3.22.23 Cannabis Letter

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March 22, 2023
Hon. Kathy Hochul
Governor, State of New York
NYS Capitol Building
Albany, NY 12224
Hon. Thomas DiNapoli
Comptroller, State of New York
110 State Street
Albany, NY 12236
Dear Gov. Hochul and Comptroller DiNapoli:
We, the members of the Assembly Minority Conference, write to express our serious
concerns with the implementation and impacts of the state’s cannabis program. The passage of the
Marijuana Regulation and Taxation Act (MRTA) in 2021 was met with celebration and lofty
promises by those who supported the measure. More than two years later, few, if any, of those
promises have been met.
To date, fewer than 10 stores have opened. The state’s delayed and dysfunctional
implementation has predictably opened a window for illegal cannabis shops to gain a foothold and
they have seized the opportunity. Mayor Eric Adams estimates that approximately 1,500 illegal
shops are operating in New York City alone. Aside from the financial issues this creates for legal
retailers and the state’s attempt to generate revenue, the explosion of illegal operators raises
significant public safety concerns, especially regarding the increased access minors now have to
THC and cannabis products.
The proliferation of illegal shops was entirely predictable. Prior to the passage of the
MRTA, concerns were raised about the legalization of cannabis opening up a black market.
Because the state is responsible for creating the current market conditions, we would like to know
how state officials intend to respond.
New York is not the first state to open up a cannabis retail market. However, rather than
give proper consideration to qualified individuals and organizations with experience and a track
record of success, the Office of Cannabis Management (OCM) prioritized applicants with criminal
histories and drug offenses. In its attempt to fund this approach, the Dormitory Authority of the
State of New York (DASNY) was tasked with raising a $150 million Social Equity Cannabis
Investment Fund. At last report, DASNY isn’t close to meeting that obligation.

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