Earlier this week New York Governor Kathy Hochul announced the New York State Cannabis Control Board (CCB) has “authorized the issuance of 109 adult-use cannabis licenses spanning the supply chain, encompassing microbusinesses, cultivators, processors, distributors, and retail dispensaries.”
“New York is building a robust and equitable legal market that is driving significant economic growth for our communities,” Governor Hochul said in a press release. “The issuance of 109 additional adult-use licenses is just one step in developing New York’s nation-leading cannabis industry.”
The breakdown of the 109 license types approved in New York this week includes:
- Adult-Use Cultivator License: 23
- Adult-Use Distributor License: 20
- Adult-Use Microbusiness License: 23
- Adult-Use Processor License: 22
- Adult-Use Retail Dispensary License: 21
58 out of the 109 are transitioning conditional cultivators or conditional processors according to the New York State Office of the Governor. To date there are 144 dispensaries open for business across the Empire State. A full list of New York’s licensed, operational adult-use cannabis retailers is available here.
The announcement of new licenses was coupled with an update from the New York State Office of Cannabis Management, which reported that “the state’s commitment to shutting down unlicensed cannabis storefronts has led to a 50 percent increase in legal cannabis sales in downstate areas, like New York City, affected by the Task Force’s enforcement activities.”
“To date, the OCM reported that over 323 inspections have been conducted by State Officials, resulting in the seizure of more than 4,800 pounds of illicit cannabis products, valued at nearly $30 million. These enforcement actions are part of a broader strategy to eliminate the black market and support the growth of licensed cannabis businesses. As of Tuesday, July 9, 2024, 164 illicit stores have been padlocked. Moreover, 252 Notices of Violation have been issued, and 76 hearings have been conducted.” authorities stated.
As of March of this year, the New York Times estimated that there were roughly 2,000 unregulated cannabis shops in New York. In a June press conference, New York Governor Kathy Hochul referenced data indicating that sales at licensed dispensaries near shuttered illegal cannabis stores have risen 27% since the unregulated shop crackdown began.
“In these first thirty days at OCM, I continue to be inspired by the OCM team’s deep commitment and drive to advancing the agency’s mission with this most recent batch of licenses for Board approval. I appreciate the rigorous work of the Board, under Chair Wright’s leadership, in their review and today’s approvals. OCM best serves the cannabis community and New Yorkers by listening to what stakeholders need to thrive, and my hope is that today’s much-needed updates to our PMLA regulations will enhance licensees’ ability to compete and thrive in the cannabis market.” Office of Cannabis Management Executive Deputy Director and Acting Executive Director Felicia A. B. Reid said.
“We remain dedicated to fostering a thriving and equitable cannabis market in New York by listening to our industry partners and adapting our regulations to meet their needs. The proposed packaging, labeling, marketing and advertising regulatory amendments reflect our commitment to ensuring safety while easing operational burdens. By incorporating feedback from licensees and a diverse array of stakeholders, we are taking meaningful steps to enhance New York State’s cannabis regulatory framework and support the growth of a responsible and inclusive cannabis industry.” New York State Cannabis Control Board Chair Tremaine Wright said.
“The Office of Cannabis Management is proud to announce the robust growth and dynamic advancements in New York’s cannabis industry. Projections showed that 2024 cannabis sales will exceed $200 million by early June, The Office is delighted to share that as in June alone, sales surged by $71 million, reaching a total of $421.2 million to date.” a government press release stated regarding New York’s sales totals.
“A key driver of this success is the Social and Economic Equity (SEE) program, which continues to promote inclusivity and opportunity within the industry. Impressively, an analysis of the composition of today’s adult-use retail dispensary licensees indicates that a full 55 percent are SEE-owned businesses, 37 percent are minority-owned business, and 40 percent are women-owned businesses.” the press release stated.
“Following today’s Board meeting, the total number of adult-use licenses issued in 2024 will climb to 614, with a notable 55 percent held by SEE licensees in aggregate. This reflects the program’s commitment to fostering diversity and supporting underrepresented groups. After the Office recommended to the Board the 109 adult-use licenses to be awarded at today’s Board Meeting, it analyzed the composition across the supply chain. The Office is pleased to report that 53 (49 percent) of today’s licensees are social and economic equity (SEE) owned businesses, 24 (42 percent) are women-owned businesses and 13 (25 percent) are minority-owned businesses.” the press release concluded.