Top New York Cannabis Regulators Resign Amidst Continued Chaotic Rollout
A Rocky Rollout From The Start
When New York legalized recreational cannabis in 2021, the state aimed to create an equitable market that would empower small local businesses and communities harmed by past marijuana enforcement.
However, the reality has been far from this vision. Lawsuits challenging the OCM’s focus on social equity operators plagued the initial rollout, leading to significant delays. For almost the entire first year of legal sales, fewer than 25 dispensaries were open statewide.
This slow start created a vacuum that the illicit market was all too happy to fill, undermining the legal operators who were playing by the rules. While the market has gained some momentum, with sales projected to reach nearly $2 billion in 2025 from over 500 dispensaries, the path has been anything but smooth.
The OCM’s leadership has been under constant pressure, with Governor Hochul previously branding the initial launch a “disaster.” Reid’s predecessor, Chris Alexander, resigned in May 2024 following a critical audit of the agency’s performance. Reid was appointed in June 2024 to steer the ship, but her tenure has been just as turbulent.
The Omnium Case: The Final Straw
The catalyst for Reid’s resignation, as first reported by The Capitol Pressroom, appears to be the OCM’s handling of a major enforcement case against Omnium Health, a Long Island-based processor and distributor. In October 2025, the OCM accused Omnium of orchestrating a “rent-a-license” scheme, allegedly allowing unlicensed, out-of-state companies like Stiiizy, Grön, and mfused to manufacture products in its facility.
This practice, also known as “reverse licensing,” directly violates New York’s cannabis laws, which aim to prevent large, multi-state operators from dominating the market.
The OCM’s newly formed Trade Practices Bureau, led by former prosecutor James Rogers, took a hardline stance. The agency filed charges seeking to revoke Omnium’s licenses, impose millions in fines, and issue a statewide recall of all associated products. The case was seen as a critical test of the OCM’s authority to crack down on bad actors.
What’s Next For New York Cannabis?
With the departure of both Felicia Reid and James Rogers, the Office of Cannabis Management is once again in a state of transition. The agency has appointed Susan Filburn, its Chief Administrative Officer, as the new interim leader. Governor Hochul has pledged to “work expeditiously to restore accountability, transparency and confidence in OCM.”
New York’s legal cannabis market holds immense promise to create jobs, generate revenue, and correct past injustices. However, realizing this potential requires competent and consistent leadership. The constant turmoil at the OCM not only hinders the growth of legal businesses but also benefits the illicit market that continues to thrive.
The resignation of another top official just goes to show the deep-seated problems within New York’s cannabis regulation. The state must now take steps to rebuild trust with licensees, consumers, and the public.
