A coalition of 18 cannabis industry advocates is calling on Gov. Kathy Hochul to appoint new leadership to the Office of Cannabis Management who have a background in the pot business, claiming the current regulators are not bringing the New York market to higher ground.
Hochul’s office, however, fired back that the same advocate groups pushed for the soft policies that caused the office major issues — triggering the proliferation of illegal pot storefronts and long waiting lists for legal applicants.
In a letter to Hochul, the advocates slammed the leadership of the Office of Cannabis Management — including acting Executive Director Felicia Reid as not up to snuff.
“To ultimately restore confidence in the future of New York’s cannabis market buildout, OCM’s leadership must change to reflect expertise in cannabis, economic market development, and regulatory licensing,” said the letter signed by reps from the NAACP, Drug Policy Alliance, Cannabis Social Equity Coalition, National Hispanic Cannabis Association, and Service Disabled Veterans in Cannabis Association, among others.
The cannabis advocates complained about “knee-jerk changes” in review of cannabis licenses and “failed commitments to equity” for pot merchants from disadvantaged groups — including those with prior marijuana convictions when possession was a crime.
They attributed the shortcomings to a “lack of experience and exposure to cannabis market development and regulatory licensing regimes.”
They also claimed the OCM is not abiding by the goals set by the law that legalized the recreational sale of marijuana in New York — the Marijuana Regulation and Taxation Act.
“Given our concerns, we implore you to appoint an Executive Director to OCM who has a demonstrated track record in the following areas: cannabis literacy, financial economic market development, or regulatory licensing operations; a proven commitment to equity and community engagement; and a proven commitment to small business growth,” the advocates wrote.
Hochul ordered a management shake-up at the cannabis agency after a scathing report she commissioned in May issued blunt criticism of how the regulatory agency was run, and 64 new staffers were hired.
Chris Alexander, the former OCM head, resigned and is now executive director of the state chapter of the NAACP.
The governor’s office defended the current management and said the complainers have been part of the problem rather than the solution.
“These are the exact same groups who advocated for policy choices that led to the proliferation of illegal storefronts on nearly every corner and forced rule-following entrepreneurs to wait months on end for a license,” a Hochul spokesman said.
“Since Governor Hochul initiated a much-needed reset at OCM, led by Acting Executive Director Felicia A. B. Reid, New York’s cannabis market has thrived: the State has closed more than 1,000 illegal dispensaries, legal dispensaries have generated $864 million in sales, and New York has achieved — and even surpassed — the equity goals established in the MRTA.”
The Hochul rep said the governor will appoint a new executive director who is “deeply committed to equity in the market and has the management skills, policy knowledge, and necessary expertise to ensure this critical industry can succeed.”
The Post reported last week that the state legal cannabis market is on pace to record a milestone $1 billion in sales by year’s end or early January.
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