What the New York Cannabis Market Needs to Take on the East Coast

Only 53% of New Yorkers support the newly legalized legalization of recreational activities. According to recent polls, the remaining 47% do not want adult cannabis. This has led experts to question the likelihood of a thriving cannabis market when nearly half the population isn’t interested.

New York has one of the best medicinal cannabis programs in the country. This is evidenced by the number of patients in the program and annual sales. The state’s legal leisure market is emerging. Officials are currently putting things in place to ensure the market thrives once it’s set up.

Legal cannabis in New York

The ban on recreational cannabis ended in March 2021, almost a year ago. The approved bill, called the Marijuana Regulation and Taxation Act, was signed into law by former Governor Andrew Cuomo. Last year, the board of the proposed regulator was assembled by the current administration, led by Governor Kathy Hochul.

A few weeks ago it was said that a new measure could be headed for the governor’s office. The new law would give hemp farmers a foothold in the new market. They would have a conditional license to grow, process and distribute various cannabis products.

The road to accessible recreational cannabis isn’t as easy as it should be right now. There are signs that there are still some significant obstacles to overcome before New Yorkers can finally buy cannabis from licensed marijuana dispensaries across the state.

The opt-out clause

The biggest challenge with legal cannabis is the opt-out clause. Almost half of all communities in New York have spoken out against the sale of legal cannabis.

Recent data released by Benzinga states that 54% of communities do not support cannabis consumption rooms in their regions, while 47% oppose the establishment of cannabis retail spaces. This is a major obstacle to creating an equitable and sustainable sector.

Steve DeAngelo, a well-known cannabis activist who has been dubbed the “father of the legal cannabis industry” for his immense contribution to cannabis advocacy, says it’s still possible for New York and other states in similar positions to promise proper legal cannabis markets create . Referring to California’s burgeoning legal market in a Times Union op-ed, he explained that the state derives a significant percentage of its revenues from companies that have interests in multiple jurisdictions.

DeAngelo pointed out that there are also communities in California that have refused to allow cannabis sales in their areas. Despite this, California has maintained a thriving and profitable cannabis market. New York is not the only state using the opt-out clause. It could follow the blueprint designed by California to create a better cannabis market.

Mr. Steve DeAngelo also mentioned the presence of legacy operators in the country. He explained that traditional operators are critical to the continuity of the cannabis industry. Legacy operators are cannabis companies that have been in business long before cannabis businesses were legalized. He suggested New York work with one or more of these companies to boost operations. He added that established operators like Bhang are pioneers in the industry. The New York cannabis industry would be better off with their experience.

Take a comprehensive approach

Many cannabis market experts have suggested that a comprehensive approach would be the best way to improve the New York cannabis market.

This includes licensing existing or legacy operators to continue working the markets they create, establishing an amnesty program to give new operators a fresh start, and training and funding interested applicants with skills and resources that contribute to the overall success of the business would industry.

While California is a good model for a near-perfect cannabis market, there are some mistakes being made that New York could learn from.

Municipalities that sell cannabis in California have heavily taxed the product. In some regions, operators are required to pay about 40% tax on each sale. The state has a highly regulated market in which small and independent producers can hardly remain relevant. To survive in the California cannabis market, a company must find enough money and resources to stay afloat or join a company. This disadvantage is one of the reasons why there are many illegal providers.

New York must seize this opportunity to create a fair market that creates space for operators large and small. A level playing field with proper taxes and regulations will allow local operators to thrive and keep multi-state corporate operators out.

DeAngelo emphasized that excluding old operators from legitimate markets does not mean that they will automatically disappear or become irrelevant. These companies have developed appropriate market systems and strategies that would allow them to remain relevant for decades to come.

The end of cannabis gift shops

When the ban was lifted in March, some stores introduced a rewards system where customers were given cannabis products as souvenirs. This has become fairly common in New York stores. Some have gone so far as to sell some of these products to customers, although the government has yet to issue operating licenses.

The Cannabis Management Enforcement Unit has caught wind of the practice and has warned affected businesses to refrain from doing so. The OCM sent letters to all twenty-four, urging them to cease and desist from the gifting practice. Unit chief executive Chris Alexander said the practice threatened public health and safety.

bottom line

New York is in the process of building a regulated cannabis market that would compete with previously established recreational markets. The state has a duty to ensure that the health and safety of the public are not endangered in its pursuit of economic growth.

The state plans to ensure that all products are tested and safe for consumption by approved laboratories. Prioritize communities that have been disadvantaged by cannabis prohibitions over the years. The state plans to give these communities equal opportunities to right past wrongs. The legislature must learn from the successes and mistakes of the rule of law in order to create the best leisure market the state can hope for.

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