New York’s legal cannabis industry has yet again hit another major snag. On Monday, Governor Kathy Hochul requested and accepted the immediate resignation of Felicia A.B. Reid, the acting Executive Director of the state’s Office of Cannabis Management (OCM).
This sudden departure comes as the state’s legal cannabis program continues to face significant challenges, including a rocky rollout, regulatory missteps, and enforcement controversies.
Reid’s exit is the second time in just over a year that leaders have forced out a top cannabis official, raising serious questions about the stability and direction of one of the nation’s most anticipated legal marijuana markets.
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.
However, just a day before the administrative trial was set to begin, the OCM abruptly withdrew all charges against Omnium. The agency stated it withdrew the case “without prejudice,” meaning it could refile it later, citing new information it had received. This sudden reversal, without a clear public explanation, severely undermined the agency’s credibility.
In a statement, Governor Hochul directly linked this failure to her decision, stating, “Too often, the Office of Cannabis Management has stood in the way of the market realizing its potential, including most recently in the case of a pending compliance action that it has had to withdraw.” Following Reid’s resignation, James Rogers was also fired.
The “Too Close to Schools” Scandal
The Omnium debacle was not the only controversy to mar Reid’s tenure. In July 2025, the OCM informed 152 licensed dispensary applicants that their proposed locations were too close to schools, rendering them non-compliant.
The issue stemmed from the OCM’s own erroneous guidance from 2022, which it had since corrected. A lawyer had reportedly alerted the agency to this problem months earlier, in March 2024, but the agency took no action until July.
This reversal threw dozens of small business owners’ plans into chaos. Many had already invested heavily in leases and build-outs, sparking outrage and legal action.
Twelve businesses sued the state, and a New York Supreme Court judge granted a preliminary injunction, blocking the OCM’s directives and preventing the potential closure of these businesses. The incident highlighted a pattern of regulatory inconsistency and poor communication that has eroded trust among license holders.
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.
This begins with appointing a permanent, experienced leader who can navigate the complexities of the industry and implement clear, consistent policies.
Without a stable and predictable regulatory environment, New York’s cannabis market will continue to struggle, leaving small business owners to bear the brunt of the chaos. The coming months will be critical in determining whether the state can finally get its ambitious program on track or if it will remain a cautionary tale of a rollout gone wrong.
