Andrew Cuomo is out, Kathy Hochul is in (and hopefully NY’s Cannabis Control Board too)

New York Governor Cuomo announced his resignation Tuesday morning, a week after a New York State Attorney General report concluded that Governor Cuomo sexually molested nearly a dozen women. Lieutenant Governor Kathy Hochul is sworn in as the first woman to serve as governor of New York.

The entry of Lt. Governor Hochul, as governor of New York, should have an immediate and, in our view, positive impact on the New York cannabis industry. We expect many developments over the next two weeks, which we will all discuss in our upcoming webinar on August 17, 2021 with New York City Councilor Keith Powers (register here!).

Photo by Spencer Platt / Getty Images

Before we get into the details, a quick refresher on the governor’s powers under the New York Marijuana Regulation and Taxation Act. New York’s cannabis industry (recreational, medical, and hemp) will be in the hands of the Cannabis Control Board, a governing body we have been waiting to establish since the MRTA was signed on March 31, 2021. The CCB will be responsible for all aspects of cannabis, including licensing, licensing terms and requirements, and general oversight of the industry.

The CCB consists of a five-person board of directors, with the governor appointing three members and the assembly and the senate each appointing one member. The chairman of the CCB is appointed by the governor.

As mentioned earlier, it is difficult to overestimate the importance of the chairman of the CCB. The chairman will have an overwhelming influence on the direction of the New York cannabis industry. With so much leeway in enacting the rules and regulations of the industry, the chairman has the ability to prioritize applicants for social and economic justice, reduce the early lead of existing ROs, and establish a sustainable licensing process. The chairman is also technically the person who makes the preliminary decision as to whether a particular license should be granted.

RELATED: New York’s Cannabis Control Board – What’s Up?

Which begs the question, why (not) Governor Cuomo didn’t nominate anyone for the CCB or Executive Director of the Office of Cannabis Management before the end of the New York legislature on June 10, 2021. The overwhelming sentiment is that Governor Cuomo’s anticipated election of Norman Birnbaum as Executive Director of the OCM would not be approved by the legislature. Typically, Governor Cuomo took his toys and went home. Here at the Canna Law Blog, we believe that the only reason Governor Cuomo so quickly reached a compromise with the New York Legislature on the MRTA was because he won a political victory during the various political controversies that engulfed him in early 2021 needed.

RELATED: New York Cannabis: Why It’s a Big Deal the City of Riverhead didn’t choose to opt out

So where does the rise of Lt. Governor Hochul back? She openly pushed for legalization of adult cannabis in New York, highlighting its potential to generate “much-needed revenue for New York.” In public appearances, she has emphasized the importance of an effective social justice program. Crucially, she’s also from Buffalo and was an ally of Assembly Woman Crystal Peoples-Stokes, one of the MRTA’s sponsors.

There is so much political capital to be gained by quickly appointing a chairman for the CCB and getting the New York adult licensing process rolling that it would be surprising if Lt. Governor Hochul would delay the process. We will continue to keep an eye on the news from Albany and again remind you to attend our upcoming webinar for an in-depth discussion on the current state of the New York cannabis industry.

Simon Malinowski is an attorney with Harris Bricken. This story was originally published on the Canna Law Blog and reposted with permission.