The Troubled Rollout — What Went Wrong

CAURD lawsuits, four executive directors, 90% of applicants unlicensed, and only 40 stores by end of 2023. The most troubled rollout in legalization history.

Last verified: March 2026

A Masterclass in How Not to Launch

The MRTA created two new bodies: the Office of Cannabis Management (OCM) and the five-member Cannabis Control Board (CCB). Governor Kathy Hochul — who replaced the resigned Cuomo in August 2021 — appointed Chris Alexander as OCM's first executive director and Tremaine Wright as CCB chair. What followed was a cascading series of failures.

The CAURD Lawsuits

The state's equity-first strategy reserved the first retail licenses for people with prior cannabis convictions through the CAURD program. It was noble in intent but legally vulnerable.

  • Variscite NY One, a Michigan-based entity, challenged CAURD's in-state conviction requirement as violating the Dormant Commerce Clause. A federal judge blocked licensing in five of fourteen regions in November 2022.
  • Carmine Fiore et al., representing military veterans, argued CAURD improperly excluded other equity groups. In August 2023, a judge imposed a total freeze on the entire CAURD program.
  • The injunction was not fully lifted until December 2023.

The Numbers Tell the Story

End of 2023

37-40 Dispensaries

The state had originally projected 150+ by mid-2023. The reality fell devastatingly short.

End of 2024

261 Dispensaries

The market began accelerating as injunctions lifted and licensing resumed.

End of 2025

582 Dispensaries

Roughly 18 new stores opening per month. $1.69 billion in annual sales.

The Leadership Revolving Door

Leadership turnover became the defining feature of the program. Four different leaders in under two years:

  1. Chris Alexander — The Drug Policy Alliance attorney who helped draft the MRTA. Resigned May 2024 after a damning OGS review found OCM had failed to license 90% of applicants.
  2. Felicia A.B. Reid — Forced out in December 2025 after botching an enforcement case.
  3. Susan Filburn — Interim appointment.
  4. John Kagia — Former cannabis analytics executive, took over February 2026. OCM's policy director since 2022.

The Governor's Role

Governor Hochul has been both the program's biggest critic and a source of its instability. She publicly called the rollout a "disaster" in January 2024, ordered the review that led to Alexander's resignation, forced out his successor, and eliminated Wright's salary from the budget. Critics argue her administration contributed to the very problems she blames OCM for.

Recovery and Momentum

Despite everything, the market has accelerated dramatically. Monthly sales reached $168 million in January 2026, up from $34 million in February 2024. The trajectory is unmistakable — but so is the damage the delays inflicted, particularly on equity entrepreneurs who spent years in licensing limbo while the unlicensed market exploded around them.