Op-Ed: New York’s legal cannabis market didn’t fix the war on drugs

woman in handcuffs holding paper bag with cannabis symbol new york war on drugs

GreenState regularly shares contributor perspectives on the industry and trends. The cannabis rescheduling ideas expressed here are wholly those of the author and do not necessarily reflect those of GreenState’s newsroom.

When New York legalized cannabis five years ago with the creation of the Office of Cannabis Management (OCM), it was positioned as an act of repair. Lawmakers acknowledged that the War on Drugs caused lasting harm in New York, disproportionately criminalizing Black and brown New Yorkers for behavior that would soon be legal and profitable.

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Now working inside New York’s legal cannabis industry, it’s clear that legalization alone does not equal justice. Legalization can create opportunity, but only if the systems built around it are strong enough to support the people they are meant to serve.

Legalization With a Mandate for Justice

From the outset, New York attempted to chart a different path. The creation of the OCM came with explicit goals: prioritize social equity, create access for justice-involved individuals, and avoid the rapid consolidation seen in other state markets.

The Conditional Adult-Use Retail Dispensary (CAURD) license program was central to that vision. By prioritizing people with prior cannabis convictions, the state recognized that cannabis prohibition was not just a failed policy but a source of real and lasting harm.

That recognition mattered, but turning it into a sustainable market for those license holders has proven far more difficult.

CAURD Licensees and the Realities of Being First

The concept behind CAURD was simple: Give justice-involved individuals a head start before large, well-capitalized operators entered the market. In practice, being first often meant being most vulnerable.

Many CAURD license holders were encouraged to move quickly in securing locations, signing leases before regulations, funding structures, or timelines were clearly defined. When regulatory delays ensued, licensees were left responsible for rent, debt, and personal financial risk before they were even permitted to open.

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I’ve heard directly from license holders who put their homes up as collateral, drained their savings, and waited months or even years for approvals that were initially described as imminent. In some cases, larger investors eventually stepped in and reshaped ownership in ways that diverged sharply from the original equity intent to correct the harms created by past drug policies.

The War on Drugs did not end when cannabis became legal. Its legacy is embedded in who has access to capital, who understands regulatory systems, and who can survive long periods without revenue.

Justice-involved individuals were prioritized in policy language, but many entered the legal market without legal teams, financial buffers, or institutional backing. At the same time, larger operators were able to wait for the market to stabilize before entering with scale, infrastructure, and political leverage.

A Nonprofit Lens on Legal Cannabis

Housing Works Cannabis Co operates with a different framework than most dispensaries. As the only 100 percent charity cannabis retailer in New York, every purchase supports Housing Works’ broader work in housing, healthcare, and advocacy. These services, provided since the early 1990s, directly address long-term impacts of the War on Drugs, HIV/AIDS, and systemic inequality.

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At the same time, mission alone does not drive retail behavior. New Yorkers shop based on convenience, price, and consistency. Loyalty follows transparency and trust, not just values.

However, there have been real improvements in how we can connect with our audience. Recent regulatory changes, including the ability to offer loyalty programs and market more openly, have helped smaller operators compete on more equal footing. These tools are standard in most industries, but in cannabis, they can determine whether a business survives.

Signs of Real Progress

The New York cannabis market has matured in other meaningful ways.

Regulatory communication has improved. The OCM is more responsive and clearer than it was during the earliest rollout. Retailers and brands now have a better understanding of compliance expectations, enforcement priorities, and operational requirements. That clarity reduces risk, especially for smaller operators.

Enforcement against unlicensed storefronts has also increased. When legal dispensaries first opened, illicit sellers were widespread and highly visible. Today, enforcement is more consistent, and unsafe products are increasingly being removed from circulation.

What Equity Requires Going Forward

It’s also easier to operate now than it was in those early days, despite competition from other license holders, including MSOs. Systems are clearer, expectations are better defined, and experience matters. However, operational stability does not automatically translate to equity or repair.

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If New York intends to fulfill the promise that accompanied legalization, the next phase must prioritize sustainability for social equity license holders. That means realistic timelines for current and aspiring cannabis business owners, access to capital that does not put personal assets at risk, and protections that prevent equity licenses from becoming vehicles for exploitation.

The War on Drugs destabilized communities, stripped wealth, and criminalized generations. A cannabis market cannot undo that harm on its own, but it can be structured to not reproduce it.

*This article was submitted by an unpaid guest contributor. The opinions or statements within do not necessarily reflect those of GreenState or HNP. The author is solely responsible for the content.

Sasha Nutgent Sasha Nutgent is the VP of Cannabis Retail for Housing Works Cannabis Co, the first licensed adult-use dispensary in the state of New York.