The Promise—and Potential Pitfalls—of New York’s Cannabis Regulation and Taxation Act (CRTA)
Governor Cuomo recently unveiled a plan to legalize marijuana in New York—a move that’s excited activists, lawmakers and industry leaders. Will 2020 be the year the state finally allows for legal weed?
Governor Cuomo’s inclusion of a reworked Cannabis Regulation and Taxation Act (CRTA) in this year’s budget proposal has bolstered rumors that legalizing adult-use cannabis will be among his top priorities during this year’s legislative session. As a result, New York state lawmakers, consumers and industry leaders are increasingly optimistic 2020 could be the year New York becomes the 12th state in the nation to allow for the sale of adult-use marijuana.
Cuomo’s CRTA lays out a “comprehensive regulatory approach” that would “establish a regulated adult-use cannabis program that protects public health, provides consumer protection, ensures public safety, addresses social justice concerns and invests tax revenue.” Most notably, the proposal includes a plan to create a new Office of Cannabis Management to specialize in cannabis regulation. The office would oversee the state’s medical, adult-use and hemp programs, and would be responsible for tasks like “administering social equity licensing opportunities, developing an egalitarian adult-use market structure and facilitating market entry by providing access to capital, technical assistance and mentorship opportunities for certain would-be cannabis entrepreneurs”.
Though a similar legalization push failed to come to fruition in 2019, many lawmakers feel rising public support (a recent Siena College poll showed New Yorkers support adult-use legalization by a margin of 58% to 38%), a $6 billion budget gap to fill (the state estimates tax revenue from cannabis sales could eventually put $300 million of annual revenue in the state’s coffers), and competitive pressures from neighboring states (Massachusetts’s cannabis industry is taking off, New Jersey’s lawmakers have already placed adult-use legalization on their 2020 ballot, and Connecticut and Pennsylvania are aggressively eyeing legalization) could help push legislation past the finish line this year.
That said, legalization is far from a done deal. Community reinvestment is widely considered to be the issue that derailed legalization in 2019, and it remains a sticking point for many activists, legislators and consumers. Yet absent from the CRTA is a concrete plan for creating state-supported social equity initiatives, as well as guidelines for allocating some portion of cannabis tax revenues to the communities that have been most impacted by racially biased marijuana-related policing. This has caused powerful New York lawmakers like Senate Majority Leader Andrea Stewart-Cousins and Assembly Majority Leader Crystal Peoples-Stokes (whose support Cuomo will need to pass any legalization legislation) to go on record expressing reservations about the CRTA. Pro-legalization lawmakers have also cited concerns about other elements of the proposal; including, but not limited to, the governance structure of an Office of Cannabis Management, the proposal’s ban on adult-use home cultivation, and a taxation and licensing structure that many predict would make it difficult for small, female and/or minority-owned businesses to compete in the state’s legal marketplace. And of course there are many elected officials—including the majority of the state’s Republican camp—who haven’t even signed onto the idea of legalization altogether. Still, much of New York’s political establishment is quietly optimistic about the legislature’s ability to work with the Cuomo administration and make legalization happen during this year’s session.
The CRTA also covers other important elements of a would-be legal landscape in New York State, including the guidelines that could govern cannabis business formation, public health and safety, policing practices, employment law, etc. Curious to learn more? You’re in luck. My organization—The Equity Organization, a New York-based nonprofit that’s fighting for social equity in the legal cannabis industry—has combed through the entirety of the proposal and put together a brief, comprehensive CRTA explainer. The recap breaks down the CRTA issue-by-issue, and also provides helpful context, counterpoints and concerns related to each of the topics covered in the plan (including differences between the CRTA and its “competition”, Senator Liz Krueger’s MRTA bill). Once you’re done with the recap please be sure to share your thoughts, questions and/or concerns on The Equity Org’s Instagram and Twitter pages or in the comments below.
