36 CAURD Licenses Finally Issued in New York: What’s Next?

On Monday, New York’s Office of Cannabis Management (OCM) made a historic move towards the full legalization of recreational cannabis in the Empire state. Even though marijuana was legalized in NY in March 2021, the very first adult-use dispensary is yet to open. The OCM just issued 36 Conditional Adult-Use Retail Dispensary (CAURD) licenses to 28 equity applicants and 8 non-profits. 

New York was the fifteenth state to legalize recreational cannabis and since then, 6 other states have made a similar move. It usually takes a couple of months from the time the law is passed to when recreational dispensaries are actually opened. This period allows regulators to hammer out issues to do with license distribution, taxation, and how to use and distribute the tax money. New Yorkers have had to wait it out for twenty months and counting. But with the first batch of permits out, how much longer do New Yorkers have to wait before they can have a legal toke without breaking the law?

What Next After Licenses Have Been Issued?

OCM officials have hinted that the first retail dispensaries will be operational in the state before the close of 2022. However, some industry stakeholders believe that this may not be the case. First, the state is yet to finalize regulatory and operational issues such as the testing requirements for cannabis products. Secondly, the Dormitory Authority of the State of New York (DASNY) has not yet announced any state-funded and approved retail locations for the new adult-use dispensaries. Even with permits-in-hand, it may be a while before recreational dispensaries in NY are up and running. 

However, it seems like NY regulators had envisioned these challenges ahead of time. Unlike other states, the NY Office of Cannabis management (OCM) has allowed the approved licensees to launch delivery services prior to even opening the physical dispensaries. Could it also be that there's some budgetary constraints to fund the new retail locations for CAURD licensees? Whatever the case, this provision will allow the successful equity applicants to launch into the highly competitive cannabis market in New York and get a sizable share of the $4 billion worth pie.