new-york-tries-to-crush-growing-marijuana-black-market-with-new-expansion-of-legal-licensesNew York Tries to Crush Growing Marijuana Black Market with New Expansion of Legal Licenses

The New York state government announced this week that it will put the accelerator on the legal marijuana market, announcing the opening of the application period for hundreds of licenses available for people and companies interested in growing, processing, distributing and selling cannabis legally. after two and a half years of legalizing weed.

The granting of new licenses has been blocked by a series of legal lawsuits that oppose the strict regulations that limit many groups from being beneficiaries of this business that is projected to be multimillion-dollar.

By now, at least 160 legal dispensaries selling edibles, vaporizers, and flower products were supposed to be operational. To date there are only 23 stores and many offer only home delivery. But what has gained ground resoundingly, especially in the Big Apple, are illegal sales.

With the unblocking of some legal issues, the application period has been open since last October 4, and it is expected that the first official licenses for growers, processors, distributors, microbusinesses and retail dispensaries will be approved in early 2024.

In this sense, Chris Alexander, executive director of the New York State Office of Cannabis Management (OCM) said that the opening of this window to promote this industry “focuses on fairness, and has the strongest antitrust protections.” from the country”.

Estimated to be the largest legal marijuana industry in the world: Early next year, regulators are expected to issue up to 1,500 licenses to businesses such as nurseries, cooperatives, dispensaries and distributors.

Shops everywhere

The NY Cannabis Control Board (OCB) anticipates that the issuance of a significant number of retail licenses will ensure that New Yorkers have access to as many places as possible to legally purchase cannabis.

Because the process of opening a store is resource-intensive, the number of retail licenses initially issued will likely be greater than the number of stores that will open in the near term.

This approach is designed to help small businesses enter the market.

During this application period, currently operating adult-use conditional growers and processors will also be able to apply for full, non-conditional licenses.

Entrepreneurs who wish to apply for this permit may submit their applications through the New York Business Express (NYBE) platform.

Dope.
Two and a half years after its approval, the Marijuana Regulation and Tax Law triggered the black market.
Credit: MICHELE SPATARI | AFP/Getty Images

We are ready!

In the opinion of Jeffrey García, leader of the Latin Cannabis Association in New York, this process of assigning licenses, for many reasons, has developed very slowly.

Hundreds of Hispanic retailers throughout New York are seeking a license since the Marijuana Regulation and Taxation Act (MRTA) was passed in March 2022.

García’s assessment is that Hispanics were precisely one of the groups most impacted by criminalization, in the era of the war on drugs in New York, and now dozens of Latino merchants are waiting to participate in an orderly manner in this industry.

“We have been waiting for this announcement for a long time. We are prepared to advise on applications. Finally the process was unblocked. At this time, the closure of illegal smoke shop operators must also be accelerated,” he noted.

When New York State approved the legalization of cannabis for those over 21 years of age after years of debate, state legislators promised a program that would involve people disproportionately affected by the application of criminal possession laws in the business. of the grass.

To qualify for a license it is not enough to have economic capital; in general, people or their family members who have been convicted of a crime related to marijuana before its legalization have priority. Also those who have owned a profitable business for at least two years.

Persecution of illegal sales intensifies

In parallel, Governor Kathy Hochul announced the results of what she considers an “aggressive enforcement against the illegal sale of cannabis”, undertaken by the OCM and the Department of Taxes and Finance, which to date has seized more than 8,500 pounds of illicit product, with an estimated street value of more than $42 million.

It is estimated that there are currently more than 2,000 illegal smoke shops operating across the state, many of which operate with complete impunity in the Big Apple.

“My administration is focused on closing illegal stores, protecting the health and safety of children, and helping small businesses thrive,” he added.

New partnerships with counties are also confirmed, which will allow blocking orders to be enforced in court against companies selling cannabis illegally, as well as new action to target illegal operators for labor violations.

The state projection is that the marijuana industry will generate hundreds of millions in revenue annually, in addition to creating thousands of jobs, guaranteeing product quality and consumer safety.

Specifically in New York City, where this black market is largely concentrated, the City Council announced the implementation of a new law, promoted by Councilwoman Lynn Schulman, which seeks to stop the proliferation of these businesses, holding the owners of the premises responsible. for renting their spaces to stores without official permits from the OCM.

The new regulations prohibit owners of commercial spaces from renting to unlicensed sellers of marijuana or tobacco products, and impose fines of up to $10,000 for violations.

In addition, since last year, the NYC Sheriff’s Office began a harsh offensive conducting more than 400 inspections since last year, seizing millions of dollars in illegal items and cannabis without authorization for sale. Until now, due to the legislation that was in force, sites can be closed and reopen hours later.

“They sell it on every corner”

While the government and the City advance their plans to close illegal stores and put clear rules in an industry, which will clearly be very lucrative, in some streets of Hispanic neighborhoods in the south of the Bronx and Upper Manhattan, parents and representatives They remain alarmed by the sale of marijuana freely on the streets, near schools.

El Diario spoke with several residents of Gerard Avenue in the Bronx, a few blocks from Yankee Stadium and several public schools.

The common denominator of the complaints is that in the afternoons, people even set up tables in the streets, without any hesitation, to sell all types of drugs.

“It is a very sad sight. Children and young people leave schools and see drugs as something very normal. The authorities talk about illegal stores, but I have never seen a raid on the streets against people who sell marijuana and all kinds of drugs. Is this how they intend to wage war on fentanyl? “Everything is mixed here!” said a Dominican retiree who preferred to keep his identity confidential.

Another resident of Gerard Avenue believes that since marijuana was legalized in New York it is more difficult to control young people, so that they stay away from the consumption of these products.

“It is a lie that this is a law that gives legal access to adults. Here you see that 14 and 15 year old children are already fuming since morning. And not even the parents can tell him anything, because their response is that it is legal. Everything looks more disastrous on this street,” reacted a Dominican grandmother.

Immigrants alert!: It is legal in NY, but not in the entire country

  • Under the new New York law, those who have a marijuana conviction will have this record automatically removed from their criminal record, although this does not include being completely clean in court if they have also been prosecuted for other types of felonies.
  • Because the possession, purchase and sale of cannabis remains a crime under federal law, this “automatic removal” is not necessarily valid for the purposes of immigration laws.
  • Immigrants must carry out special proceedings before the court, so that a judge can approve that the conviction be completely annulled as a criminal record.
  • If an immigrant has a medical marijuana prescription, or has helped a family member apply for a prescription, it could be an action that eventually has repercussions on an application for adjustment of status, green card application, or naturalization.
  • The establishment of “good moral character” is necessary for naturalization, so a noncitizen may be denied this benefit if he or she does not meet this standard through the use or possession of the herb, according to the criteria of the laws. federal.
  • It is advisable to avoid working in any position within this industry. If you have a serious medical need and must turn to medical cannabis, get legal help.
  • Never take a flight to another state where this product is not legal, with weed or accessories linked to consumption.
  • Never discuss any marijuana-related conduct with an immigration or border agent without first obtaining advice from a legal expert.
  • (Sources: Legal Immigration Resource Center and Immigrant Defense Project)

In figures:

  • 270 conditional cultivators, 40 processors, conditional distributors and 23 conditional adult-use retail dispensaries to grow, distribute and sell cannabis throughout New York State

You may also be interested in:

  • What should parents of minors know (and fear) about the legalization of marijuana in NY? – The NY Journal
  • Alert! Why should certain immigrants stay away from New York’s new legal marijuana industry? – The NY Journal

By Scribe