Directs the cannabis control board not to issue any license, permit or registration for retail dispensaries of cannabis until the cannabis control board reviews and closes businesses which are selling cannabis without a proper license or permit.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9179
SPONSOR: Benedetto TITLE OF BILL:
An act to establish a moratorium on issuing any license, permit or
registration for retail dispensaries of cannabis until the cannabis
control board reviews and closes businesses which are selling cannabis
without a proper license or permit
PURPOSE OR GENERAL IDEA OF BILL:
To address the proliferation of unlicensed "Smoke Shops" selling canna-
bis, which undermines local businesses and tax revenue.
SUMMARY OF PROVISIONS:
1. Section 1: Legislative intent is outlined, addressing the increase in
unlicensed "Smoke Shops" and their negative impact on local businesses
and tax revenue.
2. Section 2: The bill empowers the cannabis control board to withhold
licenses, permits, or registrations for retail cannabis dispensaries
until unauthorized cannabis-selling businesses are closed.
3. Section 3: Specifies the immediate effective date of the bill.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
The bill aims to protect the integrity of legal cannabis businesses,
preserve tax revenue, and provide law enforcement with the means to
address unlicensed cannabis sales.
PRIOR LEGISLATIVE HISTORY:
N/A
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
The bill may result in increased revenue for the state due to the
closure of unlicensed businesses and the promotion of legal cannabis
sales.
EFFECTIVE DATE:
Immediately upon enactment.
STATE OF NEW YORK
________________________________________________________________________
9179
IN ASSEMBLY
February 12, 2024
___________
Introduced by M. of A. BENEDETTO -- read once and referred to the
Committee on Economic Development
AN ACT to establish a moratorium on issuing any license, permit or
registration for retail dispensaries of cannabis until the cannabis
control board reviews and closes businesses which are selling cannabis
without a proper license or permit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative intent. The legislature finds that there has
2 been an increase in the number of unlicensed "Smoke Shops" throughout
3 the state, estimated to exceed 30,000, with approximately 1500 operating
4 illegally in New York City alone. These operations undermine the integ-
5 rity of our local businesses. These establishments often operate outside
6 the bounds of existing regulations, posing a significant challenge to
7 law enforcement and disrupting the business model that the state has
8 been established for cannabis dispensaries draining the state of impor-
9 tant tax revenue.
10 § 2. The cannabis control board shall not issue any license, permit or
11 registration for retail dispensaries of cannabis until the cannabis
12 control board or any other authorized entity or law enforcement agency
13 reviews and closes businesses which are selling cannabis without a prop-
14 er license or permit issued by the office of cannabis management.
15 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14079-01-4
