Media Report: New York’s Cannabis Regulators Have Received Just $22.5k of the $22m Fines Issued to Unlicensed Stores

Business of Cannabis writes

New York’s cannabis regulators have collected just $22,500 in fines from unlicensed cannabis shops, despite issuing more than $25m.

According to reporting from The City, the state’s Department of Taxation and Finance and the Office of Cannabis Management (OCM) have collected miniscule amounts in fines despite being given greater authority to clamp down on illicit trades last year.

Amid growing pressure to clamp down on the state’s thriving illicit market, new rules were introduced last year allowing regulators to impose fines of $10,000 for each day a cannabis business has been operating without a license, rising to $20,000 if they’ve previously received a notice from the OCM.

Regulators have also been conducting raids since last summer, but it is understood that the fines are levied and collected separately from the raids.

In October, it was reported that many of these raids were not being followed up on, and enforcement hearings had been paused due to lack of resources.

“Currently, the State is prioritizing shutting down illegal shops and seizing unlawful products,” said Aaron Ghitelman, a spokesperson for OCM.

“While we recognize entities being fined have a right to due process, we are committed to working within the confines of the law to collect the fines once the legal process is complete.”

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https://businessofcannabis.com/new-yorks-cannabis-regulators-have-received-just-22-5k-of-the-22m-fines-issued-to-unlicensed-stores/?utm_medium=email&_hsmi=83559195&utm_content=83559195&utm_source=hs_email

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