New York State Senator calls for aggressive action against unlicensed cannabis stores

A New York state senator wrote a letter to the state’s Bureau of Cannabis Management, urging leadership to take “aggressive action” against unlicensed cannabis retailers after observing them in his own neighborhood.

State Senator Brad Hoylman-Sigal, chairman of the Senate Judiciary Committee and representative of New York’s 47th Senate district on Manhattan’s west side, is fed up with unlicensed cannabis stores and dispensaries popping up all over the city.

Hoylman-Sigal wrote a public letter to Christopher Alexander, Executive Director of the Office of Cannabis Management, and Tremaine Wright, Chair of the Cannabis Control Board, on July 17, urging immediate action.

“In the 2023 budget, the New York State Legislature gave the Office of Cannabis Management (OCM) and the Department of Taxation and Finance (DTF) additional powers to target unlicensed cannabis stores,” Hoylman-Sigal wrote. “These include conducting inspections, imposing civil penalties and seeking injunctions to close stores. I am grateful that OCM and DTF are beginning to take action. Given the serious problems these stores are causing, I urge OCM and DTF to continue to act quickly and vigorously to close these unlicensed stores.”

Hoylman-Sigal addressed the seriousness of the problem, including the Manhattan businesses.

One of the biggest concerns I hear from voters is dismay at the proliferation of unlicensed cannabis stores in Manhattan.

We’ve levied fines for selling without a license and authorized @nys_cannabis to search illegal stores in budget.

I’m glad OCM/NYPD is taking action! https://t.co/eVm00ZvqiC

— Senator Brad Hoylman-Sigal (@bradhoylman) July 12, 2023

“The scale of these unlicensed businesses is staggering, with over 100 businesses identified in Hell’s Kitchen alone. As I have pointed out before, these businesses deceive consumers, endanger public health, cheat their taxes, undermine the state’s equitable and legal adoption of cannabis, and have little incentive to check IDs to ensure they are not sell to minors. Also, because these businesses are unregulated and have little oversight, they pose a risk to employees and neighbors.”

Hoylman-Sigal went a step further, naming pharmacies that are either unlicensed or have received complaints.

“I am attaching a list of voter-reported businesses and a list of unlicensed businesses in Hell’s Kitchen compiled by the Hell’s Kitchen Neighborhood Coalition. I urge OCM to act swiftly and close these stores.”

New York takes action against the proliferation of unlicensed cannabis stores

New York Gov. Kathy Hochul is also stepping up efforts to address the illegal pharmacy situation.

The New York State Office of Cannabis Management and the Department of Taxation and Finance began inspections of unlicensed businesses in early June under a new law Gov. Hochul signed into law a month earlier in May.

The new law, signed by the governor in May, is part of the state budget for fiscal year 2024. The increased penalties include fines of up to $20,000 per day aimed at discouraging illegal activities.

“With the new powers I campaigned for in this year’s state budget, we can now take law enforcement action against companies that illegally sell cannabis, and I’m proud to report that in just the first three weeks of our efforts, we’ve saved nearly 11 million US dollars worth of illegal products have been confiscated from the streets,” Gov. Hochul said. “These unlicensed companies are breaking our laws, endangering public health and undermining the legal cannabis market. With the powerful new tools in our tool belt, we are sending a clear and powerful message: if you are selling illegal cannabis in New York, you will be caught and you will be stopped.”

The New York City Council also intervened. At a New York City Council meeting last January, officials pledged increased enforcement of unlicensed cannabis retailers and said the state legislature is drafting new legislation to give law enforcement additional powers to shut down illegal pot shops. Currently, unlicensed businesses in the state are easy to find.