Washington is attempting to ramp up efforts to put a stop to marijuana “gifting.”
A bill currently circulating has a provision that wants “enforcement against marijuana ‘gifting’ stores and delivery services, which have grown in number in recent years and have been accused of stealing business from the regulated medical marijuana program.”
The issue revolves around this practice taking business away from medical dispensaries. Marijuana sales in the medical field have dropped noticeably. It’s believed that’s due to medical cards expiring throughout the coronavirus and patients choosing not to renew.
Some stores are bypassing the restrictions on commercial sales of marijuana by selling t-shirts or other products. The stores price them steeply and offer a marijuana “gift” as a transaction bonus.
The technique is thisclose to skirting the law that governs the sale of pot.
“There is not a gray market.”
This sentiment comes from the chairwoman of New York State’s cannabis control board where gifting is also a hot topic. Tremaine Wright says gifting recreational adult-use weed is a loophole used by vendors and is illegal.
“We are hearing many examples of sales of marijuana products by individual vendors and retail locations, however, they are not licensed nor are they selling regulated products,” Wright says. “There are currently 38 medical dispensing facilities across the state. We do not have any adult-use nor recreational dispensaries.”
The state’s control board is putting together the regulations for New York’s cannabis programs. According to state law, a cannabis transaction below the three-ounce limit to adults 21 years and older must be a monetary one. If no money’s paid or provided a service, the transaction is illegal.
Also in the midst of developing the marijuana industry’s guidelines, New York’s slow roll has put licensing and regulation in jeopardy for many businesses. It’s believed they may another year for the state’s got itself together.
So, many stores have turned to gifting. Unfortunately, the practice implies the weed is “free,” meaning the state’s unable to collect taxes.
An example is one store in upstate New York technically claiming to not sell cannabis. They sell novelty items like stickers. But the stickers can cost anywhere between $35 and $285. The deeper the customer reaches in their pocket, the greater the quantity and quality of the weed gift.
The state is getting more and more reports about gifting but has yet to take official action. There are guidance law enforcement available such as ticketing or charging vendors, but no one’s implemented the actions to date.
Still, New York has sent a stern warning to anyone practicing gifting. Wright says, “This conduct is not legal and must stop. Individuals who do not cease, run the risk of seeing severe financial penalties.”
Back in Washington, an emergency bill was approved that allowed cannabis patients to continue using their expired cards through January 2022. The bill substitutes the one-year medical marijuana card for a two-year card. It will also increase a patient’s buy limit from four to eight ounces. The provision is a subtle way to diminish medical marijuana’s struggle.
