New York regulators on Thursday shut down five unlicensed businesses selling cannabis in Ithaca and Binghamton and the companies now face fines of up to $10,000 per day they were selling cannabis without a license.
The Office of Cannabis Management (OCM) and Department of Taxation and Finance (DTF) also seized products, which is allowed under recently-approved emergency rules. The action targeted three businesses in Ithaca and two in Binghamton. The shops will next be subject to hearings before an administrative law judge and, if found to be non-compliant, the judge may confirm the fines assessed and require unlicensed operators to pay them.
If an unlicensed location is found to continue selling cannabis products after OCM issues a notice of violation or order to cease, an additional per-day penalty of up to $20,000 may be assessed by an administrative law judge. Further, should the unlicensed business remove the OCM violation notices affixed to the storefront, the business is subject to a fine of up to $5,000.
The OCM said it had also conducted inspections of businesses in New York City last week and issued notices to 11 of them.
All fines must be confirmed by an administrative law judge and the businesses may also face penalties under state tax and finance laws.
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