The New York Cannabis Control Board seems to still be wading through the mud after announcing new winners in its adult-use lottery rollout, as challenges of enforcement and resource allocation loom.

News also broke during the meeting that the state’s governor has asked the head of the the Office of Cannabis Management, Chris Alexander, to step down.

The governor is scheduled to announce the findings on Friday afternoon of a month-long review that Gov. Kathy Hochul directed Jeanette Moy, commissioner of the state Office of General Services, to conduct of the cannabis agency’s operations. The Times Union reported that the review was apparently not shared with members of the state Cannabis Control Board before details were leaked to the New York Times by Hochul’s administration.

Licensing updates

The Cannabis Control Board green-lit 104 adult-use cannabis licenses, among a series of other actions, during its meeting Friday.

The board approved the following applications from the window that closed in December:

• 23 retail dispensaries
• 14 microbusinesses
• 27 cultivators
• 23 distributors
• 17 processors

This latest round of approvals brings the total number of adult-use licenses issued in 2024 to 540.

“We have transitioned from provisional to final licensure with 540 licenses issued this year,” said Alexander. “We do see the supply chain getting strengthened, and we’re excited on the ability that we’ve been able to create and deliver opportunity to many New York business owners.”

In addition to the new licenses, the board voted to extend the 12-month provisional license period for CAURD licensees, many of whom faced delays due to litigation. The extension also removes geographical restrictions on CAURD provisional licensees, allowing them to seek viable locations across the state.

“To just give an opportunity for those folks to make up the lost time,” Alexander said. “We do know that the field has changed as there are a lot more licensees out also looking for viable locations.”

The board also approved requests from registered organizations (ROs) to open additional medical cannabis dispensaries in unserved or underserved areas of the state.

“I just want to highlight too…the work that’s being done by the office to expand access to medical cannabis in the state, investments that have not been made since the inception of the program,” Alexander said. “So, really proud to be able to make those investments and also allow for an expansion of the medical program.”

Program updates

Additionally, the board released supplemental policy guidance for reviewing adult-use cannabis applications from the October 2023 window. The guidance clarifies that the office will review all applications in the “November queue” and prioritize them before reviewing retail and microbusiness applications from the “December queue.” Cultivation licenses will be reviewed concurrently.

The guidance also details reasons why a retail applicant may receive a provisional license, such as if their proposed location conflicts with another or is in a municipality that has opted out of allowing dispensaries.

“The board will provide an update on the license targets for applications in the December queue based on updated information from supply and demand analysis in the supply chain,” Alexander added.

Board Chair Tremaine Wright noted the importance of flexibility in the licensing process, saying that the board retains the power to assess market conditions and issue licenses accordingly.

“If it means increasing the number of growers, or processors, or distribution licenses, if it means that we’re looking at the number of dispensaries, if we’ve realized that we have oversaturation and consumption spaces, or that we might really need to be able to provide some in regions where there’s not enough access — that we have that power and the authority,” Wright said. “So, that’s what this reflects. It reflects in all openness. And to say that we are going to be flexible and that we will continue to move according to what the demands are.”

The board also denied certain CAURD applications that failed to meet eligibility requirements, primarily due to either lacking a qualifying marijuana-related conviction or failing to prove operation of a qualifying business. Board member Adam Perry raised concerns about the denial process and the lack of advance notice provided to the board.

Enforcement

Competition with the illicit market continues to be a challenge for the regulatory board, even with new powers granted earlier this year. However, Perry questioned the office’s ability to effectively enforce regulations with its current staff of fewer than 30 compared to other state agencies.

“Creating new notices that need to be given to landlords, and then following up on every single one of those notices, and then following escalating notices, and then taking third level enforcement actions — that all takes additional personnel time,” Perry said. “Are we being guaranteed that we will have workers to use the tools, or are we just creating a bunch of tools with nobody to actually work on them?”

Linda Baldwin, general counsel for the OCM, noted that the legislation includes provisions to hold landlords accountable for renting to unlicensed businesses and allows local governments to bring nuisance actions against them.

The meeting also included the approval of emergency enforcement regulations and discussions on collaboration with local law enforcement to address illicit cannabis operations. Perry emphasized the need for additional resources and personnel to effectively implement the new enforcement tools.

“What I don’t want to repeat is a situation where we pass a bill, we pass some regulations, we’re given no additional resources, and a few months down the road it’s, ‘Well, the OCM isn’t doing anything,’ when the fact is that it’s a matter of actually having personnel assigned and resources assigned to get the job done,” Perry said.