As readers of this column know, New York's nascent adult-use cannabis market has (so far) failed to live up to the potential that was trumpeted when the Marihuana Regulation and Taxation Act (MRTA) was signed into law in 2021. Everyone, from consumers and industry participants, up to Gov. Kathy Hochul, has expressed their frustration in the last twelve months with the state of the industry. The main target of the ire was the Office of Cannabis Management (OCM), the industry's primary regulator, which was roasted in a report, commissioned by the governor's office, from the New York State Office of General Services (OGS). The aftermath of the report has been a "cleaning of the house" of sorts, with several high-profile departures. However, as recent news reports indicate, the New York City Sherriff's Office (which was charged with shutting down illicit operators in New York City) is also part of the problem, and is now the target of a Department of Investigation probe into missing cash.

To be clear, it appears to be the case that OCM proceeded with the best of intentions in promoting the social-equity goals of the MRTA. The problem, however, has been in how it proceeded to implement those goals. Specifically, it decided to bifurcate the launch of the adult-use program by creating the Conditional Adult-Use Retail Dispensary (CAURD) program—which it intended to use to give justice-involved individuals (e.g., entrepreneurs who were previously impacted by the war on drugs)—in apparent contravention of the express provisions of the MRTA. OCM also sought to delay the entry of New York's Registered Organizations (the medical cannabis industry incumbents) into the adult-use market. This was the opposite of the approach New Jersey took, where it allowed existing medical providers to open their stores first and use the revenue generated to support the adult-use industry.