New York authorities have struggled to resolve the majority of cases related to illegal marijuana sales. One key reason for this is the suspension of administrative hearings, which were a means for judges to impose fines and penalties on those involved in illicit cannabis sales. The Office of Cannabis Management (OCM) in the state has paused these hearings, citing a lack of resources, but has not provided a timeline for their resumption.
Out of approximately 300 enforcement actions taken by regulators and law enforcement since June, only 16 cases, or about 6%, have seen any resolution, according to OCM Executive Director Chris Alexander. New York has the authority to levy fines of $10,000 per day for illegal cannabis sales and $20,000 per day for continued sales after an OCM cease-and-desist order, yet these penalties have not significantly curbed the illegal market.
New York City, in particular, continues to grapple with thousands of unlicensed cannabis stores operating in defiance of regulations, posing a significant public health threat, as per Alexander. Officials point out that unregulated products from out-of-state sources have inundated the New York market.
Despite the launch of legal adult-use sales in New York on December 29, 2022, there are only 26 licensed adult-use retailers in the entire state, far below initial expectations. To address this issue, the OCM is planning to issue more marijuana business licenses as licensed producers face an oversupply of unsold inventory due to the limited number of legal retail outlets.
The OCM has not commented on the situation.
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