Hash Sheesh!
Operators of licensed cannabis stores in New York know that customers cannot open pot lounges where they can consume weeds on-site.
The 2021 Marijuana Regulations and Taxation Act legalized marijuana, allowing licenses to “consumption sites” or spaces where customers can smoke doobies similar to cigar bars, eat food, and consume cannabis-infused drinks.
However, four years later, pot shop operators will not be able to apply for a license to open lounges as the cannabis office has not yet implemented regulations.
“Are I happy about that? No,” smoked Alish Harani, CEO of Herbwell Cannabis.
Herbwell is set to open its flagship pot store in midtown Manhattan in a five-storey building leased to 519 Madison Avenue, the first cannabis dispensary on a fashionable street.
Harani shared the design of the refined pot lounge he wanted to open on the upper floors of the store and on the rooftop. This could be a hit with white-collar executives and fashionistas who work for companies such as Morgan Stanley, Jeffreys Group and Evercore Partners.
“There is no regulatory framework to enact laws. [allowing cannabis lounges]He mourned. “We want to be the first lounge to open.”
In the meantime, Herbwell Cannabis will pay sudden rent for a 15-year lease of the entire building.
The company has a separate cannabis shop and, preferably, an on-site consumption lounge at E. 372 Fordham Road in the Bronx.
Many existing licensed cannabis clinics have dedicated their on-site space to such lounges and expressed disappointment at how much time they spend playing OCM and drafting the rules.
The cannabis location in Queens on Metropolitan Avenue in Middle Village has a “VIP” lounge behind the retail store, waiting for customers to hang out and convert into space for sample weed products.
“We want to provide our customers with a place to consume cannabis,” Ordona said.
“It's a shame four years later, we're still waiting for regulations to be announced. The lounge will add revenue to the business. That's an opportunity we missed.”
OCM said it will publish rules to open consumption sites.
“The office will continue to develop and deploy business licenses listed in the Cannabis Act, and will first prioritize licenses that are essential to establishing a stable and sustainable supply chain, such as cultivation, processing and retail.”
“Currently, the office is evaluating New York's consumer licensing regulatory approach, including assessing results and best practices from other jurisdictions and analyzing public health and safety considerations for employees and patronage.”
The representative said that if regulations can be commented, the OCM will notify the public and look forward to “a robust dialogue about how these licenses are best suited to the interests of New Yorkers.”
According to one cannabis industry source, state health officials say they are resistant to cannabis lounges as they avoid clean indoor air behavior that prohibits smoking and vaping at almost every workplace, including bars and restaurants.
Currently, 333 licensed cannabis clinics in New York have generated more than $1 billion in sales. This has accelerated after last year's rocky two-year unfolding plagued by applications, litigation and illegal pot shops backlogs.
Hundreds of unauthorized pot shops have been dol by authorities under strict laws approved by Gov. Kathy Hochul, but legal operators say competition with the black market is something they are still working on.
