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As the New York cannabis program moves at a snail’s pace to get the adult-use cannabis program established, numerous illicit operations have sprung up. With no real laws in place, technically most of these operators feel they can’t be charged with breaking the law. The law doesn’t exist. Plus, with cannabis mostly being decriminalized in the state, possession has also lost its threat. That has created a conflict between the legal medical cannabis operators who have spent millions creating companies that do comply with the law and the illicit operators. Plus, many are now investing even more money to try to become legal operators but watching the current illicit operators operate with impunity.
The Cannabis Control Board is trying to address the situation by sending out “Cease & Desist” letters. This is the second round of letters to go out. The letter says,
The MRTA (Marijuana Regulation and Taxation Act) clearly states that any unlicensed sale of cannabis is illegal. Legal, licensed and taxed sales can begin only after the state approves regulations governing sales and licenses the businesses making them.
The companies receiving the letters in this second round were:
The biggest threat in the letters is the CCB’s comment that operating in this grey zone, will hurt these operators who want to apply for legit licenses. It also threatens the landlords by suggesting that allowing these businesses to operate could jeopardize future approvals for legally licensed operators.
New York Issues More Cease & Desist Letters on Green Market Report.