New York is set to open cannabis dispensaries in 2022. What to know. – The Journal News

By the end of the year, New Yorkers are set to be able to legally buy cannabis for recreational use, and the dispensaries selling those products will be owned by people most affected by harsh drug laws.

As the state's cannabis industry rolls out estimated to generate billions in tax revenue, New York officials aim to avert whats happened with legalization in other states, where those who entered the market had existing means to start businesses. This meant low-income communities of color most affected by the war on drugs were left out.

Were going to take those barriers head on, Chris Alexander, executive director of the state Office of Cannabis Management, told the USA Today Network New York. Were not going to wait to see how the market plays out. Were not going to wait to see how folks get a chance to participate.

New Yorkers will soon have to navigate a variety of cannabis licenses, funds to start businesses and policies meant to address historic racist practices in law enforcement.

Path forwardNew York becomes 15th state to legalize recreational marijuana

Budding industryNew York's first legal marijuana crop is growing and bound for stores this year

Adults over 21 can already carry and use certain amounts of weed thanks to the state's 2021 Marijuana Regulation and Taxation Act.

But as of now, its still illegal for New Yorkers to sell cannabis for recreational use. In July, the Office of Cannabis Management sent cease and desist letters to over 50 stores the state said were illegally selling cannabis.

That's soon changing.

The first retail dispensaries to open will be from licensees part of the coveted conditional adult-use retail dispensary (CAURD) program. They are expected to open before the end of the year. From there, the state is set to unveil more dispensaries and other licenses for the industry.

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On July 14, the state Cannabis Control Board passed regulations and the application for CAURD licenses. Approximately 150 licenses will be issued, accompanied by a $200 million fund from the state to operate the new business. A business can expect to receive up to $1.5 million to help establish a dispensary.

Qualifying is highly selective.

CAURDs application window is expected to open at the end of August. Those interested must pay a $2,000 nonrefundable application and license fee. Applicants also must indicate the preferred geographic region to operate a dispensary.

A mockup of the application is already available at Cannabis.ny.gov.

Black and Latino New Yorkers have consistently been overrepresented in marijuana-related arrests.

The state is issuing its first licenses to people who felt the effects of the ban on marijuana, and state funds aid them in the process. Tax revenue from sales are also meant to go back into communities, via education funds, community reinvestment grants, drug treatment and public education.

But many people affected by the prohibition may not have opened a business, let alone a successful one and both are requirements to obtain CAURD. State officials say other cannabis licenses will also factor in equity standards to ensure all people have a chance to enter the industry.

Half of all licenses must go to social and economic equity applicants. This includes people from communities impacted by the drug war, underrepresented groups such as minority- and women-owned businesses, disadvantaged farmers and service-disabled veterans.

Still, advocates say more needs to be done.

The harm that has been done totals billions of dollars, said Regina Smith, the executive director of the Harlem Business Alliance, at an Office of Cannabis Management workshop in Harlem on Tuesday. She pointed to more funds needed for entrepreneurs to succeed and not be saddled with debt.

What youve done is nice, but its crumbs given the need and damage," she said.

State officials say there will be nine applications that encompass different aspects of the industry from nurseries to weed bars.

Conditional licenses meant to kickstart the industry have already gone out to cultivators. Those licenses were first offered to existing state-licensed hemp farmers, and were rolled out before the growing season so cannabis could be harvested in time for the states first dispensaries. As of now, there are now over 220 farms in New York that can grow cannabis for sale.

Meanwhile, the application for a separate license to process cannabis products closed at the end of June.This license allows cannabinoid hemp processors already authorized by the state to move into cannabis.

Applicants can only apply for one type of license. That's meant to ensure the industry doesnt get monopolized by large companies.

The timeline and criteria for additional licenses will be developed in the coming months.

The Office of Cannabis Management website (cannabis.ny.gov) has the latest information on applications, funding and regulations. Officials have also hosted in-person workshops and webinars to provide the latest updates on the industry.

Eduardo Cuevas covers race and justice for the USA TODAY Network of New York.He can be reached atEMCuevas1@gannett.comand followed on Twitter@eduardomcuevas.

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New York is set to open cannabis dispensaries in 2022. What to know. - The Journal News