Gov launches review of state cannabis agency

Governor Kathy Hochul launched a “top-down” review of the state Office of Cannabis Management on Monday as the agency deals with a beleaguered rollout of legal dispensaries. File photo by Susan Watts/Office of Governor Kathy Hochul 

By Ryan Schwach

Governor Kathy Hochul ordered a review of the state’s Office of Cannabis Management amid the agency’s troubled legal weed rollout. Officials hope the audit officials can better the process of creating the state’s legal marijuana market, which the governor has previously called a “disaster.”

On Monday, the governor announced the assessment which looks to “identify opportunities for improvement” within OCM and create a plan for how to reimagine the legal cannabis market in the Empire State.

“Today, we take the first step in revamping New York’s legal cannabis industry to ensure its long-term success,” Hochul said in a statement.

The 30-day assessment of OCM will be carried out by the Office of General Services, and spearheaded by that agency’s commissioner, Jeanette Moy.

“I have full confidence in Commissioner Moy’s ability to identify areas that need improvement, establish standards and processes across agencies, and jumpstart the next phase of New York’s legal cannabis market,” Hochul said.

The “top-down” review of OCM will look into the agency’s structure, processes and systems with the hope of speeding up the time it takes for legal cannabis businesses to go from applying for a license to opening their doors.

It will also develop ways for the governor’s office to get a better picture of what OCM is doing with cannabis licensing going forward and will identify and implement policy changes to streamline the long-troubled process.

The initial review period is 30-days, but could be extended if it is seen as necessary.

“Governor Hochul has prioritized a State government that is transparent, more efficient and responsive for all New Yorkers,” said Moy. “I look forward to working with OCM’s leadership to help get this agency’s work on track and find ways to streamline the application process and get businesses open.”

The review was prompted by months of criticism aimed at OCM’s beleaguered rollout of legal cannabis licenses and shops across the state.

The state Office of Cannabis Management will undergo a 30-day review by the Office of General Service as ordered by Governor Kathy Hochul. Screenshot from the Office of Cannabis Management

“It's been a long journey to get here, lots of growing pains along the way,” Hochul said in late February. “When I first took office, nothing had been done to implement New York's new legal cannabis law, there was no infrastructure, no way to step in, literally plant the seeds, cultivate this budding industry from the ground up.”

As of Tuesday, there were 83 legal cannabis dispensaries statewide, with 36 within the five boroughs and 11 in Queens.

However, an OCM spokesperson says that the agency has been picking up the pace, averaging about three to four openings a week, and tripling their total number since December.

The rollout of legal shops across the state was also troubled by lawsuits, as well as the proliferation of illegal smoke shops, which have prompted calls for further enforcement from city and state officials.

The governor herself has called for legislation to give local municipalities the ability to shutter cannabis shops, and legislation with a similar goal was also proposed by Queens Assemblymember Jenifer Rajkumar.

The concurrent issues of slow legal openings and myriad illegal ones has also prompted confusion at the community level, with local community boards in particular struggling to understand guidance from the state.

“I expect the Office of Cannabis Management to be in communication with the community boards and their chairs,” said Sherry Algredo, chair of Queens Community Board 9 which includes Richmond Hill, Woodhaven, Ozone Park and Kew Gardens. “There should be some standard format they should be sending us.”

However, the review is being invited by OCM, who’s brass hope the outcome is a better legal cannabis system in New York.

“We have built a cannabis market based on equity, and there is a lot to be proud of,” said OCM Executive Director Chris Alexander. “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. We owe it to operators across the supply chain and consumers alike, who are looking for more access and opportunity in our budding, regulated market.”

“At the end of the day, it’s all about doing what’s right for New Yorkers,” Alexander added.