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Anthony Izaguirre, Associated Press Anthony Izaguirre, Associated Press

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NEW YORK’S LEGAL MARIJUANA PROGRAM PLAGUED BY INEXPERIENCED LEADERS, REPORT
FINDS

Politics May 10, 2024 4:59 PM EDT

ALBANY, N.Y. (AP) — New York’s legal cannabis market has been hampered by
inexperienced leaders who treated the state licensing agency like a
“mission-driven” startup rather than a government office, according to an
internal review released Friday.

The report detailed several problems at the state Office of Cannabis Management,
including constantly shifting licensing rules, poor transparency and an absence
of enforcement mechanisms, all of which have stalled the legal market and
allowed illicit storefronts to flourish.

Gov. Kathy Hochul, who has called the state’s program a “disaster,” ordered the
comprehensive review in March, hoping to address the cascade of bureaucratic
stumbles and legal challenges that have plagued the agency.

“There are deep-seeded issues at OCM, issues that have limited its ability to
fulfil its licensing role,” Hochul, a Democrat, said at a news conference
Friday.

The governor announced the agency’s leader, Chris Alexander, would depart his
post in the fall and that officials would begin a series of reforms to correct
problems in the state cannabis office.

The state legalized marijuana sales with social equity in mind, reserving the
first round of retail licenses to nonprofits and people with prior marijuana
convictions, an effort to mend damage done by the war on drugs.

But the process was soon beset by lawsuits, a slow rollout and other hurdles. In
one case, a judge temporarily blocked parts of the program for months after
finding state regulators wrote licensing rules that did not adhere to the law
legalizing marijuana.

The state has had a little more than 120 legal cannabis dispensaries open since
sales began in late 2022, while thousands of black market shops have cropped up.
The problem is particularly pronounced in New York City, where unlicensed
retailers have operated with impunity, often from glittering storefronts on
seemingly every block.

Lawmakers this year strengthened local officials ability to shut down illicit
shops, a move to correct a bureaucratic roadblock, and at one point, Hochul
pressed Google and Yelp to stop listing illegal stores online.

The report determined the agency struggled to balance its social equity
framework with the humdrum administrative duties of a government agency
primarily tasked with licensing. “Since its inception, OCM has operated as a
mission-driven policy start-up, but has struggled with the transition to a
mature regulatory entity,” the report reads.

The review found that most of the agency’s senior leadership had little
experience leading regulatory entities and changed licensing processes so
frequently that an estimated 90% of applications required corrections because
would-be retailers couldn’t keep up with the rules.

In one instance, the agency wasted significant time trying to create a unique
mapping program when similar software exists within state government and was
offered to the agency.

The report details a series of policy fixes to address the agency’s problems,
such as hiring more staff to process licenses, streamlining the application
process and hosting public “listening sessions” to identify issues, among other
things.

“One of the great successes of this task force is the ability to point to the
problems, which I think we all knew at some level that things were not working
the way that they needed to,” said Jeanette Moy, the commissioner of the state’s
Office of General Services tasked with leading the review.

“Everyone wants OCM to be successful. We want it for their staff, we want it for
the leadership and we want it for the New Yorkers who want to see this industry
thrive.”

Left: FILE PHOTO: Marijuana plants for the adult recreational market are seen
inside a greenhouse at Hepworth Farms in Milton, New York, U.S., July 15, 2022.
Photo by Shannon Stapleton/Reuters


RELATED

 * As the U.S. moves to reclassify marijuana as less dangerous, could more
   states legalize it?
   
   By David A. Lieb, Associated Press

 * Biden’s historic marijuana shift is his latest election year move for young
   voters
   
   By Jonathan J. Cooper, Associated Press

 * What reclassifying marijuana means for Americans
   
   By Jennifer Peltz, Lindsay Whitehurst, Associated Press


GO DEEPER

 * marijuana
 * new york
 * weed

By —

Anthony Izaguirre, Associated Press Anthony Izaguirre, Associated Press

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