New York Gov. Hochul Gives Agencies More Power To Deter Illicit Cannabis Operations

Governor Kathy Hochul announced in her 2024 State of the State address Tuesday that she is expanding enforcement powers to deter illicit cannabis sales that will focus on closing down unlicensed cannabis operations that often sell untested products of unknown origin.

"As we continue to build and expand the most equitable legal cannabis market in the nation, we cannot let the brazen, illegal operators undermine public health and threaten our neighborhoods," Governor Hochul said in a statement. "Last year, we passed new laws to padlock and shut down illegal operators, but we know there’s more to be done and we need more tools to do it. We’re going to continue working with local leaders, including in New York City, to shut down illegal cannabis stores once and for all." 

Hochul's proposals will strengthen enforcement authorities to expedite the closure of unlicensed businesses. Measures will include:

• Expanding the powers of the Office of Cannabis Management (OCM) to streamline padlocking of illicit shops;
• Authorizing local governments to execute OCM padlock orders to ensure swift action to close unlicensed dispensaries;
• Establishing local registries of licensed cannabis businesses to assist and empower local governments, including New York City, to padlock unlicensed businesses through their laws and resources. These collaborative efforts will help New York's growing legal cannabis market, which prioritizes small businesses and equity entrepreneurs. 

Chris Alexander, executive director of the Office of Cannabis Management (OCM) praised the move. "With Governor Hochul's proposed expansion of enforcement powers, we get to expand our efforts to build a market where small businesses who follow the rules, have a shot to compete. I want to thank Governor Hochul for her steadfast commitment and investment in getting this right." 

Throughout 2023, the OCM and Department of Taxation and Finance inspectors dispatched officials to 381 locations and undertook 105 re-inspections, which yielded over 11,800 pounds of seized illicit cannabis worth more than $57 million. 

See Also: New York 2023 Cannabis Market Yearbook: How Many Pounds Sold And Licenses Issued? 

Photo: Benzinga edit with images by US Congress (Official Photo) via Wikimedia Commons and Budding on Unsplash