New York’s cannabis social equity director resigns

The leader of New York’s cannabis social equity program has resigned in the latest shake-up in the state’s marijuana regulatory agency.

Damian Fagon, chief equity officer for the state’s Office of Cannabis Management (OCM), will resign from his post in November, the Albany Times Union reported.

His departure comes roughly three months after Chris Alexander resigned as the OCM’s executive director rather than finish out his term.

Alexander’s term was to expire this month, but Gov. Kathy Hochul said in May he would not be reappointed.

New OCM leaders

After Alexander resigned, the governor appointed two executives with state-government ties to the OCM and promoted a third:

• Felicia Reid, as executive deputy director and acting executive director.
• Susan Filburn, as chief administrative officer.
• Jessica Woolford, promoted to director of external affairs.

Fagon announced his resignation after an investigation by the state inspector general’s office into allegations the executive used his power and influence to punish a cannabis processor who had levied accusations of unlawful conduct within the industry, according to the Times Union.

A third-generation farmer, Fagon was placed on leave in March, pending the outcome of the investigation.

Fagon, who was appointed in June 2022 by New York’s Cannabis Control Board, was cleared of any wrongdoing.

He will remain on leave until his resignation, even though he was cleared.

Adult-use program still struggling

Fagon was hired to develop and implement a social and economic equity plan, which was supposed to be a key component of the state’s adult-use program.

But momentum in the developing market has been stalled because of litigation, lack of funding for Conditional Adult Use Retail Dispensary (CAURD) licensees, limited real estate availability and a thriving unlicensed market.

Adult-use sales in New York began in December 2022.

Despite the recreational program’s issues, retailers reported revenue of $429.9 million from January through the end of August.