Board Approves 109 Adult Use Licenses, Bringing Total Adult Use Licenses Issued in 2024 So Far to 730

State Law Enforcement Agencies Report Seizure of Nearly $30 Million Worth of Illegal Products and 164 Stores Padlocked Across New York State

CCB Votes to Amend Cannabis Packaging, Labeling, Marketing and Advertising Regulations to Support Responsible Industry Growth and Protect Public Health

New York State Now Has More Than 144 Adult-Use Dispensaries Open and Operating

Governor Kathy Hochul today announced that the New York State Cannabis Control Board (CCB) took substantial steps to advance the state’s cannabis regulatory framework during this month’s board meeting, addressing several key topics: license approvals, market updates, and enforcement updates.

“New York is building a robust and equitable legal market that is driving significant economic growth for our communities,” said Governor Hochul . “The issuance of 109 additional adult-use licenses is just one step in the development of New York’s nation-leading cannabis industry.”

The CCB authorized the issuance of 109 adult-use cannabis licenses spanning the entire supply chain, including micro-enterprises, growers, processors, distributors and retail dispensaries. This move paves the way for entrepreneurs and businesses to enter the nascent adult-use cannabis market, driving economic growth and fostering innovation.

The breakdown of the 109 license types approved today includes:

-Adult Grower License: 23

-Adult Use Dealer License: 20

-Adult Use Microenterprise License: 23

-Processor License for Adult Use: 22

-Adult-Use Retail Dispensary License: 21

58 of the 109 are conditional growers or conditional processors in transition.

Enforcement Task Force Update
At today’s meeting, the New York State Office of Cannabis Management (OCM) provided updates to the CCB on the State’s ongoing enforcement efforts against the illicit cannabis market. OCM emphasized that the State’s commitment to shutting down unlicensed cannabis stores has led to a 50 percent increase in legal cannabis sales in downstate areas, such as New York City, impacted by the Task Force’s enforcement activities. This crackdown is crucial to ensuring the legal market thrives and consumers have access to safer, tested, and regulated products.

To date, the CMO reported that state officials have conducted more than 323 inspections, resulting in the seizure of more than 4,800 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, July 9, 2024, 164 illicit stores have been locked down. Additionally, 252 Notices of Violation have been issued and 76 hearings have been held.

Additionally, the CMO’s Intergovernmental Affairs team, in coordination with the Office of the General Counsel, has held several briefings over the past several weeks for elected officials and community boards in New York City. These briefings aim to keep key stakeholders informed about ongoing regulatory and enforcement measures, ensuring that local leaders are engaged and supportive of efforts to create a sustainable and equitable cannabis industry in New York State.

Packaging, Labeling, Marketing, and Advertising (PLMA) Regulations Amends
In addition to issuing licenses, the CCB approved a resolution to submit proposed amendments to the Packaging, Labeling, Marketing, and Advertising (PLMA) regulations, which were originally adopted in March 2023. The proposed amendments consider recommendations made by licensees and other stakeholder groups. By engaging with stakeholders and understanding their challenges, the Bureau has crafted these amendments to respond to the realities of the cannabis industry while maintaining a strong commitment to protecting public health and safety.

The amendments to the packaging and labeling regulations were designed to help streamline CMO operations by reducing common causes of findings being declared for which there is no risk to health and safety; providing technical modifications to the regulations to align with the medical cannabis program; codifying previously implemented changes for guidance only; and clarifying existing provisions. Other changes address the environmental sustainability of packaging, such as encouraging reuse of packaging, implementing policies that help reduce single-use plastic, and ensuring that requirements are feasible for licensees by allowing for a phase-in period and exemptions for plastic alternatives for packaging components when sustainable alternatives are not yet commercially available.

These changes to PLMA regulations reflect OCM’s commitment to balancing the policy goals of protecting public health and safety, fostering a sustainable cannabis industry, and creating a fair, safe, and informed marketplace for consumers and cannabis businesses alike.

Bureau of Cannabis Management Deputy Executive Director and Acting Executive Director Felicia AB Reid said, “In these first thirty days at OCM, I continue to be inspired by the OCM team’s deep commitment and drive to advance the agency’s mission with this most recent batch of licenses for Board approval. I appreciate the rigorous work of the Board, under Chairman Wright’s leadership, in its review and today’s approvals. OCM best serves the cannabis community and New Yorkers by listening to what stakeholders need to thrive, and my hope is that today’s much-needed updates to our PMLA regulations will enhance licensees’ ability to compete and thrive in the cannabis marketplace.”

Tremaine Wright, Chair of the New York State Cannabis Control Board, said, “We remain dedicated to fostering a thriving and equitable cannabis market in New York by listening to our industry partners and tailoring our regulations to meet their needs. The proposed regulatory amendments to packaging, labeling, marketing, and advertising reflect our commitment to ensuring safety while easing operational burdens. By incorporating feedback from licensees and a broad range of stakeholders, we are taking meaningful steps to improve New York State’s cannabis regulatory framework and support the growth of a responsible and inclusive cannabis industry.”

Social and Market Economic Equity Update: New York’s Growing Cannabis Industry
The Bureau of Cannabis Management is proud to announce the strong growth and dynamic advancements in New York’s cannabis industry. Projections showed cannabis sales in 2024 will exceed $200 million as of early June. The Bureau is pleased to share that in June alone, sales increased by $71 million, reaching a total of $421.2 million to date.

A key driver of this success is the Social and Economic Equity (SEE) program, which continues to promote inclusion and opportunity within the industry. Remarkably, an analysis of the makeup of adult-use retail dispensary licensees today indicates that 55 percent are SEE-owned businesses, 37 percent are minority-owned businesses, and 40 percent are women-owned businesses.

Following today’s Board meeting, the total number of adult-use licenses issued in 2024 will increase to 614, with a notable 55 percent held by SEE licensees overall. This reflects the program’s commitment to fostering diversity and supporting underrepresented groups. After the Bureau recommended the 109 adult-use licenses to the Board for award at today’s Board meeting, it looked at the composition across the supply chain. The Bureau is pleased to report that 53 (49 percent) of current licensees are social and economic equity (SEE)-owned businesses, 24 (42 percent) are women-owned businesses, and 13 (25 percent) are minority-owned businesses.

To date, there are over 144 dispensaries open across the Empire State. A complete list of New York’s operating and licensed adult-use cannabis retailers is available here.