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New York Office of Cannabis Management Gets New Enforcement Powers

New York State’s recently passed 2024 budget includes many cannabis-related provisions, addressing enforcement, licensure, and penalties, with the goal of curbing the state’s illicit marijuana market. Specifically, Governor Kathy Hochul signed legislation granting the state Office of Cannabis Management (“OCM”) certain enforcement powers.

Several of the new enforcement tools at OCM’s enforcement disposal include:

Issuing civil fines for unlicensed sellers. OCM and the New York State Department of Tax and Finance (“DOF”) new powers to conduct surprise inspections, seize illegal products, and obtain court injunctions against unlicensed sellers. New power for the DOF to fine cannabis dealers who aren’t paying the proper state taxes. A new tax fraud crime. A provision that reestablishes selling cannabis without a license as a criminal offense.

This legislation also makes it a crime to sell cannabis and cannabis products without a license. It is now a Class A misdemeanor to knowingly and unlawfully sell, give, or cause to be sold any cannabis products without the required license. OCM will have the power to compel a landlord to begin eviction proceedings and separately the power to bring a civil proceeding to permanently enjoin unlicensed activity at a business location.

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