Marijuana: The Money

March 31, 2021

As you know, last night (early this morning) both houses of the NYS Legislature passed Adult Use Marijuana legislation.  Here’s a quick run down of the specifics of the deal as we currently understand it:

Money comes off the top for:

  • Reasonable costs by DTF to administer and collect taxes;
  • Reasonable costs by office of cannabis management and control board for implementing, administering, and enforcing the MRTA;
  • Actual and necessary costs by the board for incubators and social and economic equity applicants;
  • Starting in 2022 and through 2-233, DTF shall disburse various sums for data collection and reporting;
  • Reasonable costs by state police and DMV to implement provisions of the MRTA for DRE and technology for maintaining road safety;
  • Reasonable costs incurred to administer grants for qualified community-based nonprofit orgs., and local government entities for the purposes of reinvesting communities disproportionally affect by past federal and state drug policies;
  • Reasonable costs incurred by DCJS and OCA to implement expungement provisions.

After dispersal of moneys set forth (above), remaining funds shall be deposited as follows:

  • 40% deposited in state lottery fund for additional lottery grants to eligible school districts –  to increase the total amount of funding available for general support for public schools;

  • 20% shall be deposited into the newly created drug treatment and public education fund (99-jj of the finance law). Money in this fund shall be expended to OASAS and disbursed, in consultation with DOH, the office of cannabis management, and the commissioner of education for:

    • Reasonable costs subject to available appropriations by OASAS to administer funds;
    • To develop and implement a youth-focused public health education and prevention campaign, including school-based prevention, early intervention, etc;
    • To develop and implement a statewide public health campaign on the health effects of cannabis and legal use;
    • To provide substance use disorder treatment programs for youth and adults, with an emphasis on programs that are culturally and gender competent, trauma-informed, evidence-based and provide a continuum of care that includes screening and assessment, early intervention, active treatment, family involvement, case management, overdose prevention, prevention of communicable disease related to SUD, relapse management for substance use and co-occurring behavioral health disorder, vocational services, literacy services, parenting classes, family therapy and counseling services, MAT, psychiatric medication and psychotherapy.  

  • 40% to the community grants reinvestment fund.

    • Importantly, money in this fund can also be used to provide grants for qualified community-based nonprofit organizations and approved government entities for SUD treatment.