New York Governor Touts Latest Plan To Undercut Black Market
April 30, 2024New York governor Kathy Hochul unveiled new measures aimed at addressing the explosion of illegal cannabis shops in New York City recently, including padlocking black market businesses. Under the new rules, the Office of Cannabis Management (OCM) is “authorized to padlock businesses immediately following an inspection if they are selling illicit cannabis and pose an imminent threat to health and safety,” while “authorities from counties and cities, including New York City, will be authorized to padlock unlicensed businesses.”
The new plan also includes stiffer penalties for landlords allowing illegal cannabis sales in their buildings. They include a $50,000 fine for any NYC landlord notified of the violation, and five times the rent from the time the landlord was notified of the violation in cases outside of New York City.
Last month, New York State approved 114 more licenses for adult-use cannabis businesses, as the state continues to increase legal access. Forty-five of the new licenses were permits to open retail shops, 38 were non-conditional adult-use permits (non-conditional permits are given to those not covered by the state’s original equity and justice oriented retail rollout), and 31 were permits for “microbusinesses,” which are allowed to grow, distribute, and sell with one license. But there are still an estimated 2,000 black market shops in the state, compared with only around 90 licensed dispensaries. —Daniel Marsteller
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