A report scheduled to be released on Friday highlights the challenges faced by the Office of Cannabis Management in New York in issuing licenses and helping businesses open in the state’s legal cannabis market. The report found that inexperienced leadership, changing policies, lack of transparency, and a startup-like culture within the agency have contributed to confusion and delays in the rollout of the legal market. This has allowed the illicit market to gain the upper hand, with 122 licensed recreational dispensaries open across the state compared to nearly 2,900 illicit shops in New York City alone.
The review, ordered by Gov. Kathy Hochul in response to the licensing backlog at the agency, revealed that nearly 4,900 applications for retail and craft businesses were waiting to be reviewed as of April, with some dating back to August 2022. The report also highlighted that 90% of cannabis business applicants failed to secure licenses, indicating significant deficiencies in the agency’s operations. The recommendations to clear roadblocks include doubling staff members devoted to licensing, developing a public dashboard to show license status, and issuing formal denials rather than leaving applicants in limbo.
The Office of Cannabis Management has already begun implementing some changes based on the review, such as recommending that its board vote on denying some licenses and proposing a policy clarifying the review process for fall applications. The report also acknowledged challenges faced by the agency, such as difficulties in recruiting and retaining employees due to a tight labor market. Despite these challenges, the report cited the agency’s unique work culture as a significant roadblock to adopting successful processes and systems used elsewhere.
The report highlighted the need for improvements in the licensing process, including streamlining operations, providing clear communication, and establishing a single point of contact for applicants. It also pointed out the need to adapt software systems from other agencies to avoid unnecessary delays and expenses. The responsibility for vetting license applicants is currently spread across multiple units within the agency, with no single point of contact to address concerns or deficiencies.
Jeanette Moy, the commissioner of the Office of General Services who led the review, expressed confidence that implementing the recommendations in the report would benefit all parties involved in the licensing process. By providing clarity and streamlining operations, the agency aims to address the backlog of applications, expedite the review process, and support the growth of legal cannabis businesses in the state. Moy emphasized the importance of clarity and efficiency in ensuring the success of the legal cannabis market in New York.
