New York Office of Cannabis Management

The key discussions for this meeting included the consideration and approval of numerous Adult-Use Applications for initial licensing (Resolution No. 2026-01), covering cultivators, processors, distributors, retail dispensaries, and microbusinesses. The Board also addressed various amendment requests for existing licenses and permits (Resolution No. 2026-02). Several items involved license renewals: Adult-Use Applications for Renewal (Resolution No. 2026-03), Conditional Adult-Use Retail Dispensary Renewals (Resolution No. 2026-04), and Conditional Adult-Use Retail Dispensary Renewals acknowledging SAPA Compliance (Resolution No. 2026-05). The meeting involved granting final approval for Adult-Use Applications that previously received provisional approval (Resolution No. 2026-06). Furthermore, the Board considered and recommended approval for a Registered Organization Change in Ownership (Resolution No. 2026-07). A new schedule for establishing Amendment Fees for certain amendments was proposed (Resolution No. 2026-08). The Board heard matters regarding applications with non-viable locations that requested a determination on promoting public convenience and advantage (Resolution No. 2026-09). Finally, administrative appeals were considered, including the decision in STONEDHENGE SMOKE-N-GROW INC. V. OCM and FREES' ICE CREAM NOVELTIES LLC V. OCM (Resolutions No. 2026-10 and 2026-11). Updates were also provided by the Office of Cannabis Management concerning market performance, workforce composition survey status, and Social & Economic Equity (SEE) statistics.

The meeting included the review and approval of previous minutes from December 18th, and subsequent actions on several resolutions. Key discussions involved the approval of 36 adult-use cannabis licenses, bringing the total licensee count to 2,110, and updates on the licensing queue metrics for November and December. The board also considered and approved amendment requests for 41 licensees, renewals for adult-use licenses (12 applications), and renewals for 30 conditional adult-use retail dispensary licenses. Further resolutions addressed the formal ratification of two conditional adult-use retail dispensary renewals due to an administrative routing error, the final approval for three adult-use applications that were inadvertently issued a final license concurrently with a provisional one, and a change in ownership for a registered organization (VRIO Health New York LLC) to East Ventures. Additionally, the board established an amendment fee schedule for various changes, including ownership and location updates, with fees ranging from $25 to $500 depending on the complexity. The board also heard and approved a request regarding Public Convenience and Advantage (PCA) for Large Leaf 618 LLC in Riverhead, addressing concerns related to zoning restrictions and market scarcity. Two administrative appeals were heard: one concerning Stonehenge Smoke and Grow Inc. (remanded to OAH for further proceedings due to lack of a fact-finding hearing) and the other concerning Freeze Ice Cream Novelties LLC (denied, affirming the ALJ's decision regarding unlicensed activity and THC calculation). The meeting concluded with comprehensive reports from the Office of Cannabis Management (OCM), detailing Governor Hochul's proposed initiatives for equity and a Center of Excellence, updates on Seed-to-Sale implementation (over $210 million in sales recorded), plans for reviewing cultivation capacity, and scheduled roundtables for adult-use regulation review. The market analysis highlighted significant sales growth across the state, with Long Island showing a 4x higher revenue run rate than the statewide average, and noted a 20% decrease in average retail product prices since early 2024. The Equity Officer also presented a framework for future programming focused on market development, restorative and social justice, access to capital, incubator services, and community engagement.

The meeting included an executive session to discuss litigation matters. Key agenda items covered the approval of adult use applications, resulting in 33 new licenses across cultivator, retail, micro business, and processor categories. The board also considered 20 licensee amendments and approved four card license renewals. A cannabis research license annual report was approved. A resolution was passed to extend the renewal application window for registered organizations to March 25, 2026. The board addressed administrative matters, including delegating chair authority in specific voting scenarios. Several Public Convenience and Advantage (PCA) waiver requests were considered, granting waivers for two retail applications (Twinleaf LLC and SOS Pro Services) but denying the request for Sons of Cannabis. Two advisory opinions concerning local zoning requirements deemed unreasonably impractical (in Riverhead and Southampton) were approved for issuance. The board affirmed the ALJ's decision to vacate an order to seal against M&A 71 Cents Inc due to deficient notice procedures during inspections. Updates were provided on cultivation supply projections, which anticipate a shortfall for the next year due to operational ramp-up times, and monthly retail sales figures, which reached a new high in August. Status reports on Conditional (C) ownership classifications and the utilization of the first round of the CARR Grant program were presented, along with site visit findings indicating significant financial strain on small suppliers. The executive deputy director announced the anticipated go-live date for the Seed to Sale tracking system in December.

The board convened to address several agenda items, including an executive session to discuss pending lawsuits. Key discussions involved the approval of 46 adult use cannabis applications, which would bring the total approved to 1,904. The board also reviewed and approved 54 adult use license and permit amendment requests, including changes in ownership and processor type amendments. Two Public Convenience and Advantage (PCA) requests regarding non-viable locations were considered and voted upon. Decisions were rendered on five administrative appeals, with three dismissed as moot due to time elapsed since the order to seal was issued, and two affirming the administrative law judge's decision. The board approved extensions for adult use and CARD provisional licenses until December 31, 2026, citing confusion over previous extensions and school proximity issues as justification. Guidance for provisional licenses was adopted, clarifying submission requirements, including proof of control via a lease or deed. A resolution to establish the Cannabis Education Advisory Panel (CEAP) was approved to develop trusted, accessible cannabis education resources. The Office of Cannabis Management (OCM) provided updates on the school proximity enforcement action, noting that 152 licensees and 48 applicants are impacted, and legislative amendments are being pursued to address this. Furthermore, OCM updated the board on market analysis, including cultivator survey results showing potential for increased capacity utilization, and reported that the adult use market surpassed $2 billion in retail sales. Finally, an update on Social and Economic Equity (SEE) licensing noted that 67% of newly issued licenses went to SEE applicants, and progress on the CARD grant, the microbusiness pro forma tool, and the Service Disabled Veterans Task Force was reviewed.

The meeting focused on regulatory discussions and operational updates from the Office of Cannabis Management (OCM). Key discussions centered on proposed regulations concerning Public Convenience and Advantage (PCA), including analysis of 66 public comments received, many expressing opposition due to oversaturation risks and youth-use concerns, leading to suggested revisions like using quantifiable data for waiver applications and establishing hearing processes. Discussions also covered amendments to Packaging, Labeling, Marketing and Advertising (PLMA) regulations, specifically regarding discounting and defining market value, with emphasis on preventing marketing attractive to individuals under 21. OCM provided updates on market performance, noting $1.06 billion in sales to date, and Social and Economic Equity (SEE) initiatives, reporting that 59% of recently issued adult-use licenses are SEE owned. Furthermore, updates detailed the Community Reinvestment Program Grants, which involves reviewing 340 eligible applications for funding community-based organizations, and the status of the Seed-to-Sale System.