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September 24, 2021

NYS Governor Hochul Makes Final Cannabis Control Board Appointments

On Wednesday, September 22, 2021, NYS Governor Kathy Hochul made the final two appointments to the Cannabis Control Board (CCB). Reuben R. McDaniel III and Jessica Garcia were named as the final two regulators to oversee New York State’s adult-use cannabis market.

The CCB is charged with developing rules and regulations for New York State’s adult-use cannabis market, including determining the number of licenses available in New York State and issuing cannabis licenses. The Office of Cannabis Management (OCM) is an independent office within the division of alcoholic beverage control. The OCM will oversee the administration of the Marijuana Regulation and Taxation Act (MRTA). The actions of the OCM are exercised through its executive director.

McDaniel is currently the president and CEO of the Dormitory Authority of the State of New York (DASNY). The governor’s office press release about the two new appointments states that McDaniel “joined DASNY as an accomplished investment banker with more than 30 years of experience in financial services, including public finance, personal wealth management, corporate finance, and private equity.” Given McDaniel’s extensive experience in finance, his insights will assist in crafting policy regarding financing and capitalization in the cannabis industry, particularly for social equity applicants.

Garcia currently serves as the assistant to the president of the Retail, Wholesale Department Store Union (RWDSU). She previously served as deputy political director for the RWDSU. Prior to her roles with the RWDSU, Garcia served as director of programs and organization at New Immigrant Community Empowerment. Garcia’s appointment clearly shows the emphasis Governor Hochul is putting on labor and equity within the cannabis industry.

These new appointments to the CCB will continue to further the goal of the MRTA to ensure an inclusive and diverse cannabis industry in New York State.

McDaniel and Garcia join CCB Chair Tremaine Wright, CCB members Adam Perry and Jen Metzger, and OCM Executive Director Chris Alexander. With the full CCB and OCM executive director appointed, we will hopefully see swift movement from the regulators to issue draft cannabis regulations and guidance. Between Native American reservations legalizing cannabis and the booming gray market of gifting cannabis, the CCB and OCM will be mounting under pressure to quickly develop and issue regulations for New York State’s adult-use cannabis marketplace.

Barclay Damon’s Cannabis Team will continue to closely monitor developments pertaining to the MRTA’s rules and regulations. If you have questions about the MRTA, please contact one of Barclay Damon’s cannabis attorneys.

If you have questions regarding the content of this alert, please contact Jason Klimek, Cannabis Team co-leader, at jklimek@barclaydamon.com, or another member of the firm’s Cannabis Team.

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