Lawmakers, governor announce agreement on legislation to legalize recreational marijuana. Here are the bill’s key features.

Gov. Andrew Cuomo has struck a deal with state legislative leaders on sweeping legislation to legalize recreational marijuana use by adults 21 and over in New York.

If adopted, the proposed legislation would legalize the personal possession within one’s private residence of up to five pounds of marijuana.

It would also legalize the personal possession outside of the home of up to three ounces of marijuana.

Home cultivation of up to six mature cannabis plants and six immature cannabis plants per household would also be legalized.

The proposed legislation would also legalize the possession of up to 24 grams of cannabis in concentrated form.

Possession of marijuana and concentrated cannabis in larger quantities would still be criminalized:

• Possession of more than three ounces but less than 16 ounces would be a violation, punishable by a fine of up to $125.
• Possession of more than 16 ounces or more than five ounces of concentrated cannabis would be a class A misdemeanor.
• Possession of more than five pounds but less than 10 pounds of marijuana, or more than two pounds but less than four pounds of concentrated cannabis would be a class E felony.
• Possession of more than 10 pounds or more that four pound s of concentrated cannabis would be a class D felony.

Criminal penalties would also apply to the sale of marijuana without a license or the sale or provision of marijuana to someone under age 21. The degree of criminality and the fines that would apply depend on the weight of the marijuana sold or provided.

The use of marijuana by drivers will remain prohibited.

The legislation would establish licenses for cultivators, processors, distributors, retail dispensaries, micro businesses and delivery businesses, among other entities. It would also establish licenses for on-site consumption. On-site consumption licenses would be prohibited within 500 feet of any school or 200 feet of any house of worship.

Cultivator/processor/distributor licensees would be prohibited from being licensed as retailers or locations for on-site consumption.

The legislation will implement strict quality control, public health and consumer protections, Cuomo said.

There would be a new cannabis tax structure that would replace a weight-based tax with a tax per mg of THC at the distributor level with different rates depending on final product type, according to the governor’s press release. The wholesale excise tax would be moved to the retail level with a 9% state excise tax. The local excise tax rate would be 4% of the retail price. Counties would receive 25% of the local retail tax revenue and 75% would go to the municipality.

Tax collections from the adult-use cannabis program are projected to reach $350 million annually, the governor said. Additionally, there is the potential for this new industry to create 30,000 to 60,000 new jobs across the state, he said.

All state cannabis taxes would be deposited in the New York State cannabis revenue fund. Revenue covers reasonable costs to administer the program and implement the law. The remaining funding would be split three ways: 40% to education; 40% to a community grants reinvestment fund; and 20% to drug treatment and public education fund.

Cities, towns and villages would be able to opt-out of allowing adult-use cannabis retail dispensaries or on-site consumption licenses within their borders by passing a local law by Dec. 31, 2021 or nine months after the effective date of the legislation. However, they cannot opt-out of adult-use legalization.

The legislation would establish an office of cannabis management within the within the division of alcoholic beverage control in the State Liquor Authority.

The office of cannabis management will be vested with the authority to issue regulations to implement the new laws, including regulations governing the home cultivation of cannabis. The legislation requires the office to issue regulations for home cultivation for medical use within six months of the effective date of the statute. For home cultivation for non-medical use, regulations must be issued within 18 months after the retail sale of marijuana is legalized.

A cannabis control board would make licensing decisions and will have authority to decide how many registrations, licenses or permits of each class should be issued in the state or within any municipality.

The State Department of Health will work with institutions of higher education to evaluate methodologies and technologies for the detection of cannabis-impaired driving. After completion of the research study, DOH may create and implement rules and regulations to approve and certify a test for the presence of cannabis in drivers.

The legislation includes additional funding for drug recognition experts and law enforcement to ensure safe roadways.

The legislation would also provide for the automatic expungement or resentencing for anyone with a previous marijuana conviction that would now be legal under the law.

“For generations, too many New Yorkers have been unfairly penalized for the use and sale of adult-use cannabis, arbitrarily arrested and jailed with harsh mandatory minimum sentences,” Cuomo said.

“Legalizing adult-use cannabis isn’t just about creating a new market that will provide jobs and benefit the economy — it’s also about justice for long-marginalized communities and ensuring those who’ve been unfairly penalized in the past will now get a chance to benefit. I look forward to signing this legislation into law,” he said.