
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: March 29, 2021
Partner
201-896-7115 dmckillop@sh-law.comNew York is poised to join New Jersey in legalizing recreational cannabis. On March 28, 2021, Gov. Andrew Cuomo announced that he has reached a deal with Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie to legalize adult-use cannabis. The compromise legislation, known as the New York State Cannabis/Marijuana Regulation & Taxation Act (S.854-A/A.1248-A) (MRTA), is expected to fast-track through the New York Legislature and could be voted on as early as this week.
Efforts have been underway for several years to legalize recreational cannabis in New York. Now that New Jersey has approved adult-use, the pressure is on New York to follow suit.
In January, Gov. Cuomo included legislation to legalize adult-use recreational cannabis in his omnibus budget bill. Gov. Cuomo touted legalization, along with the tax revenue it would generate, as essential to rebuilding New York’s economy in the wake of the COVID-19 pandemic. Legalization is projected to create more than 60,000 new jobs, and generate $3.5 billion in economic activity while generating an estimated $350 million in tax revenue once fully implemented. Assembly Majority Leader Peoples-Stoke also proposed her own bill, the Marijuana Regulation and Taxation Act (MRTA), in January. The new compromise legislation reflects elements of both bills and addresses how the state will legalize, tax, and regulate adult-use cannabis, as well as enact criminal justice reform.
“For generations, too many New Yorkers have been unfairly penalized for the use and sale of adult-use cannabis, arbitrarily arrested and jailed with harsh mandatory minimum sentences. After years of tireless advocacy and extraordinarily hard work, that time is coming to an end in New York State,” Governor Cuomo said in a press statement. “Legalizing adult-use cannabis isn’t just about creating a new market that will provide jobs and benefit the economy — it’s also about justice for long-marginalized communities and ensuring those who’ve been unfairly penalized in the past will now get a chance to benefit. I look forward to signing this legislation into law.”
MRTA is a comprehensive bill, encompassing adult-use cannabis, hemp, and medical marijuana. The legislation establishes the Office of Cannabis Management to oversee all three industries and expands New York State’s existing medical marijuana and cannabinoid hemp programs. Below are several key provisions:
Now that MRTA has been introduced, a vote could occur as early as this week. While this is certainly exciting news for the New York cannabis industry, lawmakers have cautioned that it may take more than a year before sales can begin. Once MRTA is signed into law, state officials will need to establish regulations regarding a host of complex issues ranging from licensing to taxation.
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
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