Change in leadership in the cannabis industry in New York

After a chaotic and, some would say, failed rollout of legal marijuana, the top official resigns

The failed legalization of marijuana in New York cost tax-paying jobs, state revenue, and shattered dreams. It was another painful blow to the cannabis industry and left the governor looking foolish as she desperately sought a solution. There is finally a change in cannabis leadership in New York, but whether it will solve the problem is uncertain.

RELATED TOPICS: NY asks tech companies to solve its cannabis problem

Chris Alexander, the executive director of the New York State Office of Cannabis (OCM) Management, is resigning in June. Earlier this month, the governor announced a restructuring of the OCM. The decision came after an investigation found that inefficiencies and mismanagement botched the transition and cost the state millions.

The state has a strong plan for transitioning from the medical to the recreational market and has worked closely with existing medical dispensaries. Weeks before the change, the OCM scrapped the entire plan and muddled through a system where the state now has fewer than 100 legal retailers and over 1,500 illegal dispensaries in New York City alone. BDSA, a leading analytics firm that studies marijuana, estimated that the legal and illegal market was nearly $2 billion last year. In fact, the licensed market brought in $175 million.

The change comes at a time when rescheduling is making progress at the federal level, but the state is struggling. Adding to the pain, the state is battling a series of lawsuits over the chaos. Another problem is that the bureau sees itself as an advocacy organization focused on spreading messages rather than a state agency in charge of billions of dollars in licenses. Players who wanted to play by the rules to build a long-term business future feel blocked. Some were shocked to find that illegal players could sometimes jump the line to open licensed stores while also operating unlicensed businesses.

RELATED TOPICS: California or New York, where is the biggest marijuana chaos?

The change is positive news for the legal industry and stakeholders, as New York's OCM has consistently operated in an opaque and inefficient manner, contributing to its slow growth. For years, the office has published conflicting information about its own rules and licensing processes and failed to respond to applicants and licensees in a timely manner.

Time will tell if New York is able to clean up the current mess or if this is another opportunity to cost taxpayers even more money.