Despite 90% Application Failure, New York's Weed Sales Reach $530M —Governor Hochul Reacts

The New York Office of Cannabis Management (OCM) is undergoing significant changes following a critical May 2024 report from the Office of General Services (OGS). 

The report revealed that the OCM had failed to issue cannabis business licenses to 90% of applicants, leading to the departure of former executive director Chris Alexander. Felicia Reid, now serving as the acting chief, has initiated a staff restructuring initiative and enhanced communication processes to address these issues.

Staffing And Licensing Delays

The OCM remains understaffed, with 180 employees, and plans to hire 65 more. Reid has introduced caseworkers to expedite the review of adult-use retail license applications, a process that has faced delays. The department is currently processing around 600 applications from late 2023, with plans to continue evaluations into early 2025.

Challenges For CAURD License Holders

Meanwhile, conditional Adult-Use Retail Dispensary (CAURD) license holders face ongoing challenges, particularly with proximity protection regulations that prevent dispensaries from opening within 1,000 feet of one another. 

This has delayed the opening of many CAURD shops, despite the issuance of 463 permits last year. Additionally, a promised $200 million in low-interest loans has yet to be fully accessible to these license holders, adding to their difficulties.

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Governor Hochul Hails ‘Smokin’ Hot’ Sales

Despite these challenges, New York’s legal cannabis market has recorded more than $530 million in sales since December 2022, with $370 million reported so far in 2024. 

Governor Kathy Hochul highlighted these figures as evidence of the state’s growing legal cannabis industry, stating, “New York's legal cannabis industry is reaching an all-time high—surpassing $500 million in sales!” 

Smokin' hot is right!

Thanks to our efforts to shut down illicit storefronts and support our legal dispensaries, New York's legal cannabis industry is reaching an all-time high — surpassing $500 million in sales! https://t.co/7j9C3d2psA

— Governor Kathy Hochul (@GovKathyHochul) August 22, 2024

She added, “Smokin' hot is right!” attributing the success to efforts to curb illicit sales and support legal dispensaries. 

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