Cannabis

Cannabis around the Country

I have been accumulating some fascinating stories about current cannabis happenings around the country. The common theme among the anecdotes in this article is that the cannabis world continues to change in mostly good ways, but also in some strange ways.

The Good

Currently, 24 states and Washington, D.C. have legalized recreational weed. This means that about 53% of the U.S. population, or more than 183 million people have access to THC in all sorts of products. The Justice Department has a proposal to move marijuana from the list of Schedule 1 drugs and reclassify it as a Schedule 3 drug. Schedule 1 drugs include substances such as LSD and heroin; Schedule 3 drugs include substances such as ketamine (a tranquilizer often used as a sedative for capture and handling of wild animals) or certain (anabolic) steroids. The Drug Enforcement Administration has a forthcoming hearing on December 2 this year for comments on the proposal to move weed to Schedule 3. Having weed classified as a Schedule 1 drug along with LSD and heroin is beyond ridiculous. At least as a Schedule 3 drug, it will be possible to conduct scientific research on THC and the other compounds in marijuana, something that is not possible today. In Florida, there is a ballot referendum in this election cycle to permit the existing medical dispensaries to serve all adults. The referendum requires 60% approval to pass. Let’s hope it does. In both Dakotas marijuana legalization is on the ballot – for the third time in both states. A simple majority is required for the measure to pass in both states. Let’s hope that the third time’s a charm in North and South Dakota. In Nebraska enough voters have signed a petition to put legalization of weed on the ballot this election cycle. Whether the politicians allow a statewide vote on legalization is still an open question, when it should be a no-brainer. Across the country, 70% of American adults think recreational weed should be legal. Only 30% of Americans thought weed should be legal 20 years ago. In 2022, it was estimated that slightly more than 18 million adults used marijuana on a daily or near-daily basis. Back in 1992, less than 1 million people did. In my view, these developments at both state and country-wide scales are good things.

The Strange

The state of New York has 182 licensed dispensaries for a population of about 20 million, which is about one dispensary for every 110,000 people. Michigan, in contrast, has 800 dispensaries for 10 million people, or one dispensary for about every 12,500 people. In RI, our 7 dispensaries serve a population of about 1.1 million, or one dispensary for a little more than 157,000 people. Despite the relative scarcity of dispensaries in New York and RI, the cannabis sales dynamics in these two states are quite different. Before law enforcement cracked down on illegal dispensaries in New York City, there were somewhere around 4,000 illegal cannabis merchants. Demand for cannabis in the Big Apple certainly far exceeds supply. Since the beginning of 2024, officials closed more than 1,000 illegal cannabis store fronts in New York City and an additional 345 statewide. Additionally, 135 illegal cannabis stores closed their doors voluntarily, under pressure from statewide or local law enforcement. Still, with 3,000 unlicensed dispensaries currently operating in New York City alone, this seems like the wild, wild west. This is especially in contrast to RI, at least from what I have seen during my time here. Although I have heard a few rumors of weed being sold under the counter in the Ocean State, such rumors have been few and far between. I simply doubt there are scads of illegal cannabis stores in RI like there are in New York City. At least a couple dozen of the closed cannabis shops in New York have reopened. Evidently, complicated legal red tape is one factor preventing law enforcement from getting the upper hand on illegal cannabis sales in New York. Numerous illegal cannabis sales cases have been tossed out because of legal technicalities. Many illegal storefronts operate after hours because they perceive a smaller police presence, and therefore better odds of staying in business. It is common for illegal cannabis operations to have numerous storefronts owned by a single entity. These operations keep a lot of products and inventory off site to minimize losses if they are shut down. In New York, licensed cannabis dispensaries are not allowed to also hold processing licenses. However, many of the unlicensed operations also process cannabis products on site. While it may not be a big deal for a cannabis storefront to have a rig in the back room to make pre-rolls, it is a huge problem with respect to processing edibles. Let’s just say that food handling and safety are not a top priority for these operations. And then there is the packaging problem. Many illegal storefronts sell cannabis products in colorful packages that look like candy and other treats attractive to under-aged people. Unlicensed cannabis operations often take credit cards, while licensed operations can’t. The unlicensed merchants simply reclassify the products they sell as something other than cannabis. And finally, on top of all these nefarious activities, California cannabis products are apparently often sold out of illegal storefronts in New York City. At least they are cannabis products that look like they are from California. Whether such products are really from California is an open question because a large percentage are thought to be forgeries. The current cannabis circumstances in New York City are certainly strange. Let’s hope these strange circumstances can get sorted out. •