Marijuana prohibition in New York ended in 2021, but it is a bit of a misnomer to say that the state has "legalized marijuana." The Marijuana Regulation and Taxation Act of 2021 (MRTA) did not legalize all marijuana distribution under New York law; rather, it legalized only licensed distribution. The state plans to tightly regulate that licensed market, and cannabis companies will face stiff penalties for unlicensed distribution. To avoid those penalties, they have a strong incentive to create comprehensive compliance programs. But potential penalties aside, cannabis companies vying for highly competitive New York licenses will want to prove their compliance readiness during the application process; and if they want to stay in the market, they will need to demonstrate their commitment to compliance once in operation. Prospective licensees thus should be taking steps now to ensure they are ready to compete for licenses in 2022.