Virtually anyone can now apply for a license to sell marijuana in New York state, Gov. Kathy Hochul said Wednesday, as she also announced a crackdown on the proliferation of illegal shops.
Previously, only those with a criminal marijuana conviction could get an Empire State cannabis sales permit — but the new rules from Albany now allow the general public to get one of the new licenses that will be awarded early next year, Hochul said.
The move comes after only 24 official marijuana sales licenses have been issued since legal weed sales began in 2022 — and after the Big Apple was filled with well over 1,000 unlicensed smoke shops operating in broad daylight.
The marijuana rollout was also marred by a lawsuit by a group of Disabled vets, who complained the state failed to include them along with pot ex-cons in the first group of people-issued pot licenses.
The veterans — along with minority-owned businesses and distressed farmers — will now be allocated half of the new licenses that will be given out during the application period over the next two months, officials said.
The rest will go to anyone else who applies.
Meanwhile, Hochul announced state regulators with the Office of Cannabis Management and Department of Taxation have seized more than 8,500 pounds of illicit cannabis products with an estimated street value of more than $42 million.
Crackdowns this week on Manhattan’s West Side of Manhattan and in downtown Brooklyn resulted in the seizure of nearly 150 pounds of weed products worth close to $600,000.
Smoke shops found to be illegally selling cannabis are subject to massive fines and closure.
Hochul also said new partnerships with localities will enable them to pursue padlocking orders against businesses illegally selling cannabis, and announced a new multi-agency initiative to target illegal operators for labor violations, thus significantly increasing fines and penalties unlicensed peddlers face.
Under a state law approved by Hochul and the legislature earlier this year, the Office of Cannabis Management and the Department of Taxation and Finance were granted new powers to move against thousands of unlicensed cannabis businesses that sprouted up before licensed stores even opened.
Those illicit pot shops must appear at an administrative hearing. Fines for the illegal sale of cannabis start at $10,000 per day and can rise up to $20,000 per day.
The state’s budding legal marijuana has suffered from a slow and rocky rollout with just 24 licensed cannabis stores open across the state, 10 of which are in New York City since the law legalizing the sale of cannabis was approved in the spring of 2021.
Meanwhile, Mayor Eric Adams estimated there are up to 1,500 unlicensed smoke shops in New York City selling cannabis.
“We know there’s room for improvement as New York works to launch a brand-new cannabis industry and crack down on illicit operators, and I’m committed to working with all stakeholders to get the job done right,” Hochul said.
“My Administration is laser-focused on shutting down illegal storefronts, protecting the health and safety of children, and helping small businesses thrive. We will continue working to build the most equitable adult-use cannabis industry in the nation that invests in communities and rights the wrongs of the past.”
Hochul also announced a new partnership between OCM and Attorney General Letitia James’ office to train local government officials on how to pursue padlock orders to shut down unlicensed pot shops under the law, following inspections by state regulators without having to petition the court.
In addition, Hochul announced the state Labor Department and Workers Compensation Board will also investigate suspected illicit smoke shops for suspected workplace violations such as failing to pay minimum wage and overtime.