BUFFALO, N.Y. (WKBW) — The Office of Cannabis Management (OCM) is receiving criticism from New York State's top official.
On Friday, Governor Kathy Hochul announced her plan to completely overhaul the OCM.
Hochul promised to streamline the cannabis license process and create a new task force to shut down illegal cannabis growers and storefronts.
So how does the local industry feel about the new approach?
"The challenges dealing with the OCM stem mainly from transparency," Kevin Halpin said. "It's very difficult for us to have a real good sense of where we stand, particularly in the licensing process."
Halpin is the Chief Financial Officer for Empire Hemp Company CFO, in Batavia.
He believes the OCM operates as it was intended to but says more could be done to create a functional industry.
"It's broken across the supply chain, it's broken in the economics, it's broken in relative in the enforcement of those that have decided to try and operate as compliant as possible, versus those who have flawed at every role out there," Halpin explained. "Frankly, the only people that are making money in the industry are those that decided to forego being a legal enterprise and continue to operate in the black and gray market."
Ashley Brown and John Duncan own 716 Cannabis Company, in Blasdell. The couple feels their cannabis dispensary has not had a fair shot.
"It's unclear whose responsibility it is to shut that place down," said Duncan. "Is it on the local police, or is it on the state police? Is it on the sheriff's department, or is it on OCM? Nobody knows."
"It's very confusing for the community. It's very difficult to advise them to go to a legal shop when they really don't understand or even know the difference," Brown added. "Trying to teach them and break old habits is a challenge for us."
Both businesses shared their frustrations with Kassahun but are still hopeful.
Duncan explained, "We just want to be able to have the same opportunity that other businesses have. We are a legal business and cannabis deserves to come out of the shadows. That's why we're here. That's important to do and it's difficult when a lot of the normal avenues have been closed to you."
According to Governor Hochul, the following actions will be taken:
- Launching an enforcement task force to close illegal cannabis retail stores.
- Fixing the internal licensing process and clearing the backlog for retail establishments that were required to apply with site control.
- Committing to putting in place an SLA (service-level agreement) to allow for completion of retail license applications within 90 days for future application windows.
- Creating new communications tools, including regulatory bulletins and public dashboards to improve customer service.
- Launching OCM Cannabis Map to improve the transparency surrounding licensed retail locations in summer 2024.
- Adding staff to licensing, compliance, and enforcement teams.
- Strengthening agency foundations and management including hiring senior positions for customer service, internal controls, and audit and operations.
- Creating a 5-year strategic plan for the Office.
"It's fair to say that New York's emerging cannabis industry has had plenty of challenges before it. Some of them are beyond our control like litigation from out-of-state corporations trying to undermine our goals that set us back for at least nine months and some are related to challenges within my administration," Governor Kathy Hochul said Friday. "The many others who have been let down, I want you to know, we're starting to fix this right now. These are the people the law was intended to benefit and they are the New Yorkers we are fighting for."
