With first legal cannabis licenses for retail pot sales issued in NYC, what about all the unlicensed vendors?
NEW YORK - New York's Office of Cannabis Management has officially issued the first licenses for retail pot sales.
One or more authorized dispensaries could open before the year is out.
So what about all the unlicensed pot stores openly operating in the city?
Experts tell CBS2's Tony Aiello they expect most will be shut down.
They're unlicensed, and unmissable.
Jack's Convenience at 109 and Broadway, with its marijuana mural and neon "cannabis dispensary" sign, and jars of pot in flavors including "garlic cookies. A few blocks away, there's the Metrobud Store, where you don't need a a Metrocard to take a trip.
"There's too many of them. One on almost every single block," said Yvonne Lougheed.
Lougheed wonders why the places are open and operating without any licensing or regulation.
"I've been very clear about the fact and the frustration that it has caused and the confusion that it has caused for New York's consumers," said Chris Alexander of the New York State Office of Cannabis Management.
"No question we would prefer to have a regulated market here in New York, New York City especially," said Lauren Rudick.
Rudick is with the cannabis industry practice at Hiller, PC Attorneys at Law. She says it's the same situation seen in other states that have decriminalized marijuana.
While New York formalizes licensing rules and regulations, unlicensed dispensaries operate with little enforcement.
"Those are likely to go away at some point, do you think?" Aiello asked.
"I would anticipate they would not be able to survive the onslaught of legitimate businesses, and they'll be very easy to spot," Rudick said.
"We're very concerned about them, and will continue to increase our enforcement activity around them moving forward," Alexander said.
The state has issued dozens of cease and desist letters to unlicensed operators, and is issuing guidance to non-police agencies such as the Department of Buildings on tools available to put unlicensed dispensaries out of business.
The NYPD told CBS2 under state law, it basically has no authority to close down unlicensed pot dispensaries.
