New York Gov Hochul Orders Review Of Cannabis Licensing Process After Numerous Setbacks

Governor Kathy Hochul (D) ordered a review of the state’s cannabis licensing process, nearly two months after saying she was fed up with the slow rollout of the marijuana market.

Hochul asked officials to find a solution to the inefficient cannabis licensing scheme amid a growing number of illicit pot shops and widespread frustration over the sluggish roll-out, reported the New York Times. The governor ordered a top-to-bottom review to shorten the application process and get businesses running. The review will conducted by Jeanette Moy, commissioner of the Office of General Services.

Hochul said Moy has "a proven track record of improving government operations," and will help improve the Office of Cannabis Management (OCM) and "jump-start the next phase of New York's legal cannabis market."

New York State Senator Jeremy Cooney (D) praised Hochul's order in a post on X, saying we must ‘fulfill our promise of an equitable legal marketplace in New York." 

I have full confidence in @JeanetteMoy in assisting w/ our state's cannabis rollout. Thx to @GovKathyHochul for recognizing the additional resources needed.

We must get this right, and fulfill our promise of an equitable legal marketplace in New York.
https://t.co/YKdhv7f7Pe

— Senator Jeremy Cooney (@SenatorCooney) March 18, 2024

The OCM obtained 7,000 applications last fall but has awarded only 109 this year, with 32 people in charge of evaluating applications. The OCM has been not only criticized but sued multiple times. 

New York's cannabis debacle will surely be discussed in depth at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16 and 17, 2024.

OCM's Legal Challenges 

In March 2023, the agency was sued by the Coalition for Access to Regulated and Safe Cannabis (CARSC), for allegedly violating the Marijuana Regulation and Taxation Act (MRTA) by reserving the first 150 retail licenses for social equity applicants. The group involved in the lawsuit includes at least four large marijuana companies Acreage Holdings ACRHF, Curaleaf Holdings CURLF, Green Thumb Industries GTBIF and PharmaCann. 

In August, a group of veterans also filed a lawsuit arguing that officials did not follow a provision in the law requiring that "the initial adult-use cannabis retail dispensary license application period shall be opened for all applicants at the same time." 

See Also: New York’s Cannabis Regulators Can’t Catch A Break From Lawsuits, Leafly Is Next On The Docket

Another lawsuit in January claimed discrimination against white men in the cannabis social equity program. All these legal challenges combined to slow the licensing process and provoke frustration across the industry. 

Chris Alexander, executive director of the OCM and attorney who helped write the NY’s marijuana legalization law said he trusts Moy will “help us get where we need to be."

See Also: Gov. Hochul And Legal Shop Owners Blast Social Media Companies Promoting Unlicensed Weed Stores In NY

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world. Get your tickets now on bzcannabis.com – Prices will increase very soon!

Photo: Benzinga edit with images by US Congress (Official Photo) via Wikimedia Commons and Budding on Unsplash