New York to probe sputtering legal marijuana program as storefronts lag, black market booms

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New York will evaluate its troubled recreational marijuana licensing program as lawsuits and bureaucratic stumbles have severely hampered the legal market and black-market sellers have flourished. Gov. Kathy Hochul ordered the review Monday, eager to find ways to speed up license processing times and allow legal businesses to open faster.

FILE - Marijuana plants are seen at a growing facility in Washington County, N.Y., May 12, 2023. New York will evaluate its troubled recreational marijuana licensing program after lawsuits and bureaucratic stumbles severely hampered the legal market and allowed black-market sellers to flourish, Gov. Kathy Hochul ordered Monday, March 18, 2024. ALBANY, N.Y.

The review will focus on ways the state can speed up license processing times and allow businesses to open faster, as well as a top-down assessment of the Office of Cannabis Management’s structure and systems.The state’s legalization law reserved the first round of retail licenses for nonprofits and people with prior marijuana convictions.

Still, state regulators have had trouble dealing with the overwhelming volume of applications. The Office of Cannabis Management has just 32 people reviewing license applications but has received about 7,000 applications since last fall, a spokesman said. The assessment of the program was also announced days after a top official at the cannabis agency was put onThe state’s review will embed Jeanette Moy, the commissioner of the state’s Office of General Services, and other state government officials, in the cannabis management agency for at least 30 days. The group also will come up with plans to improve how the agency functions and set performance metrics moving forward, according to a news release.

“We have built a cannabis market based on equity, and there is a lot to be proud of,” said Chris Alexander, executive director of the Office of Cannabis Management. “At the same time, there is more we can do to improve OCM’s operations and we know Commissioner Moy, a proven leader in government, will help us get where we need to be.”

 

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