or bill The effort to prevent the diversion of illegal cannabis products into New York’s regulated market has been approved by both the House and Senate, moving it to Gov. Kathy Hochul (D) for final approval.
The legislation defines “illegal cannabis” as any cannabis product on which taxes have not been paid, or proceeds from unlicensed individuals or entities. The bill prohibits the practice of subversion by licensees and testing facilities and includes protections for whistleblowers.
In a statement, state Sen. Jeremy Cooney (D), the bill’s sponsor, said the state has made significant strides in building a successful legal cannabis market…but that market can only continue to grow if New Yorkers can trust the source and safety of their products.
“Illegal products are dangerous and unreliable, which is why this bill says enough is enough. It’s time to make sure only legal products hit our shelves, hold bad actors accountable, and maintain the integrity of our legal marketplace.” – Cooney in one press release
The bill would authorize the Office of Cannabis Management to seek suspension orders against licensees or laboratories suspected of diverting cannabis and creates civil penalties of no more than five times the proceeds of the prohibited sale of cannabis.
