Second Round: New York MSO Coalition Targets Gov. Kathy Hochul Over Lax Cannabis Enforcement

The Coalition for Access to Regulated and Safe Cannabis (CARSC) recently sued New York's Office of Cannabis Management (OCM) for allegedly violating the Marijuana Regulation and Tax Act (MRTA).

The Claim Continues…

In response to recent events, the New York MSO Coalition released a strongly worded statement on Thursday accusing Gov. Kathy Hochul and cannabis regulators in her administration of deliberately allowing unlicensed marijuana dealers to operate without consequences throughout the state, writes Green Market Report’s John Schroyer.

CARSC criticized the OCM and the Cannabis Control Board for purportedly allowing the illicit market to thrive, thus endangering consumers while also reducing the potential for tax revenue, per an official statement shared with Green Market Report.

They alleged that New York has at least 1,500 unlicensed cannabis sellers, costing the state untold sums in tax revenue.

The coalition blasted policy chief Axel Bernabe for suggesting that flooding the streets with pop-ups could help crack down on unlicensed cannabis shops. They also argued that regulators already have the power to shut down illicit operators but won't use it.

“The only ‘enforcement strategy’ we’ve seen to date has consisted of sending cease and desist letters to a mere fraction of illicit operators, with a mild warning that their blatant violation of the law might result in their inability to obtain a license to legally sell cannabis sometime in the future,” CARSC said.

MSOs Involved In The Case

Acreage Holdings ACRHF, Curaleaf Holdings Inc CURLF, Green Thumb Industries Inc GTBIF and PharmaCann are among the registered organizations licensed to operate medical marijuana companies in New York that currently have been excluded from the legal recreational market.

They are part of the coalition, which is currently an "unregistered trade organization" with undisclosed full membership.

More details HERE at Green Market Report.

Image by El Planteo