New York began the application process for hundreds of new marijuana businesses licenses Wednesday. This marks the start of a massive expansion in the legal cannabis system of the state. Since adult-use sales started last December, only two dozen stores have opened in the state.
The deadline for applications is December 4. Regulators are expected to start awarding new licenses in early 2019.
Gov. Gov.
Expanding business licensing and targeting criminal actors is meant to speed up New York’s transition away from the underground marijuana markets to licensed retailers.
Hochul told Spectrum News NY1 in an Interview about the announcement that “today is an important milestone” in their efforts to establish a new industry. She expects to receive “tens and thousands” of applications for licenses, which will be chosen through a lottery. She said that she expects to see over 1,000 legal cannabis stores in the next year.
On the same day of the announcement, the Department of Small Business Services of New York City announced a program that will provide entrepreneurs with “free, high-quality advice and training proctored” by leaders in the legal marijuana industry. Applications for this program, FastTrac, are due on October 18.
The application process to grow, process and distribute cannabis is now open. This is the biggest expansion of our industry to date.
We are growing a cannabis sector that will generate millions of dollars in revenue each year, create or maintain thousands of jobs and prioritize safety and equity. pic.twitter.com/Ue0qLBmi5k
— Governor Kathy Hochul (@GovKathyHochul) October 4, 2023
Hochul estimates that more than 2,000 marijuana shops are illegally operating in New York City.
The governor stated that “we had discussed our enforcement against illegal cannabis shops and how we would have many more – dozens more – legal places open by the end the summer,” but then “the lawsuits began.”
In recent months, frustrations about New York’s marijuana program have increased as regulators worked to create a market which prioritizes social justice, by awarding conditional licences to those who have been most affected by prohibition. The process is slow. Meanwhile, illicit cannabis businesses are proliferating. lawsuits temporarily stopped cannabis licensing and further complicated the issue.
Hochul said that the legal challenges were coming from “big corporations from out-of-state, you know greedy corporations who wanted their piece before we could make it available for veterans and [minority and women-owned businesses] and focus on the social equity component, as was the intention of the law.”
The governor added, “But today is a breakthrough.” “We will keep moving, and by the time the year is over we should see a much smoother process than today.”
Hochul’s Office, in a press statement about the application for a license, simultaneously praised the results of the “continued enforcement aggressive against the illegal sales of cannabis throughout the state” which has so far seized more than four tonnes of illicit products. The seized marijuana is valued at $42million by officials.
Since June, when we began our crackdown on illegal sales, we have seized more than 42 million dollars worth of illicit products.
We are intensifying this work by uniting multiple levels of the government against those who illegally sell cannabis.
— Governor Kathy Hochul (@GovKathyHochul) October 4, 2023
In a press release, the governor stated: “We are aware that there is room for improvement in New York’s efforts to launch a new cannabis industry and to crack down on illegal operators. I am committed to working with stakeholders to do the job right.” My Administration is focused on closing down illegal storefronts and protecting children’s health and safety, as well as helping small businesses flourish. We will work to create the most equitable adult use cannabis industry that invests in local communities and right the wrongs from the past.
Hochul told NY1 that her office “will continue to empower all entities, from the Attorney General’s Office to the Sheriff’s Office and really encourage local law enforcement departments to step forward and do what they need to do.” Let’s close them down. Let’s padlock em. We are determined to make this a success. We will.
Letitia James, state attorney general (D), said in a press release that “expanding cannabis licenses and simultaneously taking action against non-licensed sellers” is a way for small businesses to be supported and to encourage entrepreneurs to enter the market legally. This was in accordance with the Marihuana Regulation and Taxation Act.
James added, “My office helps ensure New York realizes the intended purpose for MRTA, namely, to remedy some of the societal damage caused by the “war on drugs.”
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NYS Office of Cannabis Management October 3, 2020 HTML0
Chris Alexander and Tremaine Wright, who respectively lead the Office of Cannabis Management and Cannabis Control Board of the State, have both released statements that echo Hochul’s optimism.
Alexander stated that “this is an important moment for entrepreneurs waiting to enter this market.” The opening of the new application window will allow us to expand our market. We are building the largest and fairest cannabis markets in the world. New York’s cannabis market is built on equity. It has the strongest anti-trust laws in the country, which ensures that small operators have a permanent place in this industry.
reports that the OCM has currently issued 270 licenses conditional, 40 processor licenses conditional and 23 adult use licenses conditional across the entire state.
Wright added: “New York State is steadfast in their efforts to create an industry that is competitive, diverse and equitably distributed.” The opening of our general application window today marks a major step in realizing our vision for an accessible and equitable New York cannabis industry.
Separately lawmakers are looking for broad input about the challenges facing the legal marijuana industry. Earlier this month, Sen. Jeremy Cooney, who chairs the first ever cannabis committee of the legislature, , invited members to the public to submit an application to attend a hearing on the subject.
Cooney announced the hearing on marijuana in early September. He said that its purpose was to “finally address many of the challenges we have seen in the roll-out of adult use cannabis in New York.”
Regulators have already taken steps, some of which are controversial, to broaden the access to the legal cannabis market. The state Cannabis Control Board adopted a new rule last month that allows all applicants to apply for retail licenses, including large businesses outside of the state as well as existing medical marijuana companies. Social equity applicants were outraged by the change, claiming it would undermine the state’s ambitious plans to prioritize small business and companies owned by those most directly affected by prohibition.
In an effort to increase consumer access to marijuana that is legal, New York regulators launched the Cannabis Growers Showcase, a program of the Office of Cannabis Management.
approved the program by a vote in July, and quickly began accepting applications. In August, the Hudson Valley hosted its first pop-up. Another was held near the state fair.
In a letter sent to Hochul late last month, about 66 lawmakers — or a third of all the state legislators — urged her to approve a bill allowing licensed marijuana producers to sell their products to tribal retailers . This plan will provide a way for cannabis farmers to release surplus products.
In the letter, it is stated that growers have more than 250.000 pounds of cannabis they are not selling. Farmers who borrowed money and used all of their assets to grow these crops face financial ruin if we don’t act fast to find them an alternative market.
Maryland Sells Record-Amount Of Marijuana For Adult Use In September While Medical Sales Drop Slightly
Photo by Chris Wallis // Side Pocket Images.
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