Advocates held a rally on Tuesday, following last week’s revelations by The City’s Rosalind Adams showing the plan to finance New York’s cannabis industry moved forward despite the major concerns of numerous people involved in the process of implementing the state’s recreational cannabis program.

The Juneteenth Eve rally included elected officials, social justice advocates, and people impacted personally by New York’s longtime war on cannabis. They hoped to protect the progressive aspects of New York’s legalization law, prevent corporate control and increase the weight of community voices moving forward.

Chief among those advocates’ concerns across the 500 emails obtained by The City got access to was the fact that the deal sucked. The things that immediately raised eyebrows included steep costs and unreasonable repayment timelines. Most importantly these concerns were raised with the Governor Kathy Hochul as her office pushed to make her previous promises on funding the cannabis program a reality. 

“The social equity component of the MRTA is absolutely essential for our communities in Brooklyn and Queens,” said Senator Julia Salazar. “MRTA implementation is a chance to address the harm that too many New Yorkers have experienced due to many years of criminalization. But the encroachment of big cannabis corporations in New York’s market poses a threat to the MRTA’s success, especially for small, legal cannabis businesses. For the good intent of the MRTA to become reality for more communities of color and justice-impacted New Yorkers, we need Governor Hochul to allow the Cannabis Control Board to function as an independent body, and for the Office of Cannabis Management to be empowered to continue to implement the MRTA equitably.”

Salazar hit the nail on the heart in terms of who should be taking the lead. The concerns from New York’s Office of Cannabis Management about the funding deal were ignored. Following the struggle for New York to provide true access statewide, the OCM was thrown under the bus for the state’s failure despite raising numerous red flags they found and raised about the Chicago Atlantic Group deal. The City noted an OCM financial analyst used all caps to note how BAD it was. 

The Drug Policy Alliance calls New York City home and has been at the forefront of the work to get New York legal over the years. Executive Director Kassandra Frederique offered a scathing critique as news first got out about Hochuls’s administration moving ahead with a predatory lender that exploited Black and Brown cannabis licencees while keeping lawmakers in the dark. 

Frederique called the Hochul administration’s mishandling of the legal marijuana rollout deeply concerning, and strikingly echoed the Governor’s congestion pricing reversal. 

“In both instances, she bypassed the Legislature’s will and rejected agency expertise to enact sweeping changes without a concrete plan,” Frederique said, “It’s now clear that her administration knew of DASNY’s failures to build retail space and ignored repeated warnings from the Office of Cannabis Management about predatory loans harming mostly Black and Brown licensees. Instead of addressing these issues, the Hochul administration agreed to unfavorable loan terms with a disreputable creditor and then scapegoated the former OCM leader for the rollout’s failures.

Frederique went on to note how devastating this was to the communities of color most decimated by disproportional enforcement of the state’s cannabis laws in their neighborhoods. 

“What Governor Hochul calls social equity has only made cannabis licensees more vulnerable to exploitation,” Frederique said, “Our communities deserve better—real equity, real opportunities, and an administration that follows the law’s intent. The Governor must present a clear plan for delivering the next phase of our justice-centered cannabis framework in accordance with the law.”

Shaleen Title has spent the last two decades pushing for an equitable cannabis industry. She is founder and director of the drug policy think tank Parabola Center, which creates model policies to protect people rather than corporate profits. She currently serves as Distinguished Cannabis Policy Practitioner in Residence at The Ohio State University Moritz College of Law’s Drug Enforcement and Policy Center and as vice-chair of the Cannabis Regulators of Color Coalition. It’s tough to find a voice that carries more weight on the regulatory side when it comes to discussing Social Equity in cannabis. 

We asked Title her thoughts on what was happening in New York. She said DPA offered a great statement on the subject already but offered some further reading.

“The governor’s narrative that the Office of Cannabis Management was “inexperienced” deserves further examination,” Title said, “The new evidence shows that the governor’s office ignored OCM’s warnings and moved ahead with a failed initiative and then used the OCM and its leadership as a scapegoat.”

Title closed pointing to the positive aspects of what is happening in New York despite the hiccups. 

“Any fair evaluation of New York’s rollout comparing its metrics against its own goals, and metrics in other states, demonstrates that New York leads the nation in terms of racial equity and cannabis — not surprising, given that its staff has been led by some of the country’s top experts on cannabis and equity, data, civil rights law, and antitrust law,” Title said, 

Ahead of the rally outside of Hochul’s office, DPA noted other positives from New York’s rollout being overshadowed in the controversy of the moment. Those include things like 95% of New York’s cannabis retail market is small businesses. But more importantly, New York has nearly tripled the number of Black-owned retail dispensaries nationwide in just 15 months.

“The Governor can change the players, but for NY activists who know that this is a marathon for equity and not a sprint, the game doesn’t change. We will continue to hold her accountable to the letter of the most equitable cannabis law in the country. This means that fifty percent of the market must be comprised of social equity outcomes including those from communities disproportionately impacted by cannabis prohibition. We will not stop advocating for the state budget and support that it will take for NY to get there, despite the machine, including MSOs, that we are up against,” said Annette Fernandez, Managing Partner, High Exposure Agency; Founder, La Casa Lola; and Provisional Retail License Applicant.

The post NY Advocates Rally After Governor Ignores Recommendations from State’s Own Experts first appeared on High Times.

The post NY Advocates Rally After Governor Ignores Recommendations from State’s Own Experts appeared first on Paradise Found.

In an announcement last week, Governor Kathy Hochul announced that the state of New York reached a significant milestone: the grand opening of the state’s 100th Conditional Adult-Use Retail Dispensary (CAURD) brick-and-mortar store. 

Big Gas is located in the village of New Paltz, located near Poughkeepsie. The Office of Cannabis Management (OCM) and a handful of state leaders joined Big Gas owners, Kareem Haynesworth and Zymia Lewis for the grand opening of the store for public sales. “Big Gas is proud to be the first licensed cannabis dispensary in the City of New Paltz,” Big Gas Owners Zymia Lewis and Kareem Haynsworth said. “We are here with the support of the New York State Cannabis Investment Fund, who led us to this great location. This is beyond our wildest dreams.”

“We are pleased to be a host community in NYS’s Conditional Adult Use Retail Dispensary program,” said Village of New Paltz Mayor Tim Roger. “This initiative has allowed the state to 1) invest in a private fund to support individuals impacted by the inequitable enforcement of cannabis law and 2) protect public safety with NYS-sourced, regulated, and tested cannabis.”

Hochul applauded this historic milestone for New York’s cannabis industry.

“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,” Governor Hochul said. “Today marks a historic milestone in establishing a thriving and equitable industry in our state with the 100th brick-and-mortar store opening.”

New York officials licensed 110 adult-use cannabis retailers including storefronts and temporary delivery-only (TDO) locations across the state, with more anticipated to open soon. It’s a mix of CAURD licensees with storefronts, CAURD licensees providing delivery services, and adult-use dispensaries co-located with existing medical dispensaries. 

New York industry is taking off, reflected by the rapidly growing number of retailers and sales, with total sales exceeding $237 million, $77 million of which was generated in the first two and a half months of 2024. It’s all the signs of a thriving market. The rollout of New York’s cannabis program, however, was hammered by delays caused by lawsuits and the prevalence of illegal cannabis retailers. One such delay was a lawsuit led by Leafly that challenged New York’s ban on third party advertisers for cannabis businesses.

New York places emphasis on social equity measures to ensure that the state’s industry includes communities impacted the most by the criminalization of cannabis.

Despite setbacks, state leaders have been optimistic. Within its first year of operation, New York achieved and surpassed the Social and Economic Equity (SEE) goal laid out in the adult-use law with 60% of licenses given to social and economic equity applicants. Forty percent of social equity licenses are minority-owned businesses and 40% are women-owned businesses, respectively.

The governor’s announcement stated that this also almost doubled the percentage of majority minority-owned cannabis retailers nationwide. As of April 2024, 37% of New York’s adult-use retailers are majority minority-owned as only 19% are majority minority-owned nationwide. 

In addition, 11% of New York’s adult-use retailers were majority Black-owned, while nationally, that number is at just 2%. Approximately 50% of New York’s open dispensaries are minority- and/or women-owned businesses.

Office of Cannabis Management Executive Director Chris Alexander said, “We are incredibly proud of our licensees across New York State who have worked diligently to cross this threshold. Today’s celebration at Big Gas belongs not only to the team who opened their doors to business to eager customers today, but to every single licensee who is building this market from seed to sale. It echoes our commitment to catalyzing growth, fostering diversity, and championing equity within the cannabis sector. This milestone embodies our tireless endeavors to reshape the industry landscape and underscores our resolve to push the boundaries of progress. Supported by the New York Cannabis Social Equity Investment Fund, we take pride in our progress and pledge to persist in our pursuit of inclusivity and advancement of New York’s Cannabis Market.”

“We take great pride in being able to support individuals who have been affected by unjust enforcement of cannabis laws and help them thrive in this emerging industry,” said Social Equity Impact Ventures LLC General Principal of the Fund’s General Partner Lavetta Willis. “Access levels the playing field. We are thrilled for Zymia Lewis and Kareem Haynesworth and wish them great success. We express our heartfelt gratitude to Governor Hochul for leading the way and paving the path to a socially equitable sector that promotes inclusivity and equal opportunities for all.”

Hundreds more retail operations dot the state as licensed businesses compete with the black market.

The post Gov. Kathy Hochul Honors New York’s 100th Adult-Use Retail Store Opening appeared first on High Times.

The post Gov. Kathy Hochul Honors New York’s 100th Adult-Use Retail Store Opening appeared first on Paradise Found.

New York Governor Kathy Hochul announced on Monday that her administration will conduct an assessment of the state’s rollout of legal recreational marijuana, saying that the review is needed to ensure the success of the regulated cannabis market. 

New York lawmakers passed legislation legalizing recreational pot nearly three years ago, but the rollout of regulated sales has been plagued by lawsuits and other delays. More than a year after the first licensed recreational pot shop opened in December 2022, only 70 retailers selling adult-use cannabis have been licensed statewide. The figure includes Conditional Adult-Use Retail Dispensary (CAURD) storefronts and CAURD delivery-only services, licenses that were reserved for applicants with past cannabis convictions, as well as previously existing medical marijuana dispensaries that have been co-licensed to sell recreational weed.

In the meantime, the shortage of licensed retailers coupled with the end of criminal penalties for cannabis possession has led to an explosion of unlicensed pot shops, particularly in New York City. An estimated 36,000 unlicensed retailers have opened statewide, according to a recent report, including approximately 1,500 in the Big Apple alone. Critics of New York’s regulated cannabis rollout say the situation threatens the viability of the legal industry.

Earlier this year, the Democratic governor characterized the rollout of legal cannabis as a “disaster,” saying that it was unlikely that the program could be improved without significant changes to the Marihuana Regulation and Taxation Act (MRTA), the 2021 law that legalized recreational marijuana in New York. Hochul made the comments as she responded to questions about the rollout from the editorial board of the Buffalo News, noting that some areas of New York City have multiple unlicensed weed shops on the same block.

“It’s not every street corner,” Hochul said in January. “It is every other storefront. It is insane.”

Governor Announces Review

On Monday, Hochul said that her administration would complete an assessment of the rollout to identify opportunities to improve the program and ensure its success. The review will be led by Commissioner for the Office of General Services Jeanette Moy, who along with a team of state government leaders will embed with the New York Office of Cannabis Management (OCM) for at least 30 days.

“Today, we take the first step in revamping New York’s legal cannabis industry to ensure its long-term success,” Hochul said in a statement on Monday. “I have full confidence in Commissioner Moy’s ability to identify areas that need improvement, establish standards and processes across agencies, and jumpstart the next phase of New York’s legal cannabis market.”

Lauren Rudick, an attorney who has helped clients submit more than 100 applications for cannabis business licenses, said she appreciates Hochul’s announced review. She added that she hopes the assessment will foster a more transparent process for submitting applications and addressing problems that might come up as applications are reviewed.

“We want to have a system that is repeatable and predictable, so that when someone comes to us for licensing, we can give them a sense as to what they can expect,” Rudick told the New York Times. “But as of right now, it’s ‘be flexible and pivot or die,’ because we just never know what the state is going to throw at us.”

The assessment of New York’s cannabis rollout will include a complete review of the organizational structure, systems and process at the OCM. The review will focus on improving the time it takes to process an application and reducing the application-to-opening timeframe for new cannabis businesses.

Moy’s team has also been tasked with developing key performance metrics and an executive-level licensing dashboard to give policymakers a comprehensive view of the state’s licensing activity. The review will also include efforts to identify and implement policy changes that will streamline the application and licensing process and the development of three-month and six-month plans to continue improving the performance of cannabis regulators.

Cannabis Industry Welcomes Review

Hochul’s review of New York’s rollout of regulated recreational weed is also being welcomed by business operators who have already gone through the licensing process. New Yorker Christopher Louie moved to Colorado to start the brand Made in Xiaolin in 2018. He recently returned to the Empire State to launch the brand there, but says the “rollout of regulated cannabis in New York was a bit fumbled.”

“It is clear that regulators tried to be quick with the rollout, and it has posed some interesting challenges,” Louie wrote in an email to High Times. “For example, the wholesale market is not favorable for our brand right now, and we’re being forced to lower margins on both sides. Additionally, the way the illicit market and the legal market are currently coexisting is eerily reminiscent of the California market – which is not something anyone wants to duplicate. We are hopeful for the future, though, and continue to see small strides toward a more successful legal market that we are proud to be a part of.”

Sasha Nutgent, director of retail at Housing Works Cannabis Co, the first licensed recreational cannabis dispensary to open in the state, said that the review is “absolutely necessary.”

“The rollout of licenses has been extremely slow and is negatively impacting the livelihoods of hundreds of applicants across the State,” Nutgent wrote in an email. “There have been numerous missed opportunities in the legal adult-use cannabis industry, and hopefully Hochul’s move will help to rectify them.”

The post New York Governor Begins Review of Weed Legalization Rollout appeared first on High Times.

The post New York Governor Begins Review of Weed Legalization Rollout appeared first on Paradise Found.

New York Governor Kathy Hochul on Wednesday called on social media companies and popular websites including Google and Yelp to stop running listings for unlicensed cannabis retailers. At a press conference, the governor appeared with licensed dispensary owners, who face stiff competition from the multitude of unlicensed weed retailers in New York City, to call attention to the situation.

“If you type in ‘cannabis dispensaries’ in Google Maps or Yelp, you’ll get a long list of unlicensed illegal vendors,” Hochul said at the press conference on Wednesday.

New York legalized recreational marijuana in 2021, with the state’s first licensed adult-use cannabis retailer opening in the waning days of 2022. But the pace of opening licensed pot retailers in New York has been slow, with regulators citing the complexity of the application and approval process and difficulties securing and renovating appropriate storefronts as some of the causes for the delay. To date, less than 70 licensed weed shops have opened statewide.

The pace of opening newly licensed shops was also hindered by several court cases challenging the state’s process for awarding the first licenses for pot retailers, which were reserved for individuals with prior convictions for marijuana-related offenses. Several injunctions have stalled the awarding of new licenses, although recent settlements have resulted in the opening of 50 additional licensed weed retailers since December, including at least 30 new shops this week.

Efforts To Shutter Unlicensed Weed Shops Unsuccessful

Meanwhile, the number of unlicensed retailers in New York, particularly the Big Apple, has exploded. Estimates by city officials place the number of unlicensed pot shops in New York City at at least 1,300, perhaps as many as 2,000. There are more than 400 such retailers in Manhattan alone, according to a report from The New York Times.

At the press conference on Wednesday, Hochul said that unlicensed shops are a public health risk and a threat to the state’s efforts to create opportunities in the regulated cannabis industry for those harmed by decades of marijuana prohibition. The governor also acknowledged that efforts to close down the unlicensed shops with raids and fines have been too limited and so far have been unsuccessful.

“More and more cash keeps going in their doors and not the doors of our legitimate operators — and that’s what needs to change,” Hochul said.

Hochul has a proposal pending before state lawmakers that would make it easier for the state Office of Cannabis Management to obtain orders to padlock unlicensed cannabis businesses. The orders would also be enforceable by local agencies with more personnel available to execute them. 

While the proliferation of unlicensed pot retailers in New York continues, Hochul on Wednesday asked social media and tech companies “to not be posting the sites that are illegal and ensure that they’re posting the legal shops.”

The sheer number of unlicensed cannabis shops appearing on websites and social media makes reaching new customers difficult for licensed operators, who face restrictions on how they can promote their businesses. Osbert Orduña has two licensed cannabis shops, one in the New York City borough of Queens and the other in New Jersey. 

Orduña said that Google Maps has repeatedly removed listings for his shops. He has not run into any trouble with Yelp, although he said he agrees with Hochul and would like to see the website delist unlicensed retailers.

“Four times, Google has taken us down off of their platform for ‘violating their terms of service.’ We’ve done nothing other than have our store hours and our basic business information listed,” he said.

Tech Companies React

In a statement, consumer reviews website Yelp said that “consumers have a First Amendment right to read and write about all businesses, even if unlicensed,” according to a report from the Associated Press.

“Allowing users to contribute and see information … about unlicensed businesses serves the public interest and provides a resource for regulators to determine whether any particular business has appropriate licenses,” the statement read.

Meta, the owner of Facebook and Instagram, has previously said in a statement that its social media sites “prohibit content in both ads and organic pages that promotes the buying and selling of drugs including marijuana,” ABC 7 New York reported on Wednesday.

Google also responded to Hochul’s call to eliminate listings for unlicensed cannabis retailers, saying the company bans weed ads in New York and would remove listings for unlicensed shops once they have been closed by regulators.

“If we can confirm that a business has closed for any reason – including license issues – we’ll reflect that it’s closed in the listing,” the statement reads. “We also prohibit cannabis ads in New York and remove them upon detection, often before they ever run.”

The post New York Governor Calls On Websites To Stop Promoting Unlicensed Weed Shops appeared first on High Times.

The post New York Governor Calls On Websites To Stop Promoting Unlicensed Weed Shops appeared first on Paradise Found.

A judge’s order forcing a temporary pause on the issuing of cannabis dispensary licenses in New York was extended for two weeks on Friday as business owners impacted by the injunction rallied outside an Ulster County courthouse to plead their case. Supreme Court Justice Kevin Bryant withheld a ruling at a hearing in a legal challenge to New York’s cannabis dispensary regulations brought by a group of military veterans, setting a new hearing in the case for August 25. 

Bryant’s ruling keeps in place a temporary injunction issued last week barring the New York Office of Cannabis Management (OCM) from issuing new Conditional Adult-Use Retail Dispensary (CAURD) licenses or further processing approved licenses, preventing licensees from getting their businesses up and running.

Lawsuit Filed By Veterans

The lawsuit was filed earlier this month by four veterans who have served a combined total of more than two decades in various branches of the U.S. military. The vets argue that restricting retail licenses to those with cannabis convictions violates the state Constitution and was not approved by the legislature when it legalized adult-use cannabis two years ago.

The Marijuana Regulation and Taxation Act, the 2021 law that legalized recreational marijuana in New York, includes provisions that set a goal of awarding at least half of the state’s recreational marijuana dispensaries to social and economic equity applicants. Under a program launched by New York Governor Kathy Hochul last year, the state’s first CAURD licenses for retail cannabis shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.” 

To be eligible for a CAURD license, applicants must either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly or currently incarcerated individuals were also eligible to apply for a CAURD license. So far, the Office of Cannabis Management (OCM), the state’s cannabis regulatory agency, has issued 463 CAURD licenses, although less than two dozen dispensaries have opened statewide.

Brian Burns, an attorney representing the four plaintiffs, said at Friday’s hearing that his clients have been denied the CAURD program’s benefits for early licensees, including access to strictly regulated retail locations.

“That pushes this from being late to the party to potentially exiled from the process,” Burns told the Democrat Chronicle.

“I don’t think you can quantify how being subjected to an unconstitutional program impacts a person,” Burns said when asked by reporters to detail the potential harm done to the veterans caused by the CAURD program.

At Friday’s hearing, Bryant also set a deadline of 5:00 p.m. Tuesday for litigants to file revised arguments in the case. It is possible the judge could make a ruling based on those filings, according to media reports, but Bryant’s decision is more likely to come at the hearing scheduled for August 25.

Licensees Rally Against Lawsuit

Outside the courtroom in Kingston, New York, a group of cannabis business owners rallied to describe how the injunction is impacting their businesses and to encourage Bryant to dismiss the lawsuit. Many noted that a delay in opening additional licensed retailers will prolong the influence unlicensed operators have on New York’s recreational cannabis market.

Coss Marte, CEO of CONBUD, a CAURD-licensed business with a mission to hire previously incarcerated individuals, joined with three other licensees to file a motion at Friday’s hearing to give impacted entrepreneurs a voice in the proceedings. He notes that only three years ago, before the legalization of cannabis, Black and Latino New Yorkers made up 94% of New York City’s drug arrests, usually for simple possession.

“We’ve paid our dues. We’ve done the time, and if there’s one thing we hope for the world and the court to know, it’s that like cannabis, we’re here for good and we are here to stay,” Marte said in a statement to High Times. 

“We had the opportunity to be heard and to fight on behalf of all of our fellow CAURD licensees who will experience irreparable harm if they’re barred from operating their businesses, and we are confident and hopeful that the court wants a swift resolution that honors the original promises made to justice-impacted license holders,” he added.

CAURD Licensee Josh Canfield said that Bryant’s order is forcing business owners who were only days away from opening to delay their plans. In the meantime, a settlement in the case could put things back on track.

“The judge extended the temporary [injunction] that suspends all CAURD operations that are not operational at this time including the ones that were slated to open as soon as next week,” Canfield wrote in an email to High Times. “The judge has urged all parties to try and work together to come up with a solution that is fair to each side, and to do that by the next time they convene in court.” 

The post New York Weed License Pause Extended Two Weeks as Shop Owners Protest appeared first on High Times.

The post New York Weed License Pause Extended Two Weeks as Shop Owners Protest appeared first on Paradise Found.

A New York judge on Monday issued a temporary injunction barring state cannabis regulators from issuing licenses for retail marijuana dispensaries in response to a lawsuit challenging the rules for obtaining the lucrative permits. A group of military veterans filed the lawsuit last week, arguing that the state’s rules limiting the first Conditional Use Retail Dispensary (CAURD) licenses to those with previous marijuana convictions violates state law and New York’s Constitution.

The lawsuit was filed by four veterans who have served a combined total of more than two decades in various branches of the U.S. military. The vets argue that restricting retail licenses to those with cannabis convictions violates the state Constitution and was not approved by the legislature when it legalized adult-use cannabis two years ago.

The Marijuana Regulation and Taxation Act, the 2021 law that legalized recreational marijuana in New York, includes provisions that set a goal of awarding at least half of the state’s recreational marijuana dispensaries to social and economic equity applicants. Under a program launched by New York Governor Kathy Hochul last year, the state’s first CAURD licenses for retail cannabis shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.” 

To be eligible for a CAURD license, applicants are required to either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly or currently incarcerated individuals were also eligible to apply for a CAURD license. So far, the Office of Cannabis Management (OCM), the state’s cannabis regulatory agency, has issued 463 CAURD licenses, although less than two dozen dispensaries have opened statewide.

Matt Morey, an attorney and legal analyst, says that the MRTA established service-disabled veterans as a sub-class of social and economic equity applicants who could be given priority in cannabis licensing. But so far, the OCM has only approved applications from justice-involved individuals.

“The statute specifically included those individuals as individuals that would be prioritized with respect to applying for and gaining approval of an adult use retail license,” Morey told Spectrum News.

The veterans who filed the lawsuit last week argue that the state’s implementation of the CAURD program unfairly and improperly excludes other potential social and economic equity applicants, including disabled veterans and members of minority groups.

“Individuals like service-disabled veterans, who are also social equity applicants, who should be prioritized under the MRTA – the Marijuana Regulation and Taxation Act – the plaintiffs are arguing that they’ve been harmed by being left out of this first mover’s advantage,” said Fatima Afia, an attorney with Rudick Law Group.

William Norgard, a U.S. Army veteran and one of the plaintiffs in the case, said that New York’s implementation of MRTA puts him and other veterans in the unusual position of challenging the government.

“It’s out of character for a veteran to sue the state to uphold a law,” Norgard said in a statement when the lawsuit was filed. “We take oaths to defend the laws of our nation, and trust — maybe naively — that government officials will faithfully and legally execute those laws. What the Office of Cannabis Management is doing right now is in complete breach of that trust. As veterans, we know that someone has to hold the line.”

Order Bars OCM From Issuing New Licenses

The judge’s temporary restraining order bars the OCM from issuing or processing additional licenses for marijuana retailers until the court rules otherwise. When asked for comment after the lawsuit was filed, an OCM spokesperson said the agency does not comment on pending litigation. Later, the agency said it had received the injunction and would comply with the judge’s ruling.

“The Office of Cannabis Management (OCM) is aware of the Court’s Order and is adhering to its requirements,” the agency wrote in a statement on Tuesday. “We are actively communicating with CAURD applicants and provisionally approved licensees to inform them of the impact of the Court’s order on OCM operations.”

State Senator Jeremy Cooney, the chair of the New York State Senate Subcommittee on Cannabis, released a statement on Monday evening in response to the judge’s temporary injunction.

“I am deeply disappointed in today’s court decision, which temporarily stops the awarding of conditional cannabis retail licenses in New York State,” said Cooney. “It is no secret that New York’s adult-use cannabis roll-out has been slower than expected, and now is not the time to stand in the way of progress made. We must focus on awarding non-conditional licenses, which will prioritize social equity candidates and allow more businesses to open.”

The judge’s restraining order will cause further delay in the rollout of New York’s regulated marijuana industry, which is already facing steep challenges and an entrenched illicit cannabis market.

“This is going to drag things out even further,” Morey said. “This has not been a smooth rollout by any means with respect to these programs.”

Morey said that the dispensary licenses already issued face no immediate jeopardy from the judge’s ruling. But if the regulations governing licensing are ruled invalid, the fate of current licensees could be uncertain.

“If the creation of the entire CAURD program is deemed to be unconstitutional, then that would then raise the question as to whether or not previously issued licenses are in fact invalid at this point under the program, and that remains to be seen,” he said.

The post New York Judge Pauses Cannabis Dispensary Licensing appeared first on High Times.

The post New York Judge Pauses Cannabis Dispensary Licensing appeared first on Paradise Found.

A group of four military veterans last week filed suit against New York’s Office of Cannabis Management (OCM), claiming that the agency’s rules that prioritize applicants with prior marijuana convictions for cannabis dispensary licenses violate the state’s 2021 marijuana legalization statute. In a complaint filed in the New York State Supreme Court, the four plaintiffs argue that state regulators failed to follow the Marijuana Regulation and Taxation Act (MRTA) when it did not issue cannabis retail licenses to disabled veterans and members of other minority groups. The lawsuit seeks a temporary restraining order barring the state from issuing further licenses under the Conditional Adult-Use Retail Dispensary (CAURD) program, which have been reserved for applicants with a marijuana-related criminal conviction.

The MRTA included provisions that set a goal of awarding at least half of the state’s recreational marijuana dispensaries to social and economic equity applicants. Under an initiative spearheaded by New York Governor Kathy Hochul last year, the state’s first licenses for retail cannabis shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.” 

To be eligible for a CAURD license, applicants are required to either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly incarcerated or currently incarcerated individuals were eligible to apply for a CAURD license. So far, the OCM has issued 463 CAURD licenses, although less than two dozen dispensaries have opened across the state so far.

“The MRTA had already established a goal to award 50% of all adult-use licenses to social and economic equity applicants. But instead of following the law, OCM and CCB created their own version of ‘social equity’ and determined for themselves which individuals would get priority to enter New York’s nascent adult-use cannabis market,” reads a statement on behalf of the veterans bringing the legal action.

Lawsuit Argues OCM Rules Unconstitutional

The lawsuit was filed by four U.S. veterans who have served a combined more than two decades in various branches of the military. They argue that restricting retail licenses to those with cannabis convictions was not approved by the legislature and violates the state Constitution.

“It’s out of character for a veteran to sue the state to uphold a law,” William Norgard, one of the plaintiffs in the case and a U.S. Army veteran, said in a statement quoted by the Olean Times Herald. “We take oaths to defend the laws of our nation, and trust — maybe naively — that government officials will faithfully and legally execute those laws. What the Office of Cannabis Management is doing right now is in complete breach of that trust. As veterans, we know that someone has to hold the line.”

“Service-disabled veterans are the only social equity group in the law not born into priority status, but a group to which anyone could belong,” said Carmine Fiore, who served eight years in the U.S. Army and New York Army National Guard and is also one of the four plaintiffs in the case. “We are also the only priority group in the (law) that achieved its status by helping communities.” 

“It feels like we were used to get a law passed — a good law, one that helps a lot of people, as well as the state,” Fiore added. “Then, once it was passed, we were cast aside for another agenda.”

The other plaintiffs are Steve Mejia and Dominic Spaccio, who both served six years in the U.S. Air Force.

Lucas McCann, co-founder and chief scientific officer at cannabis compliance consulting firm CannDelta Inc., notes that there is no mention of the CAURD program in the MRTA. When the program was created, the definition of social equity was defined to exclusively include those with previous cannabis-related convictions and previous business experience. But a broader definition of social equity may be appropriate, and future rounds of licensing could include members of other groups, McCann says.

“The grievances brought forward by the four military veterans highlight another facet of the ‘social equity’ conversation that cannot be ignored. Veterans, particularly disabled ones, face their own set of challenges and hurdles,” he wrote in an email. “Their dedicated service to the nation warrants recognition and inclusion in the emerging industry, especially when considering the potential therapeutic benefits of cannabis for a myriad of health issues commonly faced by veterans.”

Michelle Bodian, a partner at the leading cannabis and psychedelics law firm Vicente LLP, said that is too early to determine how the lawsuit will affect the continuing rollout of New York’s regulated marijuana industry. 

“There is always a chance the lawsuit will succeed, and the CAURD program will be halted; however, it’s equally as likely the state will settle with the plaintiffs and award them a license,” Bodian said in a statement to High Times. “As the TRO hearing is scheduled for later this week, we should know in short order whether the CAURD program is frozen in place or whether new provisional or final licenses can be awarded.”

When asked about the legal action, an OCM spokesperson told local media outlets that the agency does not comment on pending litigation.

The post Military Veterans File Suit Against New York’s Cannabis Licensing Rules appeared first on High Times.

The post Military Veterans File Suit Against New York’s Cannabis Licensing Rules appeared first on Paradise Found.

New York cannabis regulators this week approved more than 200 additional retail dispensary licenses and adopted new rules that will allow cannabis growers to sell directly to consumers at farmers markets. Characterizing the moves as “bold actions to swiftly grow the state’s legal cannabis market,” the New York State Cannabis Control Board (CCB) and the Office of Cannabis Management (OCM) announced the developments on Wednesday in a bid to shore up the state’s licensed marijuana operators.

At a meeting on July 19, the board approved 212 additional Conditional Adult Retail Dispensary (CAURD) licenses, bringing the total number issued to 463. Under an initiative spearheaded by New York Governor Kathy Hochul, the state’s first licenses for retail weed shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.”

“The provisional approval of today’s 212 CAURD licenses by the Cannabis Control Board marks a momentous leap forward in our pursuit of an inclusive and fair cannabis industry,” Cannabis Control Board chair Tremaine Wright said in a statement from the OCM on Wednesday. “These licensees are demonstrative of the innovation and diversity of New York state.”

The board noted that it will continue to review additional CAURD license applications for consideration on a rolling basis. To be eligible for a CAURD license, applicants were required to either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly incarcerated or currently incarcerated individuals were eligible to apply for a CAURD license.

Although nearly 500 CAURD licenses have now been issued, only 20 retail dispensaries have opened and begun serving customers. The first shop opened in the closing days of 2022, fulfilling Hochul’s promise to launch the regulated cannabis market before the end of the year. But since then, only 19 more dispensaries have opened, the most recent on Tuesday in Buffalo.

Board Approves Cannabis Farmers Markets

The slow rollout of retail dispensaries has left New York’s cannabis growers with a glut of regulated cannabis while allowing the illicit market to flourish. In a bid to prop up the licensed cultivators, on Wednesday the CCB also approved new rules to allow for farmers markets known as Cannabis Grower Showcases (CGS). Under the initiative, growers will be permitted to partner with conditional adult-use retailers and processors to organize events for showcasing New York brands and selling adult-use cannabis products to consumers.

Damian Fagon, the OCM’s chief equity officer, said that his experience as a former New York hemp farmer has given him a firsthand look at “how devastating it can be when a hard-fought harvest struggles to get to market.” 

“The Cannabis Growers Showcase was informed by those lived experiences, as well as by many difficult conversations with our growers and processors who justifiably wanted more avenues to share their products with New Yorkers,” said Fagon. “This initiative will not only increase sales and retail access throughout the state, but it will also connect New York consumers directly with local cannabis farmers and homegrown brands.”

Under the initiative, each CGS event will feature a minimum of three licensed cultivators partnering with a licensed adult-use dispensary to sell regulated cannabis products to consumers. CGS events will only be allowed in cities and towns that allow for retail cannabis sales and must have a predominantly adult population. Only New Yorkers aged 21 and over will be permitted to purchase cannabis and cannabis products. 

Additionally, one processor will also be able to sell cannabis products such as edibles, beverages and vape cartridges for every three cultivators. To ensure compliance and adherence to regulations, CGS participants are required to obtain municipal approval unless the event is held at a licensed retail dispensary where cannabis sales typically occur.

Michelle Bodian, a partner at the leading cannabis and psychedelic law firm Vicente LLP, welcomed the new licenses and rules to allow for cannabis farmers markets. But she is unsure if the moves will be sufficient to secure the success of New York’s regulated cannabis market. 

“More licenses and more sales opportunities are great ideas, but until we see the details, it’s unclear whether these actions will be enough by themselves to propel the licensed cannabis industry forward,” Bodian wrote in an email to High Times. “These opportunities are also only temporary and each stage of the supply chain needs permanent solutions so they have consistent cash flows in order to have a hope of being profitable.”

The post New York Approves New Retail Licenses, Cannabis Farmers Markets appeared first on High Times.

The post New York Approves New Retail Licenses, Cannabis Farmers Markets appeared first on Paradise Found.

Long Island’s first legal recreational cannabis business cut its ribbon and opened its doors last week, marking another milestone in New York’s ever-expanding adult-use marijuana market. 

The dispensary, called Strain Stars, opened on Saturday in Farmingdale, New York. 

“It was a long way,” Kamaldeep Singh, an owner of the store, told local news station FOX5 New York. “And I’m happy we made it.”

According to the station, “hundreds” of customers lined up amid hot weather for the store’s grand opening. 

News 12 Long Island reported that the grand opening “featured a DJ, food trucks and a ribbon-cutting ceremony.”

New York legalized recreational pot for adults aged 21 and older in the spring of 2021, when then-Gov. Andrew Cuomo signed legislation into law. 

Parts of the measure took effect immediately––most notably, adults were permitted to smoke weed––but the state-regulated market has been slower to take shape. 

After Cuomo resigned in August of 2021, Kathy Hochul became the state’s first female governor––and immediately made it a priority to get the adult-use cannabis program up and running. 

The first legal adult-use dispensary opened late last year in Manhattan’s East Village neighborhood, and other retailers have since opened in Manhattan.

But other New York City boroughs, along with certain areas in upstate New York, have had to wait longer for their own legal weed businesses. 

That was partly due to an injunction issued by a federal judge that precluded the state from issuing licenses to Brooklyn and western New York, among various areas.

But that injunction was partially lifted in March, clearing the way for the state to issue licenses in Brooklyn and elsewhere.

The first legal cannabis dispensary in the New York City borough of Queens opened that same month. And in addition to the opening of the business on Long Island, the Bronx, another NYC borough, opened its doors last week, too. 

“New York is leading the nation in building a new cannabis industry that advances social justice and provides economic opportunity for those who have been harmed by the inequitable enforcement of cannabis laws,” Hochul said last week in a statement on the opening of the two stores. “With these new dispensaries opening in New York, we are providing safer product to New Yorkers, while furthering our ambitious goals for equity in New York’s cannabis laws.”

According to Hochul’s office, the opening of the retailers in the Bronx and on Long Island brought “the total of legal and licensed dispensaries in the State to 19.”

“As we witness the historic openings of The Bronx and Long Island’s first legal dispensaries, we celebrate a significant step towards equitable access to safer cannabis. This momentous occasion not only brings economic opportunities to these communities but also represents our commitment to fostering a responsible and inclusive cannabis industry. We look forward to the positive impact these dispensaries will have on Bronx and Long Island residents, as we continue to prioritize social equity, public health, and safety while expanding the cannabis market throughout New York State,” said Chris Alexander, Executive Director of the New York State Office of Cannabis Management.

Tremaine Wright, the chairwoman of the New York State Cannabis Control Board, said the openings were a credit to “the leadership of Governor Hochul.”

“These groundbreaking establishments not only provide safe and regulated environments for cannabis access but also serve as a testament to our commitment to fostering inclusive business opportunities. By supporting diverse entrepreneurs and ensuring equitable participation, we are paving the way for a vibrant and representative industry,” Wright said.

The post Long Island’s First Adult-Use Dispensary Opens To Huge Crowds appeared first on High Times.

The post Long Island’s First Adult-Use Dispensary Opens To Huge Crowds appeared first on Paradise Found.

New York Governor Kathy Hochul last week announced that the state’s cannabis social equity fund has secured a $150 million investment to support entrepreneurs licensed to open recreational marijuana retail shops. Under the terms of the deal, Chicago Atlantic Admin, LLC will invest up to $150 million in secured capital to provide loans to business owners negatively impacted by years of cannabis prohibition.

“New York has always strived to lead the nation in providing opportunities for those who have been unjustly denied privileges and opportunities,” Hochul said in a statement from the governor’s office. “Today’s announcement reinforces New York’s commitment to building partnerships that benefit New Yorkers and setting right the wrongs of the past. I welcome Chicago Atlantic’s participation in this program and applaud their recognition of the value that New York’s cannabis program will provide to so many.”

Fund Created Last Year

Last year, Hochul included the creation of the New York State Cannabis Social Equity Investment Fund in the state budget for the 2023 fiscal year. The provisions of the public-private partnership set a goal of $200 million, including $50 million from state cannabis taxes and $150 million in outside investments. The investments are designed to fill a gap in investment funding available for cannabis businesses, which face difficulty securing capital because of the continued illegality of cannabis at the federal level.

The fund will be used to support individuals impacted by the inequitable enforcement of cannabis laws who have received Conditional Adult Use Cannabis Dispensary (CAURD) licenses from the New York State Office of Cannabis Management (OCM) and the Cannabis Control Board. Under the state’s cannabis regulations, at least 300 of the state’s first CAURD licenses have been reserved for justice-involved entrepreneurs.

Chicago Atlantic manages a diversified portfolio of credit investments in the cannabis industry and has deployed over $1.8 billion across more than 50 investments. The company’s flagship investment vehicle, Chicago Atlantic Real Estate Finance, is a mortgage real estate investment trust that offers secured loans to state-licensed cannabis operators.

“Thank you to Chicago Atlantic for investing in New York’s first adult-use retail licensees,” New York State Office of Cannabis Management executive director Chris Alexander said. “This infusion of capital will provide necessary support to licensees and will help New York further its work of establishing an inclusive cannabis market that creates opportunities for entrepreneurs harmed by prohibition and locked out of markets in other states.”

Loans For New Pot Shops

New York’s cannabis social equity fund will help those who have a CAURD license meet the costs of establishing recreational marijuana retail dispensaries, including the identification and leasing of suitable retail locations and the design, construction, and furnishing of the spaces. The Social Equity Servicing Corporation (SESC), a subsidiary of the Dormitory Authority of the State of New York (DASNY), is executing the work to develop dispensaries as an agent for the Cannabis Social Equity Investment Fund.

Last year, DASNY put out a request for proposals for a team to manage the cannabis social equity fund and raise the additional $150 million through private investments. In June 2022, the agency announced that it awarded the contract to Social Equity Impact Ventures, a joint partnership between Webber Willis Ventures LLC, a company headed by NBA Hall of Famer Chris Webber and his business partner Lavetta Willis, and a firm affiliated with Siebert Williams Shank.

“We are honored by Chicago Atlantic’s recognition of the Fund’s role in fostering social equity within the NYS cannabis industry. With our dedicated partners, we are committed to breaking down barriers and creating a more inclusive landscape,” said Webber. “This transformative collaboration marks a significant milestone in our collective journey towards a future where every individual has equal access to opportunity and funding therefore empowering communities and driving positive change.”

While the goals of New York’s cannabis social equity program have been lauded as a way to ensure participation in the legal recreational market by those who have borne the brunt of decades of prohibition and disparate enforcement, critics have derided the slow pace of dispensary openings. The first adult-use cannabis retailer opened its doors in the final days of 2022. But since then, less than a dozen shops have opened statewide, according to information from the OCM. 

The post New York Cannabis Social Equity Fund Secures $150 Million Investment appeared first on High Times.

The post New York Cannabis Social Equity Fund Secures $150 Million Investment appeared first on Paradise Found.