Matthew Schwartz
At a press convention on December 15, 2022, New York Metropolis Mayor Adams announced the creation of a joint activity drive between the New York Metropolis Sheriff’s Workplace, the NYPD, the town’s Division of Client and Employee Protections and the New York State Workplace of Hashish Administration to weed out unlawful dispensaries.
What the duty drive does
The aim of the duty drive is to focus on, amongst different issues, gross sales of unregulated THC merchandise. In response to Mayor Adams, within the final two weeks, the businesses inspected 53 storefronts throughout the town and seized greater than 100,000 unlawful merchandise price about $4 million. Furthermore, the duty drive supposedly issued 500 civil violations and 66 felony summonses.
Want for a activity drive
One specific case stood out: two males in Queens are facing charges for allegedly working an unlawful marijuana dispensary. They have been charged on a 57-count criticism charging them with felony sale of hashish within the second and third levels, felony possession of hashish within the third diploma, illegal sale of hashish, and illegal possession of hashish. Notably, the 2 males allegedly ran their enterprise lower than two blocks from two neighborhood faculties, which is without doubt one of the many issues that the Workplace of Hashish Administration (the “OCM”) has persistently labored to forestall.
Mayor Adams went on to speak in regards to the risks of unregulated hashish merchandise, noting that some are packaged like sweet and will enchantment to kids. One of many principal focuses of the Conditional Grownup-Use Retail Dispensary (“CAURD”) Guidelines (see our current webinar here) is the significance of product packaging and branding for dispensaries, to make sure that kids should not focused. Licensed merchandise and dispensaries are topic to strict laws about how they are often packaged and marketed.
Adams mentioned retailer operators can be educated about how hashish licensing works in New York, which hints that he’s not able to shut down some companies altogether regardless of their clear violation of the MRTA and New York State Legal guidelines. Such an announcement by Mayor Adams might not scare unlawful dispensaries/distributors from shutting down their enterprise but, however the creation of the duty drive reveals a transparent intent to repair the unlawful dispensaries downside plaguing New York Metropolis earlier than the CAURD dispensaries open.
Past the duty drive
Mayor Adams famous that he goals to tweak state legal guidelines round marijuana so as to make it simpler to crack down on unlicensed storefronts, however he refused to share a particular legislative agenda on how that might be performed. One such measure nonetheless was introduced by New York State Governor Kathy Hochul at a press convention: the state has created a special seal paired with a QR code to be posted in retailer home windows. This may inform customers {that a} store is licensed to promote hashish, and permit buyers to keep away from the acquisition of unlicensed and potential dangerous merchandise.
New York is taking its clear up method a number of steps at a time, however it seems that there’s clear legislative intent to take away the unregulated gross sales as soon as licensed dispensaries open up. Our New York cannabis business lawyers will proceed to trace the event of the native program from our office right here in Manhattan.