NYS releases three-year study on the “achievements” of legal cannabis in the state

New York State officials released a report on Thursday detailing “key achievements” in the pot industry — even as controversy continues to surround the state’s cannabis licensing program since the drug was legalized for recreational use statewide in 2021.

The report, dubbed the Marijuana Regulation and Taxation Act (MRTA) Implementation Report, details the industry’s three-year progress. It shows that more than 1,300 adult-use cannabis licenses have been issued, over 200 retail dispensaries have opened, and 67% of New York cannabis smokers purchased the drug from legal retailers — all facts state officials are calling “progress.”

Financially speaking, the report shows that the cannabis market in the state has experienced “significant growth” since the first legal retail dispensary opened. 

“Reported monthly retail sales have surged from $2.2 million in January 2023 to a peak of $97.4 million in August 2024, leading to a total of $653.9 million in sales since the market’s launch through mid-September 2024,” the report states. 

The report also shows that 54.7% of adult-use licenses have been awarded to “social and economic equity-eligible” applicants, surpassing the MRTA’s target of 50% within this demographic.

“Since day one, our focus has always been on creating a fair and inclusive cannabis industry that repairs and restores the harms of the past while building opportunities for the future,” Tremaine Wright, chairperson of the NYS Cannabis Control Board, said. “This Implementation Report reflects our commitment to equity and transparency, and I’m proud of the progress we’ve made over the past three years to lay a strong foundation for New York’s cannabis market.”

Stopping illegal marijuana vendors

The report was issued by the state’s Office of Cannabis Management (OCM), a state agency that critics have called “mismanaged” since it started in 2021.

Among the problems that plagued OCM include a bottleneck of license applicants, confusion over laws about where and when pot smoking is allowed, and a lawsuit from veterans that said they were unfairly kept from getting Conditional Adult-Use Retail Dispensary (CAURD) needed to open a legal cannabis dispensary.

The problems were so severe that Gov. Kathy Hochul overhauled the agency’s leadership in June. The state legislature also empowered New York City’s government to begin cracking down on illegal cannabis vendors; the Adams Administration’s Padlock to Protect program has shut down more than 1,000 illegal vendors citywide and resulted in the seizure of more than $68 million in product.

Today, some area politicians continue to push back on legal cannabis, saying shops are opening in residential areas near schools and other family-centered venues, despite widespread community opposition.

Staten Island’s Community Board 3, for example, rejected a proposal for Clouditude, a South Shore dispensary that was granted a license to open this year from OCM. That shop has yet to open.

“This site itself is compliant with the law as passed by the NYS Legislature,” local Assembly Member Michael Tannousis said. “However, it is still a short distance from my alma mater, I.S. 24. I can tell you as a student at I.S. 24, myself and other students I went to school with walked around these blocks. There are other areas here where we people walk with their families.”

Other communities across NYC have opposed legal pot shops, too. Two applications to operate legal dispensaries in Bay Ridge were met with a hard “no” from hundreds of local residents who attended a public hearing over the summer.

Community boards have a right to oppose the opening of legal weed — but the state makes the final call on license approval.

Meanwhile, Felicia A.B. Reid, acting director of the OCM, said in a press release that the agency takes “seriously” its responsibility to New Yorkers.

“As stewards of cannabis law and its promise, OCM takes its responsibility to New Yorkers seriously,” Reid said. “Within the Implementation Report, you will see that the agency is focused on adaptation—building staffing across all divisions as the dynamic needs of New York’s legal cannabis market shift and change.”