What TF is Going on in NY?
Art Courtesy of Rebekah Jenks
From smoking apple bowls in the Big Apple to dispensaries in Times Square, cannabis in New York State has come a long way. But it’s been a convoluted path to get here – and where is here, actually? Two years after the Empire State formally legalized cannabis, we’ve still got a long way to go.
Here’s where the NYS market currently stands.
Two Business Owners Weigh In
Most people aren’t happy with the way the rollout has played out so far, but some are more dissatisfied than others.
“It was the right intentions and the right direction.” Nicole Ricci said. Ricci is President of NY Small Farma, a Cannabis education and advocacy non-profit. “But the debacle with the DASNY fund has dire consequences, and it’s been compounded by the lawsuits from the major corporations.”
DASNY, the dormitory authority of NY was meant to secure locations and funding for CAURD license holders. The shortest way to explain it is that there are no locations or funding secured and if there will be is anyone’s guess.
Chris Cameron, owner of Adirondack Natural Cannabis, has more harsh words for the state. “It’s smoke and mirrors, look here, not there. There have been zero funds raised for CAURD license holders and they’re being told to "kick rocks" if they have their own money to open a store where that location is close to one of the state's locations. The OCM is missing clear leadership, public accountability, and timelines.”
CAURD licenses are conditional adult-use retail dispensaries. They’re the first type of license NYS is issuing for the recreational market and are meant to give people disproportionately impacted by the war on drugs a leg up in the legal market.
To be fair, the Office of Cannabis Management (OCM) has missed many deadlines and calls for answers. But all of the blame can’t, and doesn’t lie with the OCM.
“People need to understand the difference between the OCM and the state,” Ricci said. “The OCM is an office fighting the administration, and they’re underfunded. It’s a battlefield of politics and special interests. If they had proper funding, things would go better, so I have a lot of appreciation for what they have achieved.”
What TF is Going on in NY?
The NY rec market is stunted - but why? There are many small reasons, and two larger ones: lawsuits.
There are currently two lawsuits impacting the NYS market. The first can be called the “Variscite case.” This case was filed on behalf of a Michigan man who holds a stake in the California-based company Varascite.
He’s suing the state under the dormant commerce clause, a federal clause that essentially says states cannot restrict interstate commerce (apparently, the fact that there is no legal interstate commerce of cannabis does not affect the validity of his case.) This case is why CAURD license holders aren’t allowed to open in five areas of the state.
The second lawsuit is a newer one, filed in March by a set of companies that include the multi-state operators that run NYS’ limited medical program. The suit alleges that the OCM has no authority to only open the license pool to people with cannabis convictions and the license application process should be open to everyone.
This sounds innocent enough until you read the names of the companies that have filed, including Curaleaf, Green Thumb Industries, Acreage Holdings. When the biggest companies in the country are crying unfair at the fact that they can’t cut the line, you know the state is onto something.
“Litigation is the worst way to solve things,” Ricci said. “They’re suing out of greed, not principle, and it’s a waste of taxpayer's time and money.”
Are there any dispensaries in NYS?
So lawsuits aside, why aren’t there more dispensaries in NYS? The state has not opened an application process for non-CAURD licenses, and existing license holders are still dealing with DASNY, the dormitory authority of NY to find acceptable storefronts.
There are currently 66 licensed retailers for cannabis in the state. But at the time of publication, there were just four locations open to the public; two in NYC and one each in Binghamton and Ithaca. One additional dispensary is expected to open in Albany in the coming weeks. But five dispensaries is a joke
for the 4th most populous state in the USA. This disparity creates frustration, animosity, and a flood of traffic to the grey market.
Rather than send more money to the OCM to allow them to work faster, the Governor has introduced new legislation to crack down on illicit operations, with fines over $10,000. It’s hard backtracking on the promise to not re-criminalize cannabis, and it speaks to the gap between the state administration and the OCM.
Has NYS Gotten It Wrong?
Cannabis is a new industry for the state, and it’s only just getting started. Where the recreational market is today is not where it was a year ago, and it’s certainly not where it will be in a year. It’s frustrating to move so slowly, but we have to see the bigger picture.
Has NYS gotten it right? It’s not really a yes or no question. It’s a nuanced conversation complicated by the history of prohibition, the status of corporations in this country, and the infamous bureaucracy in Albany. I believe the industry started with the best intentions in the MRTA, and the reality of the capitalist country we live in has gotten in the way.
Still, there is hope. “There’s no doubt that once the market is able to rise, stretch its legs, and hit its stride, that it will be the leading market in the country,” Ricci said.
