New York’s Cannabis Control Board approved new changes to the state’s cannabis marketing regulations Thursday, easing restrictions on advertising, signage and promotional activities while also extending deadlines for provisional licensees to become operational.
The board’s actions come as New York’s legal cannabis market reached 330 operating dispensaries statewide, with sales exceeding $1 billion since the market launched, according to figures presented during the meeting.
“Spring has arrived, the season of renewal and progress, and our industry is growing,” board Chairwoman Tremaine Wright said. “There are more businesses opening their doors, and we are seeing the positive economic and community impacts of a well-regulated cannabis market.”
Among the most significant developments was the approval of amendments to packaging, labeling, marketing and advertising regulations that will now enter a 45-day public comment period before finalization.
John Kagia, director of policy for the Office of Cannabis Management, told the board the revisions were designed to “address some of the key inefficiencies and bottlenecks” while maintaining rules focused on “safety and quality of cannabis products, informing consumers and protecting against packaging, labeling and marketing of products in a manner that targets individuals under the age of 21.”
The proposed changes would allow cannabis businesses to display unlimited signs on their buildings and up to three off-premises signs. Businesses would also be permitted to include their logos on signage, a practice previously restricted. The amendments also remove prohibitions on price reductions, discounts and loyalty programs.
“I like the direction that we’re moving in with these regulations,” Wright said. “I imagine this will help us, as you say, to normalize much of what needs to be normalized in the conversation around cannabis.”
However, she expressed some reservations about provisions defining “market value” in relation to discounting, noting that “the ability to discount sometimes means just breaking even in business.”
The board also extended the period for provisional adult-use licensees to submit outstanding information for final license approval from 12 to 18 months. According to Patrick McKeage, OCM chief operating officer, there are currently 134 provisional licensees affected by the extension.
The board also approved 101 new adult-use cannabis licenses across various categories including cultivation, processing, distribution, retail and microbusiness operations. That brings the total number of adult-use licenses approved to more than 1,600, according to OCM officials.
In addition, renewal of the first three conditional adult-use retail dispensary (CAURD) licenses, all located in Manhattan, was approved during the meeting. These were among the first legal cannabis dispensaries to open in the state.
McKeage noted that the office is “nearing the end of its review of the November queue, which we’ve been working through since the beginning of January 2024.” He added that approximately 50 applications submitted in November 2023 still require initial review more than 15 months later.
Acting Executive Director Felicia Reid noted that the OCM has licensed 195 cultivators and 229 microbusinesses, representing up to 6.5 million square feet of potential cannabis cultivation space set to become operational this year. She recommended slowing the pace of new cultivation license approvals pending outcomes from the 2025 growing season.
“Croptober 2025 will be the first time that New York will see what a healthy cohort of cultivation operators will do to impact the market,” Reid told the board. “OCM expects that the 2025 harvest will mean more sufficient in-state supply to meet in-state demand.”
Reid reiterated the importance of avoiding oversupply issues that have plagued other legal cannabis markets, where “half of their annual output gone unsold.” Still, a slew of prospective growers during the public comment period disagreed with those sentiments. Some lobbed points that it takes around a year to get cultivation operations going, while others accused the board of turning a blind eye to collusion and even back dealing with established growers to keep the licensing door relatively tight/shut for now.
Other public commenters cited continuing issues around contentious proximity rules.
During the equity update, the CCB announced the launch of a CAURD grant program that will provide up to $30,000 in reimbursements to eligible CAURD licensees for business expenses incurred since receiving their license.
Jim Katz, deputy secretary for economic development and workforce, noted that the office completed an extensive analysis of certification for communities disproportionately impacted by cannabis prohibition, saying these certifications were “the most labor intensive and the most difficult for applicants.”
Kagia reported that cannabis sales slowed in January and February compared to December but began rebounding in March. Despite the slower start to the year, the market recorded $220 million in sales for through February, roughly a quarter of the $870 million in sales recorded for all of 2024.
The board is expected to announce grants from the Community Reinvestment Fund in late May or early June, following the review of 340 eligible applications focused on youth-serving organizations in workforce development, mental health and housing.
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