One of New York’s top cannabis regulators said the state would not be accepting applications for cannabis industry licenses, changing the anticipated start for adult use cannabis rom this Fall to sometime next year.
At an event in Yonkers on August 25, celebrating the opening of New York’s Conditional Adult-Use Retail Dispensary (CAURD) licenses, Office of Cannabis Management Executive Director Chris Alexander answered “the middle of next year” when asked by an audience member when businesses could start processing products or retail.
“Middle of next year,” Alexander said. “You’ll see regulations come out sooner – in the next two months or so – but middle of next year you’ll see those applications open for cultivation, for processing, and to do the activities you just laid out.”
The statement from Alexander contradicts what the Cannabis Control Board has said, with chair of the Cannabis Control Board Tremaine Wright noting in October 2021 that the adult-use cannabis marketplace would open within 18 months. The state’s Office of Cannabis Management announced last month it would begin accepting applications for recreational cannabis dispensary licenses with the window set to close on September 26. The first licenses are set to be distributed to individuals who have previous cannabis-related convictions on their record, or family members of individuals who have been convicted of pot-related offenses, under a program known as the “Seeding Opportunity Initiative.”
“With the Seeding Opportunity Initiative, New York has affirmed our commitment to making sure the first sales are conducted by those harmed by prohibition. We’re writing a new playbook for what an equitable launch of a cannabis industry looks like, and hope future states follow our lead,” said Tremaine Wright, chair of the Cannabis Control Board.
The OCM also provided a breakdown of the maximum number of CAURD licenses that are to be awarded per region in the state. Up to 150 licenses will be awarded throughout 14 regions in New York, including boroughs like Manhattan, Brooklyn and Long Island. Those who are awarded CAURD licenses are able to access a $200 million Social Equity Cannabis Fund and are eligible for turnkey storefronts being designed by Dormitory Authority of the State of New York (DASNY).
“The primary goal of the CAURD license is to create opportunities for New Yorkers harmed most by the prohibition of cannabis,” Aaron Ghitelman, a spokesperson for OCM, said. “Part of that is granting up to 150 CAURD licenses to individuals who themselves, or their close family members, have had past eligible cannabis-related offenses and have ownership stakes in profitable businesses.
New York also recently awarded 15 licenses for cannabis processors, a key step to launching the adult-use cannabis industry in the state. The Cannabis Control Board issued the licenses to business already licensed as cannabinoid hemp processors, giving those businesses an opportunity to join the state’s legal cannabis industry. The hemp processors who join the adult-use cannabis industry must participate in a mentorship program designed to provide entrepreneurship opportunities, encourage sustainable practices in the cannabis industry and ensure that those with convictions for marijuana-related offenses are able to join the industry. The OCM also awarded 19 additional conditional cultivator licenses, bringing the total number of licensed growers in the state to 242 as of August 2022. The OCM began issuing conditional cultivation licenses in April 2022.
There is currently no projected start date for adult-use cannabis sales in New York, with the Office of Cannabis Management hoping for early 2023 without entirely ruling out the idea that the first stores could open by the end of 2022. The office did to clarify which licenses are on the timetable for 2022.
