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New York state cannabis marketplace reform initiatives

New York state cannabis marketplace reform initiatives


By Blake Jackson

Governor Kathy Hochul has initiated a comprehensive restructuring of the Office of Cannabis Management (OCM) following a thorough 30-day assessment led by Commissioner Jeanette Moy.

The assessment identified critical structural issues hindering the OCM's ability to effectively establish New York State's cannabis marketplace. To address these challenges, Governor Hochul announced immediate actions aimed at reforming licensing processes, enhancing enforcement against illegal operations, and supporting legal operators.

The assessment highlighted significant delays and inefficiencies in the licensing process, leading to a backlog of applicants and creating opportunities for illegal cannabis storefronts to flourish.

Governor Hochul's reform measures include launching an enforcement task force dedicated to closing illegal retail stores and implementing a service-level agreement to ensure timely completion of retail license applications within 90 days for future applicants.

To improve transparency and communication, the OCM will introduce new tools such as regulatory bulletins, public dashboards, and a cannabis map to display licensed retail locations by summer 2024. Additional staff will be added to the licensing, compliance, and enforcement teams, and senior positions will be hired to strengthen agency management.

Furthermore, Governor Hochul announced a $5 million grant program to assist justice-involved licensees (CAURD) who have secured retail locations. This initiative aims to support those impacted by delays in opening their businesses due to legal proceedings that paused the CAURD program until December 2023.

In tandem with these efforts, the Cannabis Enforcement Task Force will launch next week, led by State Police, to combat illicit cannabis activities. The task force will coordinate with local law enforcement and state agencies to inspect and padlock illegal dispensaries, targeting criminal enterprises involved in cannabis trafficking.

The OCM will lead a civil enforcement campaign with over 150 inspectors dedicated to closing illicit stores deemed hazardous to public health and safety within 90 days. Additionally, efforts will focus on evicting illegal operators and holding landlords accountable for non-compliance.

Governor Hochul emphasized that these reforms are critical to realizing New York's commitment to a robust and equitable cannabis industry. By addressing licensing bottlenecks, enhancing enforcement against illegal operations, and supporting legal operators, the state aims to foster a transparent and thriving cannabis marketplace that benefits communities across New York.

Photo Credit: gettyimages-jessicahyde

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Categories: New York, Government & Policy

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