Two entrepreneurs share their struggles in opening a legal cannabis dispensary in New York City, highlighting the slow rollout compared to unlicensed shops, last minute glitches, legal challenges, and high costs. The podcast also delves into broken promises in social restitution and compensation for the war on drugs, the importance of education and enforcement, pending litigation's impact on business, and the challenges faced by legal operators including high taxes and limited product availability.
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Quick takeaways
The implementation of New York's legal weed market has been complicated, with a vast difference between licensed dispensaries and unlicensed shops, causing challenges for legal operators.
Card applicants, who were meant to benefit from social justice and equity efforts, have faced legal obstacles and financial losses due to injunctions and lawsuits, exacerbating the challenges faced by aspiring legal operators.
Deep dives
Challenges in New York's Legal Weed Market
Despite the attempt to legalize marijuana in New York, the implementation of the legal weed market has been far more complicated than anticipated. There are only about two dozen legal weed dispensaries in the state, compared to over a thousand unlicensed dealers. The tension between regulated legal routes and unlicensed shops has created a complex landscape. Corporate interests have thrown obstacles into the gears, creating further delays. The state could have codified the conditional adult recreational dispensary licenses into law, but their failure to do so has contributed to the current challenges. The problem is heightened by the fact that the illicit market is flourishing, making it difficult to compete as a legal operator. Education and enforcement are necessary to address the issue and educate consumers about the risks associated with unlicensed products.
Legal Challenges Faced by Card Applicants
Card applicants, who were meant to benefit from social justice and equity efforts, are now facing legal obstacles. This group, which includes individuals who were impacted by the war on drugs, invested significant amounts of money into their businesses. However, they are stuck in a legal limbo due to injunctions and lawsuits. The article 78 proceedings brought by veterans groups and multi-state operators have added further complexity. These legal roadblocks have created uncertainty, preventing card applicants from opening their stores and causing substantial financial losses. The lack of clarity and broken promises from the state have exacerbated the challenges faced by these aspiring legal operators.
Competition from Unlicensed Shops
The proliferation of unlicensed weed shops in New York has created stiff competition for legal operators. Despite promises of cracking down on the illicit market, the number of unlicensed brick-and-mortar stores has increased over time. Some of these shops even emulate the appearance of legal dispensaries, attracting consumers who may be unaware that they are purchasing from unregulated sources. While education is crucial, relying solely on consumer awareness is not sufficient. It is necessary for the state to reinforce enforcement efforts to ensure the equitable and safe operation of the legal weed market.
Hopes for Resolving the Situation
While facing numerous obstacles, card applicants like Kanbud remain optimistic about opening their legal weed stores. After lifting the injunction, Kanbud aims to open its doors on October 19th. However, the road ahead is still challenging, with ongoing litigation and the need for sustained investment. Proper consumer education, enforcement efforts, and additional support from the state are necessary to level the playing field and promote the success of legal operators in New York's marijuana market.
When New York legalized recreational cannabis for adults, it didn't just want to fling the gates wide open for anyone to take part. Instead it specifically aimed to help out and give priority to individuals who were previously harmed by the war on drugs. However, more than two years after the law was signed, there are just a handful of legal, licensed shops. Meanwhile, there are thousands of un-licensed shops that proliferate across New York City. At the same time, red tape and legal challenges have hampered the efforts of those going down the legal, regulated path. On this episode, we speak with two entrepreneurs who are trying to go down the regulated path: Coss Marte and Alfredo Angueira of Conbud. They've spent over a million dollars getting ready to launch their dispensary in Manhattan's Lower East Side, but have been unable to actually open it on schedule due to various last minute glitches and legal challenges. We discuss what they've encountered in their efforts, and what it's been costing them to go down the legal path.