New York Opens Up Cannabis Licensing, Expanding Retail Rollout
September 19, 2023As expected, New York regulators will open the application process for cannabis licenses to all groups, ending the prioritization scheme that has been criticized on multiple fronts and drew multiple lawsuits, dramatically slowing the rollout of commercial cannabis in the state. Under the rules adopted at a recent meeting, all applicants, including large multi-state operators and existing medical companies, will be eligible for approval. Those well-capitalized and already-present companies could be positioned for speedy development, potentially opening the doors of new locations by the end of the year.
“Today marks the most significant expansion of New York’s legal cannabis market since legalization, and we’ve taken a massive step towards reaching our goal of having New Yorkers being able access safer, regulated cannabis across the state,” Chris Alexander, executive director of the Office of Cannabis Management (OCM), said in a statement. “The regulations finalized today are the result of robust engagement with stakeholders across the state who submitted thousands of comments. This final package truly represents the values of equity and competition that we believe are central to this market.”
The move renders void the issues at play in the recent lawsuits that again halted the rollout of cannabis retail. The suits centered on the exclusion of service-disabled military veterans from the list of prioritized groups that have had exclusive consideration for licenses so far. By opening the process to the general public, no groups are receiving special consideration anymore. The end of the suit should allow licensing approvals to resume and retail to continue opening apace.
The New York Medical Cannabis Industry Association, whose members include major firms such as Curaleaf, Columbia Care, Acreage Holdings, and Cresco Labs, among others, praised the development. “The Cannabis Control Board’s approval of adult-use regulations demonstrates positive forward momentum,” the industry group said. “Today marks a pivotal step toward expanding and sustaining the state’s medical program and creation of an economically viable and equitable adult-use cannabis industry in New York. Once up and running, this market will help squeeze out illicit operators putting consumers at risk, provide growers with more opportunities to sell their products, and generate tax revenue for communities disproportionately impacted by the cannabis prohibition.”
In a related development, the slow pace of retail openings has left New York farmers with 250,000 pounds of the crop that’s gone unharvested and is at risk of rotting if not processed soon. In June lawmakers passed the Cannabis Crop Rescue Act, which would authorize cultivators to sell their products to the Native American tribal nations in the state that have established cannabis retail within their borders. The bill now rests on governor Kathy Hochul’s desk but she has not indicated she plans to sign it.—Danny Sullivan
Tagged : cannabis, New York retail
