L‘Office of Cannabis Management (OCM), the New York state cannabis regulatory body, will double the number of licenses granted to dispensaries run by people with previous cannabis convictions, bringing the maximum number of such dispensaries to 300 .
From 150 to 300 pretty quick
CMO Executive Director Chris Alexander announced the expansion at a meeting of the Cannabis Control Board THURSDAY. One of the main reasons the agency decided to expand the program, Mr. Alexander said, is that a significant number of licensed business owners Conditional Adult-Use Retail Dispensary (CAURD), these licenses granted on a preferential basis, indicated to the CMO that they could finance their dispensary directly rather than through the State loan program.
“Given this large number of applicants, the ability of some of them to bring their own premises and our desire to expand the market as quickly as possible, we are pleased to announce that we are extending the program CAURD to 300 licensees,” Alexander said, noting that they had received over 900 qualified applications.
The first 150 CAURD licensees will be the first to take advantage of the $200 million public-private investment fund that Governor Kathy Hochul announced last year “if they choose a location supported by the fund.” “. The last 150 CAURD licensees “will be able to access any remaining support from the Fund.”
Reuben McDaniel, member of the Cannabis Control Board and CEO of the Dormitory Authority of New York, spoke in favor of expanding the number of CAURD licenses. McDaniel gave no information on progress in raising the remaining $150 million for the fund.
“It is important to understand that the resources of the fund are not unlimited, and as part of the expansion, the first 150 licensees will continue to have access to the fund if they wish. Those who refuse will free up resources that will be made available – but not guaranteed – to those in the expanded group of 150 applicants,” Alexander said.
Chaotic deployment of legal cannabis distribution
Although regulators opened up the Retail License Access Program fairly quickly, its rollout so far has been difficult.
According to the initial rollout plan, at least 60 retail stores should be open at this stage. There are currently only four – three in midtown Manhattan and one in Binghamton – and only one of them is run by someone with a previous cannabis conviction.
The $200 million public/private cannabis social equity fund failed to raise $150 million in private capital for the CAURD program, with the other $50 million provided by the state.
Additionally, many applicants have complained about a complicated and flawed online application process, which some fear has mistakenly rejected qualified applicants.
The slow rollout of regulation has benefited unlicensed sales in physical stores or through food trucks converted into weed trucks.
The New York City Sheriff’s Office estimates that more than 1,000 such businesses sell unlicensed cannabis.
