Illegal cannabis business owners who refuse to comply with New York state regulators inspecting their shops are expected to get hit with much heavier fines under the new legislation that has recently been proposed by Gov. Kathy Hochul.
According to NYC officials, the number of these illicit weed shops has grown significantly in the city since last year, which is why the state recently passed a law to help authorities shut down illegal dispensaries. Hochul’s proposal would apply stiffer fines to the store owners who don’t abide by the new regulations and apply pressure to these under-the-radar shops in general.
This proposed rule has been established after the regulators, who are from the Office of Cannabis Management (OCM), that are supposed to inspect these illegal shops, have reportedly been refused entry by some merchants selling cannabis without a license.
The pitched increases would quintuple the standing fines from $4,000 to $20,000 for a first refusal, and from $8,000 to $40,000 for a second instance of not cooperating.
Since the legalization of recreational marijuana use in 2021, lawmakers have struggled with properly addressing the growth of a back market in which unsanctioned weed businesses have spread, while the budding legal cannabis industry has toiled with trying get off the ground amidst lawsuits and other legal hurdles.
“Governor Hochul is committed to cracking down on illicit cannabis shops that are breaking the law and hurting New York’s legal adult-use industry,” Jason Gough, gubernatorial spokesman, reported in a statement. “Last year, Governor Hochul signed a new law to help state agencies shut down these unlicensed stores, and this year she included new legislation in her budget to strengthen those efforts.”
Aside from heavier fines, this proposed measure would also expand the OCM’s ability to seal a building that rents to an illicit cannabis proprietor more quickly after issuing a notice of violation and order to cease illegal activity. If this new proposal in enacted, the OCM could issue and execute a seal order immediately if they evaluate that the business poses an imminent threat to public health and safety, as long as a hearing is held within three days of this particular action, instead of waiting until the proceeding.
These many illegal stores across the city do cash business and don’t charge or collect the cannabis sales tax for the state, which is something the 52 licensed dispensaries- including 21 in the city- are required to do.
The proposed bill would also allow the city and other localities to adopt their own laws to close unlicensed shops and seize illicit weed supplies, along with establishing their own civil penalties against the given owner/operator- which could include imposing fines and collecting revenue.
As of last year, there were 1,500 unlicensed merchants selling cannabis across New York City, according to officials- and for every 1 legal dispensary in the city, there are 130 illegal ones.
