Medical marijuana firms may face $5M fee, 3-year wait to enter retail pot market

Medical marijuana companies would have to pay more than $5 million to enter the recreational market and wait 3 years to sell directly to consumers under rules proposed by state regulators.

The Cannabis Control Board released the regulations Monday, when the board approved the state's first licenses for pot shops. The rules are designed to keep large multistate medical cannabis companies from crowding out local entrepreneurs. 

The first retail licenses, including seven for Long Island, went to New Yorkers impacted by the inequitable enforcement of old marijuana laws. The state will continue to give this group preference when issuing business credentials, as well as minority- and women-owned businesses, distressed farmers and veterans who were disabled while serving in the military. 

"Equity is not a thing in this program, it is the thing," said Chris Alexander, executive director of the state Office of Cannabis Management, which oversees industry regulations. 

Under the proposed rules, medical marijuana firms already operating in the state would need to wait 3 years to welcome recreational consumers into their medical dispensaries and pay millions in application and licensing fees. 

The New York Medical Cannabis Industry Association said the proposed rules raise concerns. The trade group declined to detail what posed problems in the draft regulations, which can be read online at tinyurl.com/yc7htsvs. 

"The draft adult use regulations that were approved for public comment ... present a number of serious concerns," the group's statement said. "In the coming weeks, MCIA will continue its vocal advocacy for reforms that both protect patients, who have for too long struggled due to the restrictive nature of the state’s medical program, and ensure a successful, equitable adult-use program that takes into account the experience and investment of existing operators."

Regulators want feedback on these proposed license types:

The proposed regulations will be filed for a 60-day public comment period. Comments can be filed by emailing regulations@ocm.ny.gov. 

By Sarina Trangle

sarina.trangle@newsday.comSarinaTrangle

Sarina Trangle covers affordability and cost of living issues and other business topics. She previously worked as an editor and reporter at amNewYork.