Tumult in the NY Cannabis Program Following McDaniel’s Departure
Reuben McDaniel, a pivotal figure in the inception and management of the NY Cannabis Program, recently resigned from the Office of Cannabis Management (OCM). This abrupt departure has triggered an upheaval, leaving stakeholders apprehensive about the future course of the state’s burgeoning cannabis industry.
McDaniel’s dual role – his position on the OCM board and his incumbency as the CEO of the Dormitory Authority of the State of New York (DASNY) – had been a focal point of contention, often seen as a potential conflict of interest. His exit now stirs up questions around the efficiency and impartiality of the cannabis program’s implementation.
The Litigious Front: A New Challenge
A collective of invested parties, known as the Coalition for Access to Regulated and Safe Cannabis (CARSC), has instigated legal action against the program’s regulatory bodies. The coalition alleges that the OCM and the Cannabis Control Board (CCB) violated state regulations by exclusively reserving the first batch of 150 retail licenses for social equity applicants. Among the coalition members are heavyweights of the industry like Acreage Holdings, Curaleaf Holdings Inc, Green Thumb Industries Inc, and PharmaCann.
Retailers’ Growing Dissatisfaction with the Program
The NY Cannabis Program is also facing criticism from the retail licensees. A recent meeting hosted by OCM and DASNY turned heated as retailers vented their frustrations. Carson Grant, a licensee, termed the onboarding process as “catastrophic” and “unprofessional,” raising serious concerns about the program’s execution.
Few Gains Amid a Thriving Illicit Market
In spite of the litany of issues, only 13 licensed stores are currently operational across the state, a stark contrast to the over 200 licenses granted by the OCM. Meanwhile, an unauthorized cannabis market flourishes unabated in New York City, boasting an estimated 1,600 active weed shops. In an attempt to curb this, OCM officials are now enforcing new emergency regulations.
Stakeholders are anxiously observing the unfolding events following McDaniel’s departure, as it could significantly impact the future trajectory of the NY Cannabis Program.
