USA: New York governor tries to fight unlicensed sale of cannabis

New York Governor Kathy Hochul yesterday announced an effort by her office to tackle the unlicensed sale of cannabis in the state. "New York City is proud to have implemented cannabis legalization in the most equitable manner in the country, and the state will not stand by while unlicensed operators break the law and sell untested products to young New Yorkers," warned the governor. .

According to Spectrum News, Kathy Hochul announced on Thursday, June 8th, the multi-agency effort, which will include enforcement officers from the Office of Cannabis Management and the Department of Taxation and Finance, to initiate inspections of commercial establishments that do not have the proper licensing for the sale of cannabis in New York. "Inspectors will report violations and issue orders to cease unlicensed activity when necessary," Hochul's office said.

“New York City is proud to have implemented the most equitable legalization of cannabis in the country, and the state will not stand by while unlicensed operators break the law and sell untested products to young New Yorkers,” said Hochul. “These enforcement actions are critical steps to protect and help those who have been promised to start a legal business and succeed. In addition, unlicensed operators undermine the state's efforts to generate substantial funds for a social equity fund, which will be directed to communities that have suffered most from the excessive application of cannabis laws in the past."

Lawmakers and the governor agreed in May on provisions aimed at curbing illegal cannabis sales, with a focus on civil rather than criminal sanctions. Cannabis regulators can impose civil penalties on companies, with fines of up to $20 a day. A new law has also framed the charge of tax fraud for companies that are not collecting or paying the required taxes on cannabis sales.

"Successful enforcement actions against unlicensed businesses send a clear message that the State of New York is determined to reduce operations of illicit businesses," said Tremaine Wright, chairman of the State Board of Cannabis Control. “By enforcing the law, based on the new legislation, we are protecting 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.”