New York’s OCM Updates Illegal cannabis enforcement plan

The New York State Office of Cannabis Management provided an update on their increased efforts to battle the illegal cannabis industry in the state at the meeting today. As part of the FY 2024 Budget, Governor Hochul approved legislation on May 3, 2023, permitting increased enforcement by OCM against unauthorized cannabis enterprises. The law now allows OCM to impose civil and criminal penalties on unregistered cannabis enterprises, with daily fines of up to $20,000 for the most severe behavior. The new law also prohibits the sale of cannabis and cannabis-related items without a license.

How the legislation impacts the Department of Taxation and Finance

As a result of the Act, the Department of Taxation and Finance can now also carry out regulatory inspections of companies that sell cannabis to assess if the proper taxes have been paid and to charge civil fines in instances where they have not. The law also creates a new tax fraud offense for companies that purposefully fail to collect or remit required cannabis taxes or knowingly hold cannabis for sale on which taxes were due but were not. New York State is making tremendous progress toward eliminating illegal cannabis operations that endanger public safety, consumer welfare, and the integrity of the state’s legal cannabis market by taking swift action against unlicensed cannabis enterprises. 

What did the Cannabis Control Board say about the changes?

“Bolstering our enforcement actions, supported by recent legislation, demonstrates our commitment to eradicating unlawful operations that pose risks to public safety and the integrity of our legal cannabis market,” said Tremaine Wright, Chair of the New York State’s Cannabis Control Board. “New York State will continue working diligently to identify and shut down illegal operations throughout the state, ensuring consumer protection and supporting licensed businesses.” 

CCB update on cannabis dispensaries opened in New York

As of June 15, 2023, 13 licensed dispensaries were operational in five different parts of the state. One more dispensary will open on Friday in Syracuse. At the same time, another will operate as a delivery service on Saturday in The Bronx. Due to the existence of these dispensaries, nearby residents and employees have easy access to a variety of high-quality cannabis products in a secure setting. 

The CCB reiterates its steadfast dedication to the ongoing growth and launching of more authorized dispensaries nationwide. The CCB remains committed to creating a vibrant and well-regulated cannabis market that satisfies the requirements of all consumers because it recognizes the value of providing communities with accessible and regulated cannabis products. 

New York State is steadfastly dedicated to cooperating cooperatively with local governments, communities, and licensed dispensaries to ensure adherence to all relevant laws and rules, prioritize public health and safety, and promote a diverse and responsible cannabis sector. 

Visit https://cannabis.ny.gov/dispensary-location-verification for more details on how to locate a verified registered dispensary nearby. The Dispensary Verification Tool must be displayed close to the main door of every regulated, licensed dispensary.

How we can help?

At Cannabis License Experts, we provide you with the guidance to plan your cannabis business, acquire funding, navigate the legal requirements, and acquire the appropriate cannabis license for your operations. As the New York cannabis industry develops, more and more licensed producers will be needed to meet the demands of consumers.

Cannabis License Experts offers support from day one of starting your cannabis business, including strategic planning, floor plan preparation, site audits, SOPs, Preventive Control Plans (PCPs), and more.

Our Edibles Compliance division can provide you with a solid plan for your edibles business to help get your products on store shelves.

Contact us today to discover how we can license and legalize your cannabis business to meet federal or provincial regulations.