The rollout of legalized cannabis manufacturing, distribution and retail sites in New York State has been anything but smooth. Orange County, which was a leader in the sector with major facilities developed by PharmaCann and Green Thumb and other smaller companies, saw development interest from this sector fall sharply as litigation and confusion on the specifics and impacts of state cannabis regulation stifled investment.
Conor Eckert, Development Officer and Vice President of Business Attraction for The Orange County Partnership, said earlier this year the Partnership was responding to requests every month from medical and recreational cannabis firms about opportunities in Orange County. “The activity was robust,” he recalled. However, regulatory uncertainty, combined with the slow rollout of cannabis businesses in the state “paused most projects and opportunities” until recently.
Eckert related that New York State recently updated its regulations that opens the door to out-of-state operations and provides more clarity on the approval process. He noted that in the short time since the announcement, the Orange County Partnership has seen “healthy market activity.”
“In the last few weeks, we have had three site tours with big-time cannabis manufacturers, including one on Friday (Oct. 20) with a nationally-recognized brand,” he said.
In total, Eckert said the Orange County Partnership is servicing six cannabis-related production and cultivation requirements from established companies seeking space or sites in the county. These projects would bring good-paying manufacturing jobs to the county, he added.
Last month, the New York State Cannabis Control Board voted to finalize the Office of Cannabis Management’s proposed regulations for the adult-use cannabis market, paving the way for the most significant expansion of the state’s cannabis market since 2021.
With the approval, a broad universe of individuals and small businesses across the state will now be able to apply for cultivator, processor, distributor, microbusiness, and retail dispensary licenses beginning on Oct. 4, 2023. In addition to the opening of the general license application, currently-operational Adult-Use Conditional Cultivators (AUCCs) and Conditional Processors (AUCPs) will also be able to apply for full, non-conditional licenses.
“Today marks the most significant expansion of New York's legal cannabis market since legalization, and we’ve taken a massive step towards reaching our goal of having New Yorkers being able to access safer, regulated cannabis across the state. We are immensely proud to be building the fairest, most competitive cannabis industry in the nation — one that puts those most harmed by prohibition first and offers a true opportunity for all New Yorkers—not just large corporations — to compete and thrive,” said Chris Alexander, Executive Director of the Office of Cannabis Management. “The regulations finalized today are the result of robust engagement with stakeholders across the state who submitted thousands of comments. This final package truly represents the values of equity and competition that we believe are central to this market. I want to especially thank Governor Hochul for her leadership, the Board for their collaboration, the Legislature for their vision, and our advocacy partners for their commitment to this mission.”
Starting on Oct. 4, 2023, and lasting through December 4, 2023, all eligible applicants will be able to apply for licenses for cultivation, processing, distribution, sale, or to operate a microbusiness. This will be a significant expansion of the existing market that is being expanded in phases to ensure that New York’s cannabis market grows in a stable way, avoiding the price shocks and collapses seen in other states that have resulted in the failure of small businesses and significant contractions in overall market value, state officials said.
“We know there's room for improvement as New York works to launch a brand-new cannabis industry and crack down on illicit operators, and I'm committed to working with all stakeholders to get the job done right,” New York Gov. Kathy Hochul said recently. “My Administration is laser-focused on shutting down illegal storefronts, protecting the health and safety of children, and helping small businesses thrive. We will continue working to build the most equitable adult-use cannabis industry in the nation that invests in communities and rights the wrongs of the past.”
If the governor is correct and the industry rollout becomes more certain for investors, Orange County will certainly be the beneficiary.
“We think over the next year, as (the regulatory picture) becomes more certain, the market is set to explode on the production side,” Eckert predicted.
