Marijuana licenses in New York will be issued to those who used cannabis illegally and were punished for it

The state's policy to right the wrongs of the past by prioritizing recreational weed licenses for those with past judgments is a step in the right direction, advocates said this week, reports Gothamist.

New York's first cannabis dispensaries are due to open by the end of the year, months ahead of the 2023 summer launch date that officials had given earlier. This was confirmed by the authorities on Thursday, March 10. And, under the new licensing rules, people convicted of cannabis offenses prior to legalization in March 2021 will have an advantage in the entrepreneurial process, as will family members of those with such convictions. In an unprecedented effort to bridge historic disparities, this cohort will be the only group eligible to apply for the first round of retail licenses in New York, officials said.

Ernesto Castillo is one of those who could benefit from New York's new rules. Castillo, 36, grew up in Upper Manhattan and spent years building a marijuana delivery service with his partner, Joel Callado. Their service covered all five boroughs.

On the subject: Seven in-demand professions for those looking to work in the cannabis industry

He said he spent three years behind bars for marijuana possession and faced stigma from friends and family. He wants to be recognized as an entrepreneur and has long been preparing to enter the legal industry.

“Once things got serious on the West Coast, I knew change was inevitable,” Castillo said. “I realized that there would be changes on the East Coast as well. It was just about connecting the dots."

Castillo would like to open a dispensary in Washington Heights. He is also interested in other aspects of the industry, such as distribution. He said he hopes that people who are working to transition to the legal industry from the so-called legacy market will have more resources.

This group's prioritization policy is likely to acquire 100 to 200 licenses, according to Chris Alexander, executive director of the state's Office of Cannabis Management. This is likely to be only a small part of the industry, as the state has not set an upper limit on the total number of licenses.

By contrast, Colorado has issued 1500 business licenses for adult consumption in seven years of legalization, according to The Denver Post.

But prioritizing those 100-200 businesses will be one of the first concrete steps New York officials have taken to deliver on the fairness and inclusion promises made in the Marijuana Taxation and Regulation Act, the law that legalized cannabis in March 2021. It provided for the receipt of half of the licenses by "applicants for social equality." This category, which includes not only those affected by the ban, but also hard-pressed farmers, disabled veterans and women, and minority-owned businesses.

«State of New York making history, launching a first-of-its-kind approach to the cannabis industry that takes a major step forward in righting the wrongs of the past,” New York Gov. Kathy Hokul said in a statement about the measure, known as the Seed Opportunity Initiative.

Hawkul passed the bill in last month. It aims to make it possible for New York farmers to transition to growing marijuana in time to have the product ready to sell in these early dispensaries.

“In New York, we recognize the need to not only move fast, but to do it right,” Alexander said at a press conference on the initiative on Thursday. “We recognize that if we want a different outcome for our equity entrepreneurs, we must take a different approach.”

Other states have taken their own measures to encourage greater fairness and inclusion in the cannabis industry, but they were not always successful. Lawyers said New York's plan goes further and shows a willingness to experiment with new approaches.

“It's about innovation,” said Cassandra Frederica, executive director of the Drug Policy Alliance, a nationwide non-profit organization. Frederica and other lawyers said they hope to have similar equity provisions for other types of licenses, such as cannabis cultivation or shipping licenses.

Frederica said that creating opportunities for different groups to enter the industry was often a subsequent thought during legalization in other states.

"It's interesting that [New York] is trying to confront the industry with the people who have been hurt the most," she added. This is completely different

В New Jersey officials said they prioritize equality when considering applications for recreational cannabis licenses. But the state missed a February launch date for its cannabis market. It is currently under pressure to allow existing medical marijuana companies, which have been frowned upon for lack of ownership, to become the first companies to market cannabis to the general public.

Dispensary licensing rules proposed by the New York Cannabis Control Board on March 10 will now go through a 60-day public comment period, after which the state will open applications to those who qualify.

Preparing your business for success

The State is taking steps to ensure that these businesses are successful. State regulations stipulate that, in addition to being a member of the justice system, first applicants applying to retail must have prior experience in a successful for-profit or non-profit organization.

Alexander is confident that there will be many New Yorkers who meet the criteria for experience in growing cannabis and running a business. But he added that, depending on the circumstances, people could still be denied licenses based on other types of convictions.

The State is offering additional support to these early applicants, including assistance with renting space.

In New Jersey, the lack of free space for cannabis plants, creates problems for applicants. And Hokul has proposed including $200 million in the state budget to provide capital to aspirants for social equality through a combination of public and private funds.

However, funding remains difficult in the cannabis industry because the drug is still not legalized at the federal level. Advocates for underrepresented entrepreneurs said they are seeking to identify and create other funding opportunities, among other things.

“We're not just waiting [for funds from the state],” explained Domingo Estevez, chairman of the Business Development Committee on the Manhattan Community Council 12, which represents Washington Heights and Inwood.

Estevez said he is working with a group called Dignity and Justice Now to start a campaign to raise money for a foundation that will support claimants like Castillo. Others said they are working to create programs to provide legal services and other assistance to those who are trying to break into the cannabis industry.

“Businesses will need more than one source of funding to be successful,” said Jia Moron, president of Women Grow, a company that provides educational events for aspiring cannabis entrepreneurs.

She is encouraged by existing cannabis companies that have created incubation programs for startups. Moron mentioned new features such as BIPOC Cannabis Pitch Fest, which investment firm Arcview is hosting later this month.

But despite highlighting the continued need for external resources, Moron is optimistic about New York's efforts to push back against those directly affected by the cannabis ban.