Governor Andrew M. Cuomo announced 30-day amendments to the proposal to establish a comprehensive adult-use cannabis program in New York.

Specifically, these amendments will detail how the $100 million in social equity funding will be allocated, enable the use of delivery services, and refine which criminal charges will be enforced as it relates to the improper sale of cannabis to further reduce the impact on communities hit hardest by the war on drugs.

"As we work to reimagine, rebuild and reopen New York, we're taking every opportunity to address and correct decades of institutional wrongs to build back better than ever before," Governor Cuomo said. "We know that you cannot overcome a problem without first admitting there is one. Our comprehensive approach to legalizing and regulating the adult-use cannabis market provides the opportunity to generate much-needed revenue, but it also enables us to directly support the communities most impacted by the war on drugs by creating equity and jobs at every level, in every community in our great state."

Governor Cuomo says social and economic equity are the bedrock of his proposal to legalize cannabis for adult-use and as part of that, the proposal includes a $100 million dollar fund to help revitalize communities that have been most harmed by the war on drugs.

Through this fund, qualified community-based nonprofit organizations and local governments would apply for funding to support a number of different community revitalization efforts, including, but not limited to: Job placement and skills services, adult education, mental health treatment, substance use disorder treatment, housing, financial literacy, community banking, nutrition services,services to address adverse childhood experiences, afterschool and child care services, system navigation services, legal services to address barriers to reentry, and linkages to medical care, women's health services and other community-based supportive services.

The grants may also be used to further support the social and economic equity program.

Under the amended proposal, the Department of State would allocate the funding, through grants administered by Empire State Development Corporation, in collaboration with the departments of Labor and Health, as well as with the Division of Housing and Community Renewal, and the offices of Addiction Services and Supports and Children and Family Services. Final allocations and administration of funding would also be contingent upon approval from the Division of the Budget.

The legalization of cannabis is expected to play an important role in helping rebuild New York's economy following the damaging effects of the COVID-19 pandemic. In fact, legalization is projected to create more than 60,000 new jobs, and spur $3.5 billion in economic activity while generating an estimated $350 million in tax revenue once fully implemented.

Cannabis legalization also has the potential to have a significant economic benefit on distressed areas in New York, providing employment opportunities for all levels of the workforce. As social and economic equity are the bedrock of Governor Cuomo's proposal, delivery services offer a low-cost entry point into the industry, particularly in communities which have been especially impacted by the war on drugs.

Recognizing this, the Governor is amending his proposal to allow for the permitting of delivery services as a way to open up access to this new industry even further so more New Yorkers can participate as it grows. As part of this, local governments would have the opportunity to opt out from delivery services occurring within their jurisdiction.

When establishing a new product market as the Governor's proposal does, there will inevitably be attempts by some to skirt rules and commit fraud for their own financial gain. This makes it important to ensure that penalties are carefully calibrated to ensure that all those who wish to participate in this new market, are operating on the same level playing field.

“Cannabis, however, adds another complicating factor to this dynamic - years of outdated policies stemming from the war on drugs have disproportionately impacted communities of color. Already, New York has taken steps to decriminalize cannabis and as this new market is realized, and it's critical that criminal penalties are thoughtfully assigned, as to ensure that the progress which has already been made, is not inadvertently reversed,” Cuomo said.

As such, under the amended proposal, specific penalties will be reduced as follows:

Criminal sale in the third degree (sale to 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

Criminal sale in the first degree (sale of over 64 ounces or 320 grams of concentrate) will be made a class D felony