Why it matters: The updated and expanded regulations in New York state for cannabis licensing aim to create a more inclusive application process for licensed cannabis shops. The changes allow for “social equity” applicants, including disabled military veterans, minority and women-owned businesses, and struggling farmers, to also be eligible to apply for licenses.
What they are saying: The four disabled veterans who previously sued the state challenged the exclusion of disabled veterans from the initial round of licenses, which focused on individuals with prior marijuana convictions. The veterans argue that the state’s interpretation of “social equity” was not in line with the goals outlined in the Marijuana Regulation and Taxation Act (MRTA).
The big picture: The new regulations acknowledge the sacrifices made by veterans and the lack of support they often face when starting a business after returning to civilian life. The expansion of eligibility requirements for cannabis licenses aims to address systemic inequalities and provide equal opportunities for all applicants.
What to watch: The potential ramifications of the new rules on the ongoing litigation remain uncertain. The cannabis regulators involved in the lawsuit met for an executive session after the updated regulations were passed, which could offer insights into their future course of action. Additionally, concerns have been raised about the entry of multi-state cannabis operators into the market and the need to expedite the process of allowing businesses to sell recreational cannabis.
My take: The updated regulations in New York reflect a positive step towards creating a more inclusive and fair cannabis industry. By expanding eligibility to a wider range of applicants, including disabled veterans and struggling farmers, the state aims to address existing disparities and provide equal opportunities for all. However, it will be important to monitor the outcome of the ongoing litigation and ensure that the implementation of the new regulations is carried out effectively and efficiently.
