New York legalized adult-use cannabis in 2021 and the first recreational marijuana dispensary opened its doors in Manhattan late last year. But so far, only four Conditional Adult Use Retail Dispensary (CAURD) retailers have opened statewide. Meanwhile, the number of unlicensed pot shops has skyrocketed, prompting operators in the nascent licensed cannabis industry and others to press state officials for action against illicit operators.
Under the proposed legislation announced by Hochul on Wednesday, New York’s tax and cannabis laws would be amended to enable the Office of Cannabis Management (OCM), the Department of Taxation and Finance (DTF) and local law enforcement agencies to enforce restrictions on unlicensed storefront dispensaries. The legislation does not impose new penalties for cannabis possession for personal use by an individual and does not allow local law enforcement officers to perform marijuana enforcement actions against individuals.
“This legislation, for the first time, would allow OCM and DTF to crack down on unlicensed activity, protect New Yorkers, and ensure the success of new cannabis businesses in New York,” the governor’s office wrote. “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.”
The bill clarifies and expands the OCM’s authority to seize illicit cannabis products, establishes summary procedures for the OCM and other governmental entities to shut down unlicensed businesses, and creates a framework for more effective cooperative efforts among agencies.