On June 22, 2022, Governor Kathy Hochul announced and appointed Social Equity Impact Ventures, LLC, a premier minority-led investment team, to sponsor and manage the $200 million New York Social Equity Cannabis Investment Fund. The investment fund is a public-private limited partnership that will be formed to position social equity entrepreneurs to take part in New York’s newly created adult-use cannabis market. The project is the first of its kind in the nation, allowing New York State to invest and fund up to 150 conditional adult-use retail dispensaries that will be operated by individuals who have been impacted by the inequitable enforcement of Marijuana. Specifically, the fund will help eligible individuals, with a Conditional Adult-Use Dispensary License, meet the cost of establishing and running a retail dispensary, including the leasing of retail locations, construction, and supplying the space with necessary equipment. This move marks an important step in the realization of New York’s adult-use cannabis market and furthering New York’s goal of integrating social equity within the cannabis industry.
Governor Hochul further announced newly appointed individuals to New York’s Cannabis Advisory Board. The board has been tasked with overseeing the social and economic development of communities adversely impacted by marijuana enforcement and help advise cannabis regulations. The board will supply community grants to support areas disproportionally impacted by marijuana prohibition and will aid and fund job training and placement, reentry services for justice-involved individuals, youth-serving programs, and many other services. The grants will be funded through New York’s Marijuana Regulation and Taxation Act, which will contribute 40% of all taxes associated with cannabis products and licensing to the board’s Community Grants Reinvestment Fund.
The Wagoner Firm has been monitoring the progress of New York’s cannabis industry from its inception and remains informed on all developments by the New York State legislature, the Cannabis Advisory Board, and the Cannabis Control Board. We are available to answer all cannabis related inquiries and are looking to counsel prospective applicants and sellers on actions that can be taken today as they prepare to enter the cannabis industry. Please contact our office for more information.