Governor Kathy Hochul announces overhaul of NYS Office of Cannabis Management (May 10, 2024)
Governor Kathy Hochul has directed an operational overhaul of the New York State Office of Cannabis Management.
This follows the release of a 30-day assessment which found significant structural limitations to the office.
Hochul also announced that OCM Executive Director Chris Alexander will not continue as the agency’s leader after his term ends in September.
Alexander helped write the legislation legalizing cannabis as a state counsel before being appointed to the office as its inaugural executive director in 2021.
According to the Albany Times Union, this move came after a review of his retail cannabis industry rollout.
The review ordered by the governor revealed regulatory issues and allegations of favoritism for some retail license applicants.
The actions being taken include:
– Launching an enforcement task force to close illegal cannabis retail stores.
– Fixing the internal licensing process and clearing the backlog for retail establishments who were required to apply with site control.
– Committing to putting in place a SLA (service-level agreement) to allow for completion of retail license applications within 90 days for future application windows.
– Creating new communications tools, including regulatory bulletins and public dashboards to improve customer service.
– Launching OCM cannabis map to improve the transparency surrounding licensed retail locations in summer 2024.
– Adding staff to licensing, compliance and enforcement teams.
– Strengthening agency foundations and management including hiring senior positions for customer service, internal controls and audit and operations.
– Creating a 5-year strategic plan for the Office.
Hochul also announced the establishment of a $5 million micro-grant program to help Conditional Adult Use Retail Dispensary (CAURD) licensees.
This one-time commitment of funding, which will come with no expectation of repayment if used for eligible purposes, will enable eligible CAURD licensees who have a license and have secured a location to receive a one-time grant to reimburse certain eligible initial costs that they have incurred.
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