The New York Cannabis Control Board (CCB) has officially approved rules that allow adults over 21 to cultivate cannabis at home, as of June 11. Now adults can care for a maximum of six plants, with three immature plants and three mature. Residences with more than one adult can have up to 12 plants (six immature and six mature).

Additionally, new rules take place for possession in regard to a person’s crops. “You can have up to five (5) pounds of trimmed cannabis and the equivalent weight in concentrates in or on the grounds of their private residence,” the Office of Cannabis Management wrote in its law breakdown. “Individuals can carry and transport up to three (3) ounces of cannabis and 24 grams of concentrates within the state.”

Cannabis can be grown anywhere that a person owns or rents such as a “room, home, apartment, mobile home, co-op, or other residential spaces.” Landlords cannot refuse to rent a space to a person, or penalize a tenant, unless they are at risk of losing federal funding or benefits.

The rules also cover how residents can legally obtain cannabis plants. Seeds will now be available at commercial retailers, but immature plants can also be purchased by numerous licensed cannabis businesses as well.

The OCM warned of the responsibilities of the grower, specifically when it comes to processing their flower into other cannabis products. “If you’re making at home products with cannabis, like tinctures or butters, the use of flammable materials is prohibited because they are not safe for home use,” the OCM stated. “Consider alternative extraction methods such as heat, water or fermentation.”

The OCM also mentioned the need to reduce cannabis odors. “You must take reasonable measures to prevent cannabis odor from becoming a nuisance to neighboring residents such as co-planting items like lavender in an outdoor garden or using a carbon filter for indoor cultivation,” the information document continued. Lastly, the agency warned growers to cultivate away from the public eye, either by installing fences or tall, busy plants to add privacy to outdoor property.

In the realm of safety, the OCM suggested that growers choose LED lights to reduce power usage and risk of electric overload and recommended that growers seek expertise from an electrician about the setup. It also stressed the importance of proper ventilation to ensure that cannabis does not become moldy.

These rules were originally approved in February 2024, which was followed by a 60-day public comment period. The CCB voted on final regulations for cultivation on June 11.

Also on June 11, New York Gov. Kathy Hochul announced that the CCB has approved another 105 adult-use cannabis licenses. “New York is building a robust and equitable legal market that is driving significant economic growth within our communities,” said Hochul. “The issuance of 105 additional adult-use licenses is just the next step in developing the nation-leading industry New Yorkers expect and deserve.” This includes 25 cultivator licenses, 22 distributor licenses, 22 microbusiness licenses, 19 processor licenses, and 17 dispensary licenses. Additionally, 45 out of these 105 licenses are transitioning adult-use conditional cultivators (AUCC) or adult-use conditional processors (AUCP).

During the meeting, the CCB also denied licenses to 100 applicants that weren’t eligible or had already received a license from a different application.

CCB chair Tremaine Wright said in a statement that progress continues to push New York’s cannabis industry forward. “We continue to prioritize our market’s expansion, and commitment to our nation-leading cannabis market, by providing New Yorkers with a wide range of choice and opportunity to participate,” Wright said. “Today’s license approvals, and the introduction of home cultivation brings us one step closer to setting a new standard that centers growth, equity, and safety.”

So far in 2024, the CCB has approved a total of 654 cannabis licenses, while there are currently 132 adult-use cannabis dispensaries operating in the state.

Meanwhile, cannabis sales continue to increase in the state as well. The governor and OCM confirmed that in May, cannabis sales reached $4.4 million (for a total of $46.2 million). They project that by early June the state will have collected more than $200 million in sales.

The governor’s office attributes the success of its Social and Economic Equity (SEE) program as one of the reasons why the industry is thriving. The press release stated that 57 of the 105 new applicants (about 54%), are SEE applicants, which breaks down into “five Community Development Initiative participants, seven distressed farmers, 22 minority-owned businesses, seven service-disabled veteran-owned businesses, and 16 women-owned businesses.”

In May, the governor’s office stated that OCM executive director Chris Alexander would be stepping down this September following Hochul’s reevaluation of the agency and its leadership. The office described Hochul’s action as “an operational overhaul” which “follows the release of a 30-day assessment conducted by a team of individuals under the leadership of the Commissioner of the Office of General Services Jeanette Moy, that identified significant structural limitations to the Office of Cannabis Management that have affected the agency’s ability to fulfill its mandate to efficiently establish New York State’s cannabis marketplace.”

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New York legislation Assembly Bill 10375 was recently introduced by Assembly Health Committee Chair Amy Paulin and aims to legalize psilocybin service centers.

If passed, the A10375 would amend public law “in relation to promoting the health and well-being of the citizens of the state of New York by establishing a comprehensive framework supporting public health and safety through regulated adult use, support services, and cultivation of psilocybin-containing fungi,” the bill stated.

It would also require that the Department of Health (DoH) take charge of regulations, which involves cultivator licenses and approving psilocybin service center facilities. It would also create a “Regulated Psilocybin Advisory Board” made up of 13 members to study federal laws and policies regarding psilocybin, and offer advice and recommendations to the DoH. The purposes of the board would be to “develop a long-term strategic plan for ensuring that psilocybin services in the state will become and remain a safe, accessible and affordable therapeutic option, including in therapeutic and medical treatments, for all persons eighteen years of age and older for whom psilocybin services may be appropriate.”

Psilocybin business expenses would be tax deductible, and proceeds and fees would go back into the program to fund “administration and other costs relating to programs pursuant to this title, including but not limited to public education and risks of using psilocybin.”

Currently there are 58 conditions that would qualify for a patient to utilize the services of a psilocybin center, which ranges from glaucoma, HIV/AIDS, migraines, multiple sclerosis, post-traumatic stress disorder, sleep disorders, treatment resistant depression, and so much more. Additionally, patients with other conditions not included in the initial list can also be considered for psilocybin therapy if it “has been identified in a study published in a medical or scientific journal.” In order for a patient to receive a permit for psilocybin therapy, they must first receive a health screening and complete a permit course.

The bill wouldn’t legalize psilocybin, and consumption, cultivation, and sales would be prohibited. Violators would be hit with a $250 fine and a maximum of 15 days imprisonment.

As of May 21, the bill has been sent to the Assembly Health Committee, of which Paulin is the chair.

Other legislation involving psilocybin has led to promising progress. In February 2023, Assemblymember Pat Burke introduced Assembly Bill 03581, which would establish a psilocybin assisted therapy grant program and allow patients to engage in such treatments either in a licensed treatment center, or at home if the patient cannot travel. “This country is facing a mental health crisis,” Burke wrote on X last year. “I am looking at all options to alleviate the pain so many are feeling. Breakthrough medicines like psilocybin are showing tremendous benefit. I carry the bill to legalize psilocybin therapy. Let’s get it done!”

In February 2024, Burke introduced Assembly Bill 08349 which would create a psilocybin  therapy pilot program for 10,000 veterans and first responders. “We’re in a mental health crisis, and so we need every tool that’s available to us,” Burke said.

Meanwhile, the state’s legal cannabis industry continues to develop. In mid-April, the New York Cannabis Control Board approved 101 adult-use cannabis licenses. “With the Cannabis Control Board’s issuance of 101 adult-use cannabis licenses, New York’s legal cannabis industry continues to make significant progress with over 400 licenses issued in 2024,” Gov. Kathy Hochul said. “Strengthening New York’s equitable cannabis industry and ensuring the hard-working small business owners operating in the legal market have the licenses to open are the best way to protect the integrity of sales in New York.”

As of late April, the state celebrated the opening of its 100th dispensary, called Big Gas, which opened through the help of the New York State Cannabis Investment Fund. “New York State continues to make progress on standing up a safe and legal cannabis industry for business owners, farmers and residents across the state,” said Hochul about the news. “Today marks a historic milestone in establishing a thriving and equitable industry in our state with the 100th brick-and-mortar store opening.”

The topic of psilocybin continues to influence more illuminating research studies.  One such study which was published this month in the Journal of Psychoactive Drugs showed evidence that it won’t change a person’s belief as an atheist, agnostic, or believer in God. “These findings suggest that concerns that psychedelics could change metaphysical beliefs or result in ‘conversions’ across religious affiliations may be overestimated,” wrote researchers of their findings. They added that “concerns related to changes in non-naturalistic beliefs or religious affiliation may be exaggerated.”

Other recent studies include a dive into psilocybin as a meditation enhancement, show evidence that psilocybin isn’t associated with paranoia risk, and proves that natural psilocybin has more therapeutic benefits in comparison to synthesized psilocybin.

Another psilocybin treatment center recently opened up in Oregon, called Ashland Healing Center, which is also the first black-owned treatment center. Additionally, the Oregon Health Authority approved another psilocybin license to Kaya Holdings Inc., for a business called The Sacred Mushroom, which plans to open sometime in June.

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New York Gov. Kathy Hochul last week announced a significant overhaul of the state’s Office of Cannabis Management, including a leadership change at the top of the agency.

The governor’s office said in a press release on Friday that she had “directed an operational overhaul” of the agency, which “follows the release of a 30-day assessment conducted by a team of individuals under the leadership of the Commissioner of the Office of General Services Jeanette Moy, that identified significant structural limitations to the Office of Cannabis Management that have affected the agency’s ability to fulfill its mandate to efficiently establish New York State’s cannabis marketplace.”

Hochul detailed the changes at a press conference in Albany, where the New York Times reported that “Chris Alexander, the executive director of the Office of Cannabis Management, was notably absent.”

According to the Times, Alexander “will step down at the end of his three-year term in September.”

Hochul called for the assessment earlier this year, saying at the time that New York’s legal cannabis rollout had been a “disaster.” Moy was directed to assemble a team to conduct a 30-day review of the office of Cannabi Management. In a letter to Hochul sent last week, Moy said that it was “clear from speaking to operational staff that they are dedicated, mission-driven, and working very hard,” and that in “order to alleviate pressures on staff, the task force took immediate action to recruit for vacant license processing positions to increase the size of the licensing team by 40%, and to explore technology like softphones to improve the hybrid work experience.”

Moy said that the task force “outlined recommendations to enhance customer service and expedite the opening of Adult-Use Retail businesses in New York State’s legal cannabis market.”

“It was a priority of the task force to craft recommendations that would enable this agency to be more transparent, efficient, and responsive to all New Yorkers. In conjunction with your recently announced Enforcement Task Force to shut down illegal cannabis stores, the recommendations in this report will enable OCM to maintain and build upon our State’s commitment to social equity, while maturing into a world-class regulatory agency for a thriving New York State cannabis market,” Moy said.

In Friday’s press release, the governor’s office said that the “assessment makes comprehensive recommendations to end the bottleneck of license applicants and improve communication with applicants and licensees – transforming the Office’s capacity to expand safe, legal cannabis operations across the state.”

“Based on the assessment’s findings, Governor Hochul announced a series of immediate actions to reform the licensing processes and increase enforcement against illegal storefronts. The Governor also announced the establishment of a $5 million grant program to help CAURD licensees and previewed next week’s launch of the Cannabis Enforcement Task Force,” the announcement said.

New York’s legal cannabis market has had a sluggish rollout; according to the New York Times, there are only 122 legal recreational cannabis dispensaries in the state, while “the number of illicit shops in New York City alone has nearly doubled to 2,900.”

“At the end of April, more than 5.600 applications, mostly for retail and craft businesses that submitted them as far back as August 2022, were still waiting to be reviewed,” the Times reported.

The governor’s office said that the “assessment identified significant impediments to the Office’s effective processing and approval of applicant licensure.”

“Without best capability to fulfill the licensing role, the individuals this process is designed to help are exhausting substantial resources navigating it and risk being left behind. Delays in the legal marketplace have created a vacuum for illegal storefronts to proliferate and squeeze out CAURD licensees. The reforms announced today will create additional capacity for closing illegal storefronts and lifting up legal operators,” the press release said.

Hoy said in a statement on Friday that the “multi-agency task force created to assess the Office of Cannabis Management has identified several steps the agency can take to unclog the bottleneck of applications by improving communication with applicants and streamlining the application process.” 

“The proposals outlined in the task force’s report will improve transparency and open lines of communication in the application process while boosting the state’s efforts to meet Governor Hochul’s commitment to equity in New York’s cannabis market,” Moy said.

In a statement, Hochul thanked Moy and her team “for their hard work and thoughtful assessment,” saying she looks forward “to working with OCM to implement the report’s recommendations and transform New York’s cannabis industry.”

“We promised to build the strongest, most equitable legal cannabis market in the nation, and we’re announcing long-needed steps to make New York’s cannabis program work as promised,” Hochul said.

But the Times said that the report “immediately drew backlash from critics who said it painted an incomplete portrait,” with some arguing that “it omitted or glossed over the role of the governor, the Legislature and the many lawsuits against the agency in the challenges facing the cannabis program.”

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After officially legalizing cannabis for adult use in New York, the journey that followed has been fairly tumultuous as multiple roadblocks have delayed shop licensure and hindered the legal industry’s full potential.

A number of lawsuits and a change in gubernatorial leadership delayed dispensary licensure and openings, in turn allowing the illicit market to flourish with those shops drastically outnumbering the amount of legal dispensaries in the state.

As New York growers, business owners and myriad cannabis professionals continue to wait for their licenses to be approved, some New York lawmakers are embracing a different approach (that would likely extend the wait for industry hopefuls even longer).

Namely, Queens Community Board 9 Chairwoman Sherry Algredo argued that New York should refrain from adding any licensed cannabis shops to her district until authorities are able to shut down those operating illegally, according to a New York Post report. Community Board 9 covers the neighborhoods Key Gardens, Richmond Hill, Ozone Park and Woodhaven.

Ongoing Concerns About New York’s Bustling Illicit Weed Market

“The Board received numerous concerns from residents regarding the proliferation of illegal smoke shops already operating in our district and the negative impact these establishments have had on our community,” Algredo said in a recent letter. “Consequently, the Board will not support any new applications until these illegal operations are shut down.”

While Algredo’s statement reads as fairly definitive, the boards’ recommendations are advisory to state regulators, though they can still influence final policy decisions. The law that legalized cannabis in New York also mandates that applicants for cannabis licenses must notify the community board within the vicinity they plan to operate and appear before it prior to opening their businesses.

The conversation surrounding illicit cannabis shops in New York has been ongoing, though Gov. Kathy Hochul (D) and other lawmakers have consistently touted their efforts to mitigate theses problems.

In April, the governor unveiled new initiatives aimed to shut down illicit cannabis operations and protect the legal cannabis marketplace. The plan allows the Office of Cannabis Management and local municipalities new authority to take action against illicit shops. 

“Unlicensed dispensaries have littered New York neighborhoods, blatantly circumventing our laws and selling potentially dangerous products,” Hochul said in a statement. “Enough is enough. I promised to protect our communities and hard-working, legal cannabis licensees by expediting the closure of illicit storefronts. I’m proud to stand up and say we got it done.”

Nurturing the Legal Industry While Combating the Illicit One

Last month also marked the opening of the 100th adult-use store in the state. New York legalized adult-use cannabis on March 31, 2021. It also looks like that number should increase soon, as the New York State Cannabis Control Board (CCB) shared last month that it approved an additional 101 adult-use cannabis licenses with more than 400 total approved sites in 2024. 

Conversely, it’s estimated that New York City alone has about 2,000 illicit cannabis stores currently operating.

The state is still working to do what it can to fix the issues with the legal industry rollout. Lawmakers recently passed another resolution that gives the Office of Cannabis Management (OCM) the ability to issue provisional licenses, which the CCB hopes will speed up the licensing process. 

“This measure aims to provide provisional license holders with opportunities to begin operations swiftly while adhering to regulatory requirements, fostering a dynamic and competitive marketplace,” the CCB explained.

Still, it’s clear that closing illicit pot shops in the state will not be an easy task. Many illicit shops immediately reopened after raids and temporary shutdown orders under the prior rules, and it’s not yet clear how effective the newly announced laws to close illegal shops will be in practice.

Because of that, closing all illicit shops before allowing new ones to open, even in a single district, may be tougher in reality than in theory. Still, some lawmakers are standing by the need to close unlicensed shops before adding more licensed ones.

“We have 32 illegal cannabis shops. We are not going to entertain any applications for legal cannabis shops until the unlicensed stores are shut down,” CB 9 District Manager James McClelland told The Post.

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New York is continuing its slow roll toward expanding the number of cannabis businesses operating throughout the state. On April 12, the New York State Cannabis Control Board (CCB) approved 101 more adult-use cannabis licenses, and now the total number of licenses approved in 2024 so far sits at 403.

Gov. Kathy Hochul continues to be vocal about celebrating these milestones. “With the Cannabis Control Board’s issuance of 101 adult-use cannabis licenses, New York’s legal cannabis industry continues to make significant progress with over 400 licenses issued in 2024,” said Hochul. “Strengthening New York’s equitable cannabis industry and ensuring the hard-working small business owners operating in the legal market have the licenses to open are the best way to protect the integrity of sales in New York.”

The CCB recently approved a resolution that allowed for a diverse, ranging from varying microbusinesses, cultivators, processors, distributors, and retail dispensaries. “This resolution opens pathways for entrepreneurs and businesses to participate in the budding adult-use cannabis market, fostering economic growth and innovation,” the CCB wrote in a press release. This license round includes 25 cultivators, 25 dispensaries, 22 microbusinesses, 11 distributors, 10 provisional dispensaries, and eight processors.

Another resolution was passed, which gives the Office of Cannabis Management (OCM) the ability to issue provisional licenses, which the CCB hopes will speed up the licensing process. “This measure aims to provide provisional license holders with opportunities to begin operations swiftly while adhering to regulatory requirements, fostering a dynamic and competitive marketplace,” the CCB explained.

Now, provisional licenses can be approved by the CCB in regularly scheduled meetings, as well as the OCM, allowing license holders to lock down their retail locations until its time to receive final approval from the CCB. Provisional licenses are granted if the applicant provides all the necessary materials that they would need to apply for a full retail license, with the exception of not yet having a physical store location.

CCB board chair Tremaine Wright praised the passage of the new resolutions, which will help build up the cannabis industry in New York. “These resolutions represent a significant milestone in our efforts to establish a robust and responsible adult-use cannabis market,” Wright said. “By issuing this new batch of licenses, enhancing enforcement protocols, and introducing provisional licensing, we are creating a framework that prioritizes equity, transparency, and public safety.”

OCM executive director Chris Alexander called the move a “crucial step forward” for the 101 new licensees “who have the grit, skill, and ability to make sure our equitable market has the power to deliver the quality cannabis products New Yorkers expect to purchase when they walk into a legal dispensary.”

Earlier this month, a New York State Supreme Court ruling struck down the state’s current ban on third party advertisements. Initially, the ruling invalidated all of New York’s adult-use regulations but was amended to apply only to the state’s rules on marketing.

The lawsuit was led by Leafly Holdings, Stage One Dispensary, and a New York-based consumer. “It’s impossible to overstate the importance of providing consumers with choices, and educational information when making purchasing decisions,” Leafly said in a statement. “It is critically important that licensed retailers have equal access to important advertising and marketing tools to help them succeed in a competitive landscape.”

Individuals such as Sen. Jeremy Cooney (current chair of the Senate cannabis subcommittee) were not as happy about the outcome. “Today’s State Supreme Court decision was another setback in a series of blows New York’s adult-use cannabis market has faced since legalization, three years ago,” said Cooney. “While some changes to marketing regulations are needed, the decision by the Court to throw out all agency regulations will ultimately slow progress at a time when we need to more aggressively combat illicit shops to grow a stronger, more-equitable legal market.”

In late March, the CCB also addressed the needs of struggling cannabis farmers by waiving cultivator license fees for the next two years. Hochul called farmers the “backbone” of the state, and explained the need to support those family farms. “I have made it clear that New York State needs to issue more dispensary licenses and kickstart cannabis sales in New York, and this two-year promise to Adult-Use Conditional Cultivators will make sure these farmers can reap the benefits of this growing industry,” Hochul said.

Previously, cultivators needed to pay a fee when they applied to transition to a non-conditional license (including cultivation and microbusinesses). The fee can be as low as $4,500, and as high as $40,000, depending on the license tier size and canopy size of their grow.

New York’s adult-use cannabis industry was signed into law in March 2021 by former Gov. Andrew Cuomo. While Hochul took office in August 2021, adult-use cannabis sales did not begin until December 2022. In January 2024, Hochul commented on how the rollout of the adult-use cannabis industry was a “disaster,” and in need of review. As of March 18, Hochul announced that her administration would be assessing the current state of industry regulations.

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The New York State Cannabis Control Board (CCB) recently voted to waive cannabis cultivator licensing fees for the next two years. Gov. Kathy Hochul celebrated this recent progress to help struggling cultivators. “Farmers are the backbone of our State, and we’re making sure the family farms across New York that are building our cannabis industry have a real chance to succeed,” Hochul said. “I have made it clear that New York State needs to issue more dispensary licenses and kickstart cannabis sales in New York, and this two-year promise to Adult-Use Conditional Cultivators will make sure these farmers can reap the benefits of this growing industry.”

On the same day, the CCB also approved 114 new cannabis business licenses (45 for retail dispensaries and 31 microbusinesses) which allows the grantees to grow, process, and sell cannabis. The state currently has 89 licensed dispensaries currently operating, and hundreds more licenses that have been granted, with 223 approved in 2024. Additionally, the CCB approved 38 non-conditional adult-use licenses as well. 

Until 2026, cultivators will no longer have to pay for the fee that is applied when they transition to a non-conditional license, such as cultivation or microbusiness licenses. Conditional license fees range anywhere between $4,500 to $40,000, and the price is based on their license tier size and canopy size, according to a press release published by Hochul’s office.

Chris Alexander, executive director of the New York Office of Cannabis Management also provided a statement regarding the new licenses. “New York State’s cannabis market is moving in the right direction, and by waiving licensing fees for two years, we’re making sure conditional cultivators have a chance to reap the rewards of this growing industry,” Alexander said. “As we mark three years of legalized adult-use cannabis in New York state, we look forward to this next chapter of our cannabis story.”

The 114 applicants who were granted licenses on March 22 submitted their applications prior to Nov. 17, 2023, and also already own a physical location for their business. Those who applied after Nov. 17 but before Dec. 18 will likely be approved within the next few months “on a rolling basis.” At the March meeting, the CCB also renewed permits for 17 testing labs. “Since the last Cannabis Control Board meeting in February, 16 new adult-use cannabis dispensaries have opened their doors across New York State,” the CCB wrote in a press release. “This is a continuation of the swift rate of store openings since the December lifting of an injunction preventing New York’s retail cannabis licensees from opening their doors.”

There are an estimated 2,000 illegal cannabis business operators in New York, according to The New York Times. In comparison to the 89 legal businesses (10 which are delivery-only), that is approximately 24 illegal businesses for every one legal business.

The original legal framework for New York’s adult-use cannabis program was signed by former Gov. Andrew Cuomo in March 2021, and Hochul replaced him and took office later that year in August. Last month Hochul spoke about the initial framework. “You have to go back to the very beginning,” Hochul said. “Prior to my time [as governor], the legislation was crafted in a way that was not poised for success.”

As a result though, legal cannabis businesses have been struggling. “We’ve got farmers who are just losing money. We’ve got these people who took out loans and are excited about their opportunities, ready to start,” Hochul said. “And meanwhile, no money is flowing back to the state. We have all this, and the illicit market is flourishing.”

Earlier this month, the New York Senate discussed a budget proposal that would earmark $128 million to support cannabis businesses. This includes $60 million to go toward farmers’ loans, $40 million for Cannabis Farmer Relief Fund grants, and $28 million for cannabis farmers who lost money due to the state’s slow ramp-up for its legal industry.

A few weeks ago on the Senate floor, Sen. George Borrello spoke about the importance of the bill. “We are now three years into where we have passed the legalization of recreational marijuana in New York state—three years now this month,” said Borrello, according to The Post-Journal. “We are now proposing a bailout for pot farmers of $128 million. We all, I think, would agree this has been an abject failure. It’s been said on both sides of the aisle. Somehow New York state has managed to screw up pot. I don’t know how that happens, but we did.”

Sen. Michelle Hinchey proposed a bill last year that was ultimately vetoed by Hochul but would have opened up opportunities for cannabis farmers earlier. “I don’t right now have any numbers on the broader spectrum of cannabis across the state, but I think it’s incredibly important to recognize and acknowledge that these are growers who we asked to grow the product for the market and so the $128 million here is to cover the losses they would have seen since the rollout was delayed and making sure they have the funds to be able to stay in business until the next growing cycle,” Hinchey explained.

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The New York Cannabis Control Board (CCB) met on Feb. 16 and voted on a few new cannabis draft rules, including cultivation and research, and also announced the first round of adult-use licenses.

The CCB approved a regulation proposal describing potential plant limits and possession amounts, the Feb. 16 meeting kicked off with a 60-day window for public comment. Current rules propose that adults would be allowed to grow up to six plants, only three of which can be mature at a time. If a residence is home to more than one adult, the maximum number of plants can increase up to 12. Additionally, residents may possess up to five pounds of cannabis. Any home grown plants must be stored securely and must not be visible from public view, and the rules establish limitations for people with more than one residence, and also add a rule about potential odor issues and complaints by neighbors.

The agency also approved the state’s first two cannabis research licenses. “These licenses pave the way for groundbreaking research studies that will help us better understand the full potential of the plant,” the CCB wrote on social media. 

However, the most noteworthy decision featured the CCB approving its first round of adult-use cannabis licenses from applications submitted in 2023, for a total of 109 licenses for the state. Additionally, 38 new licenses are retail-specific, and 26 are microbusiness licenses. The CCB also announced that it has sent 350 deficiency letters to applicants asking for various updates, which must be addressed within 30 days.

Currently, the only cannabis business license holders in the state were approved under the Conditional Adult-Use Retail Dispensaries (CAURD) program, which were granted specifically to social equity applicants. While those business owners hold conditional licenses, the CCB’s most recent round of licenses are the first non-conditional licenses to be granted, meaning that they did not qualify as social equity applicants.

CCB chair Tremaine Wright spoke at the meeting, expressing his relief that the time has come to move forward with New York’s cannabis industry. “This moment has been a long time in the making,” said Wright. “We assure you it only represents the beginning. The office has been diligently working to prepare as many applications as possible for consideration, and the board will continue to approve additional licenses at future board meetings.” He added that the CCB’s goal is to “tackle a number of the matters that we hope will help propel our industry forward.”

The meeting was initially scheduled to be held on Jan. 25, but Gov. Kathy Hochul asked the CCB to cancel the meeting the day before. “The Cannabis Control Board… has decided to postpone the meeting to finalize review of adult-use license applications currently under consideration for approval by the board,” the Times Union reported on the news. “While we have a batch of licenses ready for approval, there are many more we want to get across the finish line to jumpstart New York’s cannabis market in 2024. We want to ensure the issuance of as many licenses as possible, as soon as possible.” The CCB published a press release explaining that it was “held up by lawsuits from corporate interests.” At the time, only three dispensaries were intended to be announced for license approval, reported a news outlet called The City.

Hochul spoke to The Buffalo News editorial board on Jan. 24 and described the state’s recreational cannabis rollout as a “disaster.” “I will not defend that for one second,” she explained. 

Former New York Gov. Andrew Cuomo signed the original cannabis regulatory framework in spring 2021, but Hochul took office in August 2021 after the legislation was already established. “You have to go back to the very beginning,” she explained. “Prior to my time [as governor], the legislation was crafted in a way that was not poised for success.” The first cannabis dispensary, a nonprofit called Housing Works, opened in New York City in December 2022.

Hochul expressed her frustration at how the illegal market continues to grow rapidly as well. “It’s not [on] every street corner,” Hochul said of illegal dispensaries. “It is every other storefront. It is insane.”

Hochul stated that she pushed for more strict laws in 2023 to prevent illegal sales from thriving, but to no avail. “I think it should be treated the way tobacco is: local law enforcement can stop illegal sale of cigarettes that are not licensed and taxed,” Hochul continued. “They don’t want to have the teeth in the law to stop the illegals.”

Part of the reason that it has taken so long for New York to gain speed on approving more licenses, according to Hochul, is due to prioritizing licenses for social equity applicants, which led to numerous lawsuits last August and a temporary halt for any new cannabis licenses. “We’ve got farmers who are just losing money. We’ve got these people who took out loans and are excited about their opportunities, ready to start,” she said. “And meanwhile, no money is flowing back to the state. We have all this, and the illicit market is flourishing.”

Ultimately, Hochul explained that she wished she could fix the issues with the law. “There’s a strong part of me that would just like to go in and just start over,” she explained. “But I’d have to go back to the legislature and convince them to change the laws in every way I’ve described. It’s probably not likely to happen.”

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As the New York cannabis market continues to steadily find its footing among a number of delays, the state’s governor has vetoed a measure that would have provided solutions for growers with a surplus of product without means to sell it.

The legislation, sponsored by Sen. Michelle Hinchey (D) and Assemblywoman Donna Lupardo (D), would have allowed licensed growers to sell their products to tribal retailers. The sponsors, who respectively chair the state Senate and Assembly agriculture committees, shared that the veto by Gov. Kathy Hochul wasn’t a shocking move, despite the fact that the legislation was first approved back in June.

“We offered a way for some of the oversupply of cannabis grown by NY’s farmers to be sold to NY’s Tribal Nations,” Hinchey and Lupardo said in a statement. “Given the fact that this temporary measure would have expired on December 31st anyway, the veto is hardly a surprise.”

Broad Support Amongst New York Lawmakers

In September, lawmakers appealed to Hochul to emphasize the hundreds of farmers struggling to sell their crops because of the limited number of open dispensaries in the state. Sixty-six members of the legislature, about a third of New York’s state lawmakers, had sent a letter urging Hochul to sign the measure.

“Right now, there are over 200 cannabis farmers trying to sell their crops but only 23 dispensaries open statewide,” the bipartisan Senate and Assembly members wrote in September. “This has resulted in more than 250,000 pounds of unsold cannabis. Farmers who took out loans and leveraged all their assets to cultivate these crops are demoralized and facing financial disaster unless we act quickly to provide them with an alternate market.”

The legislation was formally transmitted to Gov. Hochul earlier in December, and she vetoed them on Friday, Marijuana Moment reports.

In their statement reacting to the veto, the sponsors also emphasized the pressing nature of this issue, saying that New York’s farmers “remain financially ruined by circumstances beyond their control,” adding that they will remain committed to helping these farmers and processors “that NY’s legal cannabis industry depends on in any way possible.”

A Long-Delayed Adult-Use Cannabis Market

It’s just one of many setbacks surrounding New York’s long standing effort to get the state’s recreational cannabis market up and moving. The Empire State first legalized adult-use cannabis in March 2021, but in the months since, the market’s full launch has been delayed by a slew of regulatory delays, legal issues and a hefty illicit market looking to fill the gap.

“Regulatory delays, lawsuits, and logistical and financing challenges have caused the state to miss its timelines and targets,” the September letter said. “However, cultivators are the group paying the steepest price.”

The market officially opened last December, and by the end of this year, New York is expected to have at least 37 adult-use dispensaries open for business.

While 2023 showed more progress than the years preceding it, lawmakers emphasized that growers are still suffering due to a surplus of products with nowhere to legally sell them. 

“New York’s cannabis farmers, who went out on a limb to help get the state’s legal market off the ground, should not be facing financial ruin because of regulatory delays,” the lawmakers said. “We should be giving them every possible opportunity to stay afloat while they await the development of the market they were promised.”

Largely, this year saw a number of lawsuits reach settlement, paving the way for more shops to open and for the trend to continue through 2024. Still, lawmakers in favor of the legislation argued that the continued delays are hurting the state’s farmers, who continue to wait for solutions as the market slowly inches forward.

“Crops were grown last year with the understanding that there would be a legal market for them to sell it… We are urging the governor to quickly sign this short-term solution, one that will help provide some measure of relief to what is quickly becoming an agricultural emergency,” the letter states.

Awaiting Solutions in the Midst of Farmers’ Woes

A sponsor memo attached to the bill references that growers were informed they would not be permitted to sell cannabis outside of state lines, though it also points out that they were expecting that New York’s “robust state market would exist during the conditional license time frame.” Crops are now losing their potency, color and terpene profile in storage, ultimately reducing their value if and when producers can finally sell it, the memo notes.

A New York grower’s showcase provided some relief for farmers with surplus products throughout 2023, leading to a total of 48 events with most open one or more days weekly. The current permit ends on Dec. 31, 2023, and while a possible extension was in play until recently, the future status of these markets remains undetermined.

While New York’s market continues to lag, tribal governments have stayed ahead of the curb, as the Saint Regis Mohawk Tribe accepted the first adult-use license applications just months after the state first legalized recreational cannabis in 2021.

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Hemp has a number of uses that we are only now beginning to take advantage of. Two New York measures would allow for hemp seeds to be part of animal feed meant for pets, horses and camelids, like llamas and alpacas and got the green light from the state Assembly and Senate earlier this year. 

In early December, Gov. Kathy Hochul (D) received the pair of bills, though she effectively stopped them in their tracks via veto, stating that there is a lack of information about using industrial hemp in this way and pushing for the state to study the topics in an “expeditious manner.”

The New York cannabis industry is steadily taking shape, and Hochul has also advocated for the state’s hemp industry. Still, the governor cited that the Food and Drug Administration (FDA) has yet to approve hemp seed as part of animal feed, so Hochul believes that “more information is required” before taking the leap.

“To that end, I am directing the Department of Agriculture and Markets to work with Cornell University’s College of Agriculture and Life Sciences to research the impacts of the use of hemp seed or hemp seed products in animal feed,” Hochul wrote. “This study is to be completed in an expeditious manner to better inform the industry on the questions raised by the potential for expanded use of hemp products.”

Specifically, the measures would have allowed industrial hemp seed to be added to animal feed that includes seed hulls and seed meal. The bills would not have allowed for hemp seeds and additives to expand to other commercial livestock, most likely because of regulatory complications surrounding certain ingredients for animals used for human consumption.

Supporters cited nutrition as a key factor, namely that hemp seeds are high in protein and fiber. A 2022 study also determined that feeding livestock industrial hemp can have beneficial effects on stress and activity levels in cattle.

This idea isn’t brand new, either. Back in April 2021, Montana Gov. Greg Gianforte signed a bill that allowed for hemp and hemp derivatives to be included in food for pets, horses and livestock. Pennsylvania was looking to enact a similar law, based on Montana’s, though the state’s Department of Agriculture points to a similar concern of Hochul’s, that an ingredient must be Generally Recognized as Safe by the FDA or listed as a”recognized feed ingredient” before it can be sold or distributed as part of animal feed.

“Protecting industrial hemp production in New York will encourage greater production and research into the myriad uses of this plant, including as a renewable building material,” the text reads. “It will also open the door for small, New York-based animal food processors to establish this marketplace before hemp seeds are authorized for use in commercial feed nationally.”

A fiscal note also claims that the legislation could have also led to increased tax revenue for the state due to “increased sales of New York hemp seed product and commercial feed.”

In Hochul’s push for further research, it bears mentioning that some existing studies provide further context on the topic, perhaps prompting more questions.

One German study from last year found that dairy cows fed industrial hemp produced detectable levels of delta-9 THC and other cannabinoids. Co-author Robert Pieper said that cows given the hemp feed also ate less and produced less milk, calling it a “strong” effect on animal health, “not a positive effect.”

However, another 2023 study from the U.S. Department of Agriculture found that cattle who were fed hempseed cake retained very low concentrations of THC and CBD in their bodies, indicating that meat products from hemp-fed cattle are safe for humans to consume.

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The New York Office of Cannabis Management (OCM) published a two-page report entitled “Cannabis and Fentanyl: Facts and Unknowns” to demystify the facts and myths of the two substances, specifically that of fentanyl contaminating cannabis.

“The goal of this fact sheet is to provide evidence where it is available, to share information about what is currently known and unknown, and to provide safety tips to help alleviate some of these misconceptions, often spread through misinformed media coverage and anecdotal reporting,” the report stated.

The report includes multiple key findings. First, that misinformation connected to “cannabis ‘contaminated’ with fentanyl are widespread.” In response to this, and the reason the report was created in the first place, is to disprove and combat that misinformation, stating that “Anecdotal reports of fentanyl ‘contaminated’ cannabis continue to be found to be false, as of the date of this publication.”

The OCM also added that due to the stigma that opioid consumers experience in health care settings, they develop mistrust that leads to inaccurate self-reporting, as well as choosing not to admit opioid use. To take action and protect the public, the OCM found that promoting overdose prevention with “evidence-based interventions” also reduces stigma.

The OCM stated that there are not yet any reliable methods of testing fentanyl on cannabis flower. While fentanyl test strips are used frequently to test if fentanyl is on other substances, they are only designed for substances that are water soluble. Most commonly, those strips are used with powders or pills to detect fentanyl. While it hasn’t been found in cannabis, it can be found in substances such as “heroin, cocaine, methamphetamine, MDMA, and pressed pills.”

Described in a text block called “What We Know,” the OCM stated that to date, no one has died because of cannabis contaminated with fentanyl. “Warnings related to fentanyl ‘contamination’ in cannabis have increased as states continue to legalize cannabis,” the OCM wrote. “At this time, there have been zero verified incidents of fentanyl ‘contamination’ in cannabis. There is no guarantee that any unregulated cannabis product is free from contaminants or harmful ingredients.”

The OCM warns that there are many unknowns about the possibility of fentanyl “contaminated” cannabis. “Cannabis products made available in the unregulated market may contain unknown or undisclosed contaminants and have inaccurate labeling. Reliable testing protocols for the presence of fentanyl on cannabis flower remain unknown,” the OCM wrote.

However, the past has shown that cannabis has been found with unregulated substances in the past, such as K-2, otherwise known as spice, that is advertised as a cannabis product.

The agency concludes the report by recommending buying legal cannabis products to ensure that your product is tested in a lab and does not contain any harmful contaminants.

Rumors of fentanyl in cannabis have been perpetuated through law enforcement and also expanded into the arguments of legislators and political leaders.

In December 2021, a Vermont-based police department told the media about an incident with a patient who consumed cannabis that tested positive for fentanyl, claiming that they revived the individual with CPR and multiple doses of Narcan. However, they later released a statement walking back the claims about a positive fentanyl test. “The seized marijuana in both incidents was submitted to a forensic laboratory where testing was conducted,” said the department. “[Brattleboro Police Department] was notified no fentanyl was found in the marijuana in either case.”

High Times spoke with Peter Grinspoon, M.D., a medical cannabis specialist from Massachusetts General Hospital and also Harvard Medical School instructor, about the dangers of such claims. “It creates fear,” Dr. Grinspoon said in 2021. “Whenever there’s information about drugs—particularly cannabis—which is incredible, it makes it much harder for public health officials to get information that is credible out there. It’s like The Boy Who Cried Wolf—so it’s like the D.A.R.E. program. They said that cannabis does this, this, this and this, and teenagers didn’t believe it because it was against their lived experience. It sort of disqualified their other messages about drugs which are actually more dangerous—like heroin or alcohol. It just discredits the ‘official’ sources of information.” 

However, that misinformation continues to be spread. In August 2023, Florida Gov. Ron DeSantis attended Never Back Down Super PAC in Iowa, where he stated that he would not legalize cannabis if he was elected president. “Yeah, I would not legalize,” said DeSantis. “I think what’s happened is this stuff is very potent now. I think it’s a real, real problem and I think it’s a lot different than stuff that people were using 30 or 40 years ago. And I think when kids get on that, I think it causes a lot of problems. And then, of course, you know, they can throw fentanyl in any of this stuff now.”

In August, 517,500 fentanyl pills (about 115 pounds) disguised as “M30” oxycodone were seized by the San Bernardino Sheriff’s Office within the span of just one week. In 2021, San Bernardino County saw 354 people die because of fentanyl overdose.

A report from the National Center for Health Statistics shows that in 2021, more than 106,000 people died of overdose deaths, and 70,601 of those people died because of overdoses related to synthetic opioids other than methadone (which includes fentanyl). The 32,537 remaining deaths were attributed to stimulants such as cocaine and psychostimulants with potential for abuse, such as methamphetamine.

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