New York Cannabis Application Updates and Next Steps
As many know, the State of New York’s Office of Cannabis Management (OCM) closed the current licensing window for new Adult-Use Cannabis licenses in December 2023, with thousands of applications received. Since the beginning of 2024 the OCM has issued over 200 licenses, including retail dispensaries, cultivation, processing, microbusiness, and distribution. This is in addition to allowing several medical licensees to sell into the adult use market space.
However, this is combined from all applications that were received and so is a far cry less than the 250 expected adult-use licenses that were expected to be issued to retail dispensaries alone from the initial licensing round that closed in November 2023. In fact, the State’s governor, Kathy Hochul, has publicly put pressure on the OCM, criticizing their slow role out (she insisted they cancel a meeting in late January 2024 when she learned only a single license would be granted) and lack of enforcement against illegal operations (some experts believe there are as many as 36,000 illegal shops currently operating in the state).
Not happy with the OCM’s efforts so far, Gov. Hochul has now appointed Jeanette Moy, New York State Office of General Services’ Commissioner, to assess the OCM’s processes related to adult-use licensing. This internal audit will be conducted in the next 30 days and will give a comprehensive review of the OCM’s licensing organizational structure. The goal will be to shorten licensing application period and establish a three- and six-month action plan.
So What’s Nest for License Applicants?
For those that have already successfully applied, all OCM priority lottery results are now announced. Applicants must wait to be contacted by the OCM at the email address they registered with their application. It is advised that Applicants and their registered “True Party’s of Interest” (TPI) check their emails daily for updates, as a failure to timely reply to an OCM identified application deficiency might cause the chosen Applicant to be passed over for one with a lower lottery number.
Next steps include:
Perfecting your Application – OCM application reviewers will contact applicants whose applications are under review of any minor outstanding issues (i.e., incomplete “TPI” disclosures). Applicants will then have a 30-day period to correct those issues. Other applications will continue to be reviewed, so there is a chance that not resolving these issues quickly will result in the applicant not receiving their license.
Stage 2 Licensing – Once an applicant receives their paper license, they are then required to pass physical location inspections prior to operating. This not only includes the actual standing up of the physical location, including security, construction, local permitting, etc., but also updating the OCM with any additional funding, TPI disclosures, non-exempt business contracts, etc. While the regulatory timeline for meeting these requirements is extensive (2-years), New Yorkers don’t have to be told that time is money. The quicker you resolve these issues, the quicker your business will become profitable.
Business Relationship Building – Whether it’s setting up supply chains, contracting with support vendors and service contractors, or meeting investors for expansion, a successful business is based on building relationships with other businesses. These relationships, and the cost savings or niche opportunities they create, are what will differentiate businesses to their customers. In the highly competitive New York Cannabis Industry, who you know may determine which businesses thrive and which fail.
So while these hopeful cannabis entrepreneurs have completed the initial steps in the NY cannabis application process, they now still must race to the finish line to both secure their license and open in an already competitive cannabis market. The most successful businesses aren’t the ones that spend the least, but that spend the smartest. Cannabis businesses must spend wisely while capitalizing on their once in a lifetime opportunity to be the first legal store in a given area. Outside services that either significantly speed up market entry, staff training, or that lower compliance overhead can be a force multiplier that all cannabis operators should consider.
Global Go specializes in cannabis licensing and applications (99% win-rate over 300 applications), compliance automation, advanced analytics, SOPs, training, mergers and acquisitions, new product launches, technology, and best practices. Seize this opportunity and position yourself as a leader in the New York market by reaching out to a Global Go Application Director today!