State's top cannabis official resigns as case involving Long Island firm is dropped

Gov. Kathy Hochul requested the resignation of the state’s top cannabis official on Monday after the case against a Lindenhurst-based cannabis distributor was withdrawn on the eve of its administrative trial.

Hochul accepted the resignation of Felicia A.B. Reid, the head of the Office of Cannabis Management, effective immediately, her office said in a statement.

"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," Hochul's statement said. "As a result, I directed my office to take action, including requesting the resignation of the Acting Executive Director. That resignation has been accepted and is effective immediately."

The resignation occurred the day before the administrative trial of Omnium Health, also known as Omnium Canna, was set to begin. The firm allegedly hatched a "rent-a-license" scheme that allowed unlicensed companies to sell cannabis products out of its Hauppauge warehouse.

Hochul’s office said her administration remained "committed to fostering the cannabis market for consumers, business owners and impacted communities" and to "work expeditiously to restore accountability, transparency and confidence in OCM."

"New York's Cannabis market holds enormous potential. It creates jobs, generates revenue and builds prosperity in communities that were left out of the economic mainstream for decades," Hochul said. "Realizing that potential requires strong leadership, a deep understanding of the regulatory framework, and a steadfast commitment to the people of this state."

At the now dropped administrative hearing, Omnium Health faced the possible loss of its state operating license as well as other penalties, including fines and a product recall, the OCM said in October.

OCM spokesperson Taylor Randi Lee said in a statement that based on recently obtained, new information, currently under review, OCM "has withdrawn, without prejudice, the notice of pleading against Omnium Health, Inc. (d/b/a Omnium Canna)."

OCM reserved its right to take appropriate regulatory action in the future on any licensee violations related to this matter.

"The issues in the case remain vital to furthering the Marijuana Regulation and Taxation Act’s purpose," the statement said. "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 withdrawal also allows Omnium's product recall to be lifted, Lee said.

Reid had said the company engaged in a "blatant breach of the licensing rules designed to ensure transparency and fairness in the legal market."

"Our state’s cannabis laws are clear: licenses are not transferable and only licensed operators may produce and distribute cannabis," Reid had said.