New York Extends Cannabis Licensing Application Deadline Amid Mounting Concerns and Legal Obstacles

NEW YORK- Amid a flood of applications and growing uncertainty from prospective cannabis entrepreneurs, New York’s Cannabis Control Board (CCB) has granted a two-week extension for cannabis business license applications. Originally slated to close on December 4th, the submission window will now remain open until December 18th.

This unanimous decision by the CCB aims to provide stakeholders adequate time to apply for retail, cultivation, processor, distribution, and microbusiness licenses. When questioned about the exact number of applications already received, OCM Executive Director Chris Alexander stated the count was easily in the “thousands”, with more arriving daily.

In a move to tackle illicit cannabis operations, the CCB approved a change enabling OCM staff to issue certificates of compliance to unlicensed cannabis dealers who receive citations. The initiative supports a civil approach over criminal penalties in shutting down unauthorized cannabis establishments. Despite the capacity to impose daily fines of up to $20,000 for unlicensed cannabis sales, the agency believes the certificate of compliance is a necessary tool to track compliance among dealers.

Legal cannabis sales in New York have recently seen a dip, with OCM Policy Director John Kagia reporting only $17 million in cannabis products sold legally in the past month, a slight decrease from the previous month. Despite the initiation of growers’ showcases across upstate New York, sales have not seen an expected boost. Kagia emphasized the importance of these showcases in stimulating the supply chain, and hopes the recent opening of additional legal retailers will provide a needed surge in the market.

However, the limited number of cultivator permits set to be issued by OCM has raised concerns. While the board suggests starting with 40 new permits, there’s unease over ensuring only the most capable applicants are granted licenses. Addressing these concerns, Alexander emphasized the board’s commitment to fostering a balanced market without precipitating price collapses. He hinted at potential subsequent licensing windows to accommodate more licenses.

During this meeting, the board also made decisions on specific licenses. An application by Highgrade Labs for a testing facility in Pomona was denied, while Fiorello Pharmaceuticals was allowed to alter a proposed medical dispensary location in Nassau County.

Significant apprehensions were expressed by conditional adult-use retail dispensary (CAURD) license holders during the public comment segment. A large number have been in uncertainty since August, due to a preliminary injunction preventing the opening of licensed retailers. While OCM advises these licensees to reapply, many expressed their sense of being left in the dark about their futures. Appeals were made to the board for clearer communication and guidance.

The CCB continues to navigate these intricate challenges as they attempt to establish a balanced and thriving cannabis market in New York.