Obtaining a license to sell marijuana has been more difficult than expected, according to a new report from the New York Office of General Services.
Shanduke Mcphatter, who says he has been waiting for more than two years for two licenses to operate in Brooklyn, says he is disappointed in the process.
“I’m not happy. I haven’t been happy for a long time. I was happy when my community and those affected by social justice were being considered to apply, but here we are years later,” Mcphatter said.
The report, requested by Gov. Kathy Hochul in March, indicates that the cannabis management office’s inefficiency has contributed to only 122 legal dispensaries operating statewide, while the number of illegal stores in the city of New York has increased to 2,900.
According to this report, as of the end of April, there were almost 4,900 business applications pending, some of them waiting since 2022.
The governor noted that some applicants have spent up to $40,000 on rent while they wait for their licenses to be approved.
Damien Cornwell, president of the New York Cannabis Association, says that one of the causes of this situation is the lack of resources to operate the Office of Cannabis Management and the requirements they ask for.
“I have heard the CCB say that they have 12 licensing teams, think about what I told you, only 12, those only issue about 40 licenses a month. And they also make the process difficult by asking for business tax records from people who haven’t had a business,” Cornwell said.
Due to this mismanagement, the governor announced that the executive director of the Office of Cannabis Management Chris Alexander will not renew in September and that Damian Fag, head of capital, will not continue in the position either.
“Today is not about finding blame, but about steering the CMO in a new direction and implementing solutions that work for everyone, from legal store owners in New York to growers who have waited too long to sell their crop,” he said. The governor.
Among other things, the report suggests increasing the staff responsible for approving licenses, making a public website to view the status of licenses, and formally rejecting applications rather than leaving applicants unanswered.
The governor announced that despite the obstacles, this Friday, the Cannabis Control Board approved more than 120 additional licenses, bringing this year’s total to 541.
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