Cheddar News senior reporter Chloe Aiello talk about what a new wave of cannabis licenses means for New York City. 

<div class="block">Cheddar News senior reporter Chloe Aiello talk about what a new wave of cannabis licenses means for New York City. </div>

Wake Up With Cheddar

Cheddar Reports: Numerous Cannabis Licenses Approved in New York 

And while cannabis may be legal in New York recreationally since 2021 the industry has been slow to grow and now regulators are announcing new batches of rules that well not everyone is happy with. So here with more, a senior reporter right here at Cheddar Chloe a she joins us now to give us an update on some of the major moves from the industry in this day. Good afternoon, Chloe. So what can you tell Shannon? Well, in their latest meeting, New York state regulators accomplished a number of things. So they announced 50 additional adult use retail dispensary licenses outlined social and economic equity plan and released a long awaited guideline for medical cannabis companies to enter the market. To that last point, the regulations confirm previous reports that it will cost existing companies $20 million paid in installments to enter the market. It also establishes a timeline for these medical cannabis companies to enter the market. They can open their first co located adult use and medical dispensary after December 29 2023 the 2nd and 3rd after June 29 2024 to reiterate medical cannabis companies already have eight or they permitted to have eight medical cannabis shops. They'll be allowed to co locate adult use dispensaries at three of those. The goal by regulators with this to ensure that they prevent a monopoly in New York State and ensure a wide variety of diverse players to succeed in the industry. And I have a point, most of the 10 existing medical cannabis operators in New York are among the biggest cannabis companies in the country including lea green industries and Cresco labs. And it goes without saying that they aren't too happy about this. In a statement, the New York Medical Cannabis Industry Association, which represents several of those companies called the fee quote, unprecedented and punitively high saying quote, it was clearly designed to eliminate vertical integration for medical and adult use product and is simply not economical. Shannon. All right. Well, maybe you can give us a little bit more details on some of the other points you mentioned like equity and dispensaries. Sure. Well, when it comes to adult use dispensaries, there may be 215 provisional licenses issued, but the rollout of these actual stores has been very slow. There are only nine operational dispensaries across the entire state. So that's been a point of frustration for folks looking to support the legal industry regulators also approved the New York Social Equity and Economic Plan, which outlines how the state intends to establish an equitable adult use market with outlining those principles so it would be built on small business access, workforce support, regenerative of local economic development, consumer education and better fit for people harmed by punitive cannabis laws that however has received some criticism for failing to make actual policy prescriptions and instead just outlining the need for equity. Shannon. Ok. Well, I know regulators are all over this. So what are they doing to sort of legalize these dispensaries? Yeah. Well, as I mentioned, there are only nine open licensed dispensaries in New York State and back in February, Mayor Eric Adams estimated that there are about 400 illegal dispensaries just in New York City alone, which is why you might walk out of the door of your apartment and see a bunch of dispensaries despite the fact that they're not actually licensed. This obviously presents a huge challenge for legal dispensaries who are attempting to get on their feet. And regulators haven't been very successful in cracking down, but at the meeting, regulators did outline powers granted to them by Governor Kay Hoke's budget to crack down on these unlicensed dispensaries. It includes civil penalties of up to $20,000 per day product seizures and powers for regulators to seek closing orders and commercial tenant removal. Finally, it also establishes a new tax fraud crime for businesses that failed to pay taxes on cannabis products. It's interesting because all these cannabis dispensary places are popping up. Some of them, them are in mobile trucks, but a lot of people don't even realize that those are not legal establishments and some of them that we're seeing. Yes, there are only nine licensed dispensaries across the entire state. So chances are if you walk up to one and you don't verify that it's licensed, it may be illegal. Shas a great point. I don't think people are stopping to verify anything. Ok, Gloria. Thank you so much for that information. Great update.