Governor Hochul Announces Results of First Enforcement Actions Under New Law Against Unlicensed Cannabis Businesses

 

Enforcement Actions Have Resulted in Seizure of a Minimum of 1000 Pounds and Nearly $11 Million in Illicit Products Through Coordinated Interagency Effort

New York State Office of Cannabis Management and Department of Taxation and Finance Began Inspecting Unlicensed Shops in Early June under New Law Signed by Governor Hochul in May

State Agencies Can Now Levy Hefty Fines and Initiate the Process of Shutting Down Businesses Selling Cannabis without a License

 Governor Kathy Hochul today announced the results of initial enforcement actions against unlicensed cannabis businesses. The efforts in these first two weeks have been led by New York State's Office of Cannabis Management and Department of Taxation and Finance, which have been authorized under a new law signed by the Governor in May as part of the State's Fiscal Year 2024 Budget.

"Under new powers that I fought for in this year's State budget, we can now conduct enforcement against businesses illegally selling cannabis, and I'm proud to report that in just the first three weeks of our efforts, we've seized nearly $11 million worth of illicit products off the streets," Governor Hochul said. "These unlicensed businesses violate our laws, put public health at risk, and undermine the legal cannabis market, and with the powerful new tools in our toolbelt we're sending a clear and strong message: if you sell illegal cannabis in New York, you will be caught and you will be stopped."

Since June 7, the New York State Office of Cannabis Management (OCM) and the New York State Department of Taxation and Finance (DTF) have jointly conducted inspections at 33 storefront businesses in New York City, Ithaca, and Binghamton not licensed to sell cannabis. The two agencies have issued Notices of Violation to 31 of these businesses, from which they have seized and catalogued a minimum of 1000 pounds of illicit cannabis with an estimated value of nearly $11 million, and with more still to be tabulated. Enforcement will be continuing weekly throughout the state, with OCM actively recruiting additional officers with the goal of ending the illicit sale of cannabis.

The new enforcement legislation adopted as part of the Budget has authorized OCM to assess civil penalties against unlicensed cannabis businesses, with fines starting at $10,000 per day, and rising up to $20,000 per day for the most egregious conduct. The new law has also authorized the agency to seek a State court order to ultimately padlock businesses found to be in repeated violation of the law, among other penalties. In addition, the law makes it a crime to sell cannabis and cannabis products without a license

In addition to the powers granted to OCM, the new enforcement law also empowers DTF to conduct regulatory inspections of businesses selling cannabis to determine if appropriate taxes have been paid and to levy civil penalties in cases where they have not. The legislation also establishes a new tax fraud crime for businesses that willfully fail to collect or remit required cannabis taxesor knowingly possess for sale any cannabis on which tax was required to be paid but was not.

By taking decisive action against unlicensed cannabis businesses, New York State is making a significant stride towardcracking down onunlawful cannabis operations that jeopardize public safety, consumer well-being, and the integrity of New York State's legal cannabis market. To aid in these continuing actions, the FY 2024 Budget also provides $5M for an additional 37 OCM staff to carry out enforcement.

Governor Hochul also appointed Hope Knight, President, CEO and Commissioner of Empire State Development, to the Cannabis Control Board (CCB). Commissioner Knight will be seated immediately and will serve at next month's CCB meeting.

In addition to the Notices of Violation, the 31 businesses found to be illegally selling cannabis also had Orders to Cease Unlicensed Activity affixed to the outside of the doors. Those businesses must now appear at an administrative hearing, where the final fines and penalties they will face will be determined. An additional fine of $5,000 can be levied for removal of the Order, and the inspected businesses may also be subject to additional violations and penalties under the Tax Law.

Following these initial inspections, OCM and the DTF will be following up on locations inspected to ensure unlicensed activity has ceased. If continued unlicensed activity is found to persist, OCM can petition the State Supreme Court to order the retail space padlocked shut until the location complies with the cannabis law and its related regulations.

Additional information on fines:

If an unlicensed location is found to continue selling cannabis products after OCM issues a Notice of Violation/Order to Cease, an additional per-day penalty of up to $20,000 may be assessed by an ALJ. Further, should the unlicensed business remove the OCM Notice of Violation or Warning affixed to the business storefront, the business is subject to a fine of up to $5,000.

Additional information regarding previous and ongoing operations:

OCM and DTF began their first joint inspections authorized by the new enforcement law during the week of June 5, 2023, in New York City, where inspections will remain active and ongoing.

The following shops were inspected by OCM and DTF officers and have been issued notices of violation:

• Varieties on Broadway - 736 Broadway, New York, NY
• Roll 2 Nation - 738 Broadway, New York, NY
• Baby Jeeter - 793 Broadway, New York, NY
• Maze - 16 St. Marks Place, New York, NY
• LaGuardia Smoke - 510 LaGuardia Place, New York, NY
• Nomad - 59 West 30th Street, New York, NY
• Play Lane - 117B W 23rd Street, New York, NY
• Cannabis Culture - 403 8th Avenue, New York, NY
• Smoke Factory - 287 7th Avenue, New York, NY
• Go Green Dispensary - 603 6th Avenue, New York, NY
• Daydream - 1181 Broadway, New York, NY
• Giggles - 59 1st Avenue, New York, NY
• Empire Smoke Shop - 57 1st Avenue, New York, NY
• NYC Smokes - 104 MacDougal Street, New York, NY
• Caviar - 110 MacDougal Street, New York, NY
• Sweet and Sour - 73 2nd Avenue, New York, NY
• Smart Smokes - 143 1st Avenue, New York, NY
• Old G Convenience Corp - 18 West 14th Street, New York, NY
• Premier Top, Inc - 54 14th Street, New York, NY
• Black Leaf - 103 East State Street, Ithaca, NY
• Zaza Convenience - 101 East State Street, Ithaca, NY
• The Rezz - 312 Fourth Street, Ithaca, NY
• Puff N Pass Smoke Shop - 222 Elmira Road #10, Ithaca, NY
• Green Magic - 114 Henry Street, Binghamton, NY
• Take Off - 2-63 Chenango Street, Binghamton, NY
• BMillz 122 Washington Ave, Endicott NY
• Runtz 14 1st Ave, NY NY
• BMillz 1110 Conklin Rd, Conklin NY
• Royal Vapes, 113 Washington Ave, Endicott NY
• Sogie Mart 24 Ave A, NY NY
• Recreational Plus Dispensary 180 1st Ave, NY NY

EDITOR'S NOTE:

These location are only near legal Cannabis stores only, as no illegal stores in Brooklyn, Queens or the Bronx have been closed since there are no legal Cannabis stores in those boroughs.

Nearly One Hundred Miles of New Greenway Trails Opened for Public Use and Enjoyment Across New York since 2021

 

New report highlights new trail projects completed, plus over 300 miles of additional trails in progress across the state

Parks & Trails New York (PTNY) and the New York State Office of Parks, Recreation and Historic Preservation (OPRHP) have announced the release of the New York State Greenway Trails Progress Report (August 2021-December 2022), which outlines the accomplishments made, the projects initiated, and the funding secured by state, local, and non-profit partners between August 2021 and December 2022. The report identifies 97.1 miles of new trails completed and 372.7 additional miles of trail in progress in that time frame.

The new report demonstrates progress made towards completing the goals of New York’s Statewide Greenway Trails Plan, published in April 2021. This plan spelled out a vision of a “network of shared use paths that provide all New Yorkers and visitors opportunities for healthy and active recreation, routes for alternative transportation, and the ability to connect to and enrich our communities and natural landscapes in urban, suburban, and rural settings.”

Major highlights for greenway trails across New York State include the advancement of the Empire State Trail as a high quality, world-class destination trail, with several surface upgrades completed across the corridor, as well as many significant construction projects and planning initiatives underway to better connect communities with the statewide trail. Efforts have also been made over the last two years to activate the Empire State Trail – the longest single-state multi-use trail in the nation – by developing new trip-planning resources, augmenting programs and events to encourage residents and visitors alike to engage with the trail in new ways. In 2022, for example, Parks & Trails New York launched the Empire State Trail Town program to promote the trail and the communities along it as a destination and build the outdoor recreation economy along the corridor.

Other major corridors to see significant investment over the last two years include the Adirondack Rail Trail, which, when complete, will run 34 stunning miles through the central Adirondacks from Tupper Lake to Lake Placid, and the Genesee Valley Greenway, a 90-mile corridor in western New York running south from Rochester to Hinsdale. In conjunction with these physical improvements, both the Adirondack Rail Trail and Genesee Valley Greenway have robust coalitions behind them to support the growth of the trails as well as the vibrant communities along them. 

Several major planning efforts have also advanced, especially concentrated in the state’s most populous regions. Planning for phase one of the future Long Island Greenway has started and New York City was awarded a federal transportation planning grant for a major expansion of the greenway network with a focus on historically underserved, lower-income communities. In the Hudson Valley, a greenway vision plan was published, outlining the opportunity to create a truly regional, 250+ mile network of greenways in the Ulster, Orange, and Sullivan counties.

Exciting new funding opportunities are providing additional momentum for greenway trail projects. The new federal Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, authorizes record funding to the Transportation Alternatives program, maintains the Recreational Trails Program, and introduces a new Active Transportation Infrastructure Investment Program. At the state level, record funding amounts for New York State Parks’ capital budget and for the Environmental Protection Fund are advancing critical projects, and the newly authorized Clean Water, Clean Air, and Green Jobs Environmental Bond Act may provide additional critical investment in greenway trail projects.

“Not only does this report provide a snapshot of the investments that we've made to develop and rehabilitate greenway trails over the last year, but it has helped pave a clear path for realizing a truly interconnected network of greenway trails across the state. We hope this report will generate a lot of buzz among stakeholders about the steps we need to take, as a collective, to carry out this vision,” said Paul Steely White, Executive Director of Parks & Trails New York.

“The trail improvements demonstrated in this report undoubtedly offer more New York residents and visitors the opportunity to explore our state’s incredible scenery and must-visit communities. Sharing the progress made on the greenway trails network in such a transparent way is necessary to compel further investment and expand recreational and economic opportunities throughout the state, and State Parks is grateful to PTNY and all of the partners involved in these projects," said State Parks Commissioner Erik Kulleseid.

To read the full report, click here.

Parks & Trails New York (PTNY) is New York’s leading statewide advocate for parks and trails, dedicated since 1985 to improving our health, economy, and quality of life through the use and enjoyment of green space. PTNY works to expand, protect, and promote a network of parks, trails, and open spaces throughout our state for use and enjoyment by all. For more information, visit www.ptny.org.

The New York State Office of Parks, Recreation and Historic Preservation oversees more than 250 parks, historic sites, recreational trails, golf courses, boat launches and more, which saw a record 79.5 million visits in 2022. For more information on any of these recreation areas, visit www.parks.ny.gov, download the free NY State Parks Explorer?mobile app or call 518.474.0456. Also, connect on Facebook, Instagram, Twitter, and the Parks and Historic Sites Blog.

Permits Filed For 967 East 167th Street In Crotona Park East, The Bronx

 

Permits have been filed to expand a one-story structure into a four-story residential building at 967 East 167th Street in Crotona Park East, The Bronx. Located between Southern Boulevard and Hoe Avenue, the lot is near the Simpson Street subway station, serviced by the 2 and 5 trains. Jennifer Canales is listed as the owner behind the applications.

The proposed 50-foot-tall development will yield 6,421 square feet designated for residential space. The building will have 12 residences, most likely rentals based on the average unit scope of 535 square feet. The steel-based structure will also have a cellar, penthouse, and a 34-foot-long rear yard.

Node Architecture Engineering Consulting PC is listed as the architect of record.

Demolition permits will likely not be needed as the permit calls for an expansion. An estimated completion date has not been announced.

Housing Lottery Launches For 4180 Carpenter Avenue In Wakefield, The Bronx

 

The affordable housing lottery has launched for 4180 Carpenter Avenue, a five-story mixed-use building in Wakefield, The Bronx. Designed by Marin Architects and developed by Mark Stagg of RYTY Home Builders, the structure yields 92 residences. Available on NYC Housing Connect are 28 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $75,395 to $198,250.

Amenities include pet-friendly policies, assigned parking spaces, a shared laundry room, recreation room, gym, and on-site resident manager. Units come equipped with name-brand kitchen appliances, air conditioning, hardwood floors, and energy-efficient appliances. Tenants are responsible for electricity.

At 130 percent of the AMI, there is one studio with a monthly rent of $2,154 for incomes ranging from $75,395 to $146,900; 23 one-bedrooms with a monthly rent of $2,239 for incomes ranging from $76,766 to $165,230; and four two-bedrooms with a monthly rent of $2,516 for incomes ranging from $86,263 to $198,250.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than August 21, 2023.

MAYOR ADAMS, FDNY COMMISSIONER KAVANAGH, SBS COMMISSIONER KIM ANNOUNCE PLAN TO STEP UP LITHIUM-ION BATTERY INSPECTIONS, EDUCATION EFFORTS TO PREVENT FURTHER BIKE SHOP FIRES

 

FDNY to Expedite Investigations Into Complaints Made Via 311 About Unsafe Charging Practices at Bike Stores and Repair Shops

New York City Mayor Eric Adams, Fire Department of the City of New York (FDNY) Commissioner Laura Kavanagh, and New York City Small Business Services (SBS) Commissioner Kevin D. Kim announced a new action plan to expedite investigations into complaints made via 311 about potentially hazardous conditions involving lithium-ion batteries at bike shops and bike repair shops within the five boroughs. Additionally, Mayor Adams and administration officials announced a joint comprehensive outreach and education campaign to educate bike shop and bike repair shop owners about the dangers presented by lithium-ion batteries and best practices to avoid fires. Today’s announcement comes on the heels of a deadly fire at 80 Madison Street yesterday morning caused by a lithium-ion battery at the e-bike shop — just the latest in the 108 lithium-ion fires within New York City so far this year — that resulted in four deaths. Year to date, there have been at least 13 deaths and 66 injuries in New York City due to lithium-ion batteries.

 

“While e-bikes are an important part of our transportation network and essential to many small businesses, our message is clear: There will be zero tolerance for any activity that puts New Yorkers at risk. We have been sounding the alarm for months about lithium-ion batteries and the dangers these items when used improperly can pose to New Yorkers. But we are committed to leading the nation in identifying proactive ways to both increase enforcement against those improperly using lithium-ion batteries while simultaneously educating users on how to best use these products,” said Mayor Adams. “Effective immediately, 311 calls regarding questionable activity at bike repair shops or any other location where batteries are being charged will get a response from the local fire station within 12 hours in an effort to save lives. And we will also be stepping up our education efforts to help anyone using an e-bike or charging batteries understand the safety rules and regulations as well as the risks involved with using these products.”

 

“We are devastated by the losses suffered at the fire at the e-bike store in Chinatown. Too many people have lost their lives because of lithium-ion batteries, and we are grateful to partner with the city’s SBS to educate shop owners on the dangers presented by them,” said FDNY Commissioner Kavanagh. “We will continue to target this issue from all angles, and this partnership is the next logical step in getting the message out about safe practices for all micro-mobility retailers and users.”

 

“We are heartbroken by the loss of life in Chinatown and are eager to work with FDNY and other city partners to educate business owners on safety measures to protect both their lives and livelihoods,” said SBS Commissioner Kim. “Together, with the FDNY, SBS will provide safety information in 11 languages starting in Chinatown, and going citywide. Through robust education, we can prevent further tragedies and keep New Yorkers safe.”

 

The FDNY is encouraging New Yorkers who see questionable activity related to lithium-ion batteries at bike shops and bike repair shops to call 311 and lodge a complaint. Questionable activity for charging lithium-ion batteries may include large numbers of batteries being charged close together, mazes of extension cords, sale of batteries that appear to be refurbished, or informal charging centers that do not appear to be properly licensed businesses. Members of the FDNY will respond to the complaint within 12 hours and take necessary action to relieve any hazardous conditions on the premises. Actions may include issuing violations and, in some cases, vacate orders. The FDNY has also instructed members to prioritize any complaint related to lithium-ion batteries and respond and investigate as soon as possible.

 

Under today’s announced partnership, FDNY and SBS teams will focus on educating the public on the safety risks associated with after-market batteries, and those that have been repaired. The teams will conduct educational outreach at every bike shop and bike repair shop in New York City over the coming weeks. The SBS mobile recreational vehicle has high visibility and will be deployed to help promote FDNY messaging for safe practices for lithium-ion batteries. FDNY’s Fire Safety and Education Unit members will also pass out educational materials in multiple languages in neighborhoods all over the city. FDNY and SBS will utilize their targeted outreach teams to speak directly with business owners in addition to working with community partners to expand their reach as well.

 

A full list of educational materials on lithium-ion batteries can be found online.

Mayor Adams Visits Bronx Hiring Hall at Lehman College

 

Close to one thousand people came to Lehman College to apply for one of the twelve thousand jobs Mayor Eric Adams said were available at the second Bronx Hiring Hall. There  were three long lines for the Health and Hospitals Corporation which has three hospitals in the Bronx and eleven full service hospitals in New York City.  Bronx Borough President Vanea Gibson also stopped in to see how thing were going in the "Boogie Down Bronx".

New York City agencies such as the Administration for Children's Services, Civic Engagement Unit, Department of Citywide Services, Department of Environmental Protection, Department of Buildings, Department of Transportation, Department of Sanitation, Department of Housing Preservation and Development, Department of Health and Mental Hygiene, NYC Health and Hospitals, and the New York Police Department. Also on hand were the Mayor's Public Engagement Unit, Office of Citywide Recruitment, and Union DC 37 as resources. 

This was the lines, all three of them for the Health and Hospitals table.

Mayor Eric Adams came in to check on the Hiring Hall, as did Bronx Borough President Vanessa L. Gibson. 

Mayor Adams is introduced by Executive Deputy Commissioner of DCAS  Beatrice Thuo, with DCAS Hiring Hall volunteer Katrina Porter.

Mayor Adams introduced Bronx Borough President Vanessa L. Gibson.

Bronx Borough President Gibson thanked the mayor for coming, and having the Hiring Hall again in the 'Boogie Down Bronx'.

Mayor Adams said that there are twelve thousand good paying city jobs that need to be filled. 

Mayor Adams stopped to talk to many of the people who came to the Bronx Hiring Hall.

The mayor also took photos with some of the people looking to work for the city.

Former FBI Analyst Sentenced for Retaining Classified Documents

 

Defendant Kept Hundreds of National Defense Documents at Her Home in Violation of the Espionage Act

A former analyst with the Kansas City Division of the FBI was sentenced in federal court today for illegally retaining documents related to the national defense at her residence.

Kendra Kingsbury, 50, of Garden City, Kansas, was sentenced by U.S. District Judge Stephen R. Bough to 46 months in federal prison followed by three years of supervised release. Kingsbury pleaded guilty on Oct. 13, 2022, to two counts of unlawfully retaining documents related to the national defense.

According to court documents, Kingsbury was an intelligence analyst for the FBI for more than 12 years, from 2004 to Dec. 15, 2017. Kingsbury was assigned to a sequence of different FBI squads, each of which had a particular focus, such as illegal drug trafficking, violent crime, violent gangs and counterintelligence. Kingsbury held a TOP SECRET/SCI security clearance and had access to national defense and classified information. Training presentations and materials specifically warned Kingsbury that she was prohibited from retaining classified information at her personal residence. Such information could only be stored in an approved facility and container.

Kingsbury admitted that, over the course of her FBI employment, she repeatedly removed from the FBI and retained in her personal residence (at that time in North Kansas City, Missouri) an abundance of sensitive government materials, including classified documents related to the national defense.

In total, Kingsbury improperly removed and unlawfully and willfully retained approximately 386 classified documents in her personal residence. Some of the classified documents she unlawfully removed and kept in her home contained extremely sensitive national defense information. According to court documents, Kingsbury put national security at risk by retaining classified information in her home that would have, if in the wrong hands, revealed some of the government’s most important and secretive methods of collecting essential national security intelligence.

Kingsbury admitted to investigators that she retained and destroyed other documents over the years that could have contained classified and/or national defense information. The documents retained by Kingsbury in her personal residence included documents in electronic format on hard drives, compact discs and other storage media.

The national defense information that Kingsbury unlawfully retained included numerous documents classified at the SECRET level from the FBI that describe intelligence sources and methods related to U.S. government efforts related to counterterrorism, counterintelligence and defending against cyber threats. These documents included details on the FBI’s nationwide objectives and priorities, including specific investigations across multiple field offices that were open at the time Kingsbury unlawfully retained the documents. In addition, Kingsbury retained documents relating to sensitive human-source operations in national security investigations, intelligence gaps regarding hostile foreign intelligence services and terrorist organizations and the technical capabilities of the FBI against counterintelligence and counterterrorism targets.

The national defense information that Kingsbury unlawfully retained also included numerous documents classified at the SECRET level from another government agency. These documents described intelligence sources and methods related to U.S. government efforts to collect intelligence on terrorist groups. The documents included information about al Qaeda members on the African continent, including a suspected associate of Usama bin Laden. In addition, there were documents regarding the activities of emerging terrorists and their efforts to establish themselves in support of al Qaeda in Africa.

The FBI investigated what uses Kingsbury put to the classified documents she illegally removed from the secure workspace, but according to court documents, the investigation revealed more questions and concerns than answers.

Investigators reviewed Kingsbury’s telephone records, which revealed a number of suspicious calls. Kingsbury contacted phone numbers associated with subjects of counterterrorism investigations, and these individuals also made telephone calls to Kingsbury. Investigators have not been able to determine why Kingsbury contacted these individuals, or why these individuals contacted her. Kingsbury declined to provide the government with any further information.

The FBI Omaha Field Office is investigating the case.

MAYOR ADAMS’ STATEMENT ON RENT GUIDELINES BOARD VOTE

 

New York City Mayor Eric Adams tonight released the following statement following the Rent Guidelines Board’s 5-4 vote to increase rents on rent-stabilized apartments by 3.0 percent on one-year leases and 2.75 percent and then 3.2 percent over two-year leases — approximately the same as a 4.5-percent increase on a two-year lease:

 

“I want to thank the members of the Rent Guidelines Board for their critically important and extremely difficult work protecting tenants from unsustainable rent increases, while also ensuring small property owners have the necessary resources to maintain their buildings and preserve high-quality, affordable homes for New Yorkers. Finding the right balance is never easy, but I believe the board has done so this year — as evidenced by affirmative votes from both tenant and public representatives.

 

“We also know that the real solution to the affordable housing crisis requires building more housing — that means getting New York City the tools we need to build the housing New Yorkers deserve. That is why we continue to fight for state action on affordable housing incentives, office conversions, and other key priorities. And we are using every tool in the city’s toolkit to build more housing more quickly — cutting red tape, making the largest financial commitment to affordable housing in the city’s history, and advancing a ‘City of Yes’ zoning amendment that will clear the way for new housing in every borough.”