BILL NUMBER: S6234
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the cannabis law and the financial services law, in
relation to establishing the Cannabis Community Reinvestment Act
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require operators in the cannabis industry to create a
plan to reinvest in communities disproportionately impacted by cannabis
prohibition including, if ò applicable, the community such operator is
located in for purposes of social equity.
 
SUMMARY OF PROVISIONS:
Section One: Called the "Cannabis Community Reinvestment Act."
Section 2: "operator" means a license that acts as a cannabis producer
for the cultivation of cannabis, a cannabis processor, a cannabis
distributor and/or a cannabis retailer that has been in operation at
least two years.
Section 3: Applications by operators. Any applications submitted by a
multistate operator shall include a plan to reinvest in communities
disproportionately impacted by cannabis prohibition including, if appli-
cable, the community such operator is located in.
The operator shall contribute at least two percent of their annual
profits to minority communities that had disproportionate numbers', of
marijuana arrests as defined in the Marijuana Regulation and Taxation
Act.
The board shall determine the necessary criteria for such plan and shall
establish a scoring system to determine if such operators have fulfilled
their obligation under this section.
Section 4:
If the department of financial services determines that an operator is
failing to properly serve disadvantaged communities, specifically the
community they are serving, if applicable, or does not possess and/or
properly execute a social impact program within their business model,
such operator shall be notified and their license shall be marked for
further review.
The department of financial services shall determine what necessaryò
steps such operator shall take to fulfill the obligations under this
section and provide such information to the operator within thirty days
of marking such operator for further review. The operator will then have
sixty days to take such steps. If the department determines that such
steps or substantially similar steps, as determined by the board, were
not taken, the department may revoke such operator's license or
licenses. If such revocation occurs, such license or licenses shall be
auctioned off to another individual or business that qualifies under
section eighty-seven of this article.
Section 5: Effective date.
 
JUSTIFICATION:
In 2021, the "Marijuana Regulation and Taxation Act" became law. This
law legalized recreational marijuana in New York.State. It also estab-
lished a new Office of Cannabis Management for the regulation of canna-
bis, created a regulated and taxed cannabis industry in New York, and
provided for various social and economic justice initiatives. This bill
would require operators in the cannabis industry to create a plan to
reinvest in communities disproportionately impacted by cannabis prohibi-
tion including, if applicable, the community such operator it located in
for purposes of social equity.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: A10488 (Zinerman) Died in Committee
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Minimal
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

Statutes affected:
S6234: 3 cannabis law