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This entry was published on 2022-04-22
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SECTION 99-II
New York state cannabis revenue fund
State Finance (STF) CHAPTER 56, ARTICLE 6
§ 99-ii. New York state cannabis revenue fund. 1. There is hereby
established in the joint custody of the state comptroller and the
commissioner of taxation and finance a special fund to be known as the
"New York state cannabis revenue fund".

2. Such fund shall consist of all revenues received by the department
of taxation and finance, pursuant to the provisions of article twenty-C
of the tax law and all other moneys credited or transferred thereto from
any other fund or source pursuant to law. Nothing contained in this
section shall prevent the state from receiving grants, gifts or bequests
for the purposes of the fund as defined in this section and depositing
them into the fund according to law.

2-a. Revenues deposited into this fund pursuant to section fifteen of
the cannabis law shall first be used to reimburse the state general fund
for any funds transferred to this fund from the state general fund for
the purposes of supporting expenditures authorized under paragraph (d)
of subdivision three of this section.

3. The moneys in such fund shall be expended for the following
purposes:

(a) Reasonable costs incurred by the department of taxation and
finance for administering and collecting the taxes imposed by this part.

(b) Reasonable costs incurred by the office of cannabis management and
the cannabis control board for implementing, administering, and
enforcing the marihuana regulation and taxation act.

(c) Actual and necessary costs incurred by the office of cannabis
management and the cannabis control board, and the urban development
corporation, related to the administration of incubators and other
assistance to qualified social and economic equity applicants including
the administration, capitalization, and provision of low and zero
interest loans to such applicants pursuant to section sixteen-ee of the
urban development corporation act. Such costs shall be paid out of
revenues received, including, but not limited to, from special one-time
fees paid by registered organizations pursuant to section sixty-three of
the cannabis law.

(d) subject to available appropriations and providing that no more
than fifty million dollars in funding, shall be made available, whether
directly or indirectly for investment in a private debt or equity fund
formed pursuant to subdivision thirty-two of section one thousand six
hundred seventy-eight of the public authorities law or to cover capital
costs associated with establishing conditional adult-use cannabis retail
dispensaries for operation by social equity licensees duly licensed
pursuant to article two of the cannabis law. Such capital costs shall
include all costs, including closely related ancillary costs, related to
the leasing, planning, design, construction, reconstruction,
rehabilitation, improvement, furnishing, and equipping of such adult-use
cannabis retail dispensaries, to the extent such work has been
undertaken or costs for such work incurred by: (i) the office of
cannabis management and the cannabis control board, (ii) the dormitory
authority of the state of New York, or any subsidiary thereof, under
agreement with the office of cannabis management and the cannabis
control board, or with the private debt or equity fund formed pursuant
to subdivision thirty-two of section one thousand six hundred
seventy-eight of the public authorities law, or (iii) the private debt
or equity fund formed pursuant to subdivision thirty-two of section one
thousand six hundred seventy-eight of the public authorities law. Any
repayment of the state's investment by the fund, as authorized in this
paragraph shall be deposited in the New York state cannabis revenue
fund.

(e) Beginning with the two thousand twenty-two--two thousand
twenty-three fiscal year and continuing through the two thousand
thirty-two--two thousand thirty-three fiscal year, the commissioner of
taxation and finance shall annually disburse the following sums for the
purposes of data collection and reporting:

(i) Reasonable costs incurred by the office of cannabis management to
track and report data related to the licensing of cannabis businesses,
including the geographic location, structure, and function of licensed
cannabis businesses, and demographic data, including race, ethnicity,
and gender, of applicants and license holders. The cannabis control
board shall publish reports on its findings annually and shall make the
reports available to the public.

(ii) Reasonable costs incurred by the department of criminal justice
services to track and report data related to any infractions,
violations, or criminal convictions that occur under any of the
remaining cannabis statutes. The department of criminal justice services
shall publish reports on its findings annually and shall make the
reports available to the public.

(iii) Reasonable costs incurred by agencies of the state, including
the state university of New York to research and evaluate the
implementation and effect of the cannabis law. No more than four percent
of these monies may be used for expenses related to administrative costs
of conducting such research, and to, if appropriate, make
recommendations to the legislature and governor regarding possible
amendments to the cannabis law. The recipients of these funds shall
publish reports on their findings at a minimum of every two years and
shall make the reports available to the public. The research funded
pursuant to this subdivision shall include but not necessarily be
limited to:

(A) the impact on public health, including health costs associated
with cannabis use, as well as whether cannabis use is associated with an
increase or decrease in use of alcohol or other drugs;

(B) the impact of treatment for cannabis use disorder and the
effectiveness of different treatment programs;

(C) public safety issues related to cannabis use, including, but not
limited to studying the effectiveness of the packaging and labeling
requirements and advertising and marketing restrictions contained in the
act at preventing underage access to and use of cannabis and cannabis
products, and studying the health-related effects among users of varying
potency levels of cannabis and cannabis products;

(D) cannabis use rates, maladaptive use rates for adults and youth,
and diagnosis rates of cannabis-related substance use disorders;

(E) cannabis market prices, illicit market prices, tax structures and
rates, including an evaluation of how to best tax cannabis based on
potency, and the structure and function of licensed cannabis businesses;

(F) whether additional protections are needed to prevent unlawful
monopolies or anti-competitive behavior from occurring in the cannabis
industry and, if so, recommendations as to the most effective measures
for preventing such behavior;

(G) the economic impacts in the private and public sectors, including
but not necessarily limited to, job creation, workplace safety,
revenues, taxes generated for state and local budgets, and criminal
justice impacts, including, but not necessarily limited to, impacts on
law enforcement and public resources, short and long term consequences
of involvement in the criminal justice system, and state and local
government agency administrative costs and revenue;

(H) the extent to which the regulatory agencies tasked with
implementing and enforcing the marihuana regulation and taxation act
have been able to implement the provisions of such act, consistent with
its intent and purposes, and whether different agencies might be able to
do so more effectively; and

(I) any environmental impacts and hazards related to cannabis
production.

(f) Reasonable costs incurred by the state police and the department
of motor vehicles to implement the provisions of section sixty of the
marihuana regulation and taxation act, to expand and enhance the drug
recognition expert training program and technologies utilized in the
process of maintaining road safety.

(g) Reasonable costs, subject to available appropriations, incurred by
the office of cannabis management, the cannabis advisory board, or the
urban development corporation to administer grants for qualified
community-based nonprofit organizations and approved local government
entities for the purpose of reinvesting in communities
disproportionately affected by past federal and state drug policies, in
accordance with the allowable uses of moneys deposited in the New York
state community grants reinvestment fund established by section
ninety-nine-kk of this article.

(h) Reasonable costs, subject to available appropriations, incurred by
the division of criminal justice services and the office of court
administration to implement the expungement provisions of sections
seventeen and twenty-four of the marihuana regulation and taxation act,
as added by a chapter of the laws of two thousand twenty-one which added
this section.

4. After the dispersal of moneys pursuant to subdivision three of this
section, the remaining moneys in the fund deposited during the prior
fiscal year shall be disbursed into the state lottery fund and two
additional sub-funds created within the cannabis revenue fund known as
the drug treatment and public education fund and the community grants
reinvestment fund, as follows:

(a) forty percent shall be deposited in the state lottery fund for
additional lottery grants to eligible school districts pursuant to
subparagraph four of paragraph b of subdivision four of section
ninety-two-c of this article, and shall be used to increase the total
amount of funding available for general support for public schools;
provided that notwithstanding any inconsistent provision of law, the
amounts appropriated for such additional lottery grants shall be
excluded from the calculation of: (i) the allowable growth amount
computed pursuant to paragraph dd of subdivision one of section
thirty-six hundred two of the education law; (ii) the preliminary growth
amount computed pursuant to paragraph ff of subdivision one of section
thirty-six hundred two of the education law; and (iii) the allocable
growth amount computed pursuant to paragraph gg of subdivision one of
section thirty-six hundred two of the education law;

(b) twenty percent shall be deposited in the drug treatment and public
education fund established by section ninety-nine-jj of this article;
and

(c) forty percent shall be deposited in the community grants
reinvestment fund established by section ninety-nine-kk of this article.