Can you say cannabis deal?

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Mar 08, 2024 View in browser   By Nick Reisman and Emily Ngo Presented by With help from Shawn Ness Democratic lawmakers are hopeful a budget deal will include a crack down on illegal weed shops, which has been one of Mayor Eric Adams' top priorities. | Spencer Platt/Getty Images New York Minute: George Santos wants back in Congress — or perhaps just back in the spotlight. The Republican indicted on 23 federal fraud charges and expelled by his colleagues announced late Thursday that he plans to primary Long Island Rep. Nick LaLota, posting the news on X in the middle of President Joe Biden’s State of the Union address. “New York hasn’t had a real conservative represent them since I left office arbitrarily, thanks to RINO, empty suits like @nicklalota,” wrote Santos, who attended the speech. LaLota responded, “To raise the standard in Congress, and to hold a pathological liar who stole an election accountable, I led the charge to expel George Santos. If finishing the job requires beating him in a primary, count me in.” — Emily Ngo ILLEGAL WEED CRACKDOWN NEARS: Shuttering businesses accused of selling cannabis without a license could be one of the first agreements reached in the state budget. Democratic lawmakers are confident they’ll be able to come to an accord with Gov. Kathy Hochul to crack down on the retailers as part of a broader effort to aid the struggling legal cannabis marketplace in the state. At issue is how to grant local governments the power to shut down businesses that are believed to be selling weed products illegally. The Democratic-led state Senate is expected to include the provision in its budget resolution when it's released next week, a person familiar with the details said. Cracking down on illegal cannabis shops has been a top priority for Mayor Eric Adams. And his allies in Albany pressed for it to get done. Talks have intensified at the Capitol over how to address the problem with closed-door discussions in the last week between lawmakers and Hochul’s team. “The governor has been very open and collaborative, and I spoke to her people yesterday and I'm very optimistic that we will give municipalities the authority in the budget,” Assemblymember Jenifer Rajkumar, a Democratic ally of the mayor, told Playbook. “I’m positive we’ll reach the finish line.” Hochul included the proposal in her State of the State agenda at the start of the year, alongside dropping a cannabis potency tax beefing up the state’s regulatory authority. Rajkumar, along with Queens state Sen. Leroy Comrie, proposed a measure similar to what Hochul wants to accomplish by padlocking businesses suspected of selling illegal weed. Concerns from lawmakers are multifold: The illegal cannabis shops are costing New York tax money. Selling cannabis without a license is also putting a strain on the legal businesses that have had trouble establishing themselves. And officials are concerned the cannabis sold illegally presents a public health hazard. But the state has made little progress in addressing the issue. Regulators at the Office of Cannabis Management don’t have the resources to tackle the problem, especially in the city where the troubles are the most glaring. At the same time, lawmakers are impatient. They point to illegal weed stores near schools, a violation of the state’s cannabis laws. “We need to shut these places down and send a message to them that they can’t flourish in our communities,” Comrie said in an interview. Comrie expects the final version of the measure will have elements of both Hochul’s and the Legislature’s proposal. “Some of her ideas are good; some of ours are good,” he said. “We can blend them to get it done.” Hochul last week at a news conference decried how long it takes to shut down illicit cannabis businesses, while describing the legal sector of the cannabis economy as one filled with “growing pains and a long journey.” But fines of tens of thousands of dollars for the illicit market haven’t done the trick. “Let’s give the state and localities ways that they can padlock the doors and shut down these flagrant violators,” she said. “Let’s start having some teeth.” — Nick Reisman HAPPY FRIDAY: Have a great weekend! Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman. WHERE’S KATHY? In Washington, D.C. and Albany, making a guest appearance on PIX11. WHERE’S ERIC? In Florida, delivering remarks at the Building & Construction Trades Council’s annual conference and meeting with labor leaders. Then he’s headed to Albany for the SOMOS conference. QUOTE OF THE DAY: “There are ways to address this issue — other ways to address it — other than more policing into the subway system.” – City Council Speaker Adrienne Adams, on Hochul’s plan to have National Guard and state police patrol the subways.   A message from Amazon: When Rachel Gutierrez-Aguirre was looking to take her handcrafted coffee beyond Brooklyn, she turned to Amazon because of the tools it offers sellers. “I’m thrilled to see Amazon providing this level of support to sellers,” she said. Amazon invests billions of dollars in people, resources, and tools that support local entrepreneurs at every stage of their journey. Learn how Amazon innovates for sellers.   ABOVE THE FOLD Ryan Birchmeier is now the new communications director for City Hall, and Erika Tannor will be the new deputy communications director. | Mark Lennihan/AP STAFFING UP: City Hall has named Ryan Birchmeier as its new director of communications, filling a position that has been vacant since the summer as part of a broader shuffling of the administration’s press operations. Birchmeier had already been working in the mayor’s office, leading economic development and housing communications since August. Prior to that, he served as a deputy mayor for public information at the Office of Technology and Innovation, where he managed both the communications and intergovernmental affairs teams, according to City Hall. Adams also hired Erika Tannor of Tusk Strategies as first deputy communications director. Tannor has worked in the public advocate’s office under Tish James, helped launch the 5Boro Institute — an organization created to bolster the policy positions of the mayor — and was policy director for Andrew Yang’s 2021 mayoral campaign. “By elevating and bringing new voices to City Hall, we are making our administration even stronger, finding new ways to communicate information about services and the state of our city, and ultimately delivering a better product for New Yorkers,” Adams said in a statement. Birchmeier’s ascension to the top communications spot comes as Adams has bristled against media coverage of his tenure and has sought to open a direct line of communication with constituents that has featured a podcast, a newsletter and a feature where New Yorkers can interact with the administration via text message. As the mayor prepares to run for reelection in 2025, stakes for the office will only grow. While City Hall still lacks a press secretary, Adams is set to announce a number of other promotions and assignments today. Charles Lutvak has been promoted to first deputy press secretary, while Amaris Cockfield and Kayla Mamelak were each named deputy press secretaries and communications advisers. Noah Levine was named deputy communications director, while Sam Rosenblum and Margaret Turner will serve as deputy directors of research and analytics. The communications and press offices will continue to report to Deputy Mayor for Communications Fabien Levy. — Joe Anuta   A message from Amazon:   CITY HALL: THE LATEST City officials are trying to get $156 million in federal funding for migrants on time, but there could be some restrictions on how the money can be spent. | Spencer Platt/Getty Images WHAT HAVE YOU DONE FOR ME LATELY: City officials plan an on-time delivery of the paperwork necessary to unlock $156 million in federal funding for migrants — but it comes with a side of advice. In a briefing with reporters Thursday, officials ticked off several changes they seek to FEMA programs, including being able to access Shelter and Services Program funds in advance and raising the expenditure caps for that program. Restrictions in how the money can be spent — including on hotels-turned-shelters — don’t match New York City’s economic reality, city officials said. Adams aides’ gripes over the onerous process have come as some federal officials tell Playbook the city has been fumbling its paperwork. The city has received the $49 million in Emergency Food and Shelter Program funds, which can be accessed upfront, but can’t access the remaining $107 million — Shelter and Services Program money — until officials submit their budget and other documents. While other cities also want to reform the programs, they’ve gotten their paperwork in. “Other jurisdictions have been able to complete the requirements and unlock the funds,” a Biden administration official told Playbook. A FEMA team was in New York last week to provide tech support, the official said, as first reported by the Daily News. And even though Adams and Biden are buddies no longer, officials from both administrations stressed Thursday that they’re working together to get New York City the funds. — Emily Ngo More from the city: — The city has quietly filled the role of director of AI and machine learning. (City & State) — Also, the first members of the panels advising Adams on AI have been named. (Crain’s) — Support is growing for Adams’ proposed zoning changes to spur new construction. (The City) — The Adams administration says it’s not on track to close Rikers Island, but it’s also detailing how to turn the island into a green hub. (The City) NEW FROM PLANET ALBANY Sen. Brad Hoylman-Sigal and Assemblymember Carrie Woerner are backing a payroll tax credit measure for journalists. | Hans Pennik/AP MEDIA WATCH: Dozens of local newspapers this week urged Hochul and state lawmakers to back a proposal meant to encourage the hiring and retention of journalists. More than 50 newspapers published a joint editorial backing a payroll tax credit to help with reporter compensation. It’s the latest effort by the Empire State Local News Coalition, a consortium formed in January to help boost the struggling industry. High-profile layoffs at the Washington Post, the Wall Street Journal and CNN have rocked journalism in recent months. But local news has faced severe headwinds for a decade as more organizations shutter and officials fret “news deserts.” The payroll tax credit measure is backed by Assemblymember Carrie Woerner and Sen. Brad Hoylman-Sigal, both in the Democratic majority. “A thriving local news industry is vital to the health of our democracy, and we should do everything in our power to ensure that New Yorkers have access to independent, community-focused journalism,” Hoylman-Sigal said in a statement. “I’m proud that so many publications from every corner of the state have come out in support of this critical legislation.” — Nick Reisman TECH WARS: The trade group Chamber of Progress today is launching a campaign to oppose a measure that would block social media companies from using algorithmic-based feeds for users who are under 18. The group, which draws funding from Google, Snapchat and other tech companies, is launching a website to draw attention to their concerns over the proposal. The campaign is raising constitutional concerns and charges the measure would harm privacy. Supporters of the legislation, including Hochul and Sen. Andrew Gounardes, have said the bill is necessary to protect kids online. “Their only reason for resisting us here is because they make money off of kids’ mental health and personal privacy,” Gounardes said in an interview last month. “It’s the only reason why they’re trying to throw up a roadblock.” — Nick Reisman More from Albany: — Hochul tapped a Westchester County official to lead the Office of Children and Family Services. (Spectrum News) — A proposal to crackdown on drivers who try to evade tolls is gaining steam with state lawmakers. (Newsday) — AG Tish James was met with boos and Trump chants at an FDNY ceremony. (New York Post) NEW YORK STATE OF MIND — Hochul is fending off criticism from both Democrats and Republicans after deploying 1,000 National Guard and state police officers to subways. (POLITICO) — The New York Farm Bureau is urging lawmakers to pass an updated version of the farm bill. (State of Politics) — The child abuse hotline does not filter out many calls, as a result, many families were subjected to unwarranted investigations. (Daily News)   A message from Amazon: Amazon has partnered with small and medium-sized businesses for over 23 years, connecting local businesses with customers across the country. More than 60% of sales in Amazon’s store come from independent sellers, like Bom Dia Brands. Learn how Amazon breaks down barriers to growth.   SOCIAL DATA Edited by Daniel Lippman MAKING MOVES: Blanca J. Ramirez, vice president of acquisition and underwriting at Hudson Housing Capital is now president and CEO of Comunilife, taking over for founder Rosa Gil after 35 years. Colby Rogers has been promoted to special assistant in City Hall’s deputy mayor for communications office. IN MEMORIAM: Morton Povman, who was the City Council’s longest-serving member in history, died at 93. HAPPY BIRTHDAY: NBC’s Lester Holt … David Malpass … Taylor Lustig … Kristian Denny Todd … Emma Brodie … Alex Olsman … (WAS THURSDAY): Nicole Lapin ... Myron Belkind ... Sarah Sherman  YOUR NEW YORK NUMBER OF THE DAY 54 percent of respondents to the survey by the Asian American Foundation said they “experienced either insults, harassments, threats, or physical attacks” in 2023.   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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