What's happening
This bill increases the maximum state funding for cannabis private debt or equity funds from $50 million to $300 million.
Why it matters
Significantly increases available capital. Raising the maximum state investment cap from $50 million to $300 million could dramatically expand financial resources for cannabis businesses, particularly those operated by social equity licensees, improving their ability to establish and grow retail dispensaries.
Potential for greater social equity impact. With more funding, the state can better support individuals and communities historically disadvantaged by cannabis prohibition, helping to lower barriers to entry and promote a more diverse cannabis industry.
Broader economic and industry effects. The infusion of additional state-backed capital may attract further private investment, accelerate the rollout of new dispensaries, and potentially lead to job creation and increased tax revenues for New York.
Maintains oversight and repayment mechanisms. Despite the funding increase, provisions remain for oversight through the Office of Cannabis Management and related agencies, and any repayments from these investments are directed back into the state’s cannabis revenue fund, supporting program sustainability.
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Who cares
Headline styles
Increase Cannabis Investment Limit
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to finance
- Referred to finance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1137
2025-2026 Regular Sessions
IN SENATE
January 8, 2025
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to increasing the amount of funding permissible for the investment in a cannabis private debt or equity fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (d) of subdivision 3 of section 99-ii of the state finance law, as added by section 2 of part II of chapter 58 of the laws of 2022, is amended to read as follows:
(d) subject to available appropriations and providing that no more than [fifty] three hundred 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 adultuse 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 seventyeight 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.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00500-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to increasing the amount of funding permissible for the investment in a cannabis private debt or equity fund
Purpose or general idea of bill
The purpose of this bill is to increase the amount of government funding permissible for the Social Equity Cannabis Investment Fund
Summary of specific provisions
Section one: subject to available appropriations and providing that no more than three hundred million dollars in funding, shall be made avail- able, whether directly or indirectly for investment in a private debt or equity fund formed pursuant to the public authorities law or to cover capital costs associated with establishing conditional adult-use canna- bis retail dispensaries for operation by social equity licensees duly licensed pursuant to article two of the cannabis law.
Section 2: Effective date.
Justification
The Social Equity Cannabis Investment Fund, which was overseen by DASNY, was established to help disadvantaged entrepreneurs open cannabis dispensaries.
Prior legislative history
None.
Fiscal implications
Subject to available appropriations
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.