NEW YORK (1010 WINS/WCBS 880) – Gov. Kathy Hochul announced on Friday a new plan to expedite the closure of the unlicensed cannabis market, urging tech companies to prevent online promotion.
The main risk that unlicensed cannabis businesses pose is often selling untested products in communities, Hochul explained. These storefronts have typically prevented the growth of New York's legal cannabis industry and the retailers involved.
"New York must take action to close illicit cannabis storefronts continuing to open and operate across the State,” Hochul said during the press conference. “Strengthening New York’s equitable cannabis industry and protecting the hard-working small business owners operating in the legal market are top priorities, and the best way to accomplish those goals is by expediting the shutdown of unlicensed shops.”
The new budget plan wants to give more power to the Office of Cannabis Management (OCM) and local agencies to stop stores selling cannabis without a license. It allows local governments to quickly close unlicensed dispensaries using OCM padlock orders. The plan also sets up local lists of licensed cannabis businesses, helping local governments, like New York City, to close unlicensed businesses using their own rules and resources.
Hochul also called on tech companies to stop the promotion of unlicensed storefronts selling potentially dangerous products on their platforms.
“The role of social media and the big tech companies,” Hochul said. “Right now, they're allowing the sowing of a lot of confusion in the marketplace. I think the vast majority of customers, we hope, will want to buy safe, tested products from licensed dealers.”