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June 7, 2024

Jason Klimek Interviewed for New York Cannabis Insider Article on Potential Market Impact of Increase in Cannabis Dispensary Licenses

Jason Klimek, Cannabis Team co-leader, was interviewed for the New York Cannabis Insider article “New York’s Cannabis Expansion: Balancing Licensing Speed With Market Stability,” which explores the potential impact of Governor Kathy Hochul’s efforts to reform New York’s Office of Cannabis Management (OCM) to expedite the issuance of more dispensary licenses in response to complaints about the slow rollout. The initiative aims to address the industry’s struggles, including too few customers for cultivators and the proliferation of illicit shops.

Despite the governor’s push, the process of opening a dispensary remains complex and lengthy. Data shows that it typically takes six months to a year for licensees to open their doors, with many never opening at all due to issues with real estate, paperwork, and municipal approvals.

“When you have a client that is already built out and on top of everything, it can actually move pretty quickly,” said Jason. “But we’ve also had other clients where it’s lagged more.”

Stakeholders have mixed feelings about the rapid increase in licenses. Some worry it could flood the market, while others believe it will combat the illicit market and ultimately benefit the industry. Real estate compliance and high costs, such as security measures, are significant hurdles for prospective dispensary owners. Jason said, “At the end of the day, it’s not the complexity that’s an issue, it’s the cost.”

Overall, while increased licensing could transform New York State’s legal cannabis market, challenges in the opening process and geographic distribution of licenses need careful management to prevent potential market oversaturation and ensure a robust legal market.

New York Cannabis Insider subscribers can read the full article here.
 

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