New York Expands Cannabis Licensing After Legal Delays And Tug Of War Between David And Goliath

New York's cannabis landscape is set for a significant transformation.

Licensing Expansion

The New York State Office of Cannabis Management (OCM) announced that it is expanding its licensing program for recreational marijuana, after numerous delays that brought the entire process to a standstill.

“#NYcannabis is expanding. The #NYCCB [New York Cannabis Control Board] approved adult-use cannabis applications,” OCM's breaking news stated.

• Starting October 4, businesses will have the chance to apply for multiple cannabis-related licenses, including cultivator, processor, distributor, microbusiness, and retail dispensary licenses.
• These applications can be accessed via the New York Business Express (NYBE) platform.

Equity In Focus

To foster inclusivity, the OCM has provisions for Social and Economic Equity (SEE) applicants.

Furthermore, social equity contenders receive 50% off application and licensing fees, complemented by technical support.

“Legal cannabis businesses across the Empire State will stimulate local economies and create jobs while enhancing access to safe, tested cannabis and reducing the proliferation of the illicit marketplace,” said Brandon Kurtzman, a partner at Vicente LLP, in a statement procured by Benzinga.

Yet, not all reactions have been positive.

According to Bloomberg, the entry of industry bigwigs like Curaleaf Holdings Inc CURLF could threaten smaller businesses. Small entrepreneurs are wary of these giants dominating the market and sidelining local players.

However, OCM’s director of policy, John Kagia, stressed the challenge in this market is "retail access" rather than demand.

Terms and Conditions Apply

• Current medical license holders could potentially launch a recreational outlet by year-end. The catch? A $20 million application fee and stringent criteria.

Katie Neer, a lawyer at Dickinson & Avella PLLC, clarified businesses can inaugurate "three recreational dispensaries," expanding to five by mid-next year.

Wrapping up the flurry of cannabis-related developments, Axel Bernabe, the chief of staff and senior policy director of the OCM, announced his resignation.

The Underlying Motive: These reforms stem from efforts to address historical injustices—initially, licenses favored individuals with past marijuana convictions.

The New York Medical Cannabis Industry Association (NYMCIA) said these changes will bolster the legitimate market, pushing out unsafe operators and enhancing community revenue. “Once up and running, this market will help squeeze out illicit operators putting consumers at risk, provide growers with more opportunities to sell their products, and generate tax revenue for communities disproportionately impacted by the cannabis prohibition,” they stated.

Cannabis Research License Introduced

Furthermore, the OCM board has given the green light to a cannabis research license application.

Prospective researchers can soon apply for this license on the OCM website, permitting them to engage extensively with cannabis for scholarly pursuits. The license comes at an application cost of $250 and a subsequent fee of $500, reported Business Of Cannabis.

To stay updated on the dynamic landscape of cannabis regulations in New York and beyond, consider joining us at the 17th edition of the Benzinga Cannabis Capital Conference in Chicago on September 27-28. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding. All information is available on bzcannabis.com

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• NY Cannabis Industry's Chronic Woes: Sen. Cooney Calls For Hearing
• Anti-Legalization Group Challenges New York's $200M Social Equity Fund In Fed Lawsuit

Image by El Planteo