The podcast features a conversation between Jen Lamboy, Director of Strategy at Hybrid Marketing Co., and Jeffrey Hoffman, a New York City attorney known as The 420Jurist. They discuss the current state of the cannabis industry in New York, focusing on the transition from illicit to legal markets, the role of legacy operators, and the importance of social equity in the industry.
Key points include:
New York’s Cannabis Industry: New York is currently transitioning from a largely illicit cannabis market to a regulated one. The state has started issuing licenses for cannabis businesses, with 251 conditional adult use retail dispensary (CAURD) licenses given out so far. The application process for standard licenses, which will include social and economic equity applicants, is expected to open in the fall.
Challenges in Legalization: The legalization of cannabis in New York faced numerous political hurdles, including disagreements between the governor and the legislature over the focus of the law, and delays in appointing the Cannabis Control Board. The law that eventually passed was more focused on social equity.
Illicit Shops: Despite legalization, illicit cannabis shops continue to operate in New York. Hoffman suggests that the state should focus on penalizing landlords who lease their properties to these shops, rather than targeting the low-level workers in the shops.
Legacy Operators: Hoffman argues that the state needs to make legacy operators (those involved in the illicit cannabis market) partners rather than competitors in the legal market. He suggests that the state could have used these operators as the infrastructure for cannabis delivery in the city.
Social Equity: New York is making efforts to promote social equity in the cannabis industry, including a mentorship program for legacy operators and programs to train returning citizens for jobs in the industry. Hoffman believes that New York will be a model for other states in terms of social equity in the cannabis industry.
Taxation: Hoffman criticizes the high taxation regime for cannabis in New York, suggesting that it could drive consumers to the illicit market. He proposes a tax holiday until the market is well established.
