After Cannabis Shake-Up in New York, Hochul’s Leadership Is Questioned
- New York’s cannabis agency launched an anti-corruption unit in February to address rule violations in the competitive market.
- In December, Governor Kathy Hochul removed the agency’s director and the Trade Practices Bureau chief after the failure of the unit’s first major case.
- The shake-up sparked industry turmoil and criticism of Hochul’s leadership, especially as she seeks re-election and New York nears five years of legalization.
- While critics cite instability and poor management, the governor’s spokesperson highlighted the industry’s rapid growth, small business presence, and funding for community grants.
Last February, when New York’s cannabis agency opened an anti-corruption unit, it raised hopes that officials were cracking down on businesses that had been breaking the rules in the state’s highly competitive market.
However, in a sudden turnabout in December, Gov. Kathy Hochul pushed out the director of the agency, the Office of Cannabis Management, along with the official in charge of the new unit, the Trade Practices Bureau, following the collapse of its first high-profile case.
The developments threw the cannabis industry into fresh turmoil in the midst of an overhaul that Ms. Hochul had ordered to steady a rollout of legalization in the state that she called disastrous. And it prompted criticism of the governor, who is running for re-election as legalization approaches the five-year mark in New York.
Lt. Gov. Antonio Delgado, who is running against Ms. Hochul in the Democratic primary, said the latest shake-up at the Office of Cannabis Management was a symptom of a larger failure of leadership.
“New York had a once-in-a-generation opportunity to build a legal cannabis market that was fair, well regulated and centered on small businesses and communities that have been harmed by prohibition,” he said. “Instead we’ve seen confusion, instability and decision-making that leaves operators and consumers in limbo.”
Kristin Devoe, a spokeswoman for the governor, defended Ms. Hochul’s stewardship of the cannabis rollout, pointing to the mostly small, local businesses that make up the industry as well as to the rapid growth of the market, which has conducted more than $2.8 billion in sales since 2022. She added that Ms. Hochul’s budget proposal also committed millions of dollars to community grants and business development programs.
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