New York to finally open retail cannabis sales to multi-state operators

The agency responsible for regulating cannabis in New York State has finally decided to open up the New York cannabis market to all applicants, including cannabis companies already present in several US states (such as Curaleaf, Acreage, Columbia Care or Cresco Labs) and existing medical cannabis companies, starting next month. This measure could enable new retailers to open by the end of the year.

But this change, designed to speed up the slow rollout of the legal cannabis market in New York, has sparked an outcry among small-scale growers and social equity candidates. According to them, this measure will jeopardize the the government's ambitious plan to prioritize small businesses and companies owned by those most directly affected by prohibition.

Accelerating the rollout of legalization

The New York State Board of Cannabis Control (BCC) approved a series of resolutions at its most recent meeting, including new rules allowing medical cannabis dispensaries in the state to move into the adult-use market more quickly than originally planned. Originally, medical cannabis businesses were not to be able to compete with new businesses for three years after legal sales began in New York. With Tuesday's change, this period will be reduced to approximately one year.

«Today marks the most significant expansion of the legal cannabis market in New York since legalization, and we've taken a big step toward our goal of New Yorkers having access to safer, regulated cannabis throughout the state,» said Chris Alexander, Executive Director of the’Office of Cannabis Management (OCM), in a press release.

«The regulations finalized today are the result of strong engagement with stakeholders across the state who submitted thousands of comments. This final package truly represents the values of fairness and competition that we believe are at the heart of this market.».

Other changes include allowing more medical cannabis companies to apply for licenses, and opening up applications for new research licenses.

Currently, retail licenses are only available to applicants under the CAURD (Conditional Adult-Use Retail Dispensary). To qualify for the program, the applicant must have been «justice-involved» - in other words, have been directly affected by a cannabis-related conviction - and have some experience of running a profitable business. Growing licenses, meanwhile, were first granted to participants in the New York hemp pilot program.

Expanding the conditions for access to the state's cannabis market should speed up the opening of more legal businesses, while unlicensed retailers have proliferated, particularly in New York City. Although the state has approved the legalization of adult use in 2021, only two dozen legal retailers have opened in the state. Meanwhile, lawsuits have temporarily halted licensing, further complicating the situation.

Last month, a judge suspended the granting of licenses under the CAURD program, preventing regulators from granting new conditional licenses for dispensaries, or processing existing licenses, while legal action by a veterans' group is underway.