As of last June, more than two years after New York legalized recreational marijuana, just 12 state-licensed dispensaries had opened for business, falling far short of Gov. Kathy Hochul’s prediction that more than 100 would be operating by that summer. Six months later, Hochul was bragging that “nearly 40 adult-use dispensaries will have opened in 2023.” The current count is 87. Those stores, The New York Times notes, “are far outnumbered by more than 2,000 rogue head shops, the target of complaints that they siphon customers, sell to children and attract criminals.”
New York’s rollout of marijuana legalization has been a “disaster,” as Hochul conceded in January. “Every other storefront” is an unlicensed pot shop, she told The Buffalo News. “It’s insane.”
That disaster has frustrated would-be retailers, left farmers in the lurch, played havoc with tax revenue projections, and made a joke out of any expectation that New York, by learning from the experience of states that legalized marijuana earlier, would do a better job of displacing the black market. The insanity that Hochul perceives is a product of bad decisions by politicians who should have known better and obstruction by regulators who sacrificed efficiency on the altar of diversity.
Unlike states such as New Jersey, where voters approved legalization in 2020, and Maryland, where a similar ballot initiative passed two years later, New York did not initially allow existing medical dispensaries to start serving the recreational market. Its slow and complicated licensing process, which was skewed by an “equity” program that prioritized approval of applicants with marijuana-related criminal records or their relatives, is maddeningly hard to navigate.
Those preferences invited lawsuits by people who were excluded, which further delayed approval of licenses. Guidance and financial help for people struggling to jump through the state’s hoops never materialized. And as in other states, high taxes and burdensome regulations have made it hard for licensed businesses to compete with unauthorized dealers.
Hellbound and Down 