New York State's regulated cannabis industry won’t open until next year. However, with the increased number of businesses suspected of selling cannabis on the rise; New York State Office of Cannabis Management (OCM) has begun issuing letters of cease and desist.
Recreational cannabis has been legal in New York for almost a year now, but with little regulated dispensaries available to residents of New York, it leaves consumers with no option but to seek cannabis from unregulated businesses. Regardless of this fact, the Office of Cannabis Management (OCM) made it clear on Feb. 8th that businesses illegally selling cannabis, should cease all marijuana sales immediately.
A stiff warning was issued announcing that all businesses that fail to cease illegal operations will face substantial fines and criminal penalties, as well as risk the opportunity of receiving licensing for the legal cannabis market.
Although the use of cannabis in New York has been legalized for those aged 21 and over; a license to sell is still required under state law. In a statement made by Executive Director Chris Alexander of the OCM, the goal is to "make sure these operators fully understand the law and the consequences they face, and now that these letters have been sent, we fully expect them to cease and desist their activities" and only if operators fail to abide by the law will action be taken against them.
"Office of Cannabis Management
Warns Of Penalties For Illegal Sale"
A sample of the letter sent to business operators suspected of illegal cannabis sales was recently posted on the Office of Cannabis Management’s website. This letter spells out the terms of the cannabis law passed in March 2021, and dictates “the parameters under which a regulated, safe, and legal cannabis industry will operate in New York State”. The cannabis law passed “clearly states that any unlicensed sale of cannabis is illegal” and punishable by fines and criminal penalties.
The OCM learned of these alleged illegal operations due to increased media coverage of these businesses. These "media reports have described business operators selling a product or service, including club memberships, to consumers and providing cannabis as a 'gift' in return. This activity is illegal under the Marijuana Regulation and Taxation Act (MRTA). Through an initial investigation, the OCM has identified over two dozen alleged violators and sent letters to each educating them on the law and directing them to stop their illegal activity immediately." Its clear that the Office of Cannabis Management does not intend on turning a blind eye to illegal operators and will enforce the law to ensure that businesses follow through the regulatory processes intended for the legal market.
The letter posted on the OCM’s website can be found below:
"SUBJECT: Unlawful Sale of Cannabis
The Marijuana Regulation and Taxation Act (MRTA), enacted in March 2021, establishes the parameters under which a regulated, safe, and legal cannabis industry will operate in New York State. The MRTA clearly states that any unlicensed sale of cannabis is illegal. Legal, licensed, and taxed sales can begin only after the state approves regulations governing sales and licenses the businesses making them. It has come to the attention of the Office of Cannabis Management that you are engaging in unlicensed cannabis sales, or that unlicensed sales are occurring on your property.
The Cannabis Control Board and Office of Cannabis Management (OCM) are currently establishing regulations to ensure an inclusive marketplace built upon social and economic justice for this industry. There are currently no licenses available from the Office of Cannabis Management or other permissions available from any other New York State agency that authorizes the legal sale of cannabis.
Unlicensed sales undermine the legal market that is being built by introducing products that are not lab-tested and potentially threaten public health and safety. Illegal sales include the sale of cannabis products in-person at a retail location, online, via delivery, or at an event; and include so-called “gifting” where consumers purchase non-cannabis items or services, such as a membership in a club, and are then provided cannabis as part of the sale.
You are hereby directed to cease any, and all, illegal activity immediately. Failure to cease this activity puts your ability to obtain a license in the legal cannabis market at substantial risk. The unlicensed sale of cannabis is illegal and subjects you to substantial fines and possible criminal penalties.
If you are a landlord hosting illegal activity on your premises, you are jeopardizing your ability to house a licensed retail dispensary or on-site consumption lounge in the future. Please do not hesitate to reach out to OCM at enforcement@ocm.ny.gov if you have any questions.
Sincerely,
NYS OCM Enforcement Unit"
Link to available letter sample can be found here.
.jpg)
Comments