# New York cannabis industry regulatory developments > Live situation record from CLSTR: https://clstr.news/situations/new-york-cannabis-industry-regulatory-developments > Updated: 2026-09-22T18:19:33.000Z. Sources: 4. Developments: 2. The legal cannabis industry in New York is navigating significant legislative and regulatory challenges aimed at stabilizing the market and competing with illicit sales. Initially, licensed merchants, represented by the Safe Affordable Cannabis New York coalition, lobbied Governor Kathy Hochul to veto legislation that would create a state cannabis industry wage board. Critics argued the board, which would include an AFL-CIO representative, would increase costs and disproportionately impact minority-owned and veteran-owned businesses, potentially driving consumers back to the illicit market. Subsequent legislative efforts have shifted toward combating “cannabis inversion,” or the infiltration of illicit products into the legal supply chain. New proposed laws seek to penalize operators and laboratories for falsifying records or using fraudulent certificates of analysis, with civil penalties reaching up to $10,000 per day. Additionally, state officials are reviewing the current tax structure—which includes a 9% wholesale tax and a 13% retail tax—to determine if reforms are necessary to ensure licensed dispensaries remain competitive. ## Timeline ### 2026-09-22: New York cannabis industry faces new regulation and tax reform New York lawmakers are addressing cannabis market challenges through a proposed bill to penalize illicit supply infiltration and a potential overhaul of the state's cannabis tax structure. 2 sources. https://clstr.news/cluster/new-york-cannabis-industry-faces-new-regulation-and-tax-reform ### 2026-08-26: New York cannabis merchants urge veto of proposed industry wage board New York cannabis merchants are urging Governor Hochul to veto a bill creating a state wage board, warning it will spike prices and harm minority-owned businesses. 2 sources. https://clstr.news/cluster/new-york-cannabis-merchants-urge-veto-of-proposed-industry-wage-board --- Cite as: New York cannabis industry regulatory developments. CLSTR, https://clstr.news/situations/new-york-cannabis-industry-regulatory-developments