New York state officials are preparing to intensify efforts to address the unregulated sale of cannabis-based beverages, which have been proliferating in local grocery stores and bodegas without proper licensing. Chelsea Davis, deputy secretary for gaming, cannabis, and alcohol under Governor Kathy Hochul, described the growing presence of these products in the black market as a significant public health concern.

Speaking Wednesday at a panel discussion on alcohol policy, Davis characterized the situation as "untenable" and warned it poses a “real disaster waiting to happen.” Despite existing laws requiring vendors to obtain specific licenses to sell cannabis-infused drinks, these products continue to appear in unlicensed retail outlets across the city.

The issue gained heightened attention this summer after Manhattan Borough President Brad Hoylman-Sigal urged state regulators to intervene following reports that such beverages were being sold illegally in delis and grocery stores throughout Manhattan. Davis indicated that addressing the problem will be a priority during the upcoming legislative session in Albany.

Earlier efforts this year to permit licensed liquor stores to sell CBD-infused drinks failed to secure approval in the state legislature, leaving the industry’s regulatory framework unsettled. The absence of a clear legal pathway for legitimate sales has contributed to the growth of black market distribution.

Officials have underscored the need for stronger enforcement and clearer regulations to mitigate potential risks associated with unlicensed cannabis beverage sales. As the state prepares for the next legislative session, policymakers may consider measures aimed at tightening controls and safeguarding public health in the rapidly evolving cannabis market.