Res 0471-2024

Whereas, New York State enacted the Marijuana Regulation and Taxation Act ("MRTA") in 2021, legalizing the recreational sale and use of marijuana; and Whereas, The MRTA will generate much needed state tax revenue, help to greatly reduce the racially disparate marijuana related arrests, and provide funding for community programs to better assist New York State residents; and Whereas, However, since New York State's legalization, the marijuana industry has faced numerous hurdles including: lawsuits against the State; regulatory and licensing delays; and the existence of illegal dispensaries; and Whereas, This includes a temporary federal injunction, which was recently lifted, on New York's Conditional Adult-Use Retail Dispensary program, which prioritizes awarding licenses to previous justice involved individuals; and Whereas, According to the New York State Office of Cannabis Management there are only 51 legal cannabis dispensaries currently operating and serving the public; and Whereas, The limited number of legal cannabis dispensaries not only hurts potential business owners but negatively impacts marijuana farmers and cultivators by not allowing farmers to connect and sell cannabis to these legal businesses; and Whereas, New York cannabis famers are burdened with holding and storing millions of dollars in perishable cannabis crop due to the State's inability to properly rollout the MRTA; and Whereas, Due to federal law prohibiting the transport of marijuana across state lines, these farmers must sell their crop only to licensed New York dispensaries; and Whereas, Without economic relief from the State, these farmers will most likely be unable to continue to stay in business and accrue tremendous debt; and Whereas, New York should create a Cannabis Market Recovery Fund that provides economic assistance to cannabis farmers facing these monetary and logistical hardships; and Whereas, A Cannabis Market Recovery Fund would help ensure that our cannabis farmers are protected from any statutory and logistical inefficiencies that result from the State's inability to speedily and properly address cannabis licensing issues; now, therefore, be it Resolved, That the Council of the City of New York call on New York State to create a cannabis market recovery fund for cannabis farmers and cultivators that have been negatively impacted by logistical delays of the Marijuana Regulation and Taxation Act. WJH LS 15021 1/19/24