New York State Capitol Building.
A New York lawmaker has filed legislation that would limit how many naming rights agreements an adult-use marijuana retailer can enter into.
Assembly Bill 11510 was filed yesterday by Assemblymember Crystal Peoples-Stokes (D) and referred to the Assembly Economic Development, Job Creation, Commerce and Industry Committee.
The measure would amend the state’s marijuana law to prohibit any person or entity with a direct or indirect financial or controlling interest in more than three adult-use retail dispensary licenses from entering into more than five naming rights agreements between adult-use retail dispensary licensees.
The bill would take effect immediately if enacted. However, it includes a 90-day compliance window for any naming rights agreement that was already active and in violation of the new limit at the time the measure takes effect.
The proposal comes as New York’s adult-use marijuana market continues to expand, with regulators working through licensing, enforcement and market oversight issues following the state’s delayed rollout.
New York legalized marijuana in 2021, allowing adults 21 and older to possess up to three ounces of marijuana and up to 24 grams of concentrates. The state’s first legal adult-use marijuana store opened in December 2022. Retail marijuana sales are subject to a 9% state excise tax, a 4% local excise tax and a THC-based tax paid by distributors.
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