On March 31, 2021, the Marihuana Regulation and Taxation Act (MRTA) ended cannabis prohibition in New York. Before this, advocates and allies worked towards halting former Governor Cuomo’s non-equitable Cannabis Regulation and Taxation Act, which would have kept justice-involved people out of the legal industry. The MRTA is the most progressive cannabis law in the United States; at least 50% of retail businesses must be owned by those disproportionately impacted by the war on cannabis. Various social equity programs were introduced in other markets, but most have had dismal results. So far the MRTA has fared much better, reflected in the number of dispensaries owned by social equity applicants.
In 2024 the New York market saw $1 billion in sales, which bucks the national trend for businesses owned by social equity licensees. A report from the New York Office of Cannabis Management bolsters this; Social and Economic Equity (SEE) licensees account for 38% of cultivators, 48% of processors, 38% of distributors, 58% of micro retailers, and 81% of retailers in the state.
Unfortunately, Registered Operators (ROs), who were the first to sue the state for an injunction against the Conditional Adult-use Retail Dispensary (CAURD) program, were able to cut their wait time to enter the market from three years to just one. Also, ROs could negotiate payment plans for their market entrance fees. The CAURD program is instrumental in giving those who are justice-involved an opportunity to enter the legal cannabis industry.
In December 2024, another injunction was launched against the program and provisional licensees in the December queue. Unlike the November queue which the claimants are in, the December queue is highly representative of SEE and applicants from communities disproportionately impacted by the War on Drugs. To say additional provisional licenses would oversaturate the market means one is not entrenched in the data.
The governor’s office has not provided material support for the legislation and has negatively impacted the outcomes for SEE applicants. The funding the state promised never materialized, and the New York Social Equity Cannabis Investment Fund, run by a subdivision of the Dormitory Authority of the State of New York (DASNY), was a massive failure that only delivered 21 dispensaries, costing $78 million.
Consumers and industry professionals benefit from the diligent work of advocates who want plant medicine accessible to all. The MRTA envisioned businesses that are reflective of the community as well as hubs for innovation. Seed-to-sale in New York presents an opportunity for the industry to develop top-notch cannabis over time. We look forward to seeing the micro licenses and small-batch cannabis entering the market in 2025.
As of today though, the market is showing signs of early monopolization as the top 32% of the industry in New York is being driven by only 10 brands, most of them from corporate cultivators with 100k square foot canopies. What’s occurring is the opposite of what the MRTA demands. We hope that in 2025 budtenders and customer-facing employees across the supply chain will dig into educating the consumer on where their dollars are going. We need more informed consumers who will advocate for a fair and equitable market, one that’s reflective of the diversity across the state, by shopping their values. For New York, buy New York.
About High Exposure Agency
Founded by Annette Fernandez, Amy Chin, and Kassia Graham, High Exposure Agency is a multidisciplinary company serving small businesses in New York State and beyond.
