Why Cannabis Was Legalized
(MRTA Article 1; Sections 1–3)
Article 1 establishes the legal foundation of New York’s cannabis law. It explains why cannabis was legalized and defines the core terms regulators use to interpret ownership, eligibility, disclosures, and compliance across the entire MRTA.
What This Covers
- The official title of the law
- The goals and purpose behind legalization
- Core definitions that control eligibility, ownership, and disclosures
- How all applications, rules, and enforcement decisions tie back to these sections
§1 — Short Title
Formally names the law and defines its scope.
- The statute is titled the Marihuana Regulation and Taxation Act (MRTA)
- Governs all regulated cannabis activity in New York
- Applies to adult-use, medical, and hemp programs
- All OCM rules, restrictions, and enforcement actions trace back to this law
§2 — Legislative Intent
Explains why cannabis was legalized and how the law should be interpreted.
- Protect public health and safety
- Address harms caused by past criminalization
- Expand economic opportunity
- Create a regulated and enforceable market
- Ensure fairness and transparency
Regulators apply and interpret all rules using these objectives. Business models or practices that conflict with these goals may face review or corrective action.
§3 — Definitions
Sets the meaning of key terms used throughout the MRTA.
- Cannabis: Marijuana products regulated under the MRTA (hemp is defined separately)
- Adult-Use: Legal cannabis use for individuals age 21 and older
- License: State authorization to operate a cannabis business
- Applicant: Any person or entity applying for a license, including all owners and control persons
- True Party of Interest (TPI): Anyone with financial, operational, or decision-making influence over a license
- Social and Economic Equity (SEE) Applicant: Applicants meeting priority licensing criteria
- Good Moral Character: Standard used by regulators to evaluate background and conduct
These definitions control who must be disclosed, who qualifies for licenses, and what counts as ownership or control.
What Operators Usually Miss
- Definitions apply across all license types and articles
- TPI and control are broader than ownership percentages
- Misunderstanding definitions leads to disclosure and eligibility errors
When This Comes Up
- Preparing an initial license application
- Structuring ownership or investment deals
- Responding to OCM questions about control or eligibility
- Interpreting enforcement actions or denials
What Happens If You Ignore This
- Incomplete or incorrect disclosures
- Application delays or denials
- Ownership or TPI violations
- Increased scrutiny during audits or enforcement
Related Pages
Source Material
