New York Governor Kathy Hochul has urged tech giants such as Google and Meta to stop advertising illegal pot shops on their platforms, saying they are hurting the licensed cannabis industry and depriving the state of tax revenues. Hochul said she will deliver that message on Wednesday at a press conference, where she will also announce new measures to crack down on the illicit cannabis market.
Hochul said that tech giants such as Google and Meta are knowingly allowing illegal pot shops to promote their products on their platforms, misleading consumers and violating state law. She said that a simple search on Google or Google Maps for “cannabis dispensaries” shows many unlicensed stores with listed reviews, phone numbers, and websites, with little to distinguish them from legal businesses.
Hochul said that this practice of false advertising is unfair and harmful to the licensed cannabis operators, who have invested time and money to comply with the state regulations and standards. She said that the illegal pot shops are also undermining the state’s efforts to create a safe and regulated cannabis market, which is expected to generate $350 million in annual tax revenues and create 30,000 to 60,000 jobs.
Hochul said that she is calling on the tech giants to cease the promotion of all illegal cannabis shops on their platforms, and to cooperate with the state authorities to remove them. She said that if they fail to do so, the state will consider taking legal action against them.
A plan to enforce the law
Hochul said that she will also announce new measures to enforce the law and shut down the illegal pot shops, which she said are operating with impunity and evading taxes and fines. She said that she will propose new legislation that will give the state Office of Cannabis Management (OCM) more power and resources to inspect, investigate, and close the illicit stores.
Hochul said that the new legislation will allow the OCM to issue cease and desist orders, impose civil penalties, and revoke the licenses of the landlords and utility providers who enable the illegal pot shops. She said that the legislation will also create a new cannabis enforcement unit within the OCM, which will work with the local law enforcement agencies and the district attorneys to prosecute the offenders.
Hochul said that the new legislation will also streamline the appeals process for the illegal pot shops, which currently can drag on for months or years. She said that the legislation will set a deadline of 30 days for the appeals to be resolved, and will require the illegal pot shops to pay a bond or post a security deposit before filing an appeal.
A vision for the future
Hochul said that she is committed to creating a successful and sustainable cannabis industry in New York, which will benefit the consumers, the businesses, and the state. She said that she is working to expedite the implementation of the cannabis legalization law, which was passed in March 2020, and to appoint the members of the Cannabis Control Board and the OCM, which will oversee the regulation and licensing of the industry.
Hochul said that she is also working to ensure that the cannabis industry is equitable and inclusive, and that it reflects the diversity and needs of the communities that have been disproportionately impacted by the war on drugs. She said that she is allocating 40% of the cannabis tax revenues to fund social equity programs, such as education, health care, and job training, and that she is reserving 50% of the cannabis licenses for social equity applicants, such as minorities, women, veterans, and farmers.
Hochul said that she is optimistic and confident about the future of the cannabis industry in New York, and that she is looking forward to seeing the first legal sales of adult-use cannabis by next year. She said that she is calling on all the stakeholders, including the tech giants, the licensed operators, and the consumers, to work together and support the state’s vision and goals.
