New York Budget Includes $15M Fee for Medical Cannabis Companies Seeking Adult-Use Licenses

Medical cannabis businesses in New York seeking to participate in the
adult-use market could face a $15 million licensing fee under a proposal in
the state budget, Capitol Pressroom reports. Katie Neer, who is of counsel
at Dickinson & Avella and represents the New York Medical Cannabis Industry
Association, told the Pressroom that a $5 million fee for three co-located
shops, paid over time, would be “feasible” — but a $15 million fee is not.


“If they codify this fee at $15 million, we won’t have a medical program
within three months.” — Neer to Capitol Pressroom

According to state data, as of May 1, there are 92,967 registered medical
cannabis patients in New York and 39 registered medical-only dispensaries;
however, seven of those businesses are listed as “temporarily closed.”

Neer said that Gov. Kathy Hochul (D) is “insisting” on the new fee
structure and won’t negotiate with lawmakers despite members from her party
controlling both chambers of the legislature.

Neer added that if the fee were $5 million – instead of $15 million – the
state would still collect $100 million from 20 operators and still be able
to “implement their social and economic equity obligations” required under
the state’s adult-use law.

“The way they’re playing this, I think they at most get $6 million in
additional fees paid to them, and that’s it,” she said. “And they will kill
the medical program.”