Proposed Legislation Would Revoke Licenses of Stores Selling Illicit Cannabis in New York State

ALBANY, NY – A new bill proposed in both the New York State Senate and Assembly seeks to crack down on illicit cannabis sales by targeting the licenses of businesses that engage in illegal activity. The proposed legislation, Senate Bill S8847, aims to revoke the licenses of stores caught selling or possessing illicit cannabis, affecting their ability to sell tobacco, alcohol, and lottery tickets.

Illicit cannabis sales at tobacco retailers, smoke shops, bodegas, and delis have been undermining the regulated adult-use cannabis market in New York State, according to the legislation. The boldness of these illegal operations has led to targeted inspections, fines, arrests, and seizures of illicit products by law enforcement. Despite these measures, many businesses persist in illegal sales, reopening shortly after inspections and continuing to frustrate communities.

Recently, Suffolk County Police embarked on a month-long campaign to crack down on illegal vape sales called “Operation Smoke Out.” An SCPD spokesperson said that around 30% of businesses failed to adhere to legal regulations during their routine checks. During these checks some businesses were also caught selling cannabis illegally. Under the proposed law these businesses would also lose their licenses to sell tobacco, alcohol, and other products for a year.

See all arrests made during Operation Smoke Out by clicking here.

The proposed bill aims to bolster enforcement by revoking key licenses. Under the new law, a business found guilty of selling or possessing illicit cannabis would face severe consequences beyond fines and arrests. The bill specifies:

  • A first violation would result in a one-year revocation of licenses to sell cigarettes, tobacco products, alcohol, and lottery tickets.
  • A second offense would carry a three-year revocation.
  • A third offense would result in a five-year revocation.

The legislation amends sections of the tax law and alcoholic beverage control law to include penalties for violations involving illicit cannabis, aligning them with existing penalties for unstamped and illicit cigarette sales.

This bill sends a message to retailers that the consequences for illegal actions extend beyond immediate fines or arrests. Losing their licenses to sell tobacco, alcohol, and lottery tickets will directly impact their livelihoods and deter future violations.

Currently, the bill is under consideration in the Senate Committee on Budget and Revenue. If passed, the bill would empower authorities to take action against businesses flouting cannabis laws.

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