New York Cannabis Control Board approves over 100 new licenses in midst of review of legal pot rollout
NEW YORK -- In the midst of a top-to-bottom review of New York state's troubled cannabis program, Gov. Kathy Hochul announces the awarding of over 100 new licenses.
There was applause Friday during a meeting of the state Cannabis Control Board after it decided to approve the licenses of over 100 new retail stores, more than doubling the number of stores than can sell marijuana products in New York.
The board granted 114 licenses, bringing the number of adult-use licenses to 223.
"It's not all rosy. This is difficult work. We are committed to continuous improvement and expansion of the cannabis industry in New York state," said Tremaine Wright, chair of the Cannabis Control Board.
The board has been criticized for dragging its feet in allowing people to open legal pot shops while some 2,000 illegal shops have sprung up all over the state, especially in New York City.
Mike Geraci, who has the only cannabis processing plant in the city, told CBS New York political reporter Marcia Kramer on "The Point" that the state has been slow in approving new stores, which has let the illegal stores flourish.
"They're definitely taking steps to get more stores open, but to your point, yes, there's a lot of illegal shops," he said.
He also criticized the state's program, which sets steep taxes on both the product produced in his Queens factory and the sale of cannabis products in the licensed stores; it's a sliding scale based on potency. The result, he says, is that it's hard for the legal stores to compete with the illegal stores because their prices are so much lower since they don't pay state taxes.
"We're never going to compete with the black or gray market with that type of potency tax," Geraci said.
The board also waived license fees for marijuana farmers, which can range from $4,500 to $40,000.
All this comes as Jeanette Moy, commissioner of the state Office of General Services, is in the midst of a top-to-bottom review of the cannabis rollout, which Hochul has described as a "disaster."
For more on New York's legal cannabis rollout, watch "The Point with Marcia Kramer" on CBS2 and streaming on CBS News New York this Sunday at 11:30 a.m.
