Governor Kathy Hochul on Aug 6th, announced the New York State Cannabis Control Board (CCB) took steps to advance the state’s cannabis regulatory framework during this month’s board meeting by approving 86 adult-use cannabis licenses, adopting CCB bylaws, approval of proposed regulations to consider requests for public convenience and advantage, and providing updates on enforcement and a presentation on the progress of the growing cannabis market.

“This year alone, hundreds of new cannabis licenses have been issued and more than 1,000 unlicensed dispensaries have been shut down,” Governor Hochul said. “We are witnessing a transformation in the State's industry, and the progress made over the past several months is helping solidify New York as a national leader on cannabis.”

The 86 adult-use cannabis licenses span across the cannabis supply chain and include microbusinesses, cultivators, processors, distributors, and adult-use retail dispensaries. In collaboration with the Office of Cannabis Management (OCM), the CCB’s work helps pave the way for entrepreneurs and businesses to enter the budding cannabis market, driving economic growth and fostering industry innovation.

The 86 licenses include:

• 19 Adult-Use Cultivator License
• 11 Adult-Use Distributor License
• 16 Adult-Use Microbusiness License
• 18 Adult-Use Processor License
• 22 Adult-Use Retail Dispensary License

46 out of the 86 are transitioning conditional cultivators or conditional processors.

Office of Cannabis Management Executive Deputy Director and Acting Executive Director Felicia A. B. Reid said, “The Board's approval of these licenses expands New York’s cannabis supply chain and ensures that the industry reflects both the diversity across this state and the great ability within the cannabusiness community. I want to thank Chair Wright and the Board members for their collaboration and congratulate all of the new licensees. By prioritizing social equity, New York is creating concrete opportunities for individuals and communities targeted by past prohibition and denied the ability to determine or define their own future. Inclusion and equity is not an anathema to economic progress.”

Adoption of CCB Bylaws

In addition to issuing licenses, the CCB approved a resolution to adopt new CCB bylaws. These bylaws align with Article II of the New York State Cannabis Law, which establishes the CCB, and Section 10(14), which grants the Board extensive authority. The Bylaws define the framework for the Board's execution of its powers, outlining its organization and administration.

The bylaws establish criteria to oversee:

• Board appointments, removals, suspensions, and vacancies;
• CCB meetings, including minutes, video conferencing, and notice requirements;
• Quorum, voting, and the exercise of powers;
• Role of the Chair and members;
• Formation of committees; and
• Guidelines for conflicts of interest, ethics, and transparency

New York State Cannabis Control Board Chair Tremaine Wright said, “These bylaws ensure that our actions are governed by clear and structured principles, enhancing our accountability and commitment to the public. By defining the organization and administration of the Board, we are best equipped to fulfill our statutory mandate, ensuring equity for all, effective oversight, and the regulation of New York’s cannabis industry.”

CCB Approves Resolution to Consider Regulations for Public Convenience and Advantage

The CCB also approved a resolution to consider proposed regulations for applicants who want to apply for a public convenience and advantage waiver exemption of the buffer distance requirements set for the required distance between dispensaries. The buffer distance in regulation is set based on the population of the municipality. In municipalities with a population greater than 20,000 the required distance between dispensaries is 1,000 feet. In municipalities with a population less than 20,000 the required distance between dispensaries is 2,000 feet.

OCM is in the process of developing guidance to establish the criteria under which to consider requests for public convenience and advantage. This effort includes seeking input from Cannabis Advisory Board members and members of the public on the criteria for such requests. Stakeholders are encouraged to stay informed on how to submit comments on the proposed regulation and guidance to ensure their voices are heard. This initiative ensures an adaptive and responsive regulatory approach, fostering a dynamic and equitable cannabis industry in New York.

Enforcement Task Force Update

At Aug 6th's meeting, OCM presented updates to the CCB regarding the State's ongoing efforts to enforce the illicit cannabis market. OCM emphasized that the State's commitment to shutting down unlicensed cannabis storefronts has led to a 100 percent increase in legal cannabis sales in downstate areas, like New York City since enforcement began. This crackdown is crucial in ensuring that the legal market thrives and that consumers have access to safer, tested, regulated products.

To date, OCM has reported that over 500 inspections have been conducted by State Officials, resulting in the seizure of more than 6,000 pounds of illicit cannabis products, valued at nearly $30 million. These enforcement actions are part of a broader strategy to eliminate the black market and support the growth of licensed cannabis businesses. As of Tuesday, August 6, 2024, 231 illicit stores have been padlocked and 388 Notices of Violation have been issued.

Market and Social Economic Equity Update: New York's Growing Cannabis Industry

Sales through mid-July surpassed $331 million, bringing the total sales since the market launched to nearly $500 million. Weekly sales revenues surpassed $17 million for the first time in July, underscoring the growing demand for legal cannabis as more stores open and consumer access increases.

A key driver of this success is the Social and Economic Equity (SEE) program, which continues to promote inclusivity, center diversity, and opportunity within the industry. An analysis of overall retail dispensary licensing, including Aug 6th’s newly issued adult-use retail dispensary licenses, reveals that 84 percent are SEE-owned businesses.

Following Aug 6th’s Board meeting, the 53 percent of adult-use licenses are held by SEE licensees.

This reflects the program's commitment to fostering diversity and supporting underrepresented groups. After the Office recommended to the Board the 86 adult-use licenses to be awarded at Aug 6th’s Board Meeting, it analyzed the composition across the supply chain. OCM reported that 45 (52 percent) of today’s licensees are social and economic equity (SEE) owned businesses, 22 (13 percent) are women-owned businesses and 18 (10 percent) are minority-owned businesses.

To date there are 156 dispensaries open for business across the Empire State. A full list of New York’s licensed, operational adult-use cannabis retailers is available here.