Albany, NY--Governor Kathy Hochul has proposed new legislation to improve New York's adult-use cannabis industry by cracking down on illegal cannabis storefront dispensaries.
[Image via New York State]
The legislation seeks to increase civil and tax penalties for unlicensed sales while providing additional enforcement powers to the Office of Cannabis Management (OCM) and the Department of Taxation and Finance (DTF). The proposed legislation will not impose new penalties related to personal cannabis possession or allow local law enforcement to target individuals. Instead, it focuses on enabling OCM and DTF to enforce restrictions on unlicensed dispensaries, protect New Yorkers, and ensure the success of legal cannabis businesses. The legislation aims to restructure current illicit cannabis penalties, giving DTF peace officers enforcement authority and establishing a fair enforcement system. It also imposes new penalties for retailers evading state cannabis taxes and expands OCM's authority to seize illicit products. Violations could result in fines of up to $200,000 for illicit cannabis plants or products and $10,000 per day for unlicensed cannabis sales.
OCM Executive Director Chris Alexander emphasized the importance of upholding cannabis laws for the success of New York's equity-based approach to the industry.New York State Acting Commissioner of Taxation and Finance Amanda Hiller highlighted the legislation's potential to advance social equity components and fund essential programs through cannabis tax revenue.
Read more in this report.