A coalition of 18 cannabis industry advocates is calling on Gov. Kathy Hochul to appoint new leadership for the Bureau of Cannabis Administration who have a background in the cannabis business, claiming that current regulators are not holding the New York market to higher ground.
However, Hochul's office countered that the same advocacy groups pushed for soft policies that caused the office major problems — leading to a proliferation of illegal pot storefronts and long waiting lists for legal applicants.
In a letter to Hochul, advocates criticized the Bureau of Cannabis Management's leadership — including acting Executive Director Felicia Reed, as not being up to snuff.
“To ultimately restore confidence in the future of New York’s cannabis market building, OCM’s leadership must change to reflect cannabis expertise, economic market development, and regulatory licensing,” said the letter signed by representatives from the NAACP, the Drug Policy Alliance, and the Cannabis Social Foundation. Justice Coalition, the National Hispanic Cannabis Association, and the Disabled Veterans Service Cannabis Association, among others.
Cannabis advocates have complained about “knee-jerk changes” in the review of cannabis licenses and “failed commitments to equality” for cannabis dealers from disadvantaged groups — including those with prior marijuana convictions when possession was a crime.
They attributed the shortcomings to a “lack of experience and exposure to cannabis market development and regulatory licensing systems.”
They also claimed that OCM is not adhering to the goals set by the law that legalized the recreational sale of marijuana in New York – the Marijuana Regulation and Taxation Act.
“Given our concerns, we implore you to appoint an OCM Executive Director with a proven track record in the following areas: cannabis literacy, economic financial market development, or regulatory licensing processes; a demonstrated commitment to equity and community engagement; and a demonstrated commitment to small business growth,” the project’s advocates wrote. “.
Hochul ordered a management shake-up at the cannabis agency after a scathing report she commissioned in May issued sharp criticism of how the regulatory agency was run, and 64 new employees were hired.
Chris Alexander, former president of the OCM, has resigned and is now executive director of the state branch of the NAACP.
The governor's office defended the current administration and said the complainants were part of the problem, not the solution.
“These are the exact same groups that advocated for policy choices that resulted in illegal storefronts sprouting on almost every corner and forcing entrepreneurs who followed the rules to wait months on end to obtain a license,” a Hochul spokesperson said.
“Since Governor Hochul began a much-needed reset at OCM, led by Acting Executive Director Felicia A.B. Reed, New York’s cannabis market has boomed: the state has closed more than 1,000 illegal dispensaries, legal dispensaries have generated $864 million in sales, and new York has met—and exceeded—the equity goals set forth in the MRTA.
A representative for Hochul said the governor will appoint a new CEO who is “deeply committed to market stocks and has the management skills, policy knowledge and experience needed to ensure the success of this vital industry.”
The state's legal cannabis market is on pace to record $1 billion in sales by the end of the year or early January, the Post reported last week.
