A bunch representing the legal marijuana industry is warning Gov. Hochul’s cannabis regulators that a dramatic increase within the variety of pot stores could have “disastrous consequences” for current licensed operators.
Cannabis Association of Recent York president Damien Cornwell noted that state regulators have yet to weed out the hordes of illegal pot operators.
“We’re writing to precise our deep concern regarding the Cannabis Control Board’s (CCB) recent discussions about dramatically increasing the variety of cannabis licenses within the state,” Cornwell, founding father of the “Just Breathe” cannabis shop in Binghamton, said in an April 12 letter sent to state Cannabis Control Board Chairwoman Tremaine Wright and members of Cannabis Advisory Board.
Cannabis Association of Recent York is warning Gov. Hochul’s cannabis regulators that increasing the quantity of legal marijuana dispensaries could have “disastrous consequences” for current operators. Lev Radin/Pacific Press/Shutterstock
“We imagine that this approach, if implemented without proper evaluation and stakeholder input, may have disastrous consequences for the fledgling industry and public health.”
Hochul and state regulators have been criticized for a slow and rocky rollout for the reason that first licensed pot store opened in December of 2022.
Lawsuits contributed to delays in licensing and store openings last 12 months, leaving farmers within the lurch with mounds of spoiled marijuana crops.
But state officials have ramped up the issuance of licenses and approved openings of dispensaries since ligation was settled last fall.
Marijuana products on the market in Elevate Cannabis, a licensed dispensary in Mount Vernon, Recent York on March 5, 2024. Mark Vergari/The Journal News / USA TODAY NETWORK
There at the moment are 103 legal cannabis stores opened throughout the Empire State, up from 26 last November.
Greater than 400 cannabis licenses starting from growers to retail stores have been issued by state regulators this 12 months, including 101 on the April 11 Cannabis Control Board meeting.
But Cornwell advised prudent deliberation as a substitute of recklessly overwhelming the budding market.
“We strongly imagine that handing out licenses with out a thorough understanding of the market’s capability will result in oversaturation, business failures, and unintended public health risks,” he said.
“Because the cannabis industry in Recent York remains to be in its early stages, many licensed retailers are already facing challenges competing with the illegal market. Flooding the market with additional licenses exacerbates this problem and potentially results in a wave of closures, undermining the state’s social equity goals and leaving vulnerable entrepreneurs in an unsustainable market.”
To emphasise his point, Cornwell put a paragraph of his letter in daring calling on the Cannabis Advisory Board to conduct a sweeping market evaluation and a review with stakeholders prior to creating any major policy decisions impacting the industry.
In a subsequent interview with The Post, Cornwell said the legal cannabis industry can’t be in comparison with other retail markets.
Members of Support Legal Cannabis rallying outside of Assembly Speaker Carl Heastie’s office within the Bronx on April 13, 2024. J.C. Rice
Unlike other industries, licensed pot stores are barred from deducting peculiar business expenses for income tax purposes since it remains to be considered a bootleg drug under federal law.
“Without the power to deduct expenses like rent, worker wages and marketing costs and other operating expenses, cannabis retail stores face the next tax burden in comparison with other retail businesses. This may significantly impact their profitability and financial viability,” he said.
