As New York state continues its push toward adult use cannabis sales, licensed dispensaries have yet to open, and some budtenders aren’t sitting back and waiting. A number of unlicensed dispensaries have opened in New York City, operating under a loophole in the state’s law despite warnings from state regulators.
Former Governor Andrew Cuomo signed cannabis legislation in July 2021 after the State Legislature passed the bill, making New York the 15th state to legalize the recreational use of cannabis.
Certain parts of law went into effect immediately, including an individual allowance to possess up to three ounces of cannabis for recreational purposes, or 24 grams of concentrated forms of cannabis. New Yorkers are also allowed to smoke cannabis in public wherever smoking tobacco is allowed, though localities and a new state agency have the ability to further regulate cannabis smoking in public.
The state’s program has experienced a number of delays, and projections predict that New York may not see legal cannabis sales until next year or later. Michael McQueeny, an attorney and cannabis legislation expert, said New York may not start up their licensed sales until 2023 or even 2024.
“The Legislature has already passed a law saying you can sell it,” he told Fox5 New York. “The problem is you can only start selling it once the regulations governing how those sales look and feel get implemented.”
Now, shops like Street Lawyer Services in the Lower East side are navigating the delay their own way. The shop sells digital content, like videos or mixtapes, and adds a gift of cannabis on the side. Lonny Bramzon spoke candidly about running his shop, even though it’s unlicensed:
“Being nervous is for the weak,” Bramzon told the New York Post. “Everyone is happy and loves the digital content. We are a cannabis content lounge and also a place of community. It’s a beautiful thing.”
Another Gothamist report took a closer look at the shopping experience, shading customer Oliver as he perused the shop’s offerings. Oliver chose a $40 “content pack” including THC edibles packaged to look like popular sour gummy brands, also snagging a $60 package that came with a vape cartridge. He said that he preferred the retail experience over texting a dealer and became a member of the shop at the end of his visit to get future discounts and perks, including free access to the lounge in the back of the store.
“It’s a great thing,” he said. “I feel like it’s more regulated and safer. I like walking into a store better than some random guy coming to my house.”
Empire Cannabis Club has unlicensed cannabis stores in Chelsea and the Lower East Side and sells weed through a membership service.
“We have taken the blessings of the New York State Legislature allowing the transfer, without profit, of cannabis, and have set up a membership service in which the club will acquire cannabis products for its members, and only add the cost to facilitate the acquisition and transfer of said products,” Empire’s website states.
Though, state regulators have caught on, and the state Office of Cannabis Management has sent out 52 “cease and desist” letters so far.
“Failure to cease this activity puts your ability to obtain a license in the legal cannabis market at substantial risk,” a sample letter from the state reads. “The unlicensed sale of cannabis is illegal and subjects you to substantial fines and possible criminal penalties.”
The penalties are weaker than they were before, since the state’s legalization measure also looks to minimize criminalization.
One recipient told Gothamist that she would stop selling THC products at her Manhattan shop because she doesn’t want to risk her chances of getting a license when the time comes.
“I’m a super cautious person, but I’m also a business person,” said Lauren Forsch, owner of Popped.NYC, a licensed CBD shop on the Lower East Side. “How do I watch all these other people do this, and I can’t?”
Though, industry leaders told The Post that this is likely the right move for shops looking to get a license. Joe Rossi, a managing director of the lobbying firm Park Strategies who runs the group’s cannabis division, affirmed that stores are gambling with their chances for a license should they continue running and selling unlicensed.
“We say this is the difference between short-term greed and long-term greed,” Rossi said, adding that, “Our advice to anyone is don’t get on the wrong side of the Office of Cannabis Management.”
