Bill Text: NY S01749 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes the Cannabis Community Reinvestment Act; includes requirements for cannabis operators; includes the obligation to reinvest in communities disproportionately impacted by cannabis prohibition including, if applicable, the community such operator is located in; provides for the review of reinvestment plans by the department of financial services.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S01749 Detail]

Download: New_York-2023-S01749-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1749

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 13, 2023
                                       ___________

        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations

        AN ACT to amend the cannabis law and  the  financial  services  law,  in
          relation to establishing the Cannabis Community Reinvestment Act

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act shall be known and cited as the "Cannabis Communi-
     2  ty Reinvestment Act".
     3    § 2. Section 3 of the cannabis law is amended by adding a new subdivi-
     4  sion 37-a to read as follows:
     5    37-a. "Operator" means a licensee that acts as a cannabis producer for
     6  the cultivation of cannabis, a cannabis processor, a cannabis  distribu-
     7  tor and/or a cannabis retailer, provided that such business has operated
     8  for at least two years.
     9    §  3. The cannabis law is amended by adding a new section 62-a to read
    10  as follows:
    11    § 62-a. Applications by operators. Any  application  submitted  by  an
    12  operator  shall include a plan to reinvest in communities disproportion-
    13  ately impacted by cannabis prohibition  including,  if  applicable,  the
    14  community  such operator is located in. The operator shall contribute at
    15  least two percent of their annual profits to communities  disproportion-
    16  ately  impacted pursuant to paragraph (g) of subdivision five of section
    17  eighty-seven of this article. The board shall  determine  the  necessary
    18  criteria for such plan and shall establish a scoring system to determine
    19  if such operators have fulfilled their obligation under this section.
    20    § 4. The financial services law is amended by adding a new section 312
    21  to read as follows:
    22    § 312. Evaluation of reinvestment plans. The department shall evaluate
    23  the plans by operators, as defined in section three of the cannabis law,
    24  to  reinvest in specified communities and provide for the enforcement of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05996-01-3
        S. 1749                             2

     1  the cannabis community reinvestment act, pursuant to section sixty-two-a
     2  of the cannabis law, in consultation with the board.  If the  department
     3  determines  that  an operator is failing to properly serve disadvantaged
     4  communities, specifically the community they are serving, if applicable,
     5  or  does  not  possess  and/or  properly execute a social impact program
     6  within their business model, such operator shall be notified  and  their
     7  license  shall be marked for further review. The department shall deter-
     8  mine what necessary steps such operator shall take to fulfill the  obli-
     9  gations  under this section and provide such information to the operator
    10  within thirty days of marking such operator for further  review.    Such
    11  operator  will then have sixty days to take such steps.  Notwithstanding
    12  any provision of law to the contrary, if the department determines  that
    13  such  steps  or substantially similar steps, as determined by the board,
    14  were not taken, the department may revoke  such  operator's  license  or
    15  licenses.  The  department shall establish an appeals process for opera-
    16  tors that have had their licenses revoked.  If such  revocation  occurs,
    17  such license or licenses shall be auctioned off to another individual or
    18  business that qualifies under section eighty-seven of the cannabis law.
    19    §  5.  This  act  shall take effect on the sixtieth day after it shall
    20  have become a law. Effective immediately, the addition, amendment and/or
    21  repeal of any rule or regulation necessary  for  the  implementation  of
    22  this  act  on its effective date are authorized to be made and completed
    23  on or before such effective date.