“Licensed sellers simply cannot compete with presumably less expensive unregulated cannabis retailers, and our communities cannot lose much-needed revenue that goes to fund substance use education, prevention and treatment initiatives.”
Michael Appleton/Mayor’s Office of Photography
Mayor Eric Adams holds up cannabis edibles at a press conference in December announcing a campaign against illegal marijuana shops.
When New York State legalized adult use of cannabis by passing the Marijuana Regulation and Tax Act (MRTA), the law was praised for its focus on social equity, including provisions aimed at to ensure that communities devastated by the skewed drug policies of decades past were the first to benefit from this new industry.
A little-known benefit was also designed to address the substance use disorder crisis and preventable overdoses caused by opioids: a portion of sales will go to support several education, prevention and treatment initiatives.
But two years later, all those benefits of a legal marijuana industry could be gone when the illegal market explodes.
The legalization of adult cannabis has allowed the proliferation of illicit shops selling unregulated products. Unlicensed vendors are thwarting the critical goals of the MRTA at a particularly deadly time in the substance use disorder crisis by significantly devaluing the licensed program. This is a disservice to retailers who are looking to join a thriving new economic venture and who have gone through the proper processes to build their business fairly.
Unlicensed sellers don’t even try to hide their nefarious and illegal actions, but rather blatantly act in plain sight. There are dozens of smoke stores within the blocks surrounding the three licensed stores in Manhattan. These vendors are undermining the new industry and hurting our communities by blatantly breaking various laws.
The disregard of unlicensed stores for current legislation has allowed minors to buy products that they should not be able to buy. These stores sell candy-themed merchandise behind bright neon lights with humorous and childish names that appeal to underage consumers.
While the goal of these businesses is purely for profit and to attract as many customers as possible, there seems to be less concern as to what is actually being sold. some smoke shops sell contaminated products with prohibited levels of various contaminants, including E. coli, salmonella, nickel and lead.
Less than 10 years ago, New York City experienced the K2 epidemic, and to prevent a future problem, regulations were created on what can be sold and where it can be sold, but now we need to focus on monitoring and enforcement. existing standards. regulation.
In all five boroughs, the city estimates there are 1,500 stores illegal sale of cannabis products. a december survey They found 61 bodegas, delis, and cigar shops between West 54th Street and West 108th Street, where they found nearly half to be illicit cannabis retailers. In areas like the Bronx, there has been a marked increase in cigar shops, many of which are opening near schools and community spaces.
Many of these businesses are opening in close proximity to each other, some areas with multiples on any given block. Meanwhile, as of January 26, the state had barely approved 66 retail dispensary licenses. from New York City first licensed store it only opened at the end of 2022, and only four licensed businesses in total have opened since then. Companies that sell cannabis do so illegally. The financial burden of fines and the taking of illegal products has not been enough to reduce the illegal industry.
Mayor Eric Adams and Manhattan District Attorney Bragg announced a partnership with local police and elected officials to align efforts against establishments that sell cannabis illegally. Without further enforcement from the state or within our municipalities, we allow these businesses to continue their illegal activities.
But by voicing our concerns and working with entities like the Office of Cannabis Management (OCM), we will see a change in dynamics. It is possible to identify legislation to modify current regulations or redefine the role of municipalities; We began that process by observing the situation and analyzing the needs of our communities.
We cannot afford to allow bad actors to add insult to injury to a substance use disorder crisis of already epidemic proportions. Licensed sellers simply cannot compete with presumably less expensive unregulated cannabis retailers, and our communities cannot lose much-needed revenue that goes to fund substance use education, prevention and treatment initiatives.
The Office of Cannabis Administration and the city must continue their work to codify MRTA enforcement roles and responsibilities and ensure that revenue from cannabis sales supports the critical and vital work of treatment providers.
To meet the objectives of the MRTA, our government must weed out the bad actors so that a fairer, healthier, and safer city grows.
City Councilwoman Marjorie Velázquez represents the 13th District in the Bronx. Ann Marie Foster is the executive director of Phoenix House.
