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New York Cannabis in 2020: Will the state legalize?

New York Cannabis in 2020: Will the state legalize?

New York cannabis legalization could be bigger than California. But it all depends if the state Governor’s promise holds true.

New York tried and failed to legalize cannabis in 2019 even with broad support for legalization in the state. But now Governor Andrew Cuomo is promising 2020 will be the year it finally happens.

New York cannabis legalization would change the entire cannabis industry landscape, with such a huge population there’s no doubt a legal industry would succeed. But it all depends on the laws that pass, regulations and restrictions that the state puts on the new market that could damage it before it takes off.

New York Cannabis History

New York has always had a patchy relationship with cannabis and crime in general. The state received national backlash when the police department’s Stop-and-Frisk program was revealed to target minority communities, with most busts being for small amounts of cannabis possession, typically an eighth or less. Despite the state decriminalizing small amounts of cannabis possession in 1977, a loophole in the law allowed police to still unfairly arrest people.

In 2013, the Stop-and-Frisk law was found unconstitutional and was ended. Ever since then, the underground cannabis culture and industry has been slowly building in New York. Similarly to D.C. which legalized cannabis in 2017 but banned any dispensaries from opening, the decriminalization of cannabis in New York has led to rise in discreet delivery service, corner shops and other services for New Yorkers to get their cannabis with ease.

Not to mention that New York already has a medical cannabis program that could easily expand into a recreational market. In other words, the state is ripe for a legal market to explode.

Will 2020 Be The Year?

In early January of 2020, Governor Cuomo highlighted adult-use cannabis legalization as one of his 2020 priorities. His proposal includes forming an Office of Cannabis Management to regulate medical, adult-use and hemp programs; ensuring that social equity and social justice needs are met; working in concert with neighboring states; and creating a cannabis and hemp research center at the State University of New York.

New York is already a very expensive state, especially for those living in the city. It’s possible New York follows in the foot steps of California or Illinois and puts exorbitant taxes on cannabis goods while also allowing local municipalities to add their own taxes on top. If this happens, a legal industry could be extremely hindered (just look at California’s first year of legal cannabis).

The light at the end of the tunnel

One of the main reasons New York has put so much urgency into legalization is because of the so-called “vape epidemic” that struck the country in 2019. In case you missed it, hundreds of people became very sick from using private market vape cartridges that contained dangerous chemicals not typically found in legal products. The epidemic winded down at the end of 2019, but not until close to 50 people died from the illness.

While some states took the opportunity to use this epidemic as an excuse not to legalize, New York recognized that legalizing would open up a safe-access market for consumers that could prevent another epidemic. The Governor has already been meeting with fellow governors from Pennsylvania and Connecticut to discuss ideas as all three states move closer to legalization in 2020.

Cuomo said he wanted to legalize in 2019, and even with strong public support, wasn’t able to get it done. 2020 might just be another broken promise to try and stay in office, or a legal New York cannabis market could come and change the whole industry in a span of 12 months. We all have to stay tuned to see.

Michigan Cannabis Off to a Green Start

Michigan Cannabis Off to a Green Start

The first few recreational dispensaries have begun legal sales in Michigan, and the numbers are starting to roll in.

Michigan legalized cannabis in 2018, but took an entire year to plan and establish a legal marketplace. On December 1, 2019 the first recreational dispensaries were allowed to begin sales. Suffice to say the people of Michigan were ready.

While Michigan’s first day of legal sales was pretty different from other legal states there’s no way to deny that it was a success.

First Day of Legal Michigan Cannabis

Michigan cannabis consumers were definitely a little worried when December 1st rolled around, mainly because of the lack of locations to visit. The entire state had only five dispensaries for the entire population, three of which were in Ann Arbor.

But that didn’t stop the people of Michigan from lining up around the block and buying every last gram of cannabis that was available. Over 2,200 people spent over $220,000 at the three Ann Arbor stores alone, each averaging over $100. For only three stores in one day, that’s pretty good.

With over 200 people still waiting out in the cold until the stores closed at 9 PM, there were high expectations the following days as well. It’s safe to say those expectations were met.

Michigan Cannabis Makes Big Money

In the first eight days of recreational cannabis sales in Michigan, the state pulled in over $1.6 million, with over $162,000 being collected from the 10% sales excise tax and another $106,000 from the 6% state sales tax. The numbers are pretty big, especially for only five stores across the whole state, but keep in mind that’s over the first week of sales.

To put that in perspective, when Colorado legalized began recreational cannabis sales in 2014 the state sold over $1 million in cannabis just on the first day. However keep in mind that Colorado also had 24 dispensaries open on the first day of sales compared to Michigan’s 5. And taking tax dollars into account, Michigan is on a good track right now.

The state is projected to pull in close to $300 million in total tax dollars by 2023, with most of the money going to roads, schools and the state’s general fund.

Are More Dispensaries Coming?

The short answer is yes. But like any legal cannabis market, it won’t be without its roadblocks. The state began accepting applications for recreational marijuana business licenses on November 1 and has since awarded 21 licenses and pre-qualified another 73 applications.

But more than 1,400 of the state’s 1,771 communities have said they don’t want marijuana businesses in their towns, so finding a city that’s amenable to legal weed has been a challenge for businesses. With just a little more than 300 towns so far accepting legal cannabis businesses, it might be some time before there is a dispensary in close driving range for every Michigan resident.

Nevertheless by the end of 2020 there should be close to 100 dispensaries in Michigan. While still not a great amount compared to other states, it has become a common tactic among new legal cannabis states to start out slow and avoid a market crash from too many dispensaries and cannabis supply. It may mean overpriced cannabis and cannabis products for now, but it also means more quality products and prices that will drop in the future.