Cannabis Gifting Flourishes In Manhattan As New York Inches Toward Retail Marijuana Market Launch

New York became the 15th state to legalize recreational cannabis in March 2021 when then-Gov. Andrew Cuomo signed recreational marijuana into law.

A year later,  New Yorkers still can't walk into a shop and buy weed, and it seems that they will not be able to do so any time soon, despite many important steps the state is taking under Gov. Kathy Hochul's guidance to get the state's cannabis market up and running.

New York Inches Toward Launch Of Retail Marijuana Market

Gov. Hochul recently signed a bill that would give provisional cannabis growing and processing licenses to hemp businesses that are currently engaged in promoting equity in the industry, on the heels of the Senate's approval. The legislation sponsored by Assembly Majority Leader Crystal Peoples-Stokes and Sen. Michelle Hinchey (D) was aimed to speed up the process of New York's adult-use market and to support equity goals in cannabis business participation.

Opt-in or opt-out?

However, as it turns out, legal cannabis seems not to be a priority for nearly half of New York towns -54% percent of 1,521 municipalities don't want consumption sites and 47% are against allowing cannabis dispensaries.

Drawing parallels between California's cannabis industry, which some say is "in a state of disarray," for the same opt-out reason, Steve DeAngelo wrote in a Times Union op-ed that "there's still an opportunity in New York and other states to create an equitable and sustainable legal market."

Marijuana Gifting Flourishes

In the meantime, as New York inches toward launching a retail marijuana market, it seems that sales of buds and edibles are already flourishing in Manhattan. Even though New York cannabis regulators proclaimed marijuana gifting to be illegal. In October, stores selling a product or service to consumers and then giving them cannabis as a "gift" have become a thing in the Big Apple.

This "gifting" practice has come to the attention of the Office of Cannabis Management's (OCM) Enforcement Unit, which recently sent "cease and desist" letters to more than two dozen businesses it found to be doing just that.

Despite warnings from the state regulators, unlicensed marijuana dispensaries continue to multiply in New York City.

'Brave' Retailers?

A number of retailers are using a loophole in the state's law to do that, including Lonny Bramzon, who runs his unlicensed weed dispensary, Street Lawyer Services on Stanton Street, New York Post writes.

"Being nervous is for the weak," Bramzon said, who sells digital content like videos or mixed tapes and doles out a bit of weed on the side. 

"Everyone is happy and loves the digital content," Bramzon added. "We are a cannabis content lounge and also a place of community. It's a beautiful thing."

Situated on Eighth Avenue in Chelsea, the Empire Cannabis Club is selling marijuana via 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" the store's website says.

However, according to some industry leaders known to The Post, this gifting "might not last forever," as it could be violating federal law.

"These stores are jeopardizing their chance at getting a license at the end of this year," said Joe Rossi, a managing director of the lobbying firm Park Strategies, who runs the group's cannabis division. "We say this is the difference between short-term greed and long-term greed. Our advice to anyone is don't get on the wrong side of the Office of Cannabis Management."

New York Wants To Do It Right

In the meantime, New York plans to roll out a new marijuana-themed education program to teach people about cannabis laws around the state.

Under the guidance of the Office of Cannabis Management, the campaign is poised to inform people about where cannabis can be consumed, who can consume it and how to do so safely.

The move follows New York City, becoming the first in the nation to open two overdose prevention centers (OPC) where people can use illicit drugs and receive medical care and services.

Photo: Courtesy of Michael Discenza on Unsplash