When former New York Governor Andrew Cuomo faced a political storm due to allegations of misconduct, he sought to shift the narrative by legalising marijuana in a last-ditch effort to gain voters’ favour. Although the legislation was designed not only to legalise cannabis but also to right the historical wrongs of prohibition, the reality of its implementation is far from the vision. The outcome? A bureaucratic quagmire that has left business owners in limbo and the public frustrated.

This blog explores the complexities surrounding marijuana legalisation in New York, how the social justice approach fell short, and its broader societal impacts.

The Vision Versus Reality of Legal Marijuana in New York

The idea behind New York’s marijuana legalisation was ambitious. A key goal was to provide opportunities to communities disproportionately affected by cannabis prohibition. Licensing prioritisation was promised for people like Jonathan Elfand, a man who served a decade in prison for marijuana offences, but as with many over-complicated policies, the roadblock lies in the details.

Elfand’s case is a prime example. Despite his past convictions aligning with the criteria, he has been unable to obtain a legal dispensary licence. Frustrated, he decided to open unlicensed shops, which prompted harsh enforcement actions by authorities. While his story isn’t unique, it underscores the overwhelming bureaucracy at the heart of the system. As one report noted, “New York’s legal cannabis market has been hampered by inexperienced leaders who treated the state licensing agency like a ‘mission-driven’ startup rather than a government office”.

A Flood of Grey-Market Shops

With state regulators dragging their feet on licences, thousands of unlicensed dispensaries filled the gap, meeting consumer demand while operating in a legal grey area. Far from facilitating a smooth transition to a regulated market, New York responded by cracking down on these shops, further complicating the path to a functional legal cannabis industry.

It’s worth asking whether regulators should have adopted a free-market approach, allowing businesses to compete and letting consumers decide where to shop. Instead, the state opted for rigid controls, creating winners and losers and stalling progress. This has led to a situation where “there are around 140 recreational dispensaries operating statewide — about one for every 148,000 New Yorkers,” while illegal shops dominate.

How Social Justice Goals Complicated the Industry

Unlike other states that have implemented marijuana legalisation, New York’s focus on social justice added layers of complexity. Regulators created a set of licensing criteria prioritising women, minorities, veterans, and individuals from historically marginalised communities. While these were noble intentions, the results have been chaotic.

Applicants faced endless delays due to the bureaucracy involved in meeting these criteria. On the other hand, high fees and strict regulations dissuaded many individuals from even entering the legal market. For business owners like Elfand, who fit the mould of intended beneficiaries, the process has proven frustratingly inconsistent.

This approach echoes California’s struggles, where overregulation and high taxes have limited the success of legal marijuana markets. Despite its legal status, most cannabis transactions in California still occur in the black market. New York seems to be heading down the same path.

Costly Legal Access Pushes Consumers Back to Illegal Markets

One major issue hindering the legal marijuana market is cost. Taxes on cannabis sales in New York are among the highest in the nation, pushing the price of legal weed far above what most consumers are willing to pay. According to one cannabis industry lobbyist, an estimated 90% of New Yorkers still purchase their weed illegally—even two-and-a-half years after legalisation. High taxes not only hurt budding entrepreneurs but also undermine the broader goals of regulation and public safety.

The Problem with Open Consumption Laws

Another controversial aspect of New York’s marijuana policy lies in its approach to public consumption. Unlike cities like Amsterdam, which restrict cannabis use to designated coffee shops, New York permits public cannabis consumption almost everywhere. While intended to ensure equitable access for individuals in public housing, this policy has led to unintended consequences.

From the streets of Manhattan to subway platforms, the scent of marijuana now pervades public spaces, sparking frustration among residents. Critics argue that this normalisation of public cannabis use is contributing to a decline in urban quality of life. Former Baltimore police officer and academic Peter Moskos points out that rising public disorder coincided with the advent of legal weed, further fuelling backlash.

A balanced policy could have designated semi-private areas for cannabis use while enforcing no-smoking laws in shared spaces. Instead, the architects of the law prioritised perceived fairness over nuanced policymaking. The result? Urban tension and a growing divide between cannabis supporters and detractors.

Learning from Past Mistakes About Marijuana in New York

New York’s current marijuana landscape is a far cry from what policymakers envisioned. Poorly executed regulations have left entrepreneurs like Jonathan Elfand in limbo, created an environment in which illegal dealers dominate, and alienated community members who feel overwhelmed by the effects of loose public consumption laws.

Similar flaws are evident in other states with legal cannabis. California’s example shows how overregulation and high tax rates can stifle the success of a newly legalised market. For New York to move towards a truly functional system, a few critical changes need to take place:

• Simplify licensing processes to encourage more entrepreneurship.
• Lower taxes to make legal options more competitive.
• Revisit public consumption guidelines to find a middle ground that satisfies all stakeholders.

Source: Reason.com