Blowing smoke

It is virtually impossible to walk along any street in New York without noticing the countless neon-green, pun-saturated weed retailers that are popping up like, well, weeds. This phenomenon spans the entire city, but takes on unique implications in a deeply historic and rapidly changing neighborhood like Bed-Stuy (Community District 3). Here, the intense uptick in these stores raises eyebrows and red flags of equity concerns for longtime Black and brown low-income residents, who have been disproportionately marginalized by over-policing under marijuana-related policies and are now at risk of a second wave of marginalization in the legal market.

Following the 2021 legalization of marijuana and the formation of the Office of Cannabis Management (OCM), applications for legal cannabis shops surged. However, the lengthy and confusing process turned off many entrepreneurs, leading many retailers to open illegal smoke shops, opting to pay fines rather than wait for the OCM office to get through their backlog of applications. The rapid opening of illegal shops spurred the Adams’ administration to launch a campaign of crackdowns - a campaign of raids and closures -  which were later deemed unconstitutional.

When it comes to the elusive legal licenses, the OCM offers three types; AUCCs (Adult-Use Conditional Cultivator), AUCPs (Adult-Use Conditional Processor), and CAURD (Conditional Adult-Use Retail Dispensaries). CAURD licenses, according to the OCM, are intended for “those most impacted by the enforcement of the prohibition of cannabis… [and] prioritizes individuals who are justice-involved, meaning either they or an eligible family member were convicted of a marijuana-related offense in NYS, and non-profit organizations who serve justice-involved individuals and communities disproportionately impacted by cannabis prohibition.” To identify these communities, OCM created a map of Communities Disproportionately Impacted (CDIs) to allegedly help prioritize applications. Furthermore, CDI communities are eligible to be part of the New York Social and Economic Equity (SEE) Plan which aims to grant 50% of adult-use cannabis licenses to applicants. This program, created by the Marijuana Regulation and Taxation Act (MRTA), focuses on building equity for five specific groups: individuals from CDIs, minority-owned businesses. women-owned businesses, distressed farmers, and service-disabled veterans.’ So far, of all Adult-Use licenses, 54.7% have been awarded to SEE applicants, exceeding the initial goal of 50%.

Despite this win, the overall licencing process remains both slow and opaque. The OCM’s annual report shows that the office received 6,934 adult-use applications in 2023 but between 2022 and 2023 issued only 463 Conditional Adult-Use Retail Dispensary Licenses. Of the 463 statewide CAURD licenses, 137 resulted in the creation of legal dispensaries in the state with just ~55 in New York City, and fewer than 10 in Brooklyn, raising doubts about whether the CDI map truly guided licensure decisions. 

OCM’s methodology for identifying CDIs raises even more questions. The agency claims to have analyzed rates and census data to inform CDI designation. Specifically, the agency claims to have compared local cannabis-related arrest rates from 1980-2021 to state averages, identifying census tracts with significantly higher rates as CDIs. While datasets like census data are public, the methodology remains unclear. When asked for details, the agency declined, instead directing me to their FAQ page. 

The MRTA findings appear to reveal the discrepancies, especially when they reported that only 5% of the 463 CAURD l licensees went to CDI applicants. For context, there were 1,476 total CDI applications (SEE and non-SEE combined), resulting in just 20 licenses—only four of which were for adult-use retail stores like those now crowding neighborhoods like Bed Stuy.

Bed-Stuy highlights these inconsistencies. A comprehensive report from the comptroller’s office found that Bed Stuy’s cannabis arrest rate ranks 17th (out of the 55 identified community districts). Yet Bed-Stuy has only two licenced dispensaries, with at least 25 unlicensed shops. 

Even the lucky few to receive licenses are not without struggles. Getting a license is only the first of many administrative hoops and financial hurdles. One licensed retailer in Bed Stuy shared that the store not only waited over two years for a license but was then left to find appropriate real estate within the zoning parameters, all while dodging the many predatory lenders.

These disparities seem to reveal larger systemic issues within the OCM. Despite the agency’s equity framework, the OCM operates with little accountability or transparency. Perhaps this explains the many leadership controversies including a mass exodus of leadership this summer, Meanwhile, law-abiding retailers spend years and thousands of dollars to do things the right way, unlicensed shops open, betting on the lack of regulation and raking in the money to boot, and leaving the rest of us wondering if the OCM’s approach to a just marijuana market is simply blowing smoke.