NY cannabis merchants fume they can’t open pot lounges because of foot-dragging by regulators
Hash-sheesh!
Operators of licensed cannabis stores in New York are griping that they’re unable to open pot lounges where customers can consume weed on site because officials are dragging their feet to draft the needed rules.
The Marijuana Regulation and Taxation Act of 2021 legalized marijuana while also allowing the licensing of “consumption sites,” or spaces where customers can smoke doobie akin to a cigar bar and eat edibles or consume cannabis-infused beverages.
But four years later, pot-shop operators still can’t apply for a license to open a lounge because the Office of Cannabis has yet to put regulations in place.
“Am I happy about it? No,” fumed Arish Halani, the CEO of Herbwell Cannabis.
Herbwell is set to open its flagship pot store in Midtown Manhattan in a five-story building leased at 519 Madison Ave., the first cannabis dispensary on the fashionable street.
Halani shared designs for the sleek pot lounge he wants to open on the store’s upper floors and rooftop that could be a hit with white-collar executives and fashionistas who work nearby at firms such as Morgan Stanley, the Jefferies Group and Evercore Partners.
“There is no regulatory framework to enact the law [allowing cannabis lounges],” he lamented. “We’d love to be the first lounge to open.”
In the meantime, Herbwell Cannabis will pay steep rent for a 15-year lease for the entire building.
The firm is putting another cannabis shop — and hopefully on-site consumption lounge — at E. 372 Fordham Road in The Bronx.
Many existing licensed cannabis dispensaries have dedicated space on their premises to such lounges and expressed disappointment with how long it’s taking the OCM to draft rules to allow them to do so.
The Cannabis Place on Metropolitan Avenue in Middle Village, Queens, has a “VIP” lounge in the back of the retail store that is waiting to be converted into a space for customers to hang out and sample weed products, said Executive Director Osbert Orduna.
“We want to provide customers a place where they can consume cannabis,” Orduna said.
“It’s disappointing that four years later, we’re still waiting for regulations to come out. The lounges would add revenue to the business. It’s a missed opportunity.”
OCM said it will publish rules to open the consumption sites when it can.
“The Office continues to develop and deploy the business licenses listed in the cannabis law, prioritizing first the licenses that are critical to establishing a stable and sustainable supply chain, including cultivation, processing, and retail,” said OCM rep Taylor Randi Lee.
“Currently the Office is assessing the regulatory approaches for consumption licenses in New York, including evaluating outcomes and best practices from other jurisdictions, and analyzing the public health and safety considerations for employees and patrons.”
The representative said OCM will notify the public when regulations are available for comment and looks forward to a “robust dialogue on how these licenses can best serve the interests of New Yorkers.”
One cannabis industry source said state health officials are resistant to the cannabis lounges because they sidestep the Clean Indoor Air Act that bans smoking and vaping in virtually all workplaces, including bars and restaurants.
There are now 333 licensed cannabis dispensaries in New York State generating more than $1 billion in sales, a ramp-up that has accelerated since last year after a rocky two-year rollout beset by a backlog in applications, lawsuits and illegal pot shops.
Hundreds of unlicensed pot shops have been padlocked by authorities under a tough law approved by Gov. Kathy Hochul, but legal operators say competition from the black market is still something they’re grappling with.
