It has been more than a year since recreational marijuana use for adults has been legal in the State of New York. Signed into law on March 31, 2021 and known as MRTA or The Marihuana Regulation & Taxation Act [sic], as reported, it also created a new Office of Cannabis Management (OCM), governed by a Cannabis Control Board to regulate adult use, medical, and hemp cannabis. The exact terminology of the product can change depending on the market and other stakeholders, whether it includes production, medical and/or recreational use.

 

The Office of the Bronx Borough President helped organize a forum on June 21 with elected officials, community leaders, and State administrators to help the public understand exactly what is now legal, how cannabis will be produced and distributed, and the economic impact of MRTA. Held at the Bronx Museum of the Arts and livestreamed on BronxNet, it was a jam-packed session that left some of the in-person audience wanting even more information.

 

“We are here because of the passage of MRTA, the Marihuana Regulation and Taxation Act,” Bronx Borough President Vanessa L. Gibson told the audience.  “This law will truly set out the framework and the guidelines to regulate cannabis in the state of New York in a balanced manner that will protect both public health and public safety while promoting social equity and economic development.”

 

While the implications of MRTA are significant for those interested in cultivating the plant, processing it, distributing the finished product, and bringing it to market for an eager consumer base, there are a few facts about this that the public should know. Since March 2021, anyone 21 years and older can possess up to three ounces of cannabis for personal use, including having up to five pounds of cannabis in the home.

 

Smoking cannabis is legal almost anywhere cigarette smoking is allowed, and law enforcement officers are not allowed stop and search cannabis smokers, because they smell it. There are exceptions, as previously reported, when it comes to driving while under the influence, etc.

 

The cannabis panel consisted of State Sen. Jamaal Bailey (S.D. 36), Tremaine Wright, chairwoman of NYS Cannabis Control Board, Kevin Kim, commissioner of NYC Department of Small Business Services (SBS), Patricia Zube-Wilson, director of government affairs in the State’s Office of Alcoholism and Substance Abuse Services, Eli Northrop, an attorney with the Bronx Defenders, Coss Marte, co-founder of Con Body, a fitness program developed while he was in solitary confinement, and Desmon Lewis, co-founder of the Bronx Community Foundation, which supports and invests in community power to eradicate inequity and build sustainable futures for all Bronxites.

 

Social equity and economic development are critical issues in a county that consistently ranks as the poorest in New York State.  The population estimates released by the U.S. Census Bureau in July 2021 show a borough where 56.4 percent of the population is Hispanic or Latino and 24.4 percent of the borough lives in poverty. Those figures explain, at least in part, why any discussion of opportunities to create a profitable business will draw meaningful attention.

 

One group that is closely watching these developments in the aftermath of cannabis legalization is the Latino Cannabis Association. Sandra Jáquez is vice president of the trade organization whose members seek licenses from the State to become early entrepreneurs for the new adult-use cannabis industry.

 

The group has sought the support of both political and business leaders. “We work together to ensure that people of color are well represented in the adult-use cannabis industry,” she said. “You can count on us and our communities in helping our people, in Albany, working with our legislators and regulators, as well as wherever it is needed to uplift this cause.”

 

A report in The New York Times from June revealed just how lucrative the City expects the legal cannabis industry to be. “In New York, Mayor Eric Adams has proposed that the City invest $4.8 million next year in the local cannabis industry, which is expected to generate nearly $1.3 billion in the first year of legal sales” The Times reported.

 

From a historical perspective, it was noted during the forum that whenever popular, legal industries started and began to grow in the United States, people of color were traditionally excluded from exploiting such opportunities, while other non-people of color benefited.

 

From the development of various means of transportation like the railroad, maritime shipping, and aviation, to media, including newspapers, radio, television, movies, and video production, people of color have had to play a game of catch-up to avail of even meager opportunities to enter such industries, if at all.

 

MRTA aims to reverse that trend as this new industry is created from the ground up. The hope is that those who have been disproportionately affected and most harmed by what many consider to be a failed war and drugs and a biased policy of enforcement when it comes to marijuana use, can instead actively participate in the industry and reap the expected profits from the legalization of cannabis.

 

Wright is tasked with making sure the nascent industry provides such an equitable path to entry. “Our State’s law is really designed for equity and inclusion and diversity [and] is anti-monopolistic,” she said.

 

“It is designed so that we have access points for individuals to get involved. It is designed so we are reinvesting in our communities that have been harmed. It is specifically designed so that we can take advantage of this opportunity that is rare. It comes, like, once every hundred years, where a new industry is legalized in our State, and we have an opportunity to create all the pathways in, and to support not just industry, but the education and the research and the learning, and also the reinvestment… that has not happened previously.”

 

The panel regularly described the cannabis industry as burgeoning. Even if he did not use the “once every hundred years” comparison, Bailey enthusiastically urged the audience to think seriously about investing in the cannabis market as a way to move up the socio-economic ladder.

“Social equity is more than just about one thing; eventually, everything connects, which is why it’s important for us to get in on the ground floor of this emerging market,” the senator said. “Just like my pops and maybe your pops… they said, ‘Somebody told me to invest in this company called Apple,’ and ‘Somebody told me to invest in this thing called IBM.’ We’re telling you now, we got to get in on the ground floor.”

 

Meanwhile, the OCM means business when it comes to enforcement also. On July 7, it publicly identified 52 illicit cannabis stores that were sent cease and desist letters, directing them to stop all illicit cannabis sales in the State. Officials said, “These stores falsely depict their operations as legal cannabis dispensaries, but they are not licensed by New York State and are selling untested products that put public health at risk.”

 

They notified the operators that their failure to cease operations could permanently bar them from receiving any cannabis licenses in New York State.

 

Additionally, OCM officials said the agency had also received referrals of additional illicit storefront operations that were under review. Meanwhile, if the named storefronts don’t cease operations, they will be referred to the Cannabis Control Board for permanent barring from receiving any cannabis licenses in New York State.

 

“There are no businesses currently licensed to sell adult-use cannabis in New York State.” said Wright. “You need a license to sell cannabis in New York. Licensed sales and a regulated market are the only way New York’s customers will be assured that the cannabis products they are purchasing have been tested and tracked from seed to sale.”

 

Regulated adult-use cannabis businesses will be required, in addition to being licensed by the Cannabis Control Board, to comply with all state and local laws, including providing clear and verifiable information to consumers regarding the products they are consuming, checking the identification of consumers to ensure sales are not being made to young people, and collecting and depositing tax revenue to support New York State’s schools and help revitalize communities.

 

No adult-use retail licenses have been issued in New York State to date.  Currently, the only legal means of procuring, safe, tested cannabis products is through the medical cannabis program, where becoming a patient requires getting certified from a medical provider.

 

In addition, illicit cannabis storefronts do not contribute to the New York state cannabis revenue fund, which is designed to invest revenue from cannabis sales back into communities.

 

The said revenue will cover the administration of the program and the implementation of the law and will be split to support the State Lottery Fund for general public-school support, secondly, the community grants reinvestment fund which supports job training and placement, reentry services for justice-involved New Yorkers, system navigation services, youth-serving programs, financial literacy services and finally, the drug treatment and public education fund.

 

OCM officials said they remain focused on improving public health outcomes for cannabis patients and consumers and are hard at work developing regulations for the broader adult-use program, including expansive testing requirements to avoid adverse reactions to cannabis products. Unregulated vaping products, including cartridges labeled as containing THC, have been cited by the CDC for being responsible for thousands of cases of acute respiratory distress syndrome across the country.

OCM officials are strongly encouraging New Yorkers not to visit these operations and to be aware that products being offered for sale are not safe for human consumption.

 

Government Officials said that a total of 66 cease and desist letters were sent out because in some instances the associated LLC had an address for service on file with NYS Department of State or a separate address was found for owner.

 

Wright concluded, “Sale of untested products put lives at risk. I implore these illegal store operators, and any other stores pretending to be legal operations, to stop selling cannabis products immediately. Selling any item or taking a donation, and then “gifting” a customer a bag of untested cannabis does indeed count as a sale under New York’s Cannabis Law.”

 

The entire forum can be watched on BronxNet: https://www.bronxnet.org/watch/videos/15263/

 

*Síle Moloney contributed to this story.

 

Editor’s Note: An earlier version of this story made reference to Derrick Lewis being a panelist at the event. In fact, the panelist was Desmon Lewis, Derrick’s twin brother. We apologize for this error.