Good morning,
Last week, a bill passed in New York that could have major ramifications nationwide: The country’s fourth-most populous state legalized recreational marijuana use.
The new law, the Marihuana Regulation and Taxation Act, provides a framework for a statewide adult-use cannabis industry that quickly could become one of the world's largest--an exciting prospect for legions of businesses that are poised to expand operations in the state. Retail sales could begin as early as spring 2022, and the legal market's first year of sales could deliver an estimated $1 billion in sales, with the potential to reach $4 billion by the end of the decade.
Notably, the bill's "social equity" clause creates significant opportunity for small business owners and aspiring founders. It recommends that 50 percent of cannabis licenses go to minority- or women-owned businesses, distressed farmers, or service-disabled veterans. Functionally, the clause could prevent large cannabis companies from immediately eating up too much market share--presumably helping local mom-and-pop shops compete with behemoths.
If New York can foster a healthy competitive business landscape while funneling significant new tax revenues into the post-Covid economic recovery, experts say, many other states could quickly follow suit.
It’s easier said than done. Read our story to learn how New York plans to achieve that goal, including some surprising opportunities for any entrepreneur hoping to join the fray. |
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