Last verified: March 2026

The Most Ambitious Promise

The MRTA's social equity provisions were the most ambitious in American cannabis. The law promised 50% of all licenses to Social and Economic Equity applicants, mandated automatic expungement of prior convictions, and directed the largest share of tax revenue in any state to communities impacted by prohibition.

The Numbers

On paper, the numbers look impressive. As of late 2025:

• 55% of all adult-use licenses have gone to SEE applicants — exceeding the 50% target
• 77% of retail dispensary licenses are held by SEE businesses
• 57% of SEE-licensed businesses are women-owned
• 50% of SEE-licensed businesses are minority-owned

These figures surpass any other state's equity program. For comparison, Massachusetts reported only 1.2% minority-owned cannabis businesses. Illinois reserved 75% of new licenses for equity applicants but saw existing medical operators dominate.

The $200M Fund Scandal

The $200 million Social Equity Cannabis Investment Fund was supposed to be the crown jewel. Governor Hochul pledged $50 million in state funds and up to $150 million in private investment, managed by DASNY with NBA Hall of Famer Chris Webber and Siebert Williams Shank leading the private side.

It became a debacle:

• Private fundraising stalled
• The eventual $150 million came from Chicago Atlantic Group as a secured loan at 15% interest, fully state-guaranteed
• Licensees reported inflated construction costs — one was invoiced $1.6 million for a buildout subcontracted at $250,000
• No say in location or design, with default-triggering terms
• OCM's own counsel estimated up to 75% of fund-supported locations would fail

The arrangements were predatory.

Senator Liz Krueger, on the $200M Social Equity Cannabis Investment Fund

After a damning investigation by THE CITY in April 2024, the Hochul administration quietly killed the program.

Individual Success Stories

Despite the systemic failures, individual entrepreneurs have built real businesses:

• Silly Nice — A small-batch craft brand founded by a justice-involved New Yorker, now selling statewide
• Housing Works Cannabis Co. — Generated millions for HIV/AIDS services, housing, and harm reduction
• FlynnStoned — Grown to 13 locations including a flagship in Syracuse

The CAURD program, for all its dysfunction, gave hundreds of justice-involved entrepreneurs a foothold they would not have had in any other state. The contrast with other states is instructive — New York's numbers, while imperfect, represent a genuine if flawed attempt at structural change in who gets to build wealth from a newly legal industry.