OCM NY: New York's Cannabis Management Office

Just as a soccer match needs a referee to arbitrate on matters arising from the play, the New York cannabis industry relies on the Office of Cannabis Management (OCM) to enforce regulations and ensure fairness within the market.

From issuing licenses and setting product standards to overseeing compliance, the OCM NY establishes the rules of the game for all players – growers, processors, distributors, and retailers, acting as the governing body that develops and implements the comprehensive regulatory framework for cannabis in the state.

If you're looking to break into the New York cannabis market or simply want to grasp the legal landscape in which your business operates, you need a deep understanding of the OCM's role and the rules it enforces. Fortunately, we've drafted this guide for you!

To learn more about the OCM NY, keep reading!

What Is the OCM NY?

As mentioned above, the OCM is the state agency responsible for setting and enforcing New York cannabis regulations, meaning that it sets the rules that cannabis businesses must adhere to and ensure they're followed.

Main Functions of the OCM NY

Created by the Marijuana Regulation and Taxation Act (MRTA), which was signed into law on March 2021, the OCM NY regulates all aspects of adult-use and medical cannabis and cannabinoid hemp, including but not limited to:

• Licensing
• Cultivation
• Production
• Packaging
• Labeling
• Distribution
• Marketing
• Sale

In other words, this state agency is in charge of:

• Setting the rules for the production and retail sale of cannabis products to adults over 21 years.
• Manage the state's medical program, allowing patients with qualifying medical conditions to access cannabis products through registered organizations.
• Ensuring the production and sale of cannabinoid hemp products meets strict regulations and quality and safety standards.

Structure of the OCM

The OCM is governed by a Cannabis Control Board, which consists of five members – three appointments from the Governor, one from the Senate, and one from the Assembly. Tremaine S. Wright serves as the Chairwoman as of 2025.

Commonly known as "the Board," this group of experts delegates the functions to be carried out by the OCM, which exercises its powers and duties through an Executive Director.

On June 10, 2024, Governor Kathy Hochul appointed Felicia A. B. Reid as Executive Deputy Director and Acting Executive Director of the OCM NY.

Both the chairperson of the Board and the executive director of the OCM are always appointed by the Governor and confirmed by the Senate.

The MRTA also establishes a State Cannabis Advisory Board, which provides recommendations for the use of medical, adult-use, and hemp cannabis and governs the Community Grants Reinvestment Fund, which supports communities disproportionately affected by past cannabis prohibition and promotes social and economic equity.

The State Cannabis Advisory Board consists of 13 voting members – seven appointed by the Governor, three by the Senate, and three by the Assembly. Representatives from other state agencies also participate but don't have voting power.

Members elect the chairperson and vice chairperson of the State Cannabis Advisory Board. As of 2025, Joseph W. Belluck and Dr. Junella Chin serve in these positions, respectively.

For more information, check out this guide on the OCM's governance structure.

Purpose of the OCM

The OCM NY oversees and regulates the cannabis industry with the purpose of ensuring public health and safety, prioritizing social equity, and building a fair market with equal opportunities for all entrepreneurs, including those from communities disproportionately impacted by past cannabis prohibition.

By enforcing the MRTA, the OCM also allows adults 21 or older and patients with qualifying medical conditions to access quality-controlled, safe cannabis products for both medical and recreational purposes.

Applying for Cannabis Licenses in New York

As explained above, the OCM is in charge of cannabis licensing in NY, which means it's responsible for regulating and issuing the necessary permits to operate in this industry.

Types of Licenses Issued by the OCM New York

The OCM offers different licensing options for cannabis businesses across the medical, adult-use, and cannabinoid hemp industries. Below is more information.

Medical Cannabis Program

Through the state's Medical Cannabis Program, the OCM licenses the following businesses:

• Registered organizations (RO): These are businesses authorized to process and dispense medical cannabis.
• Medical dispensaries: Operated by ROs, these are establishments that sell medical cannabis products to certified patients or their designated caregivers. Each RO can operate up to four dispensing facilities in New York.

Find more information on the OCM's Medical Cannabis Program web page.

Adult-Use Cannabis Program

The Adult-Use Cannabis Program also offers several licensing options for different businesses and entrepreneurs, including the following:

• Adult-use cultivator license: It allows holders to grow, clone, harvest, dry, cure, grade, and trim cannabis plants for resale to a licensed processor.
• Adult-use processor license: It authorizes processors to extract concentrated cannabis or its compounds and blend, infuse, or process them to create products that can then be sold to licensed distributors.
• Adult-use distributor license: It allows individuals or businesses to sell cannabis or derived products wholesale to licensed retail dispensaries or on-site consumption establishments for their resale.
• Adult-use microbusiness license: It's designed to give small businesses (those that meet certain requirements regarding canopy size or production/sales volume) the opportunity to enter the cannabis market. This license requires holders to engage in cannabis cultivation and at least one other activity, whether it be cultivation, processing, distribution, or retail sale.
• Adult-use retail dispensary retailer license: It authorizes the sale and delivery of cannabis products from licensed dispensary premises directly to customers.

Provisional licenses are available for microbusinesses and adult-use dispensary retailers, who can also become cannabis event organizers. Access more information about the OCM's Adult-Use Cannabis Program and the available licensing options by checking the official web page and this application overview.

Cannabinoid Hemp Program

The Cannabinoid Hemp Program also has some licensing options for businesses that process, distribute, and sell cannabinoid hemp products at a retail level. The latest opportunities announced by the OCM were the following:

• The cannabinoid hemp farm processor license
• The temporary retail permit

For more information on the available licenses, check out the OCM's official web page for the Cannabinoid Hemp Program.

Testing Laboratories

Besides licensing adult-use and medical cannabis operators, as well as cannabinoid hemp businesses, the OCM issues permits for laboratories and establishes the testing protocols and standards used to ensure product quality and safety.

The OCM's official page on cannabis laboratories offers more information on such permits.

The Application Process

The steps to apply for a cannabis license in New York can vary depending on whether you want to enter the adult-use, medical, or cannabinoid hemp industry. Each licensing option may also be subject to different requirements and documentation.

In most cases, the application process looks like this:

1. Applicants should create an account through the New York Business Express (NYBE) website and fill out the required forms, following the instructions for the specific license type they're applying for.
2. Next, applicants must complete all required sections of the application, providing key information, such as business activities, disclosure of every True Party of Interest (TPI), and location.
3. Once completed, all applications must be submitted within the timeline set by the OCM, along with the required documentation, which may include business plans, financial statements, tax returns, background checks, TPI disclosures, and evidence of location control. Learn how to create a cannabis business plan here.
4. The OCM reviews applications to ensure they comply with all requirements and conducts site visits, if necessary, for further regulatory assessment. Applicants can check their status by logging in to NYBE at any time.
5. If applicable (mostly for adult-use retail dispensary and microbusiness licenses), eligible applicants obtain a provisional license, which can be used to secure funding and premises.
6. Once all requirements are met, meaning provisional license holders can provide proof of control over a suitable location, the OCM will issue a full license.

For more information on the application process, you can refer to the OCM's website or check out our New York dispensary application guide here.

Recent Updates from the OCM

The past few years have been quite busy for the OCM as New York stepped up efforts to shut down illegal cannabis operations and ensure all businesses comply with required regulations.

A 2023 legislation encouraged the OCM to collaborate with the Department of Taxation and Finance (DTF) to ensure compliance within the legal cannabis market, leading to civil and tax penalties for cannabis-related violations of up to $20,000 per day.

In May 2024, Governor Hochul launched the Illicit Cannabis Enforcement Task Force, which brought together over 20 state agencies, landlords, and other relevant parties to take stronger action against illicit cannabis sales. About 450 unlicensed storefronts were closed as a result.

From December 2023 through November 2024, the OCM conducted 1,200 inspections of suspected unlicensed dispensaries, working closely with the Office of the Attorney General, local police departments, and other law enforcement agencies to crack down on unlawful cannabis activities statewide. Over %61 million worth of illicit cannabis products were seized during this period.

To further support such efforts, the OCM established new emergency regulations in September 2024, extending its power to shut down cannabis operations deemed illegal or posing an imminent threat to public safety.

The 2024-25 New York State Budget gave the New York City Sheriff a similar power, along with changes to NYC codes. Other municipalities can also pass their own laws to define the enforcement actions that local agencies can take against unlicensed cannabis retailers.

All of these changes were approved by the Board through three amendments to Part 133 Violations, Hearings and Enforcement regulations in 2024.

In November 2024, the OCM also announced the implementation of a new seed-to-sale tracking system, BioTrack, which would be used to monitor cannabis throughout the supply chain.

As of January 17, 2025, all cannabis licenses in this state are required to use third-party inventory tracking software that integrates with the NY STS Tracking System (BioTrack).

Such efforts have greatly benefited the regulated cannabis market, as legal sales have increased by 72% in just 10 weeks since the OCM enforcement actions were implemented. Weekly revenue rose to $2.6 million per week.

Also, by the end of January 2025, the OCM announced that cannabis retail sales surpassed $1 billion, marking a historic milestone for the state's cannabis industry.

For more NYS cannabis news and key details, you can check out our "The New York State of Cannabis Market in 2025" blog post and stay tuned for OCM updates via its pressroom and social media pages: Facebook, Instagram, X, LinkedIn, and YouTube.

Understanding the CAURD License

New York is committed to building a cannabis industry that is fair, safe, and beneficial for everyone, especially for individuals and communities who have been historically disadvantaged due to the War on Drugs. That's why the OCM has placed a strong emphasis on creating social equity programs, which include the Conditional Adult-Use Retail Dispensary (CAURD) license.

The CAURD program kickstarted adult-use cannabis sales in the state. Licenses were granted to New Yorkers who were directly or indirectly impacted by marijuana-related offenses before March 31st, 2021.

CAURD License Eligibility

To obtain a CAURD license in New York, applicants must meet specific criteria, falling under the "qualifying business" or the "qualifying nonprofit" category. Below are the requirements:

• Qualifying business criteria: At least 30% of the business must be owned by a justice-involved individual who is at least 21 years old and has qualifying experience, sole control over the enterprise, and a significant presence in the state.
• Qualifying nonprofit criteria: At least 30% of the business must be owned by a non-profit organization that is operated by US citizens or permanent residents (all aged 21 or older), employs at least five full-time employees, serves or employs justice-involved individuals, and boasts a history of profitable social enterprise.

CAURD License Application

To apply for a CAURD license in New York, applicants typically follow these steps:

1. Assess their eligibility by reviewing all requirements set by the OCM for this specific license.
2. Prepare all required documentation, which usually includes records of convictions and other proof of eligibility.
3. Create a profile on the NYBE page or log in if they already have an account.
4. Fill out the application form with the required information, including applicants' address and the North American Industry Classification System (NAICS) codes.
5. Pay the fees and verify that they have received an email with their application number.
6. Wait for a response from the OCM.

CAURD License Benefits

The CAURD license comes with many benefits, including the following:

• Opportunities to enter the New York cannabis industry despite past cannabis-related convictions and the impact of the War on Drugs.
• Legalization of operations to lawfully run an adult-use cannabis dispensary in this state.
• Access to a growing and competitive market with high revenue potential.
• Room for business development, product innovation, and expansion.

Do you want to learn more about this licensing option? We've crafted a guide with all the CAURD license details you need to know.

Understanding the Adult-Use Processor Type 3 Branding License

Besides the ones mentioned above, the OCM offers the Adult-Use Processor Type 3 Branding License, which is a unique component of the state's licensing program.

The Processor Type 3 license allows holders to market cannabis products in New York but doesn't authorize plant-touching activities, such as manufacturing or extraction. Instead, licensees must partner with other licensed businesses through white-label agreements in order to produce and distribute cannabis goods.

If you want to find out more about this licensing option, check out our blog post "How to Apply for NY Adult-Use Processor Type 3 Branding License."

Resources and Tools Offered by the OCM

To support and educate applicants, licensees, and customers the OCM offers many educational resources and innovative tools focused on the New York cannabis market. All of them are designed to streamline the application process, provide relevant information about the industry, and help businesses comply with the state's requirements. Below are the most important ones:

LOCAL Map

The OCM NY offers an interactive LOCAL (Legal Online Cannabis Activities Locator) Map, designed to assist both licensees and the public. This tool contains valuable information on the locations of cannabis businesses and whether they're active or pending.

With the LOCAL Map, potential customers can identify compliant locations and learn more about cannabis businesses in their communities. Prospective licensees can also use this tool to assess proximity to other dispensaries or to sensitive areas, such as schools and community centers, which is essential to comply with the state's strict zoning regulations.

Educational Events

From community conversations to workshops, the OCM often hosts educational events to help cannabis license holders, applicants, and the public stay informed about the latest regulatory updates, best practices, and business opportunities.

These activities are diverse and usually cover the most relevant topics, such as licensing requirements, compliant processes, social equity and inclusion. Find more information on the OCM's Events page.

Business Support

Besides creating tools for cannabis enthusiasts and hosting various educational events, the OCM NY is committed to supporting cannabis businesses every step of the way. On its official website, you can find guidance documents and FAQ sections with comprehensive information on relevant topics.

In addition, you can get technical assistance to clarify the questions you may have about licensing or other processes via a call or email. Below is the OCM contact information:

• For general questions: 1-888-OCM-5151 (1-888-626-5151) / info@ocm.ny.gov.
• For the medical cannabis program: 844-863-9312 / medical@ocm.ny.gov.
• For the cannabinoid hemp program: 1-866-697-4367 / hemp@ocm.ny.gov.
• For press inquiries: press@ocm.ny.gov

Streamline OCM Compliance with Distru

Compliance with OCM regulations is crucial for New York cannabis businesses. Although strict, these rules are designed to protect public safety and can help operators streamline processes, avoid errors, and create high-quality products.

At Distru, we understand how important it is to adhere to OCM standards. Therefore, we've created a comprehensive cannabis ERP system with all the features you may need to stay on the right side of the law.

Our cannabis compliance software aligns with OCM requirements in every aspect, providing a centralized solution that helps you track cannabis products from seed to sale, automates reporting, and integrates with New York's mandatory track-and-trace system, BioTrack.

Since Distru connects with BioTrack and allows for automatic data transfer between both platforms, you don't have to enter information manually, which reduces the potential for human error and ensures accuracy when reporting. Additionally, our seed-to-sale software syncs in real time with New York's tracking system and provides historical records for audit preparation.

Key Features for OCM Requirements

Distru is equipped with several features that can help you meet OCM requirements, including:

• Track and trace integration for real-time compliance: Distru provides real-time visibility into your inventory and operations, allowing you to maintain compliance at every stage of the supply chain.
• Automated license management and renewal tracking: Distru helps you manage your licenses and track renewal dates, ensuring you remain compliant with the OCM's licensing requirements.
• Built-in regulatory reporting templates specific to NY OCM: Distru provides pre-built reporting templates tailored to the NY OCM's specific requirements, simplifying the reporting process and minimizing the risk of non-compliance.
• Digital document management for OCM submissions: Distru facilitates digital document management by allowing you to easily store and submit required documents to the OCM NY.

Benefits for Different License Types

Do you want to know if Distru is the right solution for your business? These are the benefits for each license type:

• Cultivators: Distru streamlines harvest tracking and testing compliance, helping maintain accurate record-keeping for all cultivation activities.
• Processors: Distru can assist with recipe management and potency tracking, enabling precise control over product formulation and compliance with regulations related to THC or CBD content.
• Distributors: Distru is equipped with a New York OCM Manifest Creator for automated manifest generation and route optimization, simplifying distribution operations while maintaining compliance with tracking and reporting requirements.
• Retailers: Distru integrates with point-of-sale (POS) systems and contributes to inventory compliance, ensuring accurate sales reporting and inventory management for adherence to retail regulations.

Final Thoughts

The New York cannabis industry is growing, and the OCM is at the heart of it all. This regulatory body is in charge of setting rules for everything, from licensing to growing or selling cannabis.

Staying on the right side of New York cannabis regulations is essential for every business. Compliance can be complex, of course, but Distru's ERP system is here to help!

Distru simplifies tracking, reporting, and data management processes by providing the tools you need to meet strict OCM requirements, all in one place. Schedule a demo today!