Introduction
In a state Senate hearing marked by palpable tension, New York’s Office of Cannabis Management (OCM) was put under a microscope. State lawmakers grilled OCM officials, frustrated by a complicated and delayed rollout of the adult-use market, as well as ongoing challenges for growers and dispensary owners.
Lawmakers Turn Up the Heat
From both sides of the aisle, legislators like State Sen. Sean Ryan and State Sen. Brad Hoylman-Sigal were vociferous in their calls for the OCM to crack down on illegal cannabis shops. Ryan questioned the logic of allowing expensive legal stores to coexist with cheaper illegal options, while Hoylman-Sigal was troubled by reports of minors entering shops near schools.
Enforcement: A Thorny Issue
State Sen. Mario Mattera’s attempt to obtain concrete numbers on enforcement staff and budget was met with reticence by Daniel Haughney, OCM’s Director of Investigations and Enforcement. Haughney reasoned that disclosing such details could aid criminals—a reply that didn’t sit well with an already frustrated Mattera.
Muted Achievements: OCM’s Stance
OCM Executive Director Chris Alexander tried to allay concerns by highlighting the organization’s new enforcement powers. He pointed to 16 violating operations that went through administrative hearings before these were suspended in October. However, this figure only stoked further skepticism from lawmakers, particularly State Senator James Skoufis, who found the number inadequate given the scale of illegal operations.
Struggling Cannabis Farmers: An Underbelly of Issues
Farmers also have grievances, accentuated by the limited shelf life of cannabis flower and a meager roster of legal dispensaries. OCM’s recently approved grower showcases did offer some respite, generating $1.9 million in revenue. However, as Alexander conceded, this is not a sustainable solution.
Budgetary Concerns and Sustainability
Michele Hinchey questioned if the OCM’s budget would permit the setting up of a recovery fund for struggling growers. Her additional concern about the OCM’s focus on energy-intensive greenhouses, at the expense of outdoor grows, further emphasized the multidimensional challenges ahead.
Stakeholders Unimpressed
Toward the end of the hearing, Skoufis asked a panel of industry stakeholders a series of pointed questions regarding OCM’s effectiveness. The resounding lack of raised hands to each query underscored the industry’s deep-seated dissatisfaction with the regulatory body.
Conclusion
The hearing served as a searing testament to the myriad issues plaguing New York’s nascent cannabis market. Lawmakers, farmers, and business owners alike raised pressing concerns that signal an urgent need for a coherent strategy. It’s clear that the OCM and associated bodies have their work cut out for them if they hope to meet the industry’s, and the public’s, expectations.
