New York Governor Unveils Plan To Address Illicit Pot Shops

New York Governor Kathy Hochul unveiled Wednesday new legislation to tackle the state’s persistent illegal cannabis operators. The bill already has the support of many lawmakers in the New York Senate and State Assembly. It also gives regulators, including the Office of Cannabis Management and Department of Taxation and Finance, increased authority to enforce regulations and close down stores involved in illegal cannabis sales. Hochul released a statement from Hochul’s office. “The continued existence illegal dispensaries are unacceptable. We need additional enforcement tools to protect New Yorkers against dangerous products and support equity initiatives.” New York legalized adult-use cannabis in 2021. The first recreational marijuana dispensary opened in Manhattan in late last year. Only four Conditional Adult Use Retail Dispensaries (CAURDs) have been opened in New York so far. The number of unlicensed pot shops is on the rise, prompting operators in the new licensed cannabis industry and others, to press state officials to take action against illegal operators. Hochul announced Wednesday that the New York tax and cannabis laws would be modified to allow the Office of Cannabis Management (OCM), Department of Taxation and Finances (DTF) and local law enforcement agencies, to enforce restrictions on unlicensed retail dispensaries. The legislation does NOT impose any new penalties for cannabis possession for personal consumption by an individual. It also does not allow local law enforcement officers the authority to enforce marijuana laws against individuals.” Hochul’s office wrote. The legislation would restructure existing illicit cannabis penalties to give DTF Peace Officers enforcement authority, create an manageable, credible and fair enforcement system, as well as impose new penalties on retailers who evade State cannabis taxes. Violations could result in fines up to $200,000 for illegal cannabis products or plants. The OCM can also fine businesses up to $10,000 per hour for selling illegal cannabis products or plants. Choi sent an email to High Times stating that “Governor Hochul’s proposed legislation is very welcome as prior attempts to combat illicit dispensaries haven’t seemed to have had much of an impact.” Choi wrote that “Governor Hochul’s proposed legislation is very much welcomed as prior efforts to combat illicit dispensaries haven’t appeared to have had much impact.” He also suggested that the state should penalize property owners who rent to unlicensed business. Choi also called for increased funding for state agencies responsible for controlling underground operators. “The OCM and Department of Taxation and Finance both need additional resources to enforce, as the OCM already has enough to do to get the regulations finalized and corresponding licences issued in a timely manner.