ALBANY, N.Y. — The New York State Office of Cannabis Management (OCM) has released a report on its progress in rolling out the Marijuana Regulation and Taxation Act (MRTA), outlining financial impacts, social equity challenges, and recommendations for the future.
Recommendations
The report includes several recommendations for the industry and government moving forward. For example, it suggests that OCM should launch campaigns to educate New Yorkers about the industry and keep kids away from drugs. It also recommends creating a program with the latest on production numbers and consumer preferences so businesses better understand the local market.
Economics
The MRTA aimed to make money for the state, strengthen the agricultural industry, and create a regulated cannabis market that offers jobs with low barriers to entry. Among New Yorkers who use weed, 52% are only recreational, 34.5% are both medical and recreational, and 13.5% are only medical.
From $2.2 million in January 2023, monthly retail sales peaked at $97.4 million in August 2024. All told, retail sales revenue—the total gross profit at all legal dispensaries statewide—hit $160 million in 2023. That includes $10 million from Cannabis Grower Showcases, representing over a hundred retailers at 60 events in 40 cities.
Public Health and Safety
The report said that, in 2022, 14.9% of New Yorkers 18 and up said they’d used cannabis in the previous month—with 7% using at least 20 days per month—even though the legal age is 21. About two-thirds of New Yorkers who used cannabis in 2023 bought from legal sellers, while 11% reported growing cannabis at home. That leaves about 22% who admitted to shopping on the black market that year.
The MRTA aimed to transform the marijuana conversation from one about law enforcement into one about education and public health. Weed officials focus on research of safe products that don’t promote underage drug use or driving while impaired. And they posit that increasing staff to monitor compliance with regulations and teaching about safe storage techniques would lead to better public health outcomes.
Social Equity and Justice
The MRTA’s socio-economic justice program—The New York Social and Economic Equity Plan (SEE)—aimed to make whole those people who’d been penalized by the previous approach to marijuana. From 1980 to 2021, Black people accounted for 57% of 1.3 million arrests, while Hispanic people made up 25%. Black New Yorkers were also arrested for weed 15 times as often as White New Yorkers, though for Hispanic New Yorkers, the rate was 7.5 times higher than for White defendants.
Law Enforcement on the Black Market
The report recommends educating New Yorkers with a marijuana-related rap sheet about getting it expunged. It also recommends connecting SEE licensees or applicants low on funds to grants or low-interest loans.
Environmental Sustainability
In line with the climate resiliency goals of Gov. Kathy Hochul’s administration, the MRTA prioritizes environmental concerns. For example, following an executive order mandating zero-emission vehicles at state agencies by 2035, OCM has 17 electric vehicles and two plug-in hybrids.
Conclusion
The OCM report provides a comprehensive overview of the progress made in implementing the MRTA, highlighting both successes and challenges. While the report outlines several recommendations for improvement, it also demonstrates the significant progress made in creating a regulated cannabis market that prioritizes social equity, public health, and environmental sustainability.
Frequently Asked Questions
Q: What is the goal of the MRTA?
A: The MRTA aims to make money for the state, strengthen the agricultural industry, and create a regulated cannabis market that offers jobs with low barriers to entry.
Q: What is the current state of the cannabis industry in New York?
A: As of mid-September 2024, retail sales revenue hit $653.9 million, with 1,342 adult-use cannabis licenses issued and over 200 dispensaries operating statewide.
Q: What are the key challenges facing the cannabis industry in New York?
A: The report highlights challenges such as the need for strong regulation, federal restrictions that impede meaningful research, and the need for more education and outreach to consumers and businesses.
Q: What are the recommended solutions to these challenges?
A: The report recommends launching campaigns to educate New Yorkers about the industry and keep kids away from drugs, creating a program with the latest on production numbers and consumer preferences, and connecting SEE licensees or applicants low on funds to grants or low-interest loans.
