Nearly two weeks ago, Gov. Kathy Hochul announced an overhaul of the embattled Office of Cannabis Management after a report had found that a web of inefficiencies and inexperience left current and would-be legal weed peddlers furious and out of cash.

But lawmakers are questioning Hochul’s choices and the next steps.

“The war on drugs is really the war on black and brown individuals in New York State and we need to make sure that we are protecting social equity,” State Assembly Michaelle Solages (D-Long Island) said.

What You Need To Know

  • OCM told NY1 on Thursday that “close to 100” have been padlocked since the budget was signed on May 4

  • The majority of those stores have been in the five boroughs, according to OCM. City Sheriff Antony Miranda said on May 14, that 75 illegal shops within the five boroughs have been padlocked so far

  • The Office of General Services’ May 12 report said, the office lacked experienced employees and created a confusing system for applicants

  • On Wednesday, lawmakers also approved Robert Rodriguez as the new head of the Dormitory Authority of the State of New York, known as DASNY

Solages is chair of the legislature’s Black, Puerto Rican, Hispanic & Asian Legislative Caucus. She requested a meeting Wednesday with Hochul’s top officials, including Director of State Operations Kathryn Garcia.

“We want to be a partner in this conversation and we want to ensure that we are not, you know, quote unquote, flooding the market, because that’s only going to break down the market further,” she told NY1 in an interview.

State Sen. Jabari Brisport (D-Brooklyn) described the meeting as “people brought up concerns about inflated costs of build outs, about changing the rules in the middle of this regarding social equality.”

According to a report from the Office of General Services on May 12, the office had a shortage of skilled employees and implemented a confusing application process.

Hochul that day revealed she would not be reappointing the current executive director, Chris Alexander.

“I think the governor is looking for a scapegoat and has chosen Chris Alexander. I’m pretty offended by it,” Brisport said.

Later Wednesday, lawmakers also approved Robert Rodriguez as the new head of the Dormitory Authority of the State of New York, known as DASNY.

It’s the state corporation that’s been under criticism for how it’s delivering so-called low-interest loans as part of a $200 million “social equity fund.”

Hochul announced in June 2023 that New York State selected the Chicago Atlantic Admin, LLC to invest $150 million in the state’s “Cannabis Social Equity Investment Fund.” The state committed $50 million.

But, during Tuesday’s state Senate Finance Committee hearing, Rodriguez said that $36 million in state funding has gone toward helping set up a dozen licensed cannabis stores. Another dozen have been approved for licenses.

State Sen. Liz Krueger, Finance Committee Chair, noted that the figure falls far short of the state’s goal to help business owners set up 150 stores through loan funding.

It’s unclear whether loans will continue to be granted by DASNY.

He also faced tough questions about the fund under his predecessor, Reuben McDaniel, who resigned last fall.

But as Secretary of State, Rodriguez was also a part of DASNY’s board while the fund was struggling to get under way.

The $237 billion state budget passed on April 19 included new authority for law enforcement to padlock illegal shops.

OCM told NY1 on Thursday that “close to 100” has been padlocked since the budget was signed on May 4.

The majority of those stores have been in the five boroughs, according to OCM. City Sheriff Anthony Miranda said on May 14 that 75 illegal shops within the five boroughs have been padlocked so far.