New York closes ‘illegal’ dispensaries – Cannabis | weed | marijuana

New York cannabis regulators and police departments are shutting down “illegal” dispensaries. Last Monday, the authorities searched seven shops.

The situation is not dissimilar to Canadian legalization and BC Bud.

The latter is a loose group of cannabis growers, retailers and other interest groups who have been safely producing cannabis for decades and expect legalization to include them too.

Canadian legalization was more about selling equity than weed. More on building an elite cannabis cartel from Laurentian. Like every other major industry in Canada – from airlines to telecoms to maple syrup.

There are no free and fair cannabis markets in Canada. Or, as we saw this week, in upstate New York.

New York closes “illegal” pharmacies

To sell cannabis in New York, you need a permit from the Office of Cannabis Management (OCM). Try selling cannabis without the consent of the OCM and you’ll quickly find that Prohibition is in full swing.

That’s what New York cannabis entrepreneur David Tulley found out last week when New York authorities shut down “illegal” dispensaries, including his “I’m Stuck” cannabis stores.

“The legalization of cannabis in New York was a historic milestone in undoing the harms of the past, but there are laws that must be followed to ensure cannabis products are safe and out of the hands of minors,” said Attorney General Letitia James in a statement.

“David Tulley brazenly flouted our laws, defrauded taxpayers and put our children at risk by selling unregulated cannabis to underage consumers. Today’s enforcement actions should send a clear signal that companies selling cannabis without a license should be shut down.”

Of course, barcoding and taxing a cannabis product doesn’t automatically make it “safe.” It also fails to see how a capitalist act between consenting adults amounts to “taxpayer fraud.”

“I’m stuck” could face a million dollar fine

According to the New York authorities, David Tulley, his companies and the building owners face fines in the millions.

Tulley denies selling to minors (under 21 in New York). This claim stems from an Easter egg hunt hosted by I’m Stuck, where participants could trade the eggs for cannabis products. As is often the case in the cannabis world, adults are not allowed to have fun.

Everything kids like — Easter egg hunts, cartoon characters on candy, and candy bars — is banned in the cannabis industry.

But as Tulley told the Associated Press, it’s all reefer craze. His shops offered advice and education on cannabis. The cannabis products provided were free samples; Therefore, state licenses are not required.

“We’re ready to go to war with New York State and Wednesday is our day in court…so we’ll be happy to talk to them,” Tulley said.

Authorities have ordered Tulley to appear in court in Wayne County.

New York’s cannabis laws provide for a $10,000 fine for each day a business sells cannabis without a license. Authorities double that fine to $20,000 per day if the store receives a closing order but fails to comply.

Tulley has been ignoring the state’s cease and desist orders since February 2022. New York may find that closing “illegal” pharmacies is more costly than regulating them.

Just like in Canada

“It is vitally important to take action against illegal operators who are breaking the law and undermining the success of business owners and consumers who abide by the rules,” New York Gov. Hochul said in a statement.

Is it “critical” that the New York OCM prioritizes this? From their point of view – yes, that is crucial.

Untaxed cannabis means less money for them. And let’s say they allow entrepreneurs like Tulley to run their businesses. What incentive do others have to get a license, pay fees and taxes, and “follow the rules”?

We find a similar situation in Canada, specifically in British Columbia. The federal government has barred Indigenous Canadians from corporate ownership of Canada’s cannabis industry. While some played the victim and complained to the government, most have taken matters into their own hands.

This is done by opening “illegal” pharmacies or indigenous cannabis trading posts. Authorities are reluctant (but not opposed) to raiding Indigenous cannabis stores. This has created some tensions with non-Indigenous cannabis dealers, who are licensed and taxed to death by provincial authorities.

Likewise, in 2015 and 2016 in Vancouver, British Columbia, there was an “illegal” pharmacy on every corner. So the City of Vancouver decided to regulate some and close others.

But who decides? City bureaucrats are demanding that long-term medicinal cannabis dispensaries be either relocated or closed altogether.

At the same time, others with no legacy (or with actual ties to organized crime) received a thumbs-up.

New York closes “illegal” pharmacies

The closure of “illegal” pharmacies in New York is a prime example of why governments shouldn’t regulate capitalism.

For one, it corrupts capitalism by creating incentives for lobbying and dishonesty. But it also reinforces the exploitative actions of a politically dominant class.

New York already has laws regulating cannabis. Anglo-American traditions already provide rules that ensure – through non-political forces – due diligence not to injure others and their property.

New York cannabis regulators and police departments are shutting down “illegal” dispensaries because legalizing cannabis isn’t about your rights to your mind and body.

It’s about tax revenue. Just like in Canada, where the most profitable cannabis companies are state monopoly wholesalers.