New York, NY--Governor Kathy Hochul is taking decisive action against the state's illicit cannabis market with measures, including a recently signed legislation on May 3 as part of the fiscal year 2024 state budget.
[Image via Creative Commons]
This legislation empowers the Office of Cannabis Management (OCM) to seize products and seek injunctions against unauthorized shops. The Department of Taxation and Finance (DTF) can impose fines of up to $20,000 per day for unpaid taxes.
According to a report by Cannabis Business Times, the move follows Hochul's introduction of a public education campaign last month, encouraging New Yorkers to purchase cannabis from regulated dispensaries. The legislation is designed to enhance the OCM and DTF's authority to enforce regulatory requirements for the state's adult-use cannabis program and shut down illegally operating retailers.
The new legislation criminalizes the unlicensed sale of cannabis products. It strengthens the OCM's capacity to perform regulatory inspections of cannabis retailers, including "sticker shops." OCM can now seize untested products from unauthorized businesses and pursue court orders, closure orders, and removal of commercial tenants selling cannabis without a license.
Furthermore, the DTF can conduct regulatory inspections of cannabis retailers for tax compliance and levy civil penalties when taxes remain unpaid. The legislation also introduces a new tax fraud crime for businesses that intentionally fail to collect or remit required cannabis taxes or knowingly possess cannabis for sale with unpaid taxes.
So far, the OCM has issued 165 adult-use cannabis licenses, with more to be awarded later this month. Currently, eight licensed dispensaries and one delivery service operate in New York.
Learn more in the report in Cannabis Business Times.