Gov. Hochul fires acting OCM director, drops Omnium investigation 🗽

NY, NY
Gov. Hochul fires acting OCM director, drops Omnium investigation 🗽

Driving the news: Never a dull moment in New York cannabis. 

Gov. Kathy Hochul on Monday unceremoniously fired New York State Office of Cannabis Management (OCM) acting Executive Director Felicia Reid, who has been in the position since last year.

Reid will be replaced by OCM Chief Administrative Officer Susan Filburn. Reid herself took over from OCM’s inaugural director, Chris Alexander, who Hochul fired last year after she conducted an audit of the agency after it contended with multiple lawsuits and other chaos. 

The state also dropped its investigation into Omnium, a Long Island cannabis processor that was accused of funnelling out-of-state cannabis onto dispensary shelves. Late Tuesday, a judge held off on dismissing the case, reports The New York Times. OCM Deputy Counsel James Rogers, who was leading the investigation into Omnium, will also leave the agency.

It’s the latest turmoil for New York’s nearly $2 billion cannabis market.

What they’re saying: “New York’s Cannabis market holds enormous potential. It creates jobs, generates revenue and builds prosperity in communities that were left out of the economic mainstream for decades. Realizing that potential requires strong leadership, a deep understanding of the regulatory framework, and a steadfast commitment to the people of this state,” Gov. Kathy Hochul said.

“Too often, the Office of Cannabis Management has stood in the way of the market realizing its potential, including most recently in the case of a pending compliance action that it has had to withdraw.” 

And: “The timing of the Office of Cannabis Management’s executive director’s dismissal raises pressing questions for New York’s cannabis industry as we are once again confronting a major shake-up at the exact moment when stability matters most,” Cannabis Association of New York President (CANY) Damien Cornwell, said.

“Ultimately, this kind of turbulence hurts operators, undermines investor confidence, and confuses consumers. It reinforces the perception that New York is the punching bag of the legal cannabis world at a moment when we need to be demonstrating consistency and competence.”

The final word: The story of New York cannabis is filled with good intentions failing to deliver results. 

There’s insatiable demand in the Big Apple for cannabis. There’s a sophisticated consumer base that’s willing to spend, and a veritable Cambrian explosion of innovative products from New Yorker-led companies looking to satisfy that. 

But like California and many other large states with progressive cannabis policy, chaos and turmoil continue to be the talking point rather than a booming industry. 

While many at the OCM have made mistakes or misjudged the effects of their policies, the buck ultimately stops with Hochul. She has been New York’s chief executive for the entirety of the cannabis program. Yet she seems to continue to blame her own agencies rather than lead and make the necessary changes.

Hopefully, this is the start of that change. 

-JB

San Francisco suspends municipal cannabis taxes 💸

San Francisco’s Board of Supervisors suspended the city’s cannabis tax for ten years in an 8-2 vote on Tuesday. The rule codifies 0% tax in SF through 2035, as a response to declining legal sales in California and businesses shutting down. Read our newsletter from yesterday on California’s market, which apparently was used as evidence in the hearing!

Pro-legalization NH legislators get ahead of next year's legislative session 🪨

Lawmakers in New Hampshire have prefiled bills that would legalize cannabis in the Granite State, or let voters decide. The New Hampshire House has approved legal cannabis several times over the last few years, but in every instance that bill has failed to pass the state Senate. This year, they will try again. Marijuana Moment has more. 

American basketball player Jarred Shaw avoids death penalty in Indonesia 🏀

Shaw, who was arrested while in the possession of 132 cannabis gummies, has been sentenced to 26 months in prison in Indonesia. While the sentence is far harsher than what might occur in the US, Shaw did avoid the death penalty making it a bitter sweet ruling for the athlete. Indonesia has frequently sought the death penalty for drug-related offenses, but the US Embassy got involved. It’s perhaps a sign of the world’s easing views on medical cannabis. High Times has more.  

Parole officer forces Cornbread employee to leave job 👮

A Kentucky parole officer forced Eugene Waters, a Cornbread Hemp employee, to leave his job as the company deals with THC, which was recently banned by Congress. “I worked my way up from living in a bad neighborhood to a good neighborhood, and I’m doing really good,” Waters said. Read more.

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Cronos Group to enter Netherlands through CanAdelaar acquisition 💸

Canadian cannabis firm Cronos Group said it would enter the Netherlands via an acquisition of Dutch cannabis firm CanAdelaar for $67 million in up-front cash. Sharp-eyed Cultivated readers will remember Friday’s newsletter, where we predicted we’d see more Canadian cannabis firms enter the European market. $CRON ( ▲ 1.97% )

Stiizy absorbs California Gold Flora dispensaries 💰

California's largest retail chain just acquired 12 new locations from Gold Flora in the wake of the latter company's receivership. The $25 million transaction was a result of an Oct. 23 auction bid through Los Angeles Superior Court. SFGate has more.  

Safe Harbor announces partnership with Canopy HR 💰

Safe Harbor, a Colorado-based financial institution that specializes in working with the legal cannabis industry, announced that it was launching a partnership with Canopy HR to provide that company with banking support for its payroll activities. 

Wana Brands expands to Switzerland 🍬

The Colorado-based edibles company, a subsidiary of Canopy USA, Canopy Growth’s US play, announced on Dec. 5 that it had launched its brand of gummies into Switzerland's emerging market. The launch includes three different gummy types -- Hybrid, Indica and Sativa.

Our friends at Green State has a 25-item cannabis gift guide for the holidays. While this is not exactly Oprah's Favorite Holiday Gifts, it's good to see that cannabis gifts have evolved past just bongs and rolling paper. 

Also, no one here at Cultivated is opposed to surprise holiday cannabis gifts. (hint, hint)

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