ALBANY, N.Y. (CN) --- New York became the 15th U.S. state to legalize marijuana on Tuesday evening with the passage of a state bill that allows adult New Yorkers 21-and-older to legally possess up to 3 ounces of cannabis and grow up to six plants at home.
By a vote of 40-23, New York’s state Senate passed an amended version of the Marijuana Regulation and Taxation Act, which eliminates penalties for possession of less than 3 ounces of cannabis, and seeks to advance racial justice by automatically expunging records of people with past convictions for marijuana-related offenses that would no longer be criminalized.
Shortly after 10:30 p.m. on Tuesday evening, the assembly voted 100-49 to pass the bill, as well. The legislation now goes to Governor Andrew Cuomo, who has pledged to sign it into law.
Sponsored by Democrats Liz Krueger in the Senate and Crystal Peoples-Stokes in the Assembly, the bill has the support of Democratic Governor Andrew Cuomo.
Adult-use legalization, which allows adults 21 and older to possess up to 3 ounces of flower cannabis and 24 grams of cannabis concentrate, takes effect immediately, although regulated dispensary sales would not begin until New York establishes a proposed regulatory oversight board, the Office of Cannabis Management.
The state projects that it will collect up to $350 million in cannabis taxes and that legalization will create up to 60,000 jobs.
"New York's program will not just talk the talk on racial justice, it will walk the walk: ending the racially disparate enforcement that was endemic to prohibition, automatically expunging the records of those who were caught up in the so-called ‘War on Drugs,’ and channeling 40% of the revenue back into the most hard-hit communities,” Krueger said during her Senate vote Tuesday.
“It also puts 20% of the revenue into drug treatment and education, and 40% into our public schools. Not to mention building a multi-billion dollar industry for New York that encourages small businesses and farms while balancing safety with economic growth,” the bill's sponsor in the Senate said.
Assemblywoman Peoples-Stokes predicted it could take 18 months to two years for retail to begin.
The bill sets a 9% sales tax on cannabis, plus an additional 4% tax split between the county and local municipality, plus an additional tax based on the active THC content at 0.5 cents per milligram for flower, 0.8 cents per milligram for concentrated cannabis, and 3 cents per milligram for edibles.
“New York is a big domino but it’s just one more domino,” said Jonathan Caulkins, public policy professor at Carnegie Mellon University and co-author of “Marijuana Legalization: What Everyone Needs to Know.”
“Every state that falls, we’re marching towards national legalization. When national legalization happens, it will upset that apple cart for all the states,” Caulkins told Courthouse News on Monday. “There’s a chain of dominos, and this is a larger than average domino, but it’s just part of an ongoing movement."
“All of the states are mostly doing it the same way. Everybody is embracing a for-profit industry model,” Caulkins said. “Whether it’s got this regulation and that regulation doesn’t change the fact we’re creating a for-profit industry to sell a dependence-inducing intoxicant. We’re sort of creating another tobacco industry.”
All cannabis taxes would be deposited in the New York state cannabis revenue fund, which will cover costs to administer the program and implement the law. The remaining tax revenue will be split three ways: 40% to education, 40 % to community grants reinvestment, and 20% to drug treatment and public education.
The legislation also includes a social and economic equity provisions that seek to encourage participation in the regulated cannabis industry by setting a goal of directing 50% of licenses to equity applicants from communities impacted by cannabis prohibition and to minority- and women-owned businesses.
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