Equity, Data, and Regulatory Oversight
MRTA Article 4 (Sections 87–89)
Article 4 establishes how New York sets equity priorities, measures fairness through data, and creates the regulations that govern the adult-use cannabis market. These sections determine who receives licensing priority, how equity outcomes are tracked, and how rules are written and enforced.
All adult-use regulations, reporting obligations, and enforcement authority ultimately trace back to this article.
What This Covers
- Social and Economic Equity licensing priorities
- Mandatory equity incubator requirements
- Restrictions on equity license transfers
- Statewide data collection and reporting obligations
- Regulatory authority of the Cannabis Control Board
Social and Economic Equity and Incubators (87)
Section 87 requires the State to develop and maintain a Social and Economic Equity (SEE) plan for the adult-use cannabis program.
Equity Priority Groups
The State must prioritize licensing for applicants who are:
- Individuals from disproportionately impacted communities
- Minority-owned businesses (51% or more ownership and control)
- Women-owned businesses (51% or more ownership and control)
- Distressed farmers
- Service-disabled veterans
The statutory goal is that 50 percent of all adult-use licenses are issued to these groups.
Additional Priority Factors
Applicants receive additional priority consideration when they:
- Live in a disproportionately impacted community
- Have household income below 80 percent of county median income
- Have a cannabis-related conviction, or an immediate family member does
Required Incubator Support
The State is required to operate an equity incubator program.
The program must provide:
- Training
- Counseling
- Small business development support
- Financial guidance
- Compliance assistance
This incubator program is mandatory under statute.
Restrictions on Transferring Equity Licenses
Equity licenses may not be sold or transferred for three years unless:
- The buyer also qualifies as an equity applicant, or
- The buyer does not qualify but repays all outstanding State loans, grants, or fees tied to the license
These restrictions are statutory and strictly enforced.
Data Collection and Reporting (88)
Section 88 requires the Office of Cannabis Management to collect and report data on the adult-use market.
Required Data Collection
OCM must collect data related to:
- Cannabis business owners
- Employees
- Workforce composition
- Marketplace participation
- Diversity and equity outcomes
Reporting Obligations
- Data must be published annually in OCM’s public report
- Licensees must submit accurate data as part of ongoing compliance
- Data submission is tied to renewal and continued licensure
Failure to provide accurate data may affect license status.
Regulatory Authority (89)
Section 89 grants the Cannabis Control Board authority to create and adopt all regulations necessary to implement and enforce the adult-use cannabis program.
Scope of Authority
The Board’s authority includes regulations governing:
- Licensing
- Operations
- Enforcement
- Packaging, labeling, testing, and product standards
- Advertising and marketing
- Any additional requirements needed to carry out the MRTA
All adult-use compliance rules ultimately originate from this authority.
What Operators Usually Miss
- Equity goals are statutory, not discretionary
- Equity license transfer restrictions are fixed by law
- Data reporting is mandatory and ongoing
- All OCM regulations trace back to Board authority
When This Comes Up
- License application and prioritization
- Equity eligibility review
- License renewals
- State reporting cycles
- Regulatory changes or new rules
What Happens If You Ignore This
- Loss of equity priority or status
- License renewal issues
- Enforcement actions tied to misreporting
- Ineligibility for future licensing
Related Pages
Source Material
