New York Approves New Retail Licenses, Cannabis Farmers Markets

New York’s cannabis regulators this week approved more than 200 additional retail dispensary licenses and passed new rules that allow cannabis growers to sell directly to consumers at farmers’ markets. The New York State Cannabis Control Board (CCB) and Office of Cannabis Management (OCM) called the moves “bold actions to rapidly expand the state’s legal cannabis market” and announced the developments Wednesday to support the state’s licensed marijuana operators.

At a July 19 meeting, the board approved 212 additional Conditional Adult Retail Dispensary (CAURD) licenses, bringing the total number of licenses issued to 463. At the initiative of New York Gov. Kathy Hochul, the state’s first cannabis retail licenses were reserved for “individuals most severely affected by unfair enforcement of cannabis prohibition or non-profit organizations whose services include assisting ex-convicts “.

“The provisional approval of today’s 212 CAURD licenses by the Cannabis Control Board represents a significant advance in our quest for an inclusive and fair cannabis industry,” Tremaine Wright, Chair of the Cannabis Control Board, said in a statement by the OCM on Wednesday. “These licensees are a testament to the innovation and diversity of New York State.”

The Board noted that it will continue to review additional CAURD license applications for consideration on an ongoing basis. To qualify for a CAURD license, applicants had to, among other things, either have had a cannabis conviction or be a family member of a person convicted of cannabis. Non-profit organizations that had previously served incarcerated or currently incarcerated individuals were eligible to apply for a CAURD license.

Although nearly 500 CAURD licenses have now been issued, only 20 retail pharmacies have opened and begun serving customers. The first store opened in the final days of 2022, fulfilling Hochul’s promise to launch the regulated cannabis market before the end of the year. However, only 19 other dispensaries have opened since then, the last in Buffalo on Tuesday.

Board Approves Cannabis Farmers Markets

The slow introduction of retail pharmacies has left New York City cannabis growers with an oversupply of regulated cannabis while the illegal market is thriving. To support licensed growers, the CCB also approved new rules on Wednesday to enable farmers’ markets, known as Cannabis Grower Showcases (CGS). The initiative will allow growers to work with adult-use retailers and processors to host events to showcase New York City brands and sell adult-use cannabis products to consumers.

Damian Fagon, OCM’s chief equity officer, said that his experience as a former New York hemp grower taught him firsthand “how devastating it can be when a hard-won crop doesn’t make it to market.”

“The Cannabis Growers Showcase was shaped by those lived experiences, as well as many difficult conversations with our growers and processors, who rightly wished for more ways to share their produce with New Yorkers,” said Fagon. “Not only will this initiative improve sales and retail access across the state, but it will also directly connect New York consumers with local cannabis growers and indigenous brands.”

As part of the initiative, each CGS event will feature at least three licensed growers who work with a licensed adult use dispensary to sell regulated cannabis products to consumers. CGS events are only permitted in cities and towns that permit the retail sale of cannabis and must have a predominantly adult population. Only New Yorkers 21 and older are allowed to purchase cannabis and cannabis products.

Additionally, a processor will also be able to sell cannabis products such as edibles, beverages, and vape cartridges for every three growers. To ensure compliance and compliance, CGS attendees must obtain a municipal permit unless the event is being held at a licensed retail dispensary that typically sells cannabis.

Michelle Bodian, a partner at leading cannabis and psychedelics law firm Vicente LLP, welcomed the new licenses and rules designed to enable markets for cannabis growers. However, she is unsure whether the measures will be enough to ensure the success of New York’s regulated cannabis market.

“More licenses and more sales opportunities are great ideas, but until we see the details it’s unclear if these measures alone will be enough to propel the licensed cannabis industry forward,” Bodian wrote in an email to High Times. “Also, these opportunities are temporary and each stage of the supply chain needs permanent solutions so they have consistent cash flows to have any hope of profitability.”