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The New York State Cannabis Control Board (CCB) convened for one of its longest and most consequential meetings of the year, tackling an overloaded licensing pipeline, new litigation, enforcement challenges, and ongoing efforts to stabilize the adult-use market.
Licensing Nears 2,000 Approvals
Executive Deputy Director Patrick McKeage opened with encouraging numbers: 33 new adult-use licenses, which includes 11 cultivators, eight dispensaries, three microbusinesses, six processors, and two Conditional Adult-Use Retail Dispensary (CAURD) renewals—pushing total statewide approvals to 1,949. The milestone places New York on the cusp of 2,000 legal operators less than two years after sales began.
McKeage reported that of the 1,603 applications from the November 2023 queue, 712 have received final licenses, 245 provisionals, 275 remain under review, and 371 have been closed. December’s larger queue—spanning over 2,700 dispensary, 870 microbusiness, 101 processor, and 170 distributor applications—remains the most pressing backlog.
Regulatory Housekeeping and Renewals
The board quickly approved 20 license-amendment requests and renewed four CAURD licenses as renewals are required every two years. It also accepted a research licensee’s annual report studying genetics and disease-resistant cannabis cultivars suited to New York’s climate.
In another procedural vote, the board extended the renewal window for Registered Organizations (ROs)—the state’s medical-cannabis providers—to March 25, 2026. This ensures uninterrupted patient access while applicants complete new forms.
Fixing a Governance Gap
To resolve a bureaucratic quirk in prior rules, the board adopted a resolution concerning Public Convenience and Advantage (PCA) determinations. Under New York’s Cannabis Law, certain dispensary applications require PCA determinations where the CCB decides whether opening or relocating a dispensary would benefit the surrounding community. Borrowed from state liquor licensing standards, the PCA test allows the board to issue waivers from strict location rules, such as minimum distances between dispensaries or proximity to sensitive sites. The resolution delegates authority to whichever senior member votes with the majority whenever the chair is in the minority on PCA determinations. The change prevents future delays in finalizing close votes.
Advisory Opinions Rein In Local Restrictions
The board unanimously approved two advisory opinions. They ruled that zoning ordinances in Riverhead and Southampton exceeded municipal authority by adding extra conditions and moratoria beyond state law. The opinions reaffirmed that local governments may regulate time, place, and manner. But they may not impose barriers that effectively prohibit legal dispensaries.
Appeal Decision Upholds Due Process
In OCM v. M & A 71 Cents Inc., the board affirmed an Administrative Law Judge’s decision vacating an order to seal the premises. OCM had failed to prove proper notice between inspections and entered areas without authorization. This underscores that even illicit-market enforcement must satisfy procedural requirements.
Executive Director’s Report: Legal Headwinds and Policy Shifts
Speaking remotely, Executive Director Felicia Reid described a landscape increasingly shaped by litigation. Two active lawsuits—one state, one federal—challenge the handling of December-queue applications, limiting how quickly OCM can process them.
School-Proximity Controversy
Reid addressed the ongoing dispute over how to measure distance between dispensaries and schools. Following a court order, OCM must temporarily revert to its former “door-to-door” method for 152 impacted licensees even though that interpretation conflicts with the statute. The order expires in February 2026, and the governor and legislature plan to implement a statutory fix early next session.
Cannabis Event Regulations
Reid announced the publication of Cannabis Showcase event rules allowing sales at farmers’ markets and pop-ups. Public comment runs through November 24. Because the law requires separation between suppliers and retailers, micro-businesses cannot host stand-alone events. This is a legislative issue OCM hopes to address.
Market Analysis: Supply Lag Despite High Sales
Policy analyst Kevin Brennan presented OCM’s most detailed cultivation model to date. Among 516 licensed growers, the theoretical maximum output is 1.19 million pounds of biomass. But 2025 production is estimated at roughly 474,000 pounds—only 40% of capacity. Given retail sales projections of $1.8 billion this year, Brennan warned of a temporary 40% supply shortfall in 2026.
To close the gap, OCM may expand grow tiers for existing licensees or pull additional applicants from the December queue. Chair Jessica Garcia requested that any proposal include a breakdown by equity status to ensure expansion benefits justice-involved and diverse operators.
August sales hit $214 million, a record high in part because of the five-week reporting period, with normal-month adjusted figures around $171 million. Year-to-date sales totaled $1.26 billion, on pace for $1.8 billion by year-end. Average store revenue has grown for three straight months. This signals that licensed retailers are finally gaining traction against unlicensed shops.
Equity Metrics and Grant Program Expansion
Chief Equity Officer Simone Washington reported that 62% of all adult-use licenses are minority-owned, 52% women-owned, and 5% held by service-disabled veterans. Distressed farmers remain under-represented at 0%.
The CAURD Grant Program distributed nearly $5 million to 159 licensees for rent, security systems, renovations, and insurance—averaging $30,000 per grant. Round two will target supply-side operators and social equity groups while adding inventory as an eligible expense. Washington said the agency will begin tracking long-term business outcomes to measure “the so-what” impact of these funds.
“Continuum of Care” for Licensees
Site visits revealed small farmers and processors struggling under millions in debt and rising risk of product diversion. OCM is designing a “continuum of care” framework—linking capital access, technical assistance, and co-operative business models—to help operators survive and thrive after they receive their licenses.
Technology Milestone: Seed-to-Sale System Launches December
Licensing Chief Steve Geskey confirmed that New York’s long-awaited Seed-to-Sale Tracking System will go live by the end of December. Interested parties can attend training sessions in Buffalo, Albany, New York City, and Long Island to familiarize themselves with the compliance regime. The system will allow real-time tracking of cannabis products from cultivation to consumer, a requirement for federal compliance and market integrity.
A Frustrated Public Takes the Mic
During the two-hour public comment period, over 20 speakers—mostly license holders—voiced anger and fatigue over delays, lost rent, and what they called opaque communication from OCM. Several CAURD licensees said they were losing money while awaiting final approvals. Others accused the agency of favoring adult-use licenses over justice-involved operators. A few thanked the board for recent advisory opinions against Long Island municipalities.
Looking Ahead
The next CCB meeting is expected in November. Board members will update the community on the Seed-to-Sale rollout, additional research licenses, and possible recommendations to address the 2026 supply gap. Despite turbulence, sales momentum and public-sector investment suggest New York’s legal market will experience another year of momentous growth.
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