Increased penalties for selling cannabis illegally as well as new enforcement powers for the state Office of Cannabis Management and the Department of Taxation and Finance were proposed Wednesday by Gov. Kathy Hochul in a bid to tackle the problem. 

Hochul's proposal comes as state lawmakers in recent weeks have also considered changes to how the state's cannabis program works through taxation as well as regulation, with possible changes coming in a state budget due April 1. 

Lawmakers this month have discussed potential changes to the state's cannabis program as the nascent marketplace has been slow to fully develop. 

"Over the past several weeks I have been working with the Legislature on new legislation to improve New York's regulatory structure for cannabis products," Hochul said. "The continued existence of illegal dispensaries is unacceptable, and we need additional enforcement tools to protect New Yorkers from dangerous products and support our equity initiatives. I am proud of our continued progress creating the entirely new legal cannabis industry and helping legal dispensaries open their doors to offer safer cannabis products to New Yorkers." 

The bill would allow cannabis regulators and state tax officials to enforce illegal cannabis activity. Violations of the law could lead to fines of $200,000 for illegal cannabis plants or products. Regulators would be allowed to fine a business $10,000 a day for selling cannabis without a license. 

Earlier this month, Assembly Majority Leader Crystal Peoples-Stokes proposed changes to how cannabis is taxed in New York. Her proposal would replace the current tax which levies based on potency with an increase in the current excise tax.

Cannabis regulators, meanwhile, announced they would double the number of licenses allowed under the program to 300.