NEW YORK — New York State's Office of Cannabis Management and the Department of Taxation and Finance are seizing unlicensed cannabis products and shutting down unlicensed storefronts in New York City.
Governor Kathy Hochul announced the start of the state interagency enforcement Thursday morning.
While the first product seizures happened in New York City, Hochul said these actions will be replicated across the state to stop the sale of untested cannabis. The enforcement is the result of legislation signed into law in the FY24 state budget.
"New York is proud to have undertaken the most equitable legal cannabis roll-out in the nation and the state will not stand idle as unlicensed operators break the law and sell untested products to underage New Yorkers," Governor Hochul said. "These enforcement actions are critical steps to protect and help those individuals who were promised a shot to start a legal business and be successful. Additionally, these unlicensed operators undermine the State's efforts to generate substantial funds for a social equity fund that will go into the communities that have been hardest hit by over-prosecution of the cannabis laws in the past."
Under the new legislation, unlicensed cannabis businesses could face civil penalties, including fines of up to $20,000 per day. The law makes it a crime to sell cannabis and cannabis products without a license.
The Department of Taxation and Finance can also conduct regular inspections of cannabis businesses to ensure taxes and/or fines have been paid.
"Through the collaboration of our enforcement teams and law enforcement agencies, we will be able to take meaningful action against illegal cannabis operations that pose countless risks to our communities," said New York State Office of Cannabis Management Executive Director Chris Alexander. "This targeted operation is a significant step towards promoting a safe, transparent cannabis industry in New York State. With the strengthened penalties and unified enforcement measures in place, we are actively working towards our goal of a regulated market that fosters consumer trust and supports licensed operators."
In a news release Thursday, the state said the hybrid approach to enforcement aims to foster "a fair and regulated market environment, ensuring consumer protection and bolstering support for licensed cannabis businesses."
"The successful enforcement actions against unlicensed storefronts and trucks selling cannabis in New York City serves as a clear message that New York State is serious about curtailing the operations of illicit enterprises. By enforcing the law, empowered by new legislation, we are safeguarding public safety and the integrity of the legal cannabis market. Our mission is to create a fair and regulated environment that supports licensed businesses and protects consumers," said New York State Office of Cannabis Management Executive Director Chris Alexander.