Medical marijuana operators see major hurdle with new $15 million licensing fee

OG Article

Susan Arbetter

May 08, 2025

There’s been a shift in how the medical marijuana industry functions in New York state.

About five years ago, medical marijuana operators were thought of as the elephant in the room – the deep-pocketed corporate players that could steer the market at will. 

That may not be the case anymore.  

Currently, New York state only has about 95,000 patients who are certified to use medical marijuana, and 30 medical dispensaries to serve those patients. Both of those counts have been dropping.

And with the new state budget, things could take a turn for the worse. 

At issue are licensing fees for dual medical and recreational marijuana operators. The new state budget includes a requirement that those operators who want to offer both categories of marijuana are required to pay a $15 million licensing fee.  

Katie Neer, an attorney and lobbyist for the New York Medical Cannabis Industry Association (NYMCIA) and of-counsel at Dickinson & Avella, says the fee is too steep for the handful of operators interested in this space. 

“Unfortunately, we’re going to be trying to rebuild this medical marijuana market from the ground up here,” she told Capital Tonight. “That’s what I hear the decision-makers in Albany say they’re supportive of.  Let’s hope they mean it.”