New York Cannabis Policy Faces Criticism Amid Regulatory Challenges

LOS ANGELES- Boris Jordan, CEO of Curaleaf Holdings Inc., a multi-state cannabis operator, has publicly criticized New York Governor Kathy Hochul and state cannabis regulators, alleging that current policies are detrimental to established medical cannabis businesses. Jordan contends that the state’s approach, including substantial fees for medical operators seeking entry into the adult-use market, is financially burdensome and undermines companies that have been instrumental in developing the industry.

The controversy centers on the state’s requirement for medical cannabis operators to pay significant fees—reportedly up to $15 million—to transition into the adult-use market, which was legalized in 2021. Jordan argues that such financial demands are prohibitive and have led many original medical operators to reconsider their participation in the evolving market.

In response, state regulators assert that medical operators possess competitive advantages due to their established infrastructures and vertically integrated models. They maintain that the fees are justified to ensure a level playing field as the market expands to include new entrants, particularly those from communities disproportionately affected by prior cannabis prohibition.

The broader context includes New York’s efforts to combat illicit cannabis operations. Governor Hochul announced the shutdown of over 100 unlicensed cannabis storefronts by the state’s Cannabis Enforcement Task Force, aiming to protect the legal market and ensure product safety. These enforcement actions have reportedly led to a 27% increase in legal cannabis sales in affected areas.

However, the state’s regulatory framework has faced criticism for its complexity and the challenges it poses to both existing operators and new applicants. The decline in registered medical cannabis patients—from 150,000 to 95,000—highlights the shifting dynamics within the market and raises concerns about the sustainability of medical cannabis businesses under current policies.

As New York continues to refine its cannabis regulations, stakeholders emphasize the need for policies that balance market growth with equitable access and support for businesses that have contributed to the industry’s foundation.