Hochul proposes new legislation to crack-down on unlicensed, illegal cannabis stores and activity

Published on March 23, 2023

Marijuana 1

ALBANY, NY- Unlicensed and illicit sales of cannabis are becoming a problem in New York State since legalization was enacted.

In response to this growing issue, Governor Kathy Hochul is proposing a new measure that would create harsher civil and tax penalties on any unlicensed activity. "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,” the Governor said.

“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."

To be clear, the proposal does not impose any new penalties related to cannabis possession by an individual for personal use and does not allow local law enforcement to perform enforcement actions against individuals.

This legislation, for the first time, would allow the Office of Cannabis Management (OCM), the Department of Taxation and Finance (DTF) to crack down on unlicensed activity, protect New Yorkers, and ensure the success of new cannabis businesses in New York.

Furthermore, Hochul says the legislation would restructure current illicit cannabis penalties to give DTF peace officers enforcement authority, create a manageable, credible, fair enforcement system, and would impose new penalties for retailers that evade State cannabis taxes.

Additionally, it would clarify and expand OCM's authority to seize illicit product, establish summary procedures for OCM and other governmental entities to shut down unlicensed businesses, and create a framework for more effective cross-agency enforcement effort.

Violations of the law could lead to fines of $200,000 for illicit cannabis plants or products and would allow OCM to fine businesses $10,000 per day for engaging in cannabis sales without a license.

Image via the office of New York Governor Kathy Hochul.