Evolution of the New York Cannabis Market
Over the past three decades, several states across the country have moved to legalize cannabis for medical or recreational purposes, even though marijuana remains a controlled substance at the federal level.
To date, 38 states and Washington, D.C., have legalized medical marijuana, while 24 and Washington, D.C., have legalized cannabis for adult recreational use. A handful of states have also passed legislation aimed at decriminalizing the possession and use of cannabis.
In some cases, legislation is tied to ballot measures, while in others, the state legislature creates and passes bills. Where does the state of New York land on cannabis legislation? How have policies evolved over the years?
Cannabis in the State Capital Since 2015
With the passing of the Controlled Substances Act in 1970, cannabis became classified as a Schedule I substance, effectively prohibiting its use. It was 26 years before California approved a proposition legalizing medical marijuana, kicking off the trend of states making their own choices where cannabis law was concerned.
In 2014, New York became the 23rd state to legalize medical marijuana through a bill in the state legislature. By 2015, dispensaries began distributing products to patients with certification from state-registered healthcare providers.
Although it took several years, the state legislature also passed a bill to legalize adult-use recreational cannabis in July 2021. The holdup in passing this legislation was related to disagreements over how the tax revenue generated from sales should be used.
Some lawmakers argued that a major portion of the money should be earmarked for equity and funneled to communities disproportionately impacted by arrests for cannabis-related crimes.
Eventually, they won, and 40% of tax revenue from recreational sales is devoted to those communities, and the law contains language aimed at expunging the records of those convicted of marijuana-related offenses that are no longer considered criminal.
The legislation also included a conditional licensing system, the Conditional Adult Use Retail Dispensary (CAURD) program, giving early priority to applicants with past marijuana convictions. It started with an initial offer of 150 licenses but subsequently grew to 300.
In March 2023, the state’s first dispensary licensed to sell recreational …