[ THEME MUSIC ] >> ON THIS WEEK'S EDITION OF "NEW YORK NOW," MARIJUANA IS NOW LEGAL IN NEW YORK FOR ADULT RECREATIONAL USE, BUT SALES WON'T START FOR AT LEAST A YEAR.

WE'VE GOT AN IN-DEPTH LOOK AT THE NEW LAW AND WHAT YOU SHOULD EXPECT.

THEN ASSEMBLY MAJORITY LEADER CRYSTAL PEOPLES-STOKES WAS ONE OF THE LEAD NEGOTIATORS ON MARIJUANA.

SHE JOIN US TO DISCUSS THE FINAL AGREEMENT.

LATER, WE'LL GET AN UPDATE ON THE STATE BUDGET AND GOVERNOR CUOMO WITH KAREN DEWITT FROM NEW YORK STATE PUBLIC RADIO AND GANNETT'S JON CAMPBELL.

I'M DAN CLARK AND THIS IS "NEW YORK NOW."

[ THEME MUSIC ] >> WELCOME TO THIS WEEK'S EDITION OF "NEW YORK NOW," I'M DAN CLARK.

GOVERNOR CUOMO AND STATE LAWMAKERS HAVE SPENT THE LAST SEVERAL WEEKS HAMMERING OUT A $200 BILLION STATE BUDGET, BUT YOU WOULDN'T KNOW IT.

AND THAT'S BECAUSE, LIKE EVERY OTHER YEAR, THE BUDGET HAS BEEN NEGOTIATED BEHIND CLOSED DOORS WITH VERY FEW UPDATES FROM CUOMO AND LAWMAKERS INVOLVED IN THE PROCESS.

AND IT'S ACTUALLY NOT UNUSUAL IN NEW YORK BUT WHAT IS UNUSUAL IS HOW THE PROCESS PLAYED OUT THIS YEAR.

USUALLY, WE CAN GET A SENSE OF WHAT WAS GOING ON JUST BY STOPPING TO CHAT WITH LAWMAKERS AT THE STATE CAPITAL, BUT BECAUSE OF COVID, WE CAN'T DO THAT THIS YEAR, AND AS OF FRIDAY MORNING, CUOMO HADN'T SPOKEN TO THE PRESS IN MORE THAN A WEEK AND ALL OF THAT HAS TURNED A SITUATION THAT'S ALREADY USUALLY SHROUDED IN SECRECY TO SOMETHING THAT'S JUST BEEN TOTALLY OPAQUE.

SENATE REPUBLICAN LEADER, ROB ORTT.

>> WITH COVID, WITH THE RESTRICTIONS IN THE BUILDING, WITH ZOOM BEING MUCH, I DO THINK IT LENDS ITSELF MORE TO SECRECY, LESS TO TRANSPARENCY IN A PLACE THAT ALREADY WAS PRETTY GOOD AT SECRECY AND NO TRANSPARENCY TO BEGIN WITH, RIGHT?

>> WE'LL TALK MORE ABOUT THE STATE BUDGET A LITTLE BIT LATER IN THE SHOW BUT FIRST, MARIJUANA IS NOW FULLY LEGAL TO USE IN NEW YORK AND POSSESS.

THE STATE LEGISLATURE APPROVED A BILL THIS WEEK TO LEGALIZE THE DRUG AND IT'S ALREADY BEEN SIGNED BY GOVERNOR CUOMO AND WHILE SOME PARTS OF THE BILL WILL TAKE EFFECT IMMEDIATELY, OTHERS ARE MONTHS OR YEARS AWAY, AND SOME ALREADY WANT CHANGES.

TAKE A LOOK.

MARIJUANA WILL SOON BE LEGAL IN NEW YORK FOR ADULT RECREATIONAL USE.

THE STATE LEGISLATURE APPROVED A MASSIVE BILL THIS WEEK TO LEGALIZE AND TAX THE DRUG BUT RETAIL SALES WON'T START UNTIL SOMETIME NEXT YEAR AT THE EARLIEST.

THE BILL CREATES A NEW CANNABIS CONTROL BOARD WHICH WILL LICENSE NEW MARIJUANA GROWERS AND SELLERS, CREATE NEW REGULATIONS FOR THE INDUSTRY AND MORE.

AND ALL THAT THAT'S TIME, BUT SUPPORTERS HOPE IT DOESN'T TAKE TOO MUCH TIME.

KALEAN CASTETTER IS A MARIJUANA POLICY ANALYST IN NEW YORK AND A VICE CHAIR OF THE NEW YORK CANNABIS GROWERS AND PROCESSORS ASSOCIATION.

>> THE BIGGEST DOWNSIDE TO THE BILL IS THERE'S NO DEADLINES FOR WHEN THEY NEED TO GET THE LICENSES ROLLED OUT IN THE PROGRAM AND ALL OF THAT, RIGHT?

WE CAN BE SITTING HERE 15 MONTHS FROM NOW AND WE CAN HAVE ISSUES ROLLING OUT THE PROGRAM.

I HOPE NOT.

BUT THAT'S DEFINITELY CONCEIVABLE.

>> THE NEW INDUSTRY WILL NEED TIME TO GROW, LITERALLY.

DESPITE ITS COMMON NICKNAME, WEED, CANNABIS PLANTS TAKE SEVERAL WEEKS TO MATURE ENOUGH FOR HARVEST AND THEN THERE'S THE TIME REQUIRED TO PROCESS THE PLANT INTO OTHER PRODUCTS, LIKE TOPICALS AND EDIBLES.

THAT'S ALL TO SAY THAT RETAIL SALES OF MARIJUANA IN NEW YORK WON'T BE STARTING ANYTIME SOON.

HEATHER TRELA IS A FELLOW AT THE ROCKEFELLER INSTITUTE OF GOVERNMENT, A NON-PARTISAN THINK TANK.

>> THERE'S SOME LIKE CLUES BUT THERE'S NOTHING DEFINITE.

SO FOR EXAMPLE, THE TAXATION STRUCTURE DOES NOT KICK IN UNTIL THE FISCAL YEAR THAT STARTS APRIL 1, 2022.

SO NO RETAIL SALES COULD HAPPEN BEFORE THAT.

>> BUT THE LEGISLATION DOES A LOT MORE THAN JUST MAKE THE DRUG LEGAL TO SELL AND USE IN NEW YORK.

FOR ONE, YOU CAN EXPECT A 13% SALES TAX AT THE REGISTER AND MOST OF THAT REVENUE WOULD GO TO THE STATE.

THE REST WOULD GO TO LOCAL GOVERNMENTS.

THAT'S A LOWER TAX RATE THAN WHAT WE SEE IN NEIGHBORING MASSACHUSETTS, BUT A HIGHER TAX RATE THAN WHAT'S EXPECTED IN NEW JERSEY.

AND WE NOW KNOW WHAT THE STATE PLANS TO DO WITH THAT TAX REVENUE.

40% WOULD GO TO NEW YORK SCHOOLS AND 20% WOULD BE USED FOR DRUG EDUCATION AND TREATMENT PROGRAMS.

THE REST WOULD BE REINVESTED THROUGH GRANTS FOR COMMUNITIES DISPROPORTIONATELY IMPACTED BY THE PROHIBITION OF MARIJUANA.

NOTABLY COMMUNITIES OF COLOR AND FOR SUPPORTERS OF LEGALIZATION, THAT WAS CRUCIAL TO INCLUDE IN THE NEW LAW.

MELISSA MOORE IS THE NEW YORK STATE DIRECTOR OF THE DRUG POLICY ALLIANCE.

>> BECAUSE WE KNOW CRIMINALIZATION AND PROHIBITION, THE IMPACTS HAVE BEEN FAR MORE THAN ARRESTS.

THAT IN AND OF ITSELF IS DEVASTATING FOR PEOPLE, BUT IT'S ALSO TIED WITH SO MANY OTHER THINGS THAT WILL HAVE A MAJOR IMPACT IN NEW YORKER'S LIVES >> BUT THERE ARE CONCERNS OVER CANNABIS INDUSTRY OVER OTHER TAXES THE LAW WILL PLACE ON THE PRODUCT.

FOR ONE, THERE'S AN ADDITIONAL TAX AT THE WHOLESALE LEVEL, THAT'S BEFORE IT GETS TO CONSUMERS AND THAT TAX WILL BE BASED ON THE POTENCY OF THE MARIJUANA PRODUCT RATHER THAN A FLAT RATE.

THAT'S MEASURED BY THC, THE PSYCHOACTIVE INGREDIENT IN CANNABIS PRODUCTS.

CASTETTER SAID THAT'S GOING TO COMPLICATE THINGS FOR THC GROWERS.

>> THIS THC TAX HAS NEVER BEEN DONE BEFORE AND THE PROBLEM IS THAT THE NATURE OF CANNABIS IS THAT THE THC VARIES PLANT TO PLANT AND SO ACROSS A BATCH, YOU CAN HAVE MULTIPLE POINTS, PERCENTAGE POINTS DIFFERENCE BETWEEN CANNABIS.

>> AND THE BILL WILL ALSO KEEP A 7% TAX ON MEDICAL MARIJUANA, BUT LEADERS FROM THE INDUSTRY SAY THERE SHOULDN'T BE A TAX ON MEDICAL MARIJUANA AT ALL LIKE WITH OTHER MEDICAL PRODUCTS.

NGISTE ABEBE IS THE PRESIDENT OF THE NEW YORK CANNABIS INDUSTRY ASSOCIATION AND THE DIRECTOR OF PUBLIC POLICY FOR COLUMBIA CARE, A MEDICAL MARIJUANA COMPANY.

>> THERE IS A TAX ON MEDICAL PRODUCTS WHICH IS INTERESTING BECAUSE WE DON'T TAX COUGH SYRUP AND DON'T TAX TYLENOL IN NEW YORK AND MEDICAL CANNABIS FOR PATIENTS SHOULD BE MOVING TOWARD TREATED AS LIKE OTHER MEDICATIONS WHETHER THEY'RE OVER THE COUNTER OR PRESCRIPTION.

>> BUT THE BILL WILL ALSO MAKE SOME MAJOR CHANGES TO MEDICAL MARIJUANA IN NEW YORK.

FOR ONE, THE STATE IS SCRAPPING THE LIST OF CONDITIONS THAT MAKES SOMEONE ELIGIBLE FOR MEDICAL MARIJUANA.

NOW AS LONG AS A DOCTOR SAYS MARIJUANA CAN HELP SOMEONE MEDICALLY, THEY CAN GET A PRESCRIPTION.

SENATOR DIANE SAVINO WAS ONE OF STATE ARCHITECT'S OF THE STATE'S PROGRAM.

>> AND THEN WE GO FURTHER TO SAY THAT IN ANY CONDITION THAT A PRESCRIBER WOULD DETERMINE WOULD BENEFIT THE PATIENT, TO KIND OF GET THE STATE DEPARTMENT OF HEALTH OUT OF THE DOCTOR'S VISIT, YOU KNOW.

DOCTORS KNOW BEST WHAT'S GOOD FOR THEIR PATIENTS AND WE TRUST THEM TO MAKE THOSE DECISIONS.

>> BUT IT'S WORTH NOTING THAT INSURANCE DOESN'T PAY FOR MEDICAL MARIJUANA.

THAT'S PARTLY BECAUSE OF THE FEDERAL PROHIBITION ON THE DRUG BUT IT'S ALSO BECAUSE OF STATE LAW.

SAVINO SAYS THE STATE SHOULD EXPLORE WAYS FOR INSURANCE TO COVER MEDICAL MARIJUANA.

>> MAKES NO SENSE AND ONLY-- THE ONLY WAY TO CHANGE THAT IS EITHER RESCHEDULE MARIJUANA SCHEDULE LEVEL OR STATES WILL CONTINUE TO PUSH THE ENVELOPE AND THAT'S WHAT I'M GOING TO DO.

I'M GOING TO TACKLE THE INSURANCE INDUSTRY ISSUE.

WE NEED TO TACKLE THE BANKING INDUSTRY ISSUE.

WE NEED TO TACKLE FEDERAL TAX POLICIES SO THAT THESE BUSINESSES IF THEY GET THEIR DOORS OPEN ARE ABLE TO THRIVE, AND YOU CAN'T DO THAT WITH A COMPLICATED TAX PROCESS IN WASHINGTON.

SO WE ARE FAR FROM DONE.

>> IN THE MEANTIME, MEDICAL MARIJUANA COMPANIES WILL NOW BE ALLOW INTO THE RECREATIONAL MARKET AND THAT CAN BE A HUGE BOOST FOR THE NEW INDUSTRY, GIVEN THAT MEDICAL PROVIDERS ALREADY HAVE THE INFRASTRUCTURE IN PLACE TO GROW AND PROCESS THE DRUG.

HERE'S ABEBE AGAIN.

>> THERE'S STILL MORE TO BE DONE BUT WE WILL BE ABLE TO SUPPLY OTHER RETAILERS WHICH IS ESPECIALLY KEY IN THE EARLY STAGES OF THE MARKET BECAUSE BRINGING CULTIVATION ONLINE TAKES A LOT LONGER THAN OPENING THE DISPENSARY.

>> BUT OTHER PARTS OF THE NEW LAW WILL TAKE EFFECT IMMEDIATELY LIKE NEW LAWS ON MARIJUANA POSSESSION.

IT WILL NOW BE LEGAL TO CARRY THREE OUNCES OF MARIJUANA AT ANYTIME AND UP TO FIVE POUNDS WILL BE ALLOWED AT HOME.

IF YOU HAPPEN TO HAVE A LEGAL AMOUNT OF MARIJUANA, YOU CAN'T BE ARRESTED FOR IT BUT IF YOU HAVE ANY MORE THAN WHAT'S ALLOWED, YOU COULD BE CHARGED WITH A MISDEMEANOR OR A FELONY DEPENDING ON THE AMOUNT.

THAT'S STILL A HUGE SHIFT FROM THE CURRENT LAW AND SUPPORTERS OF LEGALIZATION SAY IT'S ANOTHER STEP TOWARD COMPLETE DECRIMINALIZATION.

>> I MEAN, I THINK THERE'S ALWAYS MORE TO BE DONE IN TERMS OF SHIFTING AWAY FROM THE USE OF THE CRIMINAL LEGAL SYSTEM.

I THINK THIS IS AN INCREDIBLE START.

IT'S A HUGE, POSITIVE SHIFT FROM WHERE WE'VE BEEN FOR DECADES IN NEW YORK.

>> BUT OTHERS WANT TOUGHER CRIMINAL LAWS ON MARIJUANA AND THEY'RE WORRIED THE NEW LAW DOESN'T GO FAR ENOUGH TO KEEP ROADS SAFE FROM IMPAIRED DRIVERS AND PREVENT CHILDREN FROM USING THE DRUG.

PATRICK PHELAN IS A FORMER POLICE CHIEF FROM MONROE COUNTY WHO IS NOW THE EXECUTIVE DIRECTOR OF THE ASSOCIATION OF CHIEFS OF POLICE.

>> I'M NOT TALKING ABOUT STOPPING A GUY FROM SITTING IN HIS BACKYARD SMOKING A JOINT.

HONESTLY, I REALLY DON'T CARE.

I KNOW PEOPLE WILL GET IN TRAFFIC CRASHES AND THEY'RE GOING TO DIE.

>> THE LAW REQUIRESTHE STATE TO PARTNER WITH A COLLEGE OR UNIVERSITY TO STUDY HOW MEMBERS OF LAW ENFORCEMENT COULD BEST DETECT IF EVERYONE IS DRIVING AND TO AUTHORIZE MONEY TO RECOGNIZE WHEN SOMEONE IS INTOXICATED.

BUT MEMBERS OF LAW ENFORCEMENT SAY THEY'RE WORRIED ABOUT WHAT CAN HAPPEN IN THE MEANTIME.

ROB MACIOL IS THE SHERIFF OF ONEIDA COUNTY.

>> LEGALIZING MARIJUANA WILL CERTAINLY MAKE OUR COMMUNITIES LESS SAFE.

WE FEEL STRONGLY THAT WE SHOULD BE TAKING THE TIME TO LOOK AT THE MISTAKES THAT OTHER STATES HAVE MADE.

LET'S LEARN FROM THOSE MISTAKES.

LET'S NOT REPEAT THEM.

>> IT'S POSSIBLE THAT WE CAN SEE PROGRESS ON THOSE ISSUES BEFORE RETAIL SALES START, WHICH AGAIN, WON'T BE UNTIL SOMETIME NEXT YEAR AT THE EARLIEST.

AND THE LAW WILL ALLOW INDIVIDUALS TO GROW THE PLANT AT HOME BUT NOT UNTIL AFTER RETAIL SALES START.

WHILE HOPES ARE HIGH FROM SUPPORTERS TO JUMPSTART THE NEW CANNABIS INDUSTRY, THERE'S A LONG, COMPLICATED WAYS TO GO UNTIL NEW YORK'S FIRST LEGAL SALE.

SO DISCUSSIONS ON MARIJUANA LEGALIZATION ARE OBVIOUSLY FAR FROM OVER IN NEW YORK, BUT THIS ALSO ISN'T A NEW ISSUE.

SOME MONIKERS HAVE WORKED ON IT FOR YEARS SLOWLY MAKING PROGRESS ALONG THE WAY.

ONE OF THEM IS ASSEMBLY MAJORITY LEADER CRYSTAL PEOPLES-STOKES, A DEMOCRAT FROM BUFFALO WHO LED NEGOTIATIONS THIS YEAR TO LEGALIZE THE DRUG.

I SPOKE WITH HER THIS WEEK ABOUT THE NEW LAW AND WHAT'S NEXT IN THE CONVERSATION OVER MARIJUANA IN NEW YORK.

[ THEME MUSIC ] >> MAJORITY LEADER CRYSTAL PEOPLES-STOKES, THANKS SO MUCH FOR BEING HERE.

>> THANK YOU.

I APPRECIATE YOU INVITING ME.

>> OF COURSE.

SO BEFORE WE GET TO WHAT'S ACTUALLY IN THE BILL, I SHOULD NOTE THAT YOU'VE BEEN ADVOCATING FOR THIS FOR MORE THAN SEVEN YEARS NOW, AND NOW THE BILL HAS BEEN SIGNED INTO LAW.

HOW DO YOU FEEL RIGHT NOW?

>> OVERJOYED.

I'M EXCITED FOR THE DIFFERENCE THAT IT'S GOING TO MAKE IN SO MANY PEOPLE'S LIVES.

PEOPLE WHO I DON'T EVEN KNOW, BUT THEY'RE GOING TO HAVE A NEW OPPORTUNITY AND I'M GRATEFUL THAT WE CAN MAKE THAT HAPPEN FOR THEM.

>> SO I THINK THE BIG QUESTION ON EVERYONE'S MINDS RIGHT NOW AFTER THE BILL HAS BEEN SIGNED INTO LAW IS HOW LONG IS IT GOING TO TAKE BEFORE THE FIRST RETAIL SALES START IN NEW YORK?

OBVIOUSLY, THERE'S A LOT TO HAPPEN BEFORE THEN.

BUT BASED ON YOUR EXPECTATIONS, BASED ON THE BILL, WHEN DO YOU THINK WE COULD START SEEING THE FIRST RETAIL SALES?

>> WELL, BASED ON MY EXPERIENCE AND LOOKING AT WHAT OTHER STATES AND WHAT CANADA HAS DONE, IT WILL GENERALLY TAKE 18 MONTHS TO TWO YEARS, BUT HONESTLY, WE'RE NEW YORKERS.

I DON'T THINK IT'S GONNA TAKE US THAT LONG.

I'M GOING TO SUSPECT IT'S GOING TO TAKE A MINIMUM OF AT LEAST A YEAR, MAYBE 18 MONTHS.

I THINK WE'RE GOING TO GET STARTED AGGRESSIVELY TRYING TO LOOK AT HOW THE BOARD STRUCTURES WILL LOOK.

THAT IS GOING TO BE THE KEY TO BEGIN PUTTING THINGS IN PLACE.

I ANTICIPATE THAT CAN HAPPEN RELATIVELY QUICKLY.

IN FACT, I WILL BE HAVING CONVERSATIONS WITH THE SPEAKERS AND OTHERS SOON ABOUT THAT TOPIC >> NOW THAT THE BILL HAS BEEN SIGNED INTO LAW.

YOU CAN IMMEDIATELY MAKE THOSE APPOINTMENTS TO THE CANNABIS CONTROL BOARD TO GET THE PROCESS STARTED, IS THAT RIGHT?

>> YES.

WE'D LIKE TO GET THAT STARTED AS SOON AS POSSIBLE.

>> SO WHEN RETAIL SALES DO START, YOU HAVE COME UP WITH A TAX RATE ON RETAIL SALES OF 13%.

THAT'S LESS THAN WHAT WE SEE IN MASSACHUSETTS BUT IT MIGHT BE ACTUALLY BE HIGHER THAN WHAT WE SEE IN NEW JERSEY.

CAN YOU TALK TO ME ABOUT HOW YOU ARRIVED AT THE 13%?

IF YOU ARE WORRIED AT ALL ABOUT PEOPLE DOWNSTATE GOING TO NEW JERSEY TO BUY THE DRUG RATHER THAN BUYING FROM SHOPS IN NEW YORK?

>> I ACTUALLY AM NOT.

I THINK IT'S COMPETITIVE.

YOU ANY, NEW YORK HAS A LOT THAT JERSEY DOESN'T.

PEOPLE WILL COME TO NEW YORK TO DO THINGS THAT DON'T EVEN LIVE HERE.

I THINK THAT OUR TAX RATE IS COMPETITIVE.

IT'S NOT MY PREFERRED RATE BUT I THINK IT IS COMPETITIVE AND I THINK WE'LL DO FINE WITH IT.

>> SO LET'S TALK ABOUT WHAT HAPPENS WITH THE TAX REVENUE THAT THE STATE IS GOING TO COLLECT FROM MARIJUANA SALES.

40% OF WHAT THE STATE COLLECTS IS GOING TO BE REINVESTED IN COMMUNITIES THAT HAVE BEEN DISPROPORTIONATELY IMPACTED BY THE STATE'S PROHIBITION ON MARIJUANA.

YOU WERE A BIG SUPPORTER OF THAT, A BIG ADVOCATE FOR MAKING THAT HAPPEN.

ARE YOU HAPPY WITH THE 40% OF THE REVENUE AS THE SHARE?

WHAT DO YOU VISION-- ENVISION FOR COMMUNITIES THAT WANT TO APPLY FOR THOSE GRANTS?

WHAT DO YOU SEE THERE?

>> I'M DELIGHTED AT THAT PERCENTAGE.

AS YOU KNOW, THE LEGISLATION WAS ORIGINALLY INTRODUCED WITH 50% REQUIREMENT BUT YOU KNOW, THIS IS NEGOTIATIONS AND YOU HAVE TO START SOMEWHERE.

AND I'M NOT DISAPPOINTED AT ALL WITH THE RESULTS THAT WE HAVE AND I THINK THOSE DOLLARS SHOULD GO DIRECTLY INTO THE LIVES OF THOSE PEOPLE WHO ARE INCARCERATED AS WELL AS THEIR CHILDREN AND THE COMMUNITIES THAT THEY LIVE IN.

THE NEXT THING TO DO IS TO DETERMINE WHAT ARE THE PEOPLE WHO HAVE SUFFERED THAT HARM, WHAT DO THEY NEED?

I THINK WHAT THEY NEED IN UTICA COULD BE VERY DIFFERENT THAN WHAT THEY NEED TO BUFFALO.

IT COULD BE VERY DIFFERENT OF WHAT THEY NEED IN THE BRONX COMPARED TO SYRACUSE AND BINGHAMTON.

IT DEPENDS ON PERSON, IT DEPENDS ON THE COMMUNITY.

IT COULD BE THINGS LIKE TAKING LEAD OUT OF PEOPLE'S HOUSES WHO LIVE IN IMPOVERISHED CONDITIONS AND THEY COULDN'T WORK BECAUSE THEY HAD TO CHECK THE FELONY BOX ON THAT APPLICATION.

THERE ARE A NUMBER OF THINGS THAT WE CAN DO TO INVEST IN THE LIVES OF PEOPLE TO MAKE THEM BETTER, AND I THINK WE HAVE TO GO ABOUT FINDING OUT WHAT THEY ARE AND GET THEM DONE.

HONESTLY, MOST MEDICINES YOU CAN GET WITH AN INSURANCE CARD AS WELL.

BUT YOU CAN'T USE AN INSURANCE CARD TO GET MEDICAL MARIJUANA.

SOMETIMES THERE'S DIFFERENCES AND IT'S HARD TO COMPARE AS IF THEY'RE APPLES TO APPLES AND THEY'RE ACTUALLY APPLES TO ORANGES.

>> YOU BROUGHT UP A GOOD POINT ABOUT INSURANCE.

INSURANCE DOESN'T COVER MARIJUANA AND THAT'S PARTLY BECAUSE OF THE PROHIBITION.

SOME STATES HAVE TRIED TO EXPERIMENT TO HAVE INSURANCE COVER IT.

DO YOU THINK WE CAN TRY THAT IN NEW YORK?

>> I THINK ONE OF THE THINGS THAT NEW YORK DOES FOR ANY ISSUE ACROSS THE NATION IS THAT IT LEAKS.

EVEN THOUGH WE'RE NOT NUMBER ONE IN LEGALIZING, I THINK WE CAN BE NUMBER ONE IN THE ADVOCACY FOR GETTING ACCESS TO INSURANCE COVERAGE AND I THINK THAT WE ALSO CAN BE NUMBER ONE IN DEMONSTRATING HOW YOU LEGALIZE AND PUTTING EQUITY AS AN INTENTIONAL PIECE RATHER THAN AS A SECOND THOUGHT.

I THINK GIVEN THOSE THINGS THAT THERE IS POTENTIAL FOR THE FEDERAL GOVERNMENT TO MOVE A LITTLE QUICKER TOWARD REMOVING THE BARRIERS THAT PROHIBIT INSURANCE FOR MEDICAL MARIJUANA.

>> I FEEL LIKE WE HAVE TO TALK ABOUT THE CRIMINAL JUSTICES ASPECT OF THIS, WHICH I THINK WAS AN IMPETUS OF THE BILL, OBVIOUSLY.

IN NEW YORK STATE AND AROUND THE COUNTRY, MARIJUANA ARRESTS HAVE BEEN DISPROPORTIONATELY TARGETED TOWARD PEOPLE OF COLOR AND NOT SO MUCH TOWARD PEOPLE THAT LOOK LIKE ME.

I WOULD LIKE YOU TO SPEAK TO THAT.

BECAUSE I FEEL LIKE A LOT OF PEOPLE IN THE STATE JUST HAVEN'T HAD TO DEAL WITH THE ISSUES SO THEY MAY NOT BE FAMILIAR WITH WHY THIS HAS BEEN IMPORTANT.

>> WELL, I THINK YOU'RE EXACTLY RIGHT.

MOST PEOPLE DON'T GET-- ANY STUDLY WILL TELL YOU THAT THE MAJORITY OF PEOPLE WHO USE MARIJUANA IN THIS COUNTRY LOOK MORE LIKE YOU THAN I.

BUT I HAPPEN TO BE THE LOOK OF THE PERSON WHO ENDS UP GOING TO JAIL ON A REGULAR BASIS AND EVEN FOR SMALL AMOUNTS.

THERE ARE SOME PEOPLE IN PLACES IN THIS COUNTRY THAT ARE STILL IN JAIL FOR HAVING A NICKEL BAG OF MARIJUANA.

YET TWO STATES AWAY, PEOPLE ARE SELLING IT AS A LEGAL PRODUCT OR EITHER SELLING IT AS A MEDICAL PRODUCT.

AND IT'S JUST SOMETHING SO UNFAIR ABOUT THAT.

IF YOU DON'T FIX THE CRIMINAL JUSTICE PART OF IT, YOU REALLY HAVEN'T DONE ANYTHING IN MY ESTIMATION BY LEGALIZING IT.

>> IS THERE ANYTHING THAT WASN'T INCLUDED IN THE BILL THAT YOU WISH HAD JUST MADE IT IN THERE?

ANY PARTS OF THE ORIGINAL MRTA, OR MAYBE THAT WEREN'T EVEN IN THE MRTA THAT YOU WISH HAD BEEN IN THIS BILL?

>> YOU KNOW, I DON'T WANT TO DIGRESS.

YOU KNOW, I THINK I'M SATISFIED WITH THE THREE-WAY BILL THAT WE AGREED TO DO ON YESTERDAY, AND I THINK IF THERE ARE OPPORTUNITIES TO DO ANY FUTURE TUCKS TO IT OR TWEAKS OR TECHNICAL ISSUES, WE CAN DO THAT.

I THINK WHAT'S MORE IMPORTANT NOW IS THAT GOVERNOR CUOMO HAS SIGNED IT AND THAT WE NEED IT TO MOVE WITH SOME SPEED IN PUTTING TOGETHER THE BOARD STRUCTURE BECAUSE IMPLEMENTATION IS MORE IMPORTANT THAN THE LEGISLATION AND HERE, WE'RE TALKING ABOUT PEOPLE'S LIVES.

WE DON'T HAVE A CHOICE BUT TO BE SUCCESSFUL.

AND SO NOW, MY DESIRE IS TO SEE THAT IMPLEMENTATION IS PROPERLY DONE.

>> ALL RIGHT.

WE'LL BE LOOKING OUT FOR IT.

ASSEMBLY MAJORITY LEADER CRYSTAL PEOPLES-STOKES, THANKS SO MUCH.

>> YOU'RE WELCOME.

THANK YOU.

HAVE A GREAT DAY AND STAY SAFE.

[ THEME MUSIC ] >> AND NOW AN UPDATE ON WHERE THINGS STAND WITH THE STATE BUDGET AND GOVERNOR CUOMO.

YOU MIGHT REMEMBER THE BOOK HE PUBLISHED LAST YEAR.

WHILE NEW REPORTS THIS WEEK SUGGEST HE MAY HAVE USED STATE RESOURCES TO WRITE IT AND PROMOTE IT AND THAT COULD BE ILLEGAL.

LET'S DIG INTO THAT AND MORE WITH THIS WEEK'S PANEL.

KAREN DEWITT IS FROM NEW YORK STATE PUBLIC RADIO AND JON CAMPBELL IS WITH THE "USA TODAY" NETWORK.

THANK YOU FOR BEING HERE >> SURE THING.

>> LET'S TALK ABOUT THE BUDGET FIRST.

>> ALL RIGHT.

>> LET'S GET THAT OUT OF THE WAY.

WE'RE TAPING AROUND 9:00 A.M. ON FRIDAY AND AS OF NOW, WE DON'T HAVE A BUDGET DEAL.

WE DON'T KNOW WHAT'S GOING ON.

THERE HAVE BEEN NO UPDATES.

THE LEGISLATIVE LEADERS, AS WE ALLUDED TO AT THE BEGINNING OF THE SHOW, HAVE NOT SPOKEN TO US THIS ENTIRE WEEK AND THIS IS THE BUDGET WEEK.

WE ARE THE-- THE BUDGET IS OFFICIALLY LATE.

KAREN, WHAT'S GOING ON?

[LAUGHTER] >> I HAVE NO IDEA.

IT DOES FEEL VERY REMINISCENT OF GOING BACK A DECADE AGO WHEN DAVID PATTERSON WAS GOVERNOR, BEFORE THAT GEORGE PATAKI, WHEN THE BUDGET WOULD OFTEN BE LATE AND THIS TIME OF YEAR, APRIL 2ND OR 3RD, YOU WOULDN'T KNOW WHEN IT WOULD BE PASSED AND IT WOULD BE WEEKS, EVEN MONTHS BEFORE THEY CAME INTO AGREEMENT.

I DON'T THINK THAT WILL HAPPEN NOW.

IT DOES FEEL LIKE IT'S FALLING APART IN A WAY THAT IT HASN'T IN TEN YEARS.

GRANTED, I'M SAYING THIS FRIDAY MORNING.

MAYBE THEY'LL HAVE AN AGREEMENT FRIDAY AFTERNOON.

IT FEELS LIKE GOVERNOR CUOMO'S IRON GRIP ON THE BUDGET FOR TEN YEARS WHERE AT LEAST AT THIS POINT IF IT WASN'T PASSED, YOU KNEW WHEN IT WAS GOING TO BE PASSED.

THEY HAD AGREEMENT ON THINGS.

THAT IS NOT HAPPENING.

IT DOES SEEM LIKE THERE'S A REAL ABSENCE HERE.

YOU KNOW, YOU GOT TO WONDER DOES IT HAVE SOMETHING TO DO THAT THE GOVERNOR IS FACING FOUR PRETTY MAJOR SCANDALS AND HE'S POLITICALLY WEAKENED.

>> THAT'S A PRETTY GOOD POINT.

JON, DO WE KNOW WHY THE BUDGET IS LATE?

IT CAME AS A LITTLE BIT OF A SURPRISE TO ME.

BECAUSE THE ONE-HOUSE BUDGETS WERE ALIGNED AND THE GOVERNOR'S BUDGET WERE DIMINISHED.

I GUESS I EXPECTED TO HAVE AN ON-TIME BUDGET.

DO WE KNOW WHY?

>> THE GOVERNOR'S POWER IS PRETTY DIMINISHED BUT THE WAY THE STATE WORKS, THE GOVERNOR HAS A LOT OF POWER STILL.

HE CAN LINE-ITEM VETO ANY NUMBER OF THINGS IN THE BUDGET.

SO THAT IS STILL A THREAT THAT IS DIFFICULT TO OVERCOME.

NOW BOTH IN THE SENATE AND THE ASSEMBLY, THEY HAVE DEMOCRATIC SUPERMAJORITIES WHERE THEY CAN OVERTURN THAT.

YOU KNOW, TO MAKE THE DECISION TO GO IT ALONE WITHOUT THE GOVERNOR IS A BIG, BIG BREAK FROM PRECEDENT AND THAT'S SOMETHING THAT, YOU KNOW, AT SOME POINT, THE LEGISLATURE MIGHT HAVE TO DECIDE, BUT WE DO KNOW SOME OF THE THINGS THAT ARE STILL BEING DEBATED.

TAXES ON THE WEALTHY AND ON WALL STREET.

WE ALSO KNOW THERE'S A BIG DEBATE NOW GOING ON ABOUT THE PENN STATION DEVELOPMENT AND THE AREA AROUND PENN STATION.

>> THIS LIKE A NEVER-ENDING CONVERSATION.

PENN STATION HAS BEEN MY WHOLE LIFE AND HALF.

>> ME TOO.

I'M WAY OLDER THAN YOU.

[LAUGHTER] I WANT TO LIVE TO SEE PENN STATION.

[LAUGHTER] >> WE KNOW SOME OF THE THINGS BUT YOU KNOW, BECAUSE WE DON'T HAVE THESE BEHIND-CLOSED-DOOR NEGOTIATING SESSIONS THAT THE THREE OF US AND ANY NUMBER OF OUR COLLEAGUES STAKE OUT FOR HOURS JUST TO GET A LITTLE BLURB ABOUT THE BUDGET WE KNOW LESS THAN WE NORMALLY DO BECAUSE ALL OF THIS NEGOTIATION IS HAPPENING ON ZOOM NOW.

>> I WOULD ARGUE THAT WE DID PUT PRESSURE ON LAWMAKERS IN THE PAST.

BECAUSE THEY WOULD HAVE TO FACE THE GAUNTLET OF REPORTERS AND SAY SOMETHING AT LEAST WHILE WE HAVE A TENTATIVE AGREEMENT AND FEEL LIKE WE DON'T WANT TO DO THIS ANOTHER DAY AND FACE THOSE REPORTERS LET'S TRY TO GET SOMETHING DONE.

I THINK THAT DID HELP.

NOW IT'S KIND OF-- I MEAN, FACE IT,WAY HAD THE PANDEMIC FOR OVER A YEAR.

NOBODY KNOWS WHAT DAY IT IS ANYWAY.

WHAT DOES APRIL 1ST MATTER?

THERE IS A LITTLE BIT OF THAT GOING ON.

>> ONE BIG SOURCE OF PRESSURE THAT THEY'RE GOING TO HAVE TO FACE IS THE STATE EMPLOYEES.

THERE'S NOT SOME SORT OF BUDGET IN PLACE BY MONDAY, EVEN IF IT'S A TEMPORARY EMERGENCY SPENDING PLAN, 39,000 STATE EMPLOYEES WILL SEE THEIR PAYCHECKS DELAYED AND THAT IS NOT A CONSTITUENCY THAT YOU WANT TO MAKE MAD.

>> BUT I HAVE SEEN THEM TURN IT AROUND FASTER.

I REMEMBER IN THE PAST THE CONTROLLER SAYING IT HAS TO BE DONE BY MONDAY AND SOMEHOW THEY CAN DO IT IN A DAY.

THEY DON'T LIKE TO, BUT DEFINITELY THAT IS KIND OF A HARD DEADLINE, EARLY NEXT WEEK.

>> IT DEPENDS ON HOW MUCH THEY WANT TO TALK ON THE FLOOR WHEN THE BILLS ACTUALLY COME UP AND WHO WANTS TO GET THAT VIDEO THEY CAN PUT OUT ON TWITTER ABOUT DEBATING THE BILL ON THE FLOOR.

LET'S MOVE ON FROM THE BUDGET SINCE WE DON'T REALLY KNOW TOO MUCH ABOUT IT, UNFORTUNATELY.

I SAID AT THE TOP OF THE SEGMENT ABOUT CUOMO'S BOOK DEAL.

WE HAVE SOME NEW DETAILS ABOUT IT AND SOME NEW CONTROVERSIES ABOUT IT.

KAREN, CAN YOU LAY IT OUT A LITTLE BIT WHAT'S GOING ON HERE?

>> YEAH.

I WAS GOING TO DEFER TO JON BECAUSE HE DID SUCH A GREAT ARTICLE OF LAYING OUT EXACTLY WHAT MIGHT HAVE BEEN DONE.

>> YEAH.

>> SO WEDNESDAY NIGHT, THE GOVERNOR'S OFFICE RELEASED, AFTER MONTH'S OF REPORTERS ASKING FOR IT, RELEASED THE PERMISSION HE GOT FROM THE JOINT COMMISSION ON PUBLIC ETHICS DEPUTY COUNSEL TO WRITE HIS BOOK ON THE COVID PANDEMIC, AMERICAN CRISIS, WHICH CAME OUT LAST YEAR.

SOLD MORE THAN 40,000 COPIES LANDED ON BEST-SELLER LIST, AND THEY RELEASED THAT AND AN HOUR AND A HALF LATER, THE "NEW YORK TIMES" HAD A STORY CUOMO FIELDED OFFERS NORTH OF $4 MILLION FOR THAT BOOK IN THE MIDDLE OF THE PANDEMIC AT A TIME WHERE HIS GLOBAL STAR WAS HIGHER THAN IT'S EVER BEEN.

THEN IF YOU LOOKED AT THE APPROVAL FROM THE JOINT COMMISSION ON PUBLIC ETHICS ATTORNEY, THERE WERE A LOT OF CRITERIA THAT HE HAD TO FOLLOW.

HE HAD TO FOLLOW NINE CRITERIA.

ESSENTIALLY HE COULDN'T USE STATE RESOURCES TO PROMOTE THE BOOK OR WRITE THE BOOK.

HE COULDN'T ADVERTISE IT OR ENDORSE IT AT ANY PUBLIC EVENTS, ET CETERA.

YOU KNOW, HE COULDN'T USE STATE PERSONNEL AND WE KNOW NOW THAT HE DID A LOT OF THOSE THINGS.

NOW, THE GOVERNOR'S OFFICE-- THERE'S THREE SENIOR MEMBERS OF HIS STAFF AT LEAST THAT WORKED ON THE BOOK IN SOME FORM OR FASHION, STEPHANIE BENTON AND MELISSA DEROSA AND THE GOVERNOR'S OFFICE CLAIMS THEY VOLUNTEERED THEIR TIME AND THAT'S A VERY THIN LINE TO WALK AND AT THE VERY LEAST THEY'RE TOWING THE LINE OF WHAT THEY HAD TO DO.

>> IT SOUNDS LIKE THEY SPENT A QUITE A LOT OF TIME.

IT WASN'T LIKE AN HOUR HERE AND HOUR THERE, LIKE HELP ME FIGURE OUT THIS SENTENCE.

MELISSA DEROSA WAS VERY INVOLVED IN THE EDITING.

BUT THAT SAID, HIS STAFF, THEY DON'T PUNCH A TIME CLOCK.

SO I THINK IT WOULD BE HARD TO PROVE THAT THEY WEREN'T VOLUNTEERING BECAUSE THEY WORK SO MUCH AS IT IS.

I'M SURE THEY WORK WELL OVER 40 HOURS A WEEK.

>> YEAH.

THERE'S A WEIRD-- IT'S A WEIRD KIND OF TIME CARD SITUATION WHERE THEY HAVE TO TAKE TIME OFF IF THEY WORK LESS THAN SEVEN AND A HALF HOURS A DAY.

BUT THEY ALL WORK MORE THAN SEVEN AND A HALF HOURS IN A DAY.

>> EXACTLY.

>> THERE'S ALSO JUNIOR STAFFERS THAT WERE ASKED TO PRINT OUT TYPE OUT NOTES AND PRINT OUT COPIES AND DELIVER IT TO THE GOVERNOR'S MANSION AND THAT SEEMS TO BE A PRETTY CLEAR VIOLATION OF USING STATE RESOURCES FOR BOOK PURPOSES.

THE GOVERNOR'S OFFICE CLAIMS IT WAS INCIDENTAL.

>> THE OTHER QUESTION IS, WHO IS GOING TO INVESTIGATE THIS?

THE JOINT COMMISSION ON PUBLIC ETHICS HAS A POOR TRACK RECORD.

IT'S PRETTY MUCH CONTROLLED BY CUOMO.

IF IT IS A VIOLATION OF THE PUBLIC OFFICER'S LAW, WHICH IT DOES SEEM TO BE A VIOLATION, ARE THEY GOING TO BE ABLE TO AUTHORIZE AN INVESTIGATION AND CARRY IT OUT?

THAT'S A BIG QUESTION RIGHT NOW.

>> IF THEY WERE TO CARRY IT OUT, THEY COULD LEVY A FINE OF UP TO $10,000 IF THEY FOUND THERE WAS A VIOLATION OF THE PUBLIC OFFICER'S LAW AND THEY COULD GO AFTER THE VALUE OF THE BENEFIT HE DERIVED FROM THAT.

>> WHAT?

[LAUGHTER] >> IF THE VALUE, IF IT'S A $4 MILLION BOOK CONTRACT, THAT'S A VERY BIG VALUE.

>> YOU THINK THEY COULD CLAW BACK $4 MILLION FROM HIM?

>> THEY COULD CLAW BACK WHATEVER AMOUNT THEY DECIDE THAT HE DERIVED SPECIFICALLY FROM THAT BENEFIT.

>> OKAY.

>> IT DEPENDS ON HOW AGGRESSIVE THEY WOULD WANT TO BE AND THAT IS IF THEY WERE TO FIND A VIOLATION OF THE PUBLIC OFFICE.

>> WE SHOULD MENTION THE ASSEMBLY IMPEACHMENT INQUIRY IS GOING TO LOOK AT THIS WEEK DEAL.

IT'S JUST KIND OF PILING UP.

ONE MORE THING OF WHAT'S BEEN RELENTLESS TWO MONTHS NOW THAT THE GOVERNOR HAS FACED BAD NEWS.

NEARLY EVERY OTHER DAY.

IT'S REALLY BEEN QUITE AN ONSLAUGHT AND QUITE EXTRAORDINARY THAT HE IS STILL THERE.

>> IT'S BEEN A BAD MONTH.

WE HAVE TO LEAVE IT THERE.

KAREN DEWITT FROM NEW YORK STATE PUBLIC RADIO, JON CAMPBELL FROM "USA TODAY" NETWORK, THANK YOU BOTH FOR BEING HERE.

WE'LL SUE BACK HERE NEXT WEEK WITH THE LATEST.

THANKS FOR WATCHING THIS WEEK'S "NEW YORK NOW," AND BE WELL.

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