NY Cannabis Industry's Chronic Woes: Sen. Cooney Calls For Hearing

New York lawmakers will hold a fact-finding hearing next month to address the state’s beleaguered and severely delayed rollout of its legal cannabis industry, state Sen. Jeremy Cooney (D-Rochester) announced Thursday.

“It is no secret that the state’s path to adult-use cannabis has been met with a number of challenges, most notably multiple lawsuits that call into question the program’s design to meet social equity goals – programs and goals that were incredibly important to the legislature when passing the MRTA two years ago,” Cooney said.

Huge Setbacks

Cooney’s announcement comes amid a court injunction, which is preventing the Office of Cannabis Managemen (OCM) from issuing new retail licenses or allowing most of the more than 400 licensees to open their shops.

Cooney’s Thursday announcement is one of the few concrete steps lawmakers have taken to increase legislative oversight over the OCM and the NY State Dormitory Authority (DASNY), which was put in charge of the state’s $200 million cannabis social equity fund.

Cooney had told the NY Cannabis Insider at the end of last year that he thought the state legislature should play a greater role in launching the industry, while other state and local politicians have criticized the proliferation of unlicensed weed shops across the state.

“We’re going to need to provide real, concrete public policy solutions,” Cooney said Thursday. “It will send a message that New York is truly ready to open up adult-use cannabis in this state.”

Ongoing Lawsuits

In early August, state Supreme Court Judge Kevin Bryant filed an order that would have allowed licensees who met all approvals before Aug. 7, 2023, to open their stores. However, last week the judge reversed the injunction that could have led to a substantial increase in operational cannabis licensing. The decision was made, the judge noted, pending the outcome of a lawsuit filed by service-disabled veterans. As it stands, the most recent decision essentially blocks all legal retail licensing in the Empire State.  

Meanwhile, over the Labor Day weekend, four major medical marijuana retailers in New York sent a letter to Gov. Kathy Hochul urging her to give them licenses to start selling adult-use cannabis while the courts work out the debacle of mounting lawsuits.  

Signed by Matt Darin, CEO of Curaleaf Holdings, Inc. CURLF, Ben Kovler of Green Thumb Industries GTBIF, Denis Curran, CEO of Acreage  Holdings ACRHF and Brett Novey, CEO of PharmaCann, the letter was strongly worded. “The state’s ineptitude is endangering New Yorkers who wish to use cannabis safely and legally, while also hurting taxpayers,” the four wrote.