The New York cannabis community is reeling after the abrupt departure of its top regulator. Felicia Reid, director of the state’s Office of Cannabis Management (OCM), was asked to resign by Governor Kathy Hochul last week. The shakeup came as the OCM withdrew charges against Omnium, a large-scale manufacturer accused of leasing its license to illicit brands.
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Reid’s predecessor, Chris Alexander, resigned in May 2024 after Hochul called the state’s adult-use rollout a “disaster.” The OCM has long faced criticism, but the latest blunder is raising alarms among operators and consumers alike.
GreenState asked the cannabis community to respond to the news, and many say the problems start at the top.
Vanessa Yee-Chan is the owner of Alta dispensary and a board member of the Cannabis Retail Alliance of New York (CRANY). She told GreenState that Reid’s removal highlights the OCM’s difficulty maintaining consistency, leaving operators struggling to navigate an industry where both the rules and those enforcing them shift with little notice.
“Many observers have noted a concerning pattern: the administration sets a clear direction for the agency, yet when outcomes fall short, responsibility is often placed on the very leaders who were following that guidance,” Yee-Chan said. “This cycle can unintentionally create uncertainty and undermine confidence in the agency’s long-term stability.”
Jeremy Rivera, owner of Terp Bros dispensary and president of CRANY, echoed those sentiments.
“The whole industry is shook up,” he told GreenState. “The constant transitions of leadership give us operators the feeling of instability.”
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Coss Marte, vice president and CRANY and owner of Conbud dispensary, believes many at the OCM want to see the industry thrive but lack the tools and leadership to achieve it.
“I think the intention is there, but the logistics and the tactics are not,” he said, arguing the agency is understaffed and insufficiently trained on its own rules and regulations. “I think they’ll do whatever it takes to do the right thing. But I don’t think they can when they don’t know what the right thing is.”
‘Very messy’…
The decision to drop the Omnium case raised eyebrows throughout the cannabis community. The OCM had previously requested a recall of roughly $30 million in product linked to Omnium, which manufactures vapes, edibles, and other finished goods for 17 licensed brands across New York.
At the time, the agency said it was unaware of any public health risks related to the embargoed goods. That stance appeared to contradict internal documents stating that the alleged violations at Omnium “jeopardize the immediate health, safety, or well-being of the public.”
Yee-Chan said the decision could further erode trust among consumers and license holders alike.
“Halting an investigation and removing the official responsible raises understandable questions, especially when product safety and consumer protection remain paramount concerns for everyone involved,” she explained.
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Representatives from the OCM told GreenState via email that the agency withdrew the case due to “new information,” but declined to provide additional details. They noted that they reserve the right to take action against Omnium or any operator who violates the regulations.
“OCM is committed [to] upholding social and economic equity, fairness, and transparency in the market—and to holding actors who violate the rules accountable,” the agency wrote.
The OCM also said retailers should “take direction from Omnium on what to do with the products subject to the voluntary quarantine.”
Omnium did not reply to GreenState‘s request for comment.
The current situation echoes a widespread embargo on Omnium products earlier this year, which left many retailers scrambling. Marte said the previous recall led him to scale back his orders from the embattled company.
“We had thousands and thousands of dollars of product that we paid for that had to go to quarantine,” he said, adding that it took Omnium months to make things right.
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Marte also noted that many consumers appear unaware of the issues, saying his business lost customers to illicit shops that continue to carry the affected brands.
Marte also questioned regulators’ decision to implement track-and-trace through METRC after the market had already been established. He maintains that as long as the state continues its “build the plane as they’re flying it” mentality, it will only lead to more problems.
“It’s very messy. Nobody knows what to do next,” Marte concluded.
