NY wants to create the most equitable cannabis industry in the US. Why are the state’s own equity positions vacant?

New York regulators have been hard at work constructing a recreational cannabis industry built on a bedrock of equity and restorative justice, yet key positions focused on those progressive promises remain unfilled within the Office of Cannabis Management.

The OCM’s chief equity officer position, as well as a 13-member advisory board meant to aid the OCM and Cannabis Control Board, are vacant more than eights months after the agencies held their first public meeting.

Advocates and insiders have repeatedly pointed out that last year’s Marijuana Regulation and Taxation Act requires those positions be filled, and they say cannabis regulators shouldn’t be moving forward with rulemaking until that happens.

“The MRTA created a solid foundation putting New York in the unique position to actually tackle cannabis equity in a meaningful way, which is why the lack of an advisory board and chief equity officer is so troubling,” said Frederika Easley, the director of strategic initiatives at The People’s Ecosystem and the co-chair of the New York City and Hudson Valley Cannabis Industry Association’s social equity committee.

“Language and intent matter,” Easley said.

Frederika Easley

Frederika Easley is the director of strategic initiatives at The People’s Ecosystem and the co-chair of the New York City and Hudson Valley Cannabis Industry Association’s social equity committee. She also serves on the Council for Federal Cannabis Regulation’s DEI committee.

OCM spokesperson Aaron Ghitelman told NY Cannabis Insider that the agency has been “hard at work” searching for a chief equity officer candidate and that they are “almost at the end of that process.”

He did not elaborate on the advisory board other than to say the office looks forward to its first meeting.

Seven advisory board members are to be appointed by the governor, three by NYS Assembly Speaker Carl Heastie, and three by NYS Sen. Andrea Stewart-Cousins.

Neither Heastie nor Stewart-Cousins’ offices responded to repeated requests for comment on the appointments.

Jason Gough, a spokesperson for Gov. Kathy Hochul’s office, told NY Cannabis Insider in April that the office was “actively working with our partners in the Legislature to complete the Board’s membership composition” and expected the advisory board to hold its first meeting in May.

Contacted again last week, Gough said “things are still in motion,” but didn’t provide any other information.

Gov. Kathy Hochul speaks with reporters

New York Gov. Kathy Hochul has seven appointments to make to the state's cannabis advisory board. Here, she talks with reporters about the state budget at the state Capitol, Monday, April 4, 2022, in Albany.Hans Pennink | AP Photo

The chief equity officer

At her first public meeting in October, Cannabis Control Board Chair Tremaine Wright stated after a unanimous vote that “we have now appointed our first Chief Equity Officer, Mr. Jason Starr.” A round of applause followed.

The position is an important one. According to last year’s cannabis legalization law, the chief equity officer is responsible for:

  • Developing and implementing the agency’s social and economic equity plan (which has yet to be released)
  • Establishing public education programming geared toward communities impacted by cannabis prohibition
  • Advising the office on the creation of its rules and regulations
  • Helping develop the social responsibility framework agreement for license applicants that “fosters racial, ethnic, and gender diversity in their workplace”
  • Advising on the size, scope and eligibility criteria of microbusinesses licensed by the state
  • And consulting on the creation of a state incubator program for social and economic equity applicants.

Starr — an attorney, organizer and advocate for civil rights and social justice — was widely hailed as an excellent choice for the job by industry insiders.

However, in February, OCM Executive Director Chris Alexander broke the news that Starr had declined the role.

Alexander said the agency would make the search for Starr’s replacement “a top priority,” yet today the position remains unfilled (Starr did not return calls for comment).

The appointment of a chief equity officer and the development of a social and economic equity plan “stands as a crowning feature of the MRTA,” according to the Minority Cannabis Business Association, which submitted comments to the OCM in late May that expressed concern with the vacant positions and absence of an equity plan.

“Proceeding with the promulgation of regulations without the oversight and advisement of a Chief Equity Officer runs counter to both the spirit and letter” of the law, the association wrote.

Easley, who also serves on the Council for Federal Cannabis Regulation’s DEI committee, agreed.

“The need to ensure compliance with the social and economic equity plan and the need for community voices, beyond public comments, to be able to offer recommendations for rules and regulations are key components to actualizing harm repair and true access,” she said.

The cannabis advisory board

The MRTA also requires the creation of a cannabis advisory board within the OCM.

The board’s purpose, according to the law, is twofold: To advise the OCM and CCB on the use of medical and recreational cannabis and hemp, and to govern and administer the state’s community grants reinvestment fund – which is intended to provide grants to nonprofits and local government entities in communities disproportionately affected by the drug war.

But like the chief equity officer, the 13 voting members of the advisory board have yet to be publicly announced.

In addition, the MRTA calls for eight non-voting members – representing various government agencies such as the NYS Dept. of Labor and NYS Dept. of Health – to serve as non-voting ex-officio members. Those names also have not been made public.

In its comments to the OCM, the Minority Cannabis Business Association pointed out that insights from the advisory board “are critical to avoid the missteps of previous states’ efforts and to ensure what feels equitable in theory translates to actionable and sustainable given issues of funding, market demand, and consumer practices and preferences.”

However, during a conversation on Dec. 7 with the Asian Cannabis Roundtable, Alexander – the OCM executive director – said that the advisory board’s formation is “not really a key focus for me right now.”

There also has not been a single mention of the advisory board in any OCM/CCB public meeting, according to an analysis of meeting transcripts.

“Without the Chief Equity Officer or the Advisory Board,” the minority business association wrote, “the state cannot proceed with the development of the Social and Economic Equity program as required by the MRTA.”

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