Last week, New York Governor Kathy Hochul (Democrat) spoke about cannabis legalization at the Business Council of New York State’s annual meeting and we are favorable on how she has focused on the recreational market.

At the meeting, Governor Hochul said that she expects cannabis legalization to create thousands and thousands of jobs in New York and discussed her regulatory appointments to speed up the implementation process.

The governor has made a point of emphasizing her support for adult-use legalization and standing up the industry after former New York Governor Andrew Cuomo (Democrat) resigned amid a sexual misconduct scandal.

When former Governor Cuomo resigned, we were cautious with how it would affect the state’s plan to allow for the sale of recreational cannabis. After watching how Governor Hochul has handled the situation since becoming Governor, our concerns have dissipated, and we believe that she is doing a better job than her predecessor.

At the meeting, Governor Hochul highlighted her decision to add two more Cannabis Control Board members which do not require confirmation by lawmakers. We believe these additions are a big step forward for New York’s recreational cannabis industry and will monitor how she continues to support the industry.

Governor Makes Changes to Cannabis Management Office

According to The New York Post, Governor Hochul recently dismissed Norman Birenbaum who was the director of cannabis programs under former Governor Cuomo. We consider this decision to be beneficial for New York’s cannabis industry due to the amount of people that opposed him becoming the head of the new Office of Cannabis Management.

Under New York’s legalization law, the independent Office of Cannabis Management was established to be responsible for regulating the recreational cannabis market as well as the existing medical cannabis and hemp programs. According to the legislation, the office will be overseen by a five-member Cannabis Control Board.

When it comes to the people who were selected to sit on the board, three of them were appointed by the governor, and one was appointed by both the Senate and Assembly. We are favorable on how Governor Hochul has accelerated the recreational cannabis legalization process and will monitor how the industry evolves from here.

A Massive Cannabis Market in the Making

New York’s cannabis market is expected to be one of the largest markets in the US and we are favorable on how legalization in the Big Apple can support the entire US industry. The state comptroller recently announced that New York could generate $245 million in annual cannabis revenue, which would help offset the losses from declining tobacco sales.

In the first year, the state is expected to generate approx. $20 million in taxes and fees. We expect this number to quickly increase and expect the state to see strong demand for recreational cannabis.

We believe the steps that New Jersey has taken to open its recreational cannabis market has lit a fire under Governor Hochul and are favorable on this. New Jersey recently released rules for its recreational cannabis program, which is being implemented after voters approved a legalization referendum in 2020. We are bullish on the cannabis opportunity in the Northeast and believe that these are markets to be aware of.

If you are interested in learning more about companies which have leverage to the New York cannabis market, please send an email to support@technical420.com with the subject “New York Cannabis Companies” to be added to our distribution list.

Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.