Mayor Kraham Announces New Law Cracking Down on Illicit Cannabis Retailers

Law Provides Enforcement Powers to Local Police to Shut Down Illegal Stores

(BINGHAMTON, N.Y.)—Mayor Jared M. Kraham on Tuesday proposed a new law to improve local enforcement authority against the unlicensed sale of cannabis products in the City of Binghamton.

Mayor Kraham said: "As Mayor, I support the legal cannabis industry. However, we must not tolerate the sale of unsafe and illegal cannabis products in our community. These unregulated shops are stealing from taxpayers and putting consumers at risk with unknown, untested and untaxed products. People who patronize these unlicensed shops may be getting ripped off or buying products that are dangerous. Product is being sold to minors. In order for the legal cannabis industry to be successful in New York—and to protect residents and neighborhoods—we must continue to crack down on unlicensed operators."

Under the new law, the Binghamton Police Department will be able to inspect businesses suspected of unlicensed cannabis sales and pursue enforcement remedies against those found to be operating illegally.

If a property is repeatedly cited for unlicensed cannabis activity or if it is deemed an imminent threat to public safety, the Binghamton Police Department will be able to order its immediate shutdown pending a court hearing.

In order for police to deem a commercial property an imminent threat to public safety subject to an immediate lockdown, one or more of the following factors must exist: documented sales to minors; violent activity; presence of unlawful firearms; proximity of premises to schools, places of worship or youth facilities; cannabis products not tested or labeled lawfully in accordance with the New York State Cannabis Law.

Any person who engages in the unlawful sale of cannabis, cannabis product or any product marketed or labeled as such, or in indirect retail sales, shall be subject to a civil penalty of not less than $100 and not more than $10,000 for each day during which such violation continues, with a maximum penalty of no more than $25,000.

The new local law follows a move by New York State earlier this year to grant local governments increased powers to regulate and enforce against the unlicensed marketing and sale of cannabis products. Previously, regulation and enforcement of unlicensed retail cannabis activity was the sole responsibility of the New York State Office of Cannabis Management.

Damien Cornwell, president of the Cannabis Association of New York and owner of Just Breathe in Binghamton, said: "Binghamton is taking decisive action to shut down unregulated cannabis stores that are putting public health and safety at risk while also leveling the playing field for legal operators. This action is especially important as we witness the proliferation of legal dispensaries that are run by members of the community, opening in Binghamton."

Chris Myers, owner of Greenery Spot in Johnson City, said: "As a dispensary owner, I believe it's critical that we push for stricter legislation against illegal cannabis stores, or 'sticker shops.' These shops operate without the oversight that we follow putting untested and potentially unsafe products into our community. They undermine our efforts to create a level playing field, especially when it comes to taxes, advertising, and business ethics. While we partner with local farmers to support the community and provide regulated, lab-tested products, sticker shops are often bringing in unregulated, out-of-state goods. By enforcing stricter laws, we can ensure that everyone in this industry is held to the same standards, creating a safer, more trustworthy environment for our consumers."

Kaelan Castetter, Managing Director of the Castetter Cannabis Group, said: "The legislature took important steps last session to provide municipalities with the enforcement tools they need to shut down illicit shops, and this local law is yet another step that Mayor Kraham has taken to position Binghamton as a cannabis industry leader. It's important to note that as much as illicit stores harm public trust and safety—they undermine the economic opportunities of entrepreneurs who have followed the challenging licensing processes to open their dispensaries."

A copy of the proposed law is available on the City's website. The legislation has been sent to City Council for consideration.