New York Government Approves Recreational Marijuana Legalization Plan
Members of the New York State Assembly have reached a consensus on legalizing recreational marijuana. According to Democratic Party representative Crystal Peoples, the bill to lift the ban on marijuana will be considered next week.
New Yorkers to Get Green Light for Home Cannabis Cultivation
Last year, Axel Bernabe, advisor to New York Governor Andrew Cuomo, announced plans to approve a legalization order by April 1, 2021. Although officials did not meet this deadline, it was recently revealed that marijuana sales are expected to launch in 2022, meaning the law will be passed this year.
On Wednesday, officials presented the final version of the drug law reform order to the public. According to the document:
- Individuals will be allowed to cultivate up to six cannabis plants per household and possess up to 84 grams of marijuana.
- Records of convictions for crimes related to illegal cannabis trade will be automatically expunged.
- Commercial establishments will be permitted to sell cannabis products with home delivery; cannabis cafes will open in the region, where the sale and consumption of alcoholic beverages will be prohibited.
- A five-member Marijuana Control Board will regulate the cannabis industry.
- The excise tax rate on recreational cannabinoid products will be 13%.
- Half of all cannabis licenses will be issued to participants in the social equity program (victims of the war on marijuana or their relatives).
- The state will implement a reinvestment scheme—taxes collected from cannabis businesses will be invested in developing areas most affected by anti-cannabis enforcement.
Governor Cuomo’s Budget Gaps Remain Despite Marijuana Legalization
In January, Andrew Cuomo stated that marijuana legalization would help reduce the budget deficit, which reached $15 billion this year. He estimated that recreational cannabis sales would add $350 million annually to New York’s treasury. The governor proposed allocating $100 million to a social equity restoration fund and the remaining $250 million to the general budget. However, Cuomo was unable to defend this initiative, and lawmakers decided to spend the entire amount on addressing the consequences of punitive drug policies.
Neighboring New Jersey Also Legalizes Recreational Marijuana
In February, New York’s southern neighbor, New Jersey, became the 15th U.S. state to lift the ban on recreational marijuana. New Jersey residents are allowed to possess up to 168 grams of marijuana, but home cultivation remains illegal. Commercial establishments will pay a 6.625% sales tax on marijuana and an excise fee ranging from $10 to $60 per 28 grams sold. In the first year of the recreational cannabis market, businesses are expected to contribute $126 million to New Jersey’s budget, with 70% of that amount allocated to social programs in areas most affected by the war on marijuana.