In a considerable move to address the slow rollout of the marijuana market in New York, Gov. Kathy Hochul mandated a thorough evaluation of the state’s cannabis licensing process.

The decision was made after the governor expressed her frustration with the lagging progress nearly two months ago. 

Gov. Hochul tasked officials with devising a solution to the current inefficient cannabis licensing system amidst increasing numbers of unauthorized marijuana outlets and widespread dissatisfaction with the market’s pace of development.

Legal Hurdles And Slow Progress

The Office of Cannabis Management (OCM) in New York faced legal challenges and operational setbacks for over two years. The governor appointed Jeanette Moy, commissioner of the Office of General Services, to lead a comprehensive review to expedite the application process and facilitate business operations. 

Despite receiving 7,000 applications last fall, the OCM has only granted 109 licenses this year, with a team of 32 evaluating the submissions. The slow licensing process, compounded by multiple lawsuits, has significantly hindered the market’s growth and led to public frustration.

Comparisons With Other State’s Experts

William McKenzie, CEO and co-founder of Left Coast Holdings, who will be speaking at Benzinga’s upcoming Cannabis Capital Conference, critiques New York’s approach and a nationwide trend of oversight in preparing for cannabis market rollouts. He told Benzinga, “Each new stage that comes online pays little to no attention to the markets that have opened before them.” 

McKenzie’s stance highlights a recurring issue of states needing to leverage existing frameworks and experiences, leading to inefficiencies and operational mishaps.

“There should be some basic framework on what works, what doesn’t, and how to successfully launch,” McKenzie said, stressing the importance of a collective learning approach to avoid “reinventing the wheel.”

Dustin Robinson, CPA, founding partner of Mr. Cannabis Law and managing principal of Iter Investments, who will also be speaking at the Benzinga conference, elaborates further on the intricacies of licensing processes and the inevitable legal disputes.

According to Robinson, the significant investments made by applicants only to face rejection fuel a litigious environment, hampering the progress and stability of the market. He suggests, “The department overseeing the marijuana program must strictly follow the letter of the law and avoid any appearance of favoritism or impropriety.”

Drawing from Florida’s experience, Robinson recommends outsourcing the application scoring to third parties, such as a Big Four accounting firm, to mitigate bias and ensure a more transparent and equitable process.

A Focus On Equity And Legal Challenges

Gov. Hochul’s review and the commentary from industry experts come at a critical time for New York’s cannabis market. With the Benzinga Cannabis Capital Conference approaching, New York’s cannabis debacle will surely be discussed in depth in Florida on April 16 and 17, 2024.

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: Courtesy of Kindel Media by Pixabay and Quintin Gellar by Pexels