In a recent crackdown on unlicensed storefronts, Governor Kathy Hochul’s administration has revealed that over 11,000 pounds of illegally sold cannabis products, valued at a staggering $54 million, have been confiscated.
The Office of Cannabis Management announced that on November 21, the state achieved a significant victory in a court case. This ruling will streamline the process of shutting down and permanently closing illicit marijuana stores in the future.
During the recent inspections, authorities confiscated a total of 812 pounds of flower, 701 pounds of edibles, and 61 pounds of cannabis concentrate. These seized products have an estimated value of $7.3 million.
In the past year, a total of 350 locations underwent inspections, with 88 of them being re-inspected. The outcome of these inspections revealed a staggering amount of 11,000 pounds of marijuana, with an estimated value of $54 million.
Chris Alexander, the executive director of the Office of Cannabis Management, emphasized the importance of prioritizing safety in the state’s cannabis market as they move forward into the next chapter. He stated, “We are dedicated to shutting down illegal operators and ensuring a secure environment for all.”
“The key solution to combat the issue of these illegal shops lies in increasing the number of legal businesses. New Yorkers have a genuine concern about the origin of their products, and they have confidence in the safety, reliability, and locally sourced cannabis when they visit authorized dispensaries.”
In the spring, Hochul and the legislature took action by passing a law that increases penalties for unlicensed operators in New York City. Mayor Eric Adams and Sheriff Anthony Miranda estimate that there are as many as 1,500 unlicensed operators in the city.
Former Governor Andrew Cuomo and state lawmakers did not effectively address the issue of cracking down on illegal operators when they passed the law to legalize the adult use and sale of marijuana in 2021. As a result, a significant black market emerged even before the legal market could establish itself.
The penalties for selling cannabis illegally have been significantly increased. Offenders can now face fines starting at $10,000 per day, and these fines can escalate to $20,000 per day for persistent and severe violations. Moreover, additional fines may also be imposed on the offenders. Regulators have the authority to obtain a court order to ultimately close down businesses that are repeatedly found to be in violation of the law.
Furthermore, it is illegal to sell cannabis and cannabis products without obtaining the necessary license, according to the law.
There are currently 27 licensed adult-use cannabis dispensaries in New York State, with 12 of them situated in the city. Regulators have also given their approval to 44 Cannabis Growers Showcases, which are essentially farmers markets where marijuana products are sold.
Many frustrated licensees and applicants in the cannabis industry have voiced their complaints about the slow and challenging implementation, which has been hampered, in part, by legal disputes.
The lawsuits affected a total of 426 licensees, and farmers have expressed frustration over being left with excessive amounts of unsellable marijuana plants.
Last week, the Hochul administration and cannabis control board reached a settlement in a discrimination lawsuit. The lawsuit claimed that the state had shown favoritism towards convicted pot felons when awarding licenses to sell legal marijuana, thereby overlooking disabled veterans.
In August, a court injunction was issued that halted the issuance of new licenses and the opening of new stores, creating a state of legal uncertainty within the marijuana industry. State regulators are anticipated to accelerate the approval and establishment of new licensed cannabis shops in the coming months now that the legal issues have been resolved.
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