New York Governor Hochul Ousts Cannabis Officials Amid Tensions

BREAKING: New York Governor Kathy Hochul has swiftly removed two key officials from the state’s Office of Cannabis Management (OCM) amid escalating tensions over enforcement issues related to illegally trafficked cannabis products. The ouster of OCM interim executive director Felicia A.B. Reid and OCM Deputy Counsel James Rogers is set to take effect by the end of this week, according to multiple sources with insider knowledge.

This urgent shift in leadership comes after prolonged concerns surrounding the OCM’s handling of compliance actions and the state’s cannabis regulatory framework. Hochul’s decision was confirmed late Monday, with Susan Filburn stepping in as the new acting head of the department immediately.

In a statement, Hochul emphasized the potential of New York’s cannabis market, stating, “Realizing that potential requires strong leadership, a deep understanding of the regulatory framework, and a steadfast commitment to the people of this state.” The governor criticized the OCM for impeding market growth, particularly referencing the recent withdrawal of a compliance action against a cannabis company.

The backdrop to this leadership change includes a significant legal battle involving Omnium Health, which was fined $1 million and had its license revoked in October 2023 due to allegations of inversion and reverse licensing. Rogers led the enforcement unit tasked with scrutinizing companies that violate state cannabis laws.

“This is a pivotal moment for the state to reaffirm its commitment to testing integrity, honest labeling, and a legal market that the public can trust,” said Herb Barbot, chair of the Empire State Green Standard Alliance. He stressed the need for a stable and transparent regulatory framework in light of the disruptive changes at OCM.

Reid was appointed to lead the agency in the summer of 2024 after Hochul dismissed former executive director Chris Alexander. Despite being in contention for a permanent position, Reid was never officially appointed, which required state Senate approval. Hochul reiterated her administration’s commitment to fostering the cannabis market for both consumers and business owners across New York.

As this situation develops, observers are urged to watch for the selection process of the next permanent leader of OCM, ensuring they possess the necessary industry experience and credibility.

With the cannabis market’s future hanging in the balance, this leadership shake-up could have significant implications for New York’s regulatory efforts going forward. Stay tuned as more updates unfold in this urgent and unfolding story.