2026: Building on New york’s cannabis industry successes

The New York Cannabis Industry has established itself as a $1.5 billion marketplace supporting thousands of jobs and contributing hundreds of millions in state and local tax revenue. We’ve identified the following core areas where we urge the legislature to focus in order to build a long lasting industry that supports New York-owned businesses.

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  • Confirm a New Executive Director

    The Office of Cannabis Management needs steady, experienced leadership. The incoming Executive Director will inherit an agency of over 274 full-time employees that has seen significant turnover during a pivotal moment for New York's cannabis market.

    ECMA's position: We urge the Governor to nominate — and the Senate to confirm — a leader with the vision to rebuild institutional morale and remain committed to the intent of the MRTA. We strongly believe that candidate should come from within the OCM.

    Increase Enforcement Against Illicit Operators

    Civil enforcement actions in 2024 and 2025 cleared many brazen illegal storefronts. But as enforcement activity has slowed, bad actors are returning — this time operating more covertly and infiltrating the legal supply chain through a practice called inversion: bringing illegal cannabis from other states into the market through licensed businesses. The OCM currently lacks the resources to root out and prosecute these offenders, as a recent high-profile dropped case made clear.

    ECMA's position: We urge the creation of an interagency task force — including the Attorney General, New York State Police, Department of Labor, and municipal leaders — to address illicit cannabis operators.

    Bolster the Trade Practices Bureau

    The Trade Practice Bureau (TPB) was created to enforce fair competition and equity rules across a $1.5 billion industry. Following a recent high-profile enforcement setback, the TPB's director has resigned, and only a handful of attorneys remain to police the entire market.

    ECMA's position: The TPB's headcount must be increased to match the scale of the industry it oversees.

    Expand the Cannabis Advisory Board

    The Cannabis Advisory Board advises on policy decisions affecting the entire market — yet only two of its members currently represent the industry.

    ECMA's position: We strongly support A3761 (Stirpe), which expands industry representation on the CAB.

  • Allow Liquor Stores to Carry Low-Dose Cannabis Beverages

    New Yorkers have spent hundreds of millions of dollars on unregulated cannabis beverages sold through a federal hemp loophole — in gas stations, grocery stores, and beverage centers. Congress has now closed that loophole, but consumer demand for low-dose cannabis beverages remains strong.

    New York has an opportunity to meet that demand safely and legally by amending the ABC and Cannabis Laws to allow licensed liquor stores to purchase specific low-potency beverages from adult-use licensees. The result: more consumer protection, new tax revenue, and support for locally owned retailers.

    ECMA's position: We support legislation enabling this change. Read our full memo.

    Allow Farmers to Sell Plants & Seeds Directly to Consumers

    The MRTA gives New York adults the right to grow up to six cannabis plants at home — but there are almost no legal places to buy seeds or starter plants. Current law prevents farmers from selling plants directly to consumers, even though a farm is the most practical and natural place to source live plants.

    ECMA's position: We urge passage of A7998 (Lupardo) / S7387 (Hinchey).

  • Cover Seed-to-Sale Tracking Costs Through the OCM Budget

    Seed-to-sale (STS) tracking is a state-mandated system that guards against illegal inversion and enables product recalls. After an abrupt vendor switch in 2025, the new vendor announced an extensive fee structure paid directly by licensees — a cost that falls hardest on small processors and farmers. These are costs of administering a state-mandated program and should be funded accordingly.

    ECMA's position: We strongly support A8820 (Dais) / S8264 (Hinchey) and urge the inclusion of sufficient funds in the operating budget to cover these costs.

    Provide State-Backed Loans, Grants & Technical Assistance

    Cannabis businesses cannot access traditional small business financing — no SBA loans, no standard lines of credit, no conventional mortgages. The result is that many licensees are forced into "hard money" loans at up to 20% interest. Capital investment by cannabis businesses demonstrably generates tax revenue and jobs; the state should make that investment easier.

    ECMA's position: We support the inclusion of low-interest cannabis business loans in the Governor's Budget Proposal, modeled on Small Business Administration programs.

  • Exempt Licensees from Extended Producer Responsibility (EPR) Fees

    ECMA shares the legislature's concern about packaging waste. But cannabis packaging is strictly regulated by the OCM — businesses cannot unilaterally reduce waste or switch materials. The OCM already requires 25% post-consumer recycled content and tracks plastic weight. Layering additional EPR fees onto processors who have no ability to address the root cause would be punitive and counterproductive.

    ECMA's position: We urge amendments to EPR legislation affirming the OCM's preemptive authority over cannabis packaging and exempting licensees from related fees.

    Related legislation: A1749 (Glick) / S1464 (Harckham)

    Create a Vape Waste Reduction Task Force

    Cannabis vapes are New York's second-best-selling product category — and their waste is a growing environmental challenge. ECMA has been working with VapeSAFER, a national industry group, to identify solutions. Key barriers to recycling include cannabis being classified as hazardous waste, disposal regulations, limited waste removal options, and hardware design constraints.

    ECMA's position: We recommend the creation of an interagency task force to develop legislative and regulatory recommendations that reduce vape waste and increase recycling rates.ption

  • Codify Distance Requirements for Dispensaries

    Last July, the OCM announced that over 150 dispensary licenses had been issued based on a legally contested interpretation of how distances to schools and houses of worship are measured. That interpretation was critical to allowing small and equity-owned dispensaries to find affordable locations — especially in dense urban areas. Without legislative clarity, these licenses remain vulnerable to legal challenge.

    ECMA's position: We applaud the Legislature and Governor Hochul for swiftly passing and signing A10140 (Sinerman)/S9155 (Krueger).

    Clarify On-Site Consumption at Dispensaries

    There is currently no licensed location in New York State where an adult can legally consume cannabis. The Cannabis Law includes an on-site consumption license, and regulations allow dispensaries to designate consumption areas with strict air quality and safety protocols — but neither has been approved by the OCM.

    ECMA's position: We urge the legislature to amend the definition of a retail dispensary to explicitly allow licensed dispensaries to offer consumption areas for customers.

    Codify the CAURD License Type

    The Conditional Adult-Use Retail Dispensary (CAURD) license was designed to give formerly convicted cannabis offenders and nonprofits first access to the retail market. It has been a success: 315 CAURD licenses have been issued, and 77% of all retailers are now Social and Economic Equity (SEE) owned. But the program survived a major litigation campaign by a narrow margin, and the risk of copycat lawsuits remains real.

    ECMA's position: We urge the legislature to codify the CAURD license type to protect these licenses and the equity progress they represent.