Simon Malinowski
Throughout somewhat marketed Cannabis Control Board (CCB) meeting, the CCB introduced and accredited a Restricted Partnership Settlement for New York’s Social Fairness Fund. As a short refresher, the Social Fairness Fund was mandated by the Marijuana Regulation and Taxation Act (MRTA). On January 5, 2022, Governor Kathy Hochul announced that the fund can be, effectively, funded with $200 million of investments funds, $50 million of which might be invested by New York State from income deposited within the Hashish Income Fund (from tax income).
As we detailed in our post on the Social Fairness Fund, its function and mechanics, the Social Fairness Fund will finance the Conditional Grownup-Use Retail Dispensaries for which the Workplace of Hashish Administration (OCM) is at the moment accepting functions.
As was announced in June 2022, the Social Fairness Fund can be managed by Social Fairness Impression Ventures. So what’s the function of the Restricted Partnership Settlement? It formalizes the authorized relationship between the Dormitory Authority of the State of New York (DASNY), which has been accountable for the federal government portion of the Social Fairness Fund, and Social Fairness Impression Ventures GP I, LLC.
A couple of fascinating tidbits from the decision approving the restricted partnership settlement:
- The decision particularly references New York’s $50m “funding in a personal debt or fairness fund,” which solely highlights New York’s goal objective of itself committing $50m in direction of funding CAURD licensees.
- Social Fairness Impression Ventures GP I, LLC is recognized as the overall accomplice, which implies that Social Fairness Impression Ventures GP I, LLC could have operation management over the Social Fairness Fund (presumably topic to quite a few checks and balances; and
- The decision particularly addresses that the aim of the Social Fairness Fund is to “fund the capital prices related to establishing” CAURD licenses.
The approval of a restricted partnership settlement is noteworthy solely in that it’s a clear indication that the OCM intends to maneuver shortly upon the CAURD software window closing on September 26, 2022.