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As New York develops adult-use marijuana rules, equity concerns emerge

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New York’s plan to create a diverse, multibillion-dollar adult-use marijuana industry is in danger of slipping from its high goals, according to critics, making it potentially the latest social equity program to experience a less-than-smooth start.

As the state works toward finalizing its adult-use regulations, critics are highlighting what they see as major shortcomings from a program intended to promote greater racial and economic diversity by giving opportunities to those impacted by the war on drugs.

Sales are expected to start late this year or in early 2023, and state officials said in March that the initial 100 to 200 recreational retail licenses would focus on applicants with past marijuana-related convictions.

But critics note that there is:

  • No chief equity officer in place.
  • No advisory board to offer guidance on making the state’s recreational marijuana program more diverse.
  • No detailed social and economic equity plan as required by the adult-use law enacted last year.

The lack of progress on those fronts jeopardizes the lofty social equity goals the state has set, industry experts say.

Those goals include ensuring that 50% of all licenses go to social equity applicants and that a $200 million fund is created to help support those businesses.

All of this is reminiscent of other slow-to-start equity programs, most notably Illinois, which still doesn’t have an equity business in operation 2½ years after the start of recreational marijuana sales.

A chief equity officer “is a critical position to roll out these social equity measures,” said Rob DiPisa, co-chair of the cannabis law practice at Cole Schotz in New Jersey.

New York’s adult-use law calls for the chief equity officer to assist in the development and implementation of the social and economic equity plan as well as to ensure that it is complied with on a continual basis.

Big illicit market

The social equity program’s success also is essential to reducing a large illicit marijuana market that threatens to undercut upcoming legal one, according to industry experts.

The concerns about the lack of progress in filling social equity positions were raised in comments about proposed regulations governing adult-use retailers.

The proposed regulations are just one set of rules that New York regulators are in the middle of finalizing.

Overall, New York is taking a piecemeal approach to drafting and finalizing adult-use regulations, DiPisa noted.

For example, the state’s Cannabis Control Board last week unanimously approved a set of strict marketing and packaging rules that some industry officials fear will make it difficult for marijuana businesses to develop distinctive brands.

The rules would require reusable packaging and would prohibit using certain images and lettering that regulators believe could attract minors.

Those rules still must go through an additional public comment period before a final vote.

For that reason, DiPisa indicated he’s not getting too worked up over a particular set of draft rules.

However, experts are concerned about the lack of progress over certain elements of New York’s social equity program and how that could affect the state’s equity goals and the market’s launch.

In written comments about the proposed retail regulations, the Minority Cannabis Business Association (MCBA) said a chief equity officer, advisory board and detailed social and economic equity plan are critical so regulators can “proactively address and timely respond to barriers to entry and sustainability, and other challenges to creating an equitable cannabis industry.”

The Washington DC-based advocacy group also noted that proper oversight is essential to:

  • Avoid the missteps that have occurred in other states.
  • Reduce the illegal market.
  • Ensure that funding to social equity applicants occurs in a timely fashion.

New York Gov. Kathy Hochul plans to create a $200 million public-private fund to support social equity applications as they “plan for and build out their businesses.”

But details are still to come.

“When the funding is not timely and meaningful, it really is nothing but bells and whistles,” MCBA Executive Director Amber Littlejohn told MJBizDaily.

“We still don’t have a single state that on the day the market opens provided funding to social equity applicants.”

Rollout questions

DiPisa said existing medical marijuana operators could start sales before year-end.

But if New York is serious about having a social equity retailer help launch the market, he added, regulators must begin and complete a licensing round relatively soon.

“I don’t see how this all is going to work,” DiPisa said, especially with no chief equity officer in place.

Illinois, meanwhile, stands as a potential warning sign for social equity advocates in New York.

The Midwestern state once was lauded as a potential social equity blueprint before New York came along as a potential game changer.

Recreational marijuana sales in Illinois launched in January 2020, but the state has yet to issue a single low-interest loan from its social equity fund. Also, zero social equity growers and processors are operating in Illinois.

Despite New York’s lofty social equity goals, concerns have persisted that the existing 10 medical marijuana operators will have an inherent market advantage and dominance because they are allowed to be vertically integrated while social equity businesses won’t be.

Nine of the 10 existing medical marijuana businesses are multistate operators.

The last remaining independent, Etain Health, announced in March that it was selling for $247 million to Toronto-based RIV Capital, a Canadian investment firm bankrolled by a unit of lawn and garden giant Scotts Miracle-Gro.

As for New York’s draft regulations, experts such as DiPisa see positive aspects as well as areas for concern.

“It’s clear to me that New York is taking its time and being thoughtful and definitely cherry-picking the successful aspects from other jurisdictions,” he said.

Some might criticize the piecemeal approach, DiPisa said, “but I think it’s a good way to expedite” the regulations.

He said he was pleasantly surprised about the strict sustainability provisions in packaging, such as the requirement for reusable material.

But industry officials are concerned about extremely restrictive draft marketing provisions that would prohibit bright colors, bubble letters and even the word “candy.”

Kaelan Castetter, co-founder of the New York Cannabis Growers and Processors Association, said the proposed regulations would make it more difficult for marijuana businesses to develop distinctive brands, according to The (Syracuse) Post-Standard.

“Brands are not going to have a lot of creative freedom when designing their packaging if these regulations were to go on the books as is,” Castetter said.

DiPisa countered: “What’s important for everyone to remember is that these are in draft form. The whole point is that the community can now come forward with public comment.”

Source: https://mjbizdaily.com/as-new-york-develops-adult-use-marijuana-rules-social-equity-concerns-emerge/

Corruption

Four Ganga Land Leases Cancelled in Sambhal After Record Irregularities

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The Sambhal district administration has cancelled four government land leases issued more than three decades ago after an official investigation found alleged irregularities in the classification and allotment of Ganga river land.

The action follows an inquiry that concluded approximately 31 bigha of land in Surpur village of Gunnour tehsil was leased after its original revenue classification was allegedly altered, allowing land categorized as riverbed to be treated as agricultural property.

Inquiry Reveals Alleged Record Manipulation

The decision was taken by the Additional District Magistrate (ADM) based on an investigation conducted by the Sub-Divisional Magistrate (SDM), Gunnour.

Officials found that while the current revenue records listed the land as transferable agricultural property, older consolidation documents identified it as Category-6(1) submerged river land, making it ineligible for such allotments.

Following the findings, the administration ordered the cancellation of all four leases and directed revenue officials to restore the land’s original classification in official records.

Leases Issued in 1991 Declared Invalid

According to the inquiry, the disputed leases were granted on November 17, 1991, in the names of Shrinivas, Sher Singh, Shakuntala, residents of Surpur village, and Prakash Chandra of Patei Kayasth village.

Authorities stated that the allotments did not comply with the provisions of Section 128 of the Uttar Pradesh Revenue Code, 2006, prompting their cancellation.

Officials said corrective entries are now being made in the revenue records to reflect the land’s original legal status.

Wider Probe Into Ganga Riverbank Land Allotments

The latest action is part of a broader investigation into alleged irregularities involving government land located along the Ganga riverbank in Sambhal district.

Earlier investigations uncovered suspected illegal allotments involving nearly 845 bigha of government land in Sukhailla village under Gram Panchayat Asadpur, where 162 leases are also under scrutiny.

Investigators believe a similar pattern may have been followed in multiple cases, with riverbed land allegedly reclassified as agricultural land before being leased to individuals.

Field inspections reportedly found that much of the land was unsuitable for conventional farming and was instead being used for activities such as sand mining.

Government Land Worth ₹18 Crore Under Review

District officials estimate that approximately 850 bigha (around 71.5 hectares) of government land, valued at nearly ₹18 crore, is currently under investigation.

Authorities have launched a comprehensive review of historical land leases issued across villages situated along the Ganga river in the Rajpura, Gunnour, and Junawai blocks.

The objective is to determine which allotments were made legally and identify cases where land records may have been manipulated.

Officials’ Role Also Being Examined

The investigation has also raised questions about the possible involvement or negligence of officials from the revenue and consolidation departments.

District authorities said responsibility will be fixed after the inquiry is completed, and legal or departmental action will be taken against anyone found to have violated land allotment rules.

Officials indicated that the ongoing review could reveal additional cases involving unauthorized occupation or irregular leasing of government land.

The administration has reiterated its commitment to restoring government property and ensuring transparency in land management across the district.

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Education & Training

NTA Warns NEET UG 2026 Candidates Against Fake OMR Sheets

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The National Testing Agency (NTA) has issued a warning to NEET UG 2026 candidates and their parents against submitting fake, altered, or AI-generated OMR sheets while raising objections related to examination results.

The examination authority said that candidates found providing fabricated documents or misleading information during the verification process could face legal consequences.

The warning comes after several students approached the agency with complaints alleging discrepancies between their expected scores and the marks published in the final results.

NTA Finds Suspicious Documents During Verification

According to the NTA, some candidates submitted OMR sheets while requesting score verification, but officials found that certain documents appeared to be manipulated or artificially generated.

The agency clarified that only original OMR sheets issued during the examination process will be accepted for reviewing complaints.

NTA officials said they are examining all grievances carefully and will consider only verified examination records while deciding on score-related concerns.

Students Raise Questions Over NEET UG Results

After the announcement of NEET UG 2026 results, several candidates reported differences between their estimated marks based on the official answer key and their final scorecards.

Some students claimed that their expected scores were significantly higher than the marks awarded in the results.

In some reported cases, candidates alleged that uploaded OMR sheets did not match their original answer sheets or that the displayed scores were inconsistent with their calculations.

The complaints prompted several students and parents to seek clarification and request a detailed review of the evaluation process.

AI-Generated Fake Records Create New Challenge

The NTA has highlighted the growing misuse of artificial intelligence tools to create fake examination documents.

Officials said digitally altered OMR sheets and fabricated records could create difficulties in identifying genuine grievances and may affect the integrity of the complaint resolution system.

The agency advised candidates to avoid using unofficial documents or modified materials while submitting objections.

Candidates found involved in producing false evidence may face action under applicable laws, the NTA warned.

NEET UG 2026 Conducted Again After Paper Leak Allegations

The NEET UG 2026 examination process faced controversy after allegations of a paper leak led authorities to cancel the original exam held on May 3.

A re-examination was conducted on June 21 for affected candidates, following which results were announced on July 16.

After the controversy, the government announced plans to move future NEET UG examinations from the traditional pen-and-paper format to a computer-based testing (CBT) system.

Verification Process Continues

The NTA said the review of complaints submitted by candidates is still underway and further decisions will be taken after completing the verification of all documents.

The agency has urged students to rely only on official communication channels and submit genuine records while seeking clarification about their results.

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Corruption & Governance

Goa PWD Tenders Worth ₹1,000 Crore Come Under Government Probe

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The Goa government has initiated a detailed investigation into alleged irregularities in Public Works Department (PWD) tenders worth nearly ₹1,000 crore, following complaints of document manipulation and misuse of contractor eligibility credentials.

The probe focuses on claims that certain construction firms may have secured high-value infrastructure contracts by submitting falsified or altered work completion certificates to qualify for top contractor categories.

Allegations of Fake Experience Certificates in Tender Bids

According to complaints filed by engineers and contractors, several companies allegedly used questionable documentation to obtain Class IAA contractor status, a designation that allows participation in large-scale government infrastructure projects.

Investigators are examining whether manipulated work completion certificates were used to falsely demonstrate prior project experience, thereby inflating eligibility during the tender evaluation process.

One of the key concerns involves references to infrastructure projects executed under Karnataka Neeravari Nigam Limited, including the “Mudi Tank Filling Scheme.” Authorities are verifying claims that duplicate or inconsistent completion certificates may have been issued for the same project.

JV Structure Alteration Under Scrutiny

Officials are also investigating alleged changes in joint venture (JV) agreements submitted during tender applications. In one case under review, a 2019 JV reportedly listed Amrita Constructions Private Limited as the lead partner, with another firm as a supporting entity.

However, documents submitted to Goa PWD allegedly reversed these roles, naming Bagkiya Constructions as the lead partner. This change is suspected to have significantly enhanced the company’s technical eligibility and past performance record.

Authorities believe such alterations may have allowed firms to qualify for contracts they would otherwise not have been eligible for under standard procurement norms.

Allegations Linked to Karnataka Project Documentation

Another complaint under review concerns the “Akka Mahadevi Memorial Project” in Shivamogga, Karnataka, valued at over ₹51 crore. It is alleged that the project, executed in phases, was incorrectly represented as a single completed contract to meet eligibility requirements for higher-value tenders.

Investigators are verifying whether such representations were used to gain unfair advantage in experience-based qualification criteria.

Government Launches Comprehensive Inquiry

Following the emergence of these allegations, the Goa government has ordered a preliminary inquiry into all related contracts, approvals, and supporting documentation.

Officials have stated that every stage of the tendering process—including eligibility checks, certificate validation, and contract award decisions—will be examined in detail.

If irregularities are established, possible actions may include contract cancellation, blacklisting of firms, recovery of funds, and legal proceedings against those involved in submitting false documentation.

Concerns Over Procurement Transparency

The case has raised broader concerns about transparency and verification systems in public infrastructure procurement. Experts point out that reliance on manual documentation without robust digital verification increases the risk of fraud in large-scale government contracting.

Transparency advocates have called for stronger auditing systems, centralized contractor databases, and real-time verification of project credentials to prevent misuse of public tender processes.

Probe Continues

Authorities have confirmed that the investigation is ongoing and a detailed report will be prepared after reviewing all evidence and documentation. Further action will be taken based on the findings in accordance with applicable laws and procurement rules.

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