Legislation proposed by Governor Kathy Hochul could shut down illegal pot shops.
Under the proposal, the Office of Cannabis Management, the Department of Taxation and Finance, and local law enforcement would be able to enforce restrictions on unlicensed dispensaries.
Businesses could be fined 10-thousand dollars each day in which they operate without a license while illicit plants or products could carry up to a 200-thousand dollar fine.
The new legislation is being introduced in both the Assembly and Senate as a Governor’s program bill amending the tax and cannabis laws.
“Over the past several weeks I have been working with the legislature on new legislation to improve New York’s regulatory structure for cannabis products,” Governor Hochul said. “The continued existence of illegal dispensaries is unacceptable, and we need additional enforcement tools to protect New Yorkers from dangerous products and support our equity initiatives. I am proud of our continued progress creating the entirely new legal cannabis industry and helping legal dispensaries open their doors to offer safer cannabis products to New Yorkers.”
Office of Cannabis Management Executive Director Chris Alexander said, “The success of New York’s historic equity-based approach to the cannabis industry depends on upholding our cannabis laws. Entrepreneurs looking to participate in our legal cannabis industry — especially justice-involved individuals looking for a CAURD license — are being economically harmed by bad actors filling their storefronts with products that are questionable, unregulated and potentially dangerous. The Office of Cannabis Management is fully committed to working with our partners across the state to permanently shut these operations down and allow legal, licensed businesses to grow and thrive.”
New York State Acting Commissioner of Taxation and Finance Amanda Hiller said, “New York State is building its cannabis market, while advancing the unique social equity components of the MRTA. Adult-use cannabis taxes fund our schools and drug treatment and public education programs. These taxes also contribute to the New York State Community Grants Reinvestment Fund, which reinvests tax revenue from cannabis sales to communities most impacted by over policing and cannabis prohibition. These new essential tax enforcement capabilities will allow us to crack down on illegal operations and help ensure these overdue opportunities exist for those communities.”
