By: Hal C Clarke

The Hochul administration’s sluggish implementation of New York’s legal cannabis trade has cast a shadow over the industry’s recovery, as highlighted in a scathing assessment by the Coalition for Access to Regulated and Safe Cannabis.

The NY Post first reported on this embarrassing grade NY’s marijuana rollout received.

This industry group, which encompasses authorized medical marijuana dispensaries, issued a “report card” with damning evaluations, awarding the state’s Office of Cannabis Management (OCM) three failing grades (Fs), one D, a D+, and a C- across various criteria.

Interestingly, it’s effectively four Fs given the circumstances.

The coalition ironically granted the OCM an “A” for inadvertently fostering an expansive underground market of unlicensed cannabis shops to flourish even before the authorized weed retailers opened their doors, as outlined in the obtained report.

CARSC representative Kirsten Foy articulated, “Despite the enormous potential, New York’s adult-use cannabis market is currently falling short on multiple fronts: accessibility, equity, and economic sustainability.”

Foy attributed this dismal state of affairs solely to Governor Hochul’s Office of Cannabis Management (OCM), which has allowed the illicit market to thrive while sidelining well-vetted Social Equity applicants, including minorities, women business owners, veterans, and established organizations that have been catering to the state’s medical cannabis patients for nearly a decade.

The repercussions of the Governor Kathy Hochul administration’s handling of the legal cannabis trade rollout in New York have reverberated profoundly. The OCM’s report card included the following grades:

“F” in “Administrative Licensing”: A mere 21 adult-use retail dispensaries have commenced operations nearly two and a half years since the approval of New York’s Marijuana Regulation and Taxation Act by the state legislature and the former Governor Andrew Cuomo in 2021. A backlog of 463 licensed cannabis operators is still awaiting their turn. Even if the state were to double its pace in facilitating their establishment, the report projects it would take an additional five years for all operators to initiate their cannabis dispensaries at the current rate.

“F” for “Raising Revenue”: By the midpoint of 2023, the state is on track to generate a meager $48 million in new tax revenue from cannabis sales this year. This places New York, with its population of 19.8 million, marginally ahead of Montana, which holds 1.1 million residents and generated $42 million last year.

“F” for “Constitutional Law”: A temporary restraining order has been imposed by a judge, preventing the state from issuing more cannabis licenses following a lawsuit by disabled veterans who accused regulators of violating statutes. The veterans alleged that they were excluded from the initial round of licenses in favor of applicants with prior convictions related to illegal marijuana dealings.

“D” for “Medicinal Cannabis”: The revenue from medicinal cannabis sales in New York has plummeted by 30% over the past year. Many patients have resorted to unlicensed shops for their medical cannabis needs.

“D+” for “Social Equity”: Despite OCM’s claims to prioritize equity, the initial batch of licenses reserved for “justice-involved” individuals with prior weed convictions is seen as unfair. The report contends that this approach leaves out numerous Black and Brown entrepreneurs without drug convictions and women seeking a foothold in the industry, rendering the program inherently inequitable.

“C-” for “Law Enforcement”: The report deems the state’s actions against illicit cannabis operators belated, minimal, and ineffective. It highlights the presence of thousands of illegal stores selling untested, untaxed, and unsafe cannabis, including to minors. The report underscores the need for a robust and coordinated strategy for cracking down.