You can’t give away weed in New York

There are numerous laws surrounding cannabis regulation that are not so clear to begin with. Since regulation is in the hands of the individual states, as the federal government still considers the natural herb to be illegal, there are still some inconsistencies here and there. It is then the job of every regulator in every state to ensure that users know what is acceptable and what is not.

The leading cannabis regulator in New York has stepped up to have a say on one of the common practices among cannabis companies and users. He stated that the practice of cannabis gifting by cannabis companies, which have become a regular form of advertising by these companies, is illegal under recreational marijuana state laws. Read on as we examine the rough edges of this new statement from the Head of New York’s Cannabis Control Board and how it affects the cannabis industry within the state.

Giving away cannabis as the norm

Different norms have increased dramatically recently, leading many to believe that they are either legal or generally acceptable. The gift of cannabis is one of those norms. In states where adult use of cannabis is legal, it is now very common for a customer to gift cannabis in exchange for the purchase of another product. Often times, these purchased products are in no way directly related to cannabis or cannabis products as they are different from an overpriced shirt, lighter, and a host of other items. Tremaine Wright, chairman of New York’s Cannabis Control Board, has openly stated that the practice is illegal and must be stopped immediately.

It is still not entirely clear how this practice violates the state’s existing recreational cannabis laws. One thing that Jason Klimek, co-lead of Barclay Damon’s cannabis team, stressed is that the consumer’s safety is assured. He said this while speaking to WXXI after explaining that Chairman Tremaine Wright’s announcement was pretty predictable. Apparently, cannabis gifting has been a problem for quite some time, with law firms like Barclay Damon receiving repeated inquiries about it.

The stance of freeing cannabis among individuals and businesses gained momentum as many saw it as an opportunity to trade cannabis outside of the existing regulations. It has continued into the days when regulations were in place on adult use and possession, but licensing laws were not fully in place. A law was signed on March 31, 2021 allowing the possession and use of cannabis in New York State. The Marijuana Regulation and Taxation Act (MRTA), as it is known, allows registered medical marijuana patients in New York State to possess and use cannabis. This has caused the chairman of the Cannabis Control Board to step forward and make the statement, while pointing out the possibilities of sanctions and penalties.

Effects of the announcement

After the chairman has made the position of the supervisory body clear, there is still uncertainty about the level of the penalties and the level of the penalties. In an interview with WXXI, Chairman Tremaine Wright stated that those who do not cease the practice face severe financial penalties. There is a facility in Chemung County that openly gives away cannabis, and the assistant district attorney has also had a say recently. Susan Rider-Ulacco has made a splash with her county that although no action has been taken by officials, there may be future prosecutions against her.

The ramifications of this announcement are not limited to the reach of the Cannabis Control Board alone. Governor Hochul has stated that she will move forward with OCM appointments very soon and that there will be guidance on how to move forward on this matter. By then, however, she’s been suggesting that companies using commercial transactions to gift cannabis to customers are likely to face significant risks. While this may not be good news for beneficiaries of such a gift, the heads of administration believe it is a necessary step at this point.

What does this mean for New York State and the beneficiaries of cannabis gifts?

It goes without saying that many people will not be satisfied with Chairman Tremaine Wright’s new statement. In addition, it places some in a precarious position that can bring them into conflict with the law. New York State does not yet have licensed cannabis retailers. That means most sellers have had to improvise to get the herb available to those in need. Getting cannabis gifts after getting other non-cannabis items seemed like the way that seemed to keep everyone happy. Unfortunately, the recent announcement puts all of the practice back in the trenches and leaves vendors looking for new ways to make products available before licensing begins.

Kait Munro, spokesman for the Erie County District Attorney, made a statement that may excite those used to the practice. He stated that despite the declaration of the Cannabis Board, problems with cannabis gifts are more likely to be punished under civil law. What a civil sanction entails is a regulatory remedy, not necessarily a criminal law. This means that the involvement of law enforcement authorities and the involvement of the public prosecutor’s office in such a procedure are not to be expected.

Bottom line

While some feel that there might be some gray areas to exploit in relation to cannabis gifts, the attitude of the Cannabis Board is very determined. In due course, licensed cannabis retailers in New York State will be fully established and the need to give away cannabis this way will cease to exist.

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