Advocates Raise Concerns about Direction of Office of Cannabis Management, Urge Hochul to Protect MRTA

New York, N.Y. — A group of 18 organizations including New York civil rights organizations, small business supporters, cannabis social equity leaders, and drug research advocates today sent a letter to Governor Kathy Hochul expressing serious concerns about the administration’s pivot away from the equity commitments outlined in the Marijuana Regulation and Taxation Act (MRTA). To change course, the coalition called on the Governor to appoint leadership at the Office of Cannabis Management (OCM) with the expertise and commitment to fulfill the law’s equity-centered vision.

The letter, signed by a diverse group of advocacy organizations including the NAACP NY State Conference, Black Cannabis Industry Association, Minority Cannabis Business Association, Service Disabled Veterans in Cannabis Association, Drug Policy Alliance, NYC NORML,  and VOCAL-NY, highlights mounting concerns over regulatory decisions, executive overreach, and administrative delays that jeopardize the future of New York’s cannabis market as it is on track to reach $1 billion this year. Specifically, the groups cite:

• A shift toward corporate interests at the expense of small businesses, justice-involved entrepreneurs, and Conditional Adult-Use Retail Dispensary (CAURD) licensees who are directly impacted by a prior marijuana arrest.
• Short-sighted regulatory changes, such as the expansion of the November licensing queue, which sidelines smaller, less capitalized businesses that were part of the December licensing queue.
• Reduced oversight of equity efforts following changes to the scope of the Chief Equity Officer role.
• Chronic delays and underfunding in support programs for equity licensees.

The advocates argue that these decisions undermine the MRTA’s promise to create a cannabis market that prioritizes opportunities for communities disproportionately impacted by marijuana prohibition, such as justice-involved individuals and small business owners from marginalized backgrounds.

The letter urges Governor Hochul to appoint an Executive Director for OCM with the following qualifications:

• Expertise in cannabis markets, economic development, and regulatory licensing.
• A demonstrated commitment to equity and small businesses.
• Proven ability to engage meaningfully with impacted communities.

The coalition expressed alarm at the absence of permanent leadership at OCM with cannabis market expertise, as well as recent decisions that disadvantage small businesses and equity entrepreneurs. They point to the Administration’s failure to provide promised financial support for CAURD licensees and its deprioritization of the Social and Economic Equity Group in licensing reviews as emblematic of a broader lack of commitment to the MRTA’s goals.

“Since the Office of Cannabis Management’s inaugural executive director was forced out, the OCM, under the leadership of its interim executive director who is novel to both cannabis and economic markets, has pursued efforts in service of big corporations at the expense of small business and equity outcomes,” wrote the coalition. “To ultimately restore confidence in the future of New York’s cannabis market buildout, OCM’s leadership must change to reflect expertise in cannabis, economic market development, and regulatory licensing.”

The letter was signed by the following organizations:

• 024 Inc

• Black Cannabis Industry Association, Inc. (BCIA)

• The Bronx Cannabis Hub

• Cannabis Social Equity Coalition of NYS

• CannaBronx

• The CannaDiva

• Drug Policy Alliance

• empCanna Media

• High Exposure Agency

• Hi-impact

• LYFE CHARMZ

• Minority Cannabis Business Association

• NAACP NY State Conference 

• National Hispanic Cannabis Council Tristate Chapter

• NYC NORML

• Service Disabled Veterans in Cannabis Association 

• Social Equity Empowerment Network New York

• VOCAL-NY