New York Gov. Kathy Hochul announced Oct. 4 a plan to “aggressively” expand New York’s legal cannabis market and eliminate illicit operators.
A key part of that plan is opening the application period for new adult-use cannabis licenses. Regulators will accept the applications for two months starting Oct. 4, with hundreds of licenses available to those interested in growing, processing, distributing and selling cannabis.
The New York Office of Cannabis Management (OCM) approved revised adult-use cannabis regulations last month to expedite market entrances for non-social equity applicants and pave the way for the state’s 10 existing medical cannabis licensees—called registered organizations (ROs)—to enter the market by the end of this year.
The move puts an end to New York’s licensing process for conditional adult-use retail dispensaries (CAURD), a process reserved exclusively for the state’s designated social equity applicants under a Seeding Opportunity Initiative put forth in early 2022. The OCM had approved 463 CAURD licensees as of mid-September, but only 23 of them—18 storefronts and five delivery services—are currently operational.
The other 440 licensees remain in limbo while a temporary restraining order prohibits them from opening dispensaries until a lawsuit filed by four service-disabled veterans works its way through the legal process.
New York’s initial set of adult-use regulations barred the state’s ROs from entering the adult-use market for three years—until the end of 2025—but the slow adult-use rollout and still-thriving illicit market prompted the revised rules and policies to help jumpstart the industry.
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In Wednesday’s announcement, Hochul revealed the results of continued enforcement action against illicit cannabis retailers, declaring that the combined efforts of the OCM and the Department of Taxation and Finance (DTF) have yielded in the seizure of more than 8,000 pounds of product with an estimated value of more than $42 million.
Hochul announced new partnerships with New York’s municipalities that will enable local officials to pursue padlocking orders from state courts against businesses illegally selling cannabis products. She also revealed a new multiagency initiative to target illicit cannabis operators for labor violations, which will increase the fines and penalties they face.
“We know there’s room for improvement as New York works to launch a brand-new cannabis industry and crack down on illicit operators, and I’m committed to working with all stakeholders to get the job done right,” Hochul said in a public statement. “My administration is laser-focused on shutting down illegal storefronts, protecting the health and safety of children, and helping small businesses thrive. We will continue working to build the most equitable adult-use cannabis industry in the nation that invests in communities and rights the wrongs of the past.”
The OCM and the Cannabis Control Board (CCB) will start awarding licenses to additional cultivators, processors, distributors, microbusinesses and dispensaries in early 2024.
The current application window also allows currently operational adult-use conditional cultivators and processors to apply to transition to full, non-conditional licenses.
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Meanwhile, State Sen. Jeremy Cooney, D-Rochester, announced in early September that the New York State Senate Subcommittee on Cannabis will hold its first public hearing on the rollout of the state’s adult-use cannabis program and ongoing challenges with access to legal retailers. The hearing, held in conjunction with the chairs of the Senate Agriculture, Finance, and Investigations and Government Operations committees, will take place in Albany at 11 a.m. on Oct. 30.
Potential testimony at the hearing will come from regulatory agencies and public authorities, as well as cannabis business applicants and licensees, according to Cooney’s announcement.
“As state lawmakers, we can’t just pass bills and hope they work out,” Cooney said in a public statement. “Instead, through legislative oversight, we have the responsibility to work with our governor and state agencies to ensure our collective goals are met. Two years after legalizing adult-use recreational cannabis, New Yorkers are frustrated and disappointed in the state’s ability to launch a safe and legal marketplace. I am calling this hearing with my partners in the Senate because we believe New Yorkers deserve clarity on what has been done so far and how we can help the retail market going into the next legislative session. Whether you are a potential consumer or a licensee who has risked their financial future in this industry, you deserve on-the-record answers, and we will ensure a productive and fair hearing.”
