New York to probe sputtering legal marijuana program as storefronts lag, black market booms

ALBANY, N.Y. (AP) — New York will evaluate its troubled recreational marijuana licensing program after lawsuits and bureaucratic stumbles severely hampered the legal market and allowed black-market sellers to flourish, Gov. Kathy Hochul ordered Monday.

The review will focus on ways the state can speed up license processing times and allow businesses to open faster, as well as a top-down assessment of the Office of Cannabis Management’s structure and systems.

Hochul, a Democrat, has described the state’s recreational marijuana rollout as a “ disaster.” Just over 80 legal shops have opened since sales began at the end of 2022.

The state’s legalization law reserved the first round of retail licenses for nonprofits and people with prior marijuana convictions. It also set up a $200 million “ social equity ” fund to help applicants open up shops, all in an effort to help those harmed by the war on drugs get a foothold of the state’s marketplace.

But the permitting process was soon beset by legal challenges and the so-called equity fund struggled to get off the ground, stalling growth of the legal market.

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