New York Assembly Bill A05647

New York 2025-2026 Regular Session

• Introduced: 2/19/25
• Refer: 2/19/25
• Refer: 1/7/26

Caption

Establishes the Cannabis Community Reinvestment Act; includes requirements for cannabis operators; includes the obligation to reinvest in communities disproportionately impacted by cannabis prohibition including, if applicable, the community such operator is located in; provides for the review of reinvestment plans by the department of financial services.

Summary

A05647 would create the “Cannabis Community Reinvestment Act” and add new requirements for certain cannabis businesses in New York. The bill defines an “operator” as a cannabis producer, processor, distributor, or retailer that has been operating for at least two years, and requires any application submitted by such an operator to include a plan to reinvest in communities disproportionately impacted by cannabis prohibition, including the community where the business is located if applicable. Operators would also be required to contribute at least 2% of annual profits to those communities. The bill directs the Cannabis Control Board to set criteria and a scoring system for evaluating whether an operator has met its reinvestment obligations. It also adds a new role for the Department of Financial Services to review reinvestment plans, monitor compliance, and enforce the act. If the department determines that an operator is not properly serving disadvantaged communities or lacks an adequate social impact program, the operator would be notified, given a chance to cure the deficiency, and could ultimately have its license revoked. Revoked licenses would then be auctioned to another qualified applicant under the cannabis law.

Impact

The bill would amend both the cannabis law and the financial services law by creating a new statutory framework for community reinvestment obligations tied to cannabis licensure. It would impose a new profit-contribution requirement on qualifying cannabis operators, establish state review and enforcement authority over reinvestment plans, and create a potential license-revocation process for noncompliance. The measure would affect cannabis producers, processors, distributors, and retailers that have operated for at least two years, as well as the Cannabis Control Board and the Department of Financial Services.

Sentiment

Based on the bill text and available context, the measure appears to be framed positively as a social equity and community reinvestment proposal. The bill’s purpose is to direct cannabis industry profits toward communities harmed by prohibition, suggesting support for restorative and equity-focused cannabis policy. No committee transcript or vote history was provided, so there is no recorded evidence here of formal support or opposition beyond the bill’s stated policy goals.

Contention

The main points of potential contention are the mandatory 2% profit contribution, the state’s authority to evaluate whether an operator is adequately serving disadvantaged communities, and the possibility of license revocation for noncompliance. Cannabis businesses may object to the financial burden, the subjective nature of the scoring and review process, or the risk of losing licenses based on compliance determinations. Supporters are likely to emphasize that the bill targets communities disproportionately harmed by cannabis prohibition and seeks to ensure the industry provides tangible local benefits.