafes are not within 500 feet of a school or 200 feet of a place of worship.

Social justice, licensing

New York lawmakers have also incorporated proposals for social and economic justice into the legislature.

A single company cannot handle all parts of a leisure transaction – cultivation, processing, distribution and delivery – with the exception of micro-businesses. A cultivator or processor would be prohibited from having any direct or indirect financial interest in a retail pharmacy.

A state cannabis control body and cannabis management bureau would need to consider small businesses and prioritize applicants from communities disproportionately affected when marijuana was illegal with “social and economic justice.” Priority for licenses will also be given to those earning less than 80% of their county’s median income and those who have a history of conviction of a marijuana-related offense.

The bill aims to allocate half of the licenses for adult use to minority or women owned businesses, distressed farmers, veterans with disabilities, or “social and economic justice” applicants.

The state would also set up incubators for social justice applicants, provide them with low-interest and zero-interest loans, and waive their license fees under the bill.

“Passing this bill means not only legalizing marijuana, but investing in education and our communities and ending decades of disproportionate exposure to state and federal drug laws,” said congregation spokesman Carl Heastie (D), in a press release. “Now this legal industry will create jobs across our state, including those whose lives have been changed by years of unjust drug laws.”

Medical pharmacies

Companies that already hold a medical license in New York could have a slight advantage over newcomers if the state opens up to recreational use. There are 10, five of which are among the largest multi-state operators in the United States. Acreage Holdings, Columbia Care, Cresco Labs, Curaleaf, and Green Thumb Industries.

Adult cannabis could be sold in just three medical operator pharmacies, and they may be able to sell their own products in other retail pharmacies. They could also get a license to distribute, grow, and process cannabis, but they could only sell their own products under the law.

How to contact the reporter about this story:
Keshia Clukey in Arlington at kclukey@bloomberg.net

To contact the editors responsible for this story:
Katherine Rizzo at krizzo5@bloomberg.net

Heather Rothman

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