On March 31, New York became the 15th state to legalize adult recreational use of marijuana with the Cannabis Regulation and Taxation Act. Almost immediately questions arose as to how licensing for cannabis would be handled by the state.
For Assembly Leader Crystal Peoples-Stokes, who spent years pushing for legalization, equity is the first priority.
“The thing that was most important about this legislation for me, there are a number of pieces but the one that takes precedent is the fact that it was focused primarily on equity first and the opportunities, and revenue generating opportunities second,” she said.
Part of that legislation requires the state to invest 40% of what some estimates says could be a $3.5 billion per year take from cannabis revenue into communities which have been negatively impacted by the War on Drugs. This also means providing the opportunity for marginalized groups to capitalize on business licenses in this new cannabis market.
“But the goal of 50% equity business that is to apply to either people who live and reside in those communities, our MWBs (Minority and Women Owned Businesses) or our disabled veterans or our distressed farmers,” Peoples-Stokes said.
That’s 50% of all licenses going to these specific groups. Although it’s very early in the process, local entrepreneurs are preparing for the application process.
Canna Haven Buffalo smoke shop owner Dre, who is working on getting a license for on-site consumption, is excited for this new opportunity to grow her business.
“I think this is the coolest thing for people of color black people,” she said. “For LGBTQ folks to kind of get us up ahead in the industry that's normally run by white folks.”
“It’s liberation for us financially,” said Reggie Keith, another entrepreneur looking to get a foothold in the industry. “As a community I think this really is the opportunity that a lot of people that look like me were raised in the conditions I have part of the best opportunity we had to really change our trajectory as it relates to our social status in this country and our financial trajectory.”
Keith is the founder and president of Canna House, a products and services outfit also looking to apply for a consumption site license.
He said there is growing concern among prospective applicants about the application process.
“Well, as regulation is being put in place and the regulators are being put in place, everybody who wants to get into game is doing their due diligence to be ready," Keith said. "You know, we're really in a mystery of what we're actually going to be, what’s going to be expected of us.”
Last week, vendors from across Western New York came to the Buffalo metro area for the Haze Festival, a pop-up for cannabis-related businesses.
Event organizer John said the Haze Festival is a big networking and business growth opportunity.
“So the whole goal of doing this pop up is to give startup businesses the opportunity that they can't get in the legal world,” he said. “One, because they might not be fully cold like licenses and permits, it always gives them the opportunity to get their name out and to make some money. So to help them venture into the legal way.”
The jovial and welcoming atmosphere of the festival is reflective of the shared mindset towards this brand new industry said Women’s Cannabis Cooperative Co-Founder Jane Jones.
“Everybody really has to remember it's not about competition,” Jones said. “It's about cooperating and collaborating and making sure that we have an equal chance for everyone.”
Despite the possibility of over a year-long wait, Keith said now is the time for everyone to get their affairs in order.
“Can't fake your way into this man,” he said. “You're gonna have to be real about what you know and what you bring to the table. And don't be fearful of that. If you don't know, the knowledge is out there to be found. Find your tribe, find who you can actually connect with and build with.”
