Cuomo said he hopes to pass this legislation through the budget process by April 1, and that he has been negotiating with lawmakers to come to a final deal.
In a February 16 announcement, New York Governor Andrew Cuomo released 30-day amendments to the cannabis plan in his budget proposal, detailing how $100 million for social equity funding will be spent, allowing the use of cannabis delivery services and refining criminal charges for improper sale of cannabis to reduce the impact on communities hardest hit by the “war on drugs.”
Social Equity Funding
Cuomo’s proposal includes a $100 million fund to help revitalize communities most impacted by the war on drugs. In order to allocate this funding, Cuomo is proposing that qualified community-based nonprofit organizations and local governments could apply for funding to support community revitalization efforts such as job placement, housing, mental health and substance abuse treatment, among other things. The New York Department of State would allocate the funding through grants administered by the Empire State Development Corporation, in collaboration with the departments of Labor and Health, the Division of Housing and Community Renewal and the offices of Addiction Services and Supports and Children and Family Services.
Enabling the Use of Delivery Services
Recognizing that adult-use cannabis legalization will likely play a role in New York’s economic recovery following the COVID-19 pandemic (projections include more than 60,000 jobs, $3.5 billion in economic activity and $350 million in tax revenue), Cuomo intends to enable the use of delivery services of cannabis products to allow a low-cost entry point into the industry. He expects this will especially benefit communities most impacted by the war on drugs. Local governments would have the ability to opt out of delivery services within their jurisdiction, however.
Criminality of Improper Sales
Lastly, in keeping with his goal of addressing the war on drugs’ disproportionate impact on communities of color, Cuomo’s amendments include the reduction of specific penalties for the criminal sale of marijuana, as follows:
- Criminal sale in the third degree (sale to those under 21 year old) will be made a class A misdemeanor;
- Criminal sale in the second degree (sale of over 16 ounces or 80 grams of concentrate) will be made a class E felony; and
- Criminal sale in the first degree (sale of over 64 ounces or 320 grams of concentrate) will be made a class D felony.
The announcement noted that in 2019 Cuomo signed legislation to decriminalize unlawful possession of marijuana and put forth a process for expungement of certain marijuana convictions, and that the “proposal builds on years of work to understand and decriminalize cannabis for adult use.”
Cuomo said he hopes to pass this legislation through the budget process by April 1, and that he has been negotiating with lawmakers to come to a final deal.
The Legislature will hold a joint budget hearing on February 23 to discuss the governor’s proposals, including this one. Following the hearings, the Senate and the Assembly will each release their own budget proposals. Last month, the Legislature reintroduced a competing cannabis legalization proposal, the Marihuana Regulation and Taxation Act (MRTA), a version of which may be included in the Senate and Assembly’s standalone budget proposals.
For further details about Cuomo’s proposal and the Legislature’s proposal, read our Duane Morris Alerts from January 11 and January 22.
For More Information
If you have any questions about this Alert, please contact Michael D. Schwamm, Deanna J. Lucci, any of the attorneys in the Cannabis Industry Group or the attorney in the firm with whom you are regularly in contact.
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