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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 after lawsuits and bureaucratic stumbles severely hampered the legal market and allowed black-market sellers to flourish, Gov. Kathy Hochul ordered Monday.

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. —

Hochul, a Democrat, has described the state's recreational marijuana rollout as a “ disaster." Just over 80 legal shops have opened since sales began at the end of 2022. But the permitting process was soon beset by legal challenges and the so-called equity fund struggled to get off the ground, stalling growth of the legal market.

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.

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