New York’s New Cannabis Executive Director Outlines Path Forward After Rocky Rollout

John Kagia is stepping into one of the most closely watched roles in New York government at a critical moment for the state’s legal cannabis industry.

Recently appointed acting executive director of the New York Office of Cannabis Management by Gov. Kathy Hochul, Kagia takes over following leadership turnover and ongoing concerns about how the state’s cannabis rollout has unfolded.

Kagia leads the team responsible for policy development and implementation for New York’s medical, adult-use and cannabinoid hemp programs. He also oversees research and data systems used to track industry performance, along with public health education campaigns tied to cannabis use.

Kagia told Radio Catskill the rollout has faced challenges but also pointed to major progress.

Kagia described the current moment as “exciting” for legal cannabis in New York, pointing to rapid growth since adult-use sales began.

“We’ve issued over 2,000 licenses across the supply chain… and we have over 600 stores now open,” Kagia said.

He added that the state has already surpassed $3 billion in total sales, with projections of up to $3 billion more in 2026 alone.

Still, Kagia said many prospective business owners are waiting for approvals, and that access across the state remains uneven. “There’s a lot more to do,” he said.

Kagia, who previously served as the agency’s policy director, said he sees the cannabis office moving out of its startup phase. Just a few years ago, the agency didn’t exist. Now, it has grown into a team of more than 270 people overseeing what he called one of the most complex regulatory systems in the country.

The next phase, he said, is about refining and stabilizing the system. “There’s a huge amount of work still to do to grow this program… and ensure its long-term sustainability,” Kagia said.

Kagia brings more than a decade of experience in market research and strategic analysis, including work across federal government, technology and nonprofit sectors. Since entering the cannabis industry in 2014, he has focused on emerging markets, investment trends, supply chains and consumer behavior, advising policymakers, investors and business leaders.

Kagia is stepping into the role as federal cannabis policy begins to shift. He pointed to recent moves to reclassify marijuana at the federal level as some of the most significant drug policy changes in decades.

“These are some of the most consequential… policy changes in the last century,” he said.

While cannabis remains illegal federally, those changes could eventually reshape how state markets like New York operate—especially around banking, taxation, and research.

The state’s cannabis rollout has faced criticism for delays, licensing backlogs, and confusion in the marketplace. But Kagia pushed back on the idea that New York has moved too slowly.

“If you benchmark the pace… we’ve actually moved really quickly,” he said, noting the scale of building a new regulatory system from scratch.

Still, he said people are frustrated by delays, and improving efficiency is a top priority.

One of the most visible challenges has been the rise of unlicensed cannabis stores, particularly in New York City. Kagia called enforcement a “critical priority,” citing concerns about public health, youth access, and the impact on legal businesses.

“Illicit businesses are selling cannabis from who knows where… and too often to people who should not have access,” he said.

He added that illegal shops also undermine licensed operators and create confusion for consumers. State agencies are working together to address the issue, though Kagia said enforcement resources remain limited.

The cannabis market has also seen swings in supply. Early on, growers produced more cannabis than the limited number of open dispensaries could sell. Now, with more than 600 stores operating, the concern has shifted toward meeting demand.

Kagia said the state is working to stabilize supply by allowing existing growers to expand production and bringing new cultivators into the market.

New York’s cannabis law was designed with a strong focus on social equity—aiming to ensure that communities disproportionately impacted by past cannabis enforcement benefit from legalization. Kagia said that goal remains central to the agency’s work.

State law calls for 50% of licenses to go to equity applicants, including minority- and women-owned businesses, veterans, distressed farmers, and people from impacted communities.

As Kagia steps into leadership, he faces the challenge of managing a fast-growing but uneven system, with ongoing state issues and shifting federal policy shaping the industry. Kagia said the focus now is on improving how the system works and making sure businesses and consumers can rely on it.