S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10488
 
                           I N  A S S E M B L Y
 
                               May 29, 2024
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Zinerman) --
   read once and referred to the Committee on Economic Development
 
 AN  ACT  to  amend  the  cannabis law and the financial services law, in
   relation to establishing the Cannabis Community Reinvestment Act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act shall be known and cited as the "Cannabis Communi-
 ty Reinvestment Act".
   § 2. Section 3 of the cannabis law is amended by adding a new subdivi-
 sion 37-a to read as follows:
   37-A. "OPERATOR" MEANS A LICENSEE THAT ACTS AS A CANNABIS PRODUCER FOR
 THE  CULTIVATION OF CANNABIS, A CANNABIS PROCESSOR, A CANNABIS DISTRIBU-
 TOR AND/OR A CANNABIS RETAILER, PROVIDED THAT SUCH BUSINESS HAS OPERATED
 FOR AT LEAST TWO YEARS.
   § 3. The cannabis law is amended by adding a new section 62-a to  read
 as follows:
   §  62-A.  APPLICATIONS  BY  OPERATORS. ANY APPLICATION SUBMITTED BY AN
 OPERATOR SHALL INCLUDE A PLAN TO REINVEST IN COMMUNITIES  DISPROPORTION-
 ATELY  IMPACTED  BY  CANNABIS  PROHIBITION INCLUDING, IF APPLICABLE, THE
 COMMUNITY SUCH OPERATOR IS LOCATED IN. THE OPERATOR SHALL CONTRIBUTE  AT
 LEAST  TWO PERCENT OF THEIR ANNUAL PROFITS TO COMMUNITIES DISPROPORTION-
 ATELY IMPACTED PURSUANT TO PARAGRAPH (G) OF SUBDIVISION FIVE OF  SECTION
 EIGHTY-SEVEN  OF  THIS  ARTICLE. THE BOARD SHALL DETERMINE THE NECESSARY
 CRITERIA FOR SUCH PLAN AND SHALL ESTABLISH A SCORING SYSTEM TO DETERMINE
 IF SUCH OPERATORS HAVE FULFILLED THEIR OBLIGATION UNDER THIS SECTION.
   § 4. The financial services law is amended by adding a new section 312
 to read as follows:
   § 312. EVALUATION OF REINVESTMENT PLANS. THE DEPARTMENT SHALL EVALUATE
 THE PLANS BY OPERATORS, AS DEFINED IN SECTION THREE OF THE CANNABIS LAW,
 TO REINVEST IN SPECIFIED COMMUNITIES AND PROVIDE FOR THE ENFORCEMENT  OF
 THE CANNABIS COMMUNITY REINVESTMENT ACT, PURSUANT TO SECTION SIXTY-TWO-A
 OF  THE CANNABIS LAW, IN CONSULTATION WITH THE BOARD.  IF THE DEPARTMENT
 DETERMINES THAT AN OPERATOR IS FAILING TO PROPERLY  SERVE  DISADVANTAGED
 COMMUNITIES, SPECIFICALLY THE COMMUNITY THEY ARE SERVING, IF APPLICABLE,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05996-01-3
 A. 10488                            2
 
 OR  DOES  NOT  POSSESS  AND/OR  PROPERLY EXECUTE A SOCIAL IMPACT PROGRAM
 WITHIN THEIR BUSINESS MODEL, SUCH OPERATOR SHALL BE NOTIFIED  AND  THEIR
 LICENSE  SHALL BE MARKED FOR FURTHER REVIEW. THE DEPARTMENT SHALL DETER-
 MINE  WHAT NECESSARY STEPS SUCH OPERATOR SHALL TAKE TO FULFILL THE OBLI-
 GATIONS UNDER THIS SECTION AND PROVIDE SUCH INFORMATION TO THE  OPERATOR
 WITHIN  THIRTY  DAYS  OF MARKING SUCH OPERATOR FOR FURTHER REVIEW.  SUCH
 OPERATOR WILL THEN HAVE SIXTY DAYS TO TAKE SUCH STEPS.   NOTWITHSTANDING
 ANY  PROVISION OF LAW TO THE CONTRARY, IF THE DEPARTMENT DETERMINES THAT
 SUCH STEPS OR SUBSTANTIALLY SIMILAR STEPS, AS DETERMINED BY  THE  BOARD,
 WERE  NOT  TAKEN,  THE  DEPARTMENT MAY REVOKE SUCH OPERATOR'S LICENSE OR
 LICENSES. THE DEPARTMENT SHALL ESTABLISH AN APPEALS PROCESS  FOR  OPERA-
 TORS  THAT  HAVE HAD THEIR LICENSES REVOKED.  IF SUCH REVOCATION OCCURS,
 SUCH LICENSE OR LICENSES SHALL BE AUCTIONED OFF TO ANOTHER INDIVIDUAL OR
 BUSINESS THAT QUALIFIES UNDER SECTION EIGHTY-SEVEN OF THE CANNABIS LAW.
   § 5. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.