New York’s Cannabis Control Board approved 114 more licenses March 22, amid a state review of the beleaguered cannabis agency ordered by Gov. Kathy Hochul.
The CCB approved 114 new adult use licenses, bringing the total to 223, excluding conditional use licenses. New licenses included 45 retailers, 31 microbusinesses, 14 cultivators and 14 processors.
“As many of you are aware, this is a complicated process that’s multilayered. And for the licensees in the room, I know you can speak to that. But we are eager to continue to keep moving forward, to continue to issue licenses and get this market, running full steam ahead,” said Executive Director Chris Alexander during the meeting. “There are no license caps in this market, but we are very intent on growing the market responsibly. We’re eager to get these additional 114 operators operating and excited to continue the process and the work of issuing licenses. We have a lot more to go.”
The CCB also approved new regulations that would solidify the enforcement process when the Office of Cannabis Management goes after unlicensed cannabis shops. The new rules were presented last year in response to the rampant spread of unlicensed pot shops in and around New York City. They establish OCM’s ability to cite illicit businesses, hold administrative hearings, subpoena witnesses, administer oaths during those hearings, and issue final orders resulting in punitive actions against licensing scofflaws.
At the same time, Alexander noted that the CCB would likely come back in the near future with additional regulatory proposals. Those proposals would be subject to at least 60 days of public comment before they could go into effect.
“I do want to just flag for the public and for board members that we will have to come back to you, most likely, as the state legislature is currently discussing an expansion to the office’s enforcement powers,” said Alexander.
He added that if the governor’s budget proposal advances, the board will likely need to update the regulations on an emergency basis. Hochul said in February that her budget proposal to the state legislature would include provisions for increased enforcement powers for OCM.
Finally, the board voted to waive the $1,000 fee to transition into a full license for all 240 adult use conditional cultivator licenses (AUCC). These AUCC licenses were the first group of adult-use cultivator licenses in the state. They were made available to existing hemp farmers, making it easy to jump-start the adult use supply chain because hemp farmers already had existing operations that could be converted to cannabis.
Unfortunately for the growers, the state was slow to license adult-use retailers, making it difficult for them to move their product.
“The initial growth season and the lack of the available dispensaries, in a timely fashion, resulted in great angst in our farmer community,” said Alexander. “We were very intentional in trying to create opportunity for New York small farmers.”
Alexander noted the OCM would issue refunds to more than a dozen AUCC licensees who had already paid the transitioning fee.
The CCB approved annual renewals for all 17 of the state’s licensed cannabis testing labs and approved the renewal of MedMen’s license to produce medical cannabis as a Registered Organization. Two more license-holders were granted approvals to relocate.
‘Top-to-bottom’ review of OCM
On March 18, Hochul ordered a “top-to-bottom” review of OCM to assess its organizational structure, processes and systems for licensing. The announcement came amid increased public scrutiny of OCM’s slow-moving retail roll-out and about one week after OCM Chief Equity Officer Damian Fagon was placed on leave after being accused of retaliation and selective enforcement of license holders, according to the NY Cannabis Insider.
As part of the review, Office of General Services Commissioner Jeanette Moy will lead a team that will embed within OCM for up to 30 days to develop three- and six-month action plans to improve the licensing process and enable a quicker turnaround time for applicants.
“Governor Hochul has prioritized a State government that is transparent, more efficient and responsive for all New Yorkers,” said Moy in a statement. “I look forward to working with OCM’s leadership to help get this agency’s work on track and find ways to streamline the application process and get businesses open.”
