After celebrating the milestone of $1 billion in legal recreational marijuana sales, New York cannabis regulators released a pair of annual reports this week, detailing both progress made and more developments to come.
The material presented is familiar to those who have been following the market’s development in the state. However, there are some additional nuggets.
The Office of Cannabis Management’s 2024 annual report, for instance, noted that of the 17 licensed “registered organizations,” or ROs – the title for vertically integrated medical marijuana companies such as Curaleaf Holdings (CURA:CA) (OTCQX: CURLF) – only three have launched recreational cannabis sales. The Office of Cannabis Management’s 2024 annual report, for example, noted that only three “registered organizations” (ROs) – the title given to vertically integrated medical marijuana companies such as Curaleaf Holdings (CURA:CA)(OTCQX: CURLF) – had launched recreational cannabis sales.
In the report, it was also stated that OCM had been ramping up its staff, adding 97 more employees last year to bring the OCM total headcount of 211. The report also noted that the OCM “contracted several temp agencies in order to recruit additional staff for its licensing team” and is still hiring to fill positions related to “compliance enforcement and licenses.”
In fact, Acting Executive Director Felicia Ried listed the reformation of OCM as the top accomplishment in her report. Reid was appointed to manage the OCM by Chris Alexander in June.
Reid, in his report, wrote: “After many years of stagnation and losses, OCM restructured their internal operations and structures and hired almost 50 new staff at the agency. At the same time, the turnover rate dropped dramatically between July 2024 to December 2024.”
The OCM had also made specific recommendations on policy for legislators in each state, including
- Increase OCM budget and staffing to oversee the market.
- To ensure the integrity of marijuana testing, labs are being closely monitored.
- A “reciprocity policy” for medical marijuana will allow patients to purchase medical marijuana in New York from 32 dispensaries.
- Encourage insurance companies to pay for the cost of medical marijuana products.
- Attempts to convince “legacy operators” to apply for licensure in the regulated markets.
- Changes in packaging regulations to make them more environmentally-friendly and sustainable. This could include financial incentives like tax credits, which would “stimulate” investment.
- The launch of a cannabis-recycling program to “reduce the amount of packaging waste produced by the cannabis sector.”
- Nursery and microbusinesses can sell seedlings or clones of cannabis directly to customers for their own home cultivation.
Tabatha R. Robinson, Acting Chief Equities Officer of the OCM, presented a report that contained some very interesting information.
Robinson said that, to begin, her team has been assembling the “Cannabis Banking Directory,” which is expected to be released in 2025. It will contain a listing of marijuana friendly financial institutions, on whom licensed businesses are going be able rely for their services.
This may be the first time a state has allowed financial institutions to work with marijuana companies.
Robinson said that she and her staff have spent many months building relationships with contacts in the banking industry, such as the New York State Banking Association (NYSBA) and Independent Banking Association. In October, members of Robinson’s staff gave a talk at the New York State Credit Union Association Cannabis Banking Conference.
According to the report on equity, there will be more funding for those Conditional Retail Adult Use Dispensaries that are struggling financially. In the coming months, a pool of $5,000,000 will be divided amongst eligible recipients. Each recipient can receive up to $30,000. A second round of funding will also be dispersed in May.
The report states that CAURDs can also apply for reimbursements from the OCM to cover the costs for “inventory and point-of sale systems, renovations to licensed retail spaces, inventory tracking system, security, storage of products and transportation and rental for licensed retail areas” as well.