New York Regulators Should Allow Dispensary Licensees To Change Their Designated Regions, Says Cannabis Attorney

This week the Office of Cannabis Management (OCM) posted new emergency regulations on unlicensed activities. This is the latest move in the ongoing battle against illegal operations in the Empire State.

Under these rules, “The Office may issue a notice of violation and order to cease unlicensed activity to any person, as defined in section 40-a of the Cannabis Law, who is cultivating, processing, distributing or selling cannabis, cannabis product, cannabinoid hemp or hemp extract product, or any product marketed or labeled as such in this state, or engaging in an indirect retail sale, without obtaining the appropriate registration, license, or permit therefor.”

Those who receive the notice must cease the operations. Marijuana and noncompliant hemp products may be confiscated. The notice also leads to a hearing that should be scheduled in less than fifteen days from the date of the notice. Potential penalties and fines will be decided at a hearing.

Benzinga wanted to learn more about the latest effort to crack down on illegal operations in New York, so we reached out to Michelle Bodian, partner at Vicente LLP and a leading member of the firm’s cannabis licensing and regulatory compliance efforts in New York.

Administrative Necessity

Benzinga:  Do you think the new emergency rules will make a difference?

“These emergency rules by themselves do not move the needle, but they are administratively necessary to give OCM the power to meaningful crackdown on the illicit market,” Bodian told Benzinga.

Benzinga: Do you agree that many consumers are turning to illicit markets not just because of price and habit, but because there are not many legal options to choose from?

“Certainly, the more regulated stores that are open, the easier it will be for consumers to access products. Without the stickering campaign, tourists and other consumers who have not been following NY cannabis have no idea that these shops are not licensed dispensaries. In addition, illicit shops will always have an unfair advantage over licensed shops, so that competition (and potential safety hazards) needs to be eliminated.”

Priority

Benzinga: What should the regulators prioritize in an effort to achieve a well-regulated market?

“The first part of the supply chain is arguably running as intended, the current challenge is the lack of licensed storefronts. Right now there is a backlog of supply and product quality is diminishing. Finding suitable locations is a challenge in any economic climate, but it is essentially challenging in cannabis these days, especially for CAURD licensees who are locked into a specific region. Municipal regulators should prioritize opting back in to allow retail dispensaries and creating sensible zoning so that licensed dispensaries have a fighting chance. State regulators should prioritize retail dispensaries in the upcoming licensing round and allow CAURD licensees to change their designated regions.” 

Photo: Benzinga edit with images by indel Media by Pixabay and Quintin Gellar by Pexels