Legal Marijuana presented a Nothing Burger from New York State

After the chaos surrounding the recreational weed rollout, the government is trying to figure out the next steps. But it appears that legal marijuana has been thrown into the dust with New York State’s latest rollout for would-be cannabis retailers. With an estimated $3.5 billion in revenue at stake and added tax revenue to the state’s ever-growing budget, fumbling is costly to a significant number of players. And it was a huge loss for the marijuana industry as a whole.

What was quickly seen as an opportunity was seized on in the city with the most billionaires in the world and countless large and small entrepreneurs and hustlers. When the players saw that there was a huge amount of money on the table, they acted quickly in a way that bureaucrats would never understand.

Photo by Jamie Grill/Getty Images

Using a Wild West approach, officials decriminalized and hindered licensed legalization of sales. Despite promises and initial outlines of how existing medical marijuana dispensaries could transition to recreational marijuana, and a fair, government-quick approval process, the state has thrown everything out the window in one fell swoop. In a vision of justice, the authorities decided to reserve the first retail licenses for criminals and other people involved in the justice system. Lawsuits began, desired licensees had difficulty raising capital, and over 1,600 unlicensed retail stores opened in New York. For the little time players, they have set up card tables on sidewalks in parks where roll-ups and handmade marijuana edibles are sold in full view of police.

The updated systems were introduced but left people confused, discouraged and disappointed. The Office of Cannabis Management launched the previous CAURD (Conditional Adult-Use Retail Dispensaries) program with high hopes. Now regulators voted to allow medical marijuana operators in the state to apply for adult-use retail licenses. Multistate operators who have patiently acquired the majority of the state’s 10 registered organizations.

RELATED: California or New York, where there’s the biggest marijuana mess

“It was more of an orgy of minimalism. While they are preparing to open the application window on October 4th for most license types (excluding consumption and on-site delivery) (originally it was not intended to be a 60-day window, but rather rolling applications), they declined to do so to address the CAURD program. Apart from saying this remains “a priority”, they have only provided some subtle guidance in the guidance on the regulations. This includes setting a priority for retail applications that include secured properties, which will be given priority after the first 30 days of the 60-day application period (although it does not define what this means). And note that existing licensees can apply for an additional license as long as they comply with the rules of a two-tier system. The positive news is that these statements can be interpreted as an invitation to current CAURD licensees, many of whom also meet other Social and Economic Justice (SEE) criteria, giving them an additional priority,” shares Andrew Cooper, Partner at Falcon Rappaport & Berkman LLP, a leading cannabis law firm.

Photo by 955169 via Pixabay

Unfortunately, there are several losers in the state’s unique approach. One of these is users and medical marijuana patients, including veterans. The unlicensed dispensaries produce money and charge their customers inflated prices due to high demand. Small investors and companies, including those that could be involved in the CAURD, will not have the financial resources to compete with multinational and large players. And taxpayers will lose in the coming years just as Revue lost to unlicensed pharmacies.

The good news is that consumers will continue to find products easily for years to come. There’s even a thriving unlicensed pharmacy a few blocks from City Hall.

RELATED: Can Cannabis Help Seasonal Affective Disorder?

While New York is teeming with billionaires, fashion, food and smart people, it seems to lack the common sense needed to create a good government plan.