New York Bill Filed to Require Annual Audits of Office of Cannabis Management
- The New York Assembly introduced a bipartisan bill (Assembly Bill 10659) requiring annual audits of the Office of Cannabis Management to enhance oversight of the state's marijuana industry regulator.
- The audits, conducted by the state comptroller, attorney general, and independent certified public accountants, would assess the agency's internal controls and operations based on government auditing standards.
- Audit reports must identify unresolved internal control weaknesses and recommend corrective actions or confirm the absence of material problems, with audit materials made publicly available upon request.
- The bill includes provisions to avoid conflicts of interest by appointing independent auditors if key officials serve on the Cannabis Control Board and mandates immediate effect if approved.
A bipartisan bill filed yesterday in the New York Assembly would require annual audits of the Office of Cannabis Management, adding a new layer of oversight to the agency responsible for regulating the state’s marijuana industry. Assembly Bill 10659 was introduced Thursday by Assemblymembers Phillip Steck (D) and Keith Brown (R). The measure was referred to the Assembly Governmental Operations Committee.
According to the bill text, the proposal would require the state comptroller, the attorney general and independent certified public accountants to conduct annual audits of the Office of Cannabis Management’s internal controls and operations. The audits would be done under generally accepted government auditing standards and would include a report on whether the office’s internal controls are strong enough to meet the goals laid out in state law.
The bill says each report would need to identify any weaknesses in internal controls that have not been corrected, along with any actions recommended to address them. If auditors find no material problems, they would state that as well.
The proposal would also make the audits more public-facing. It says the comptroller, attorney general and any agency employee would be required to make available, upon request, all books, records and related materials needed for the review.
In addition, the bill would require the comptroller and attorney general to seek proposals from independent certified public accountants for internal control audits of their own departments. Those requests for proposals would need to reference the audit requirements spelled out in the measure.
The legislation also includes a conflict provision. If the comptroller or comptroller’s appointee serves on the Cannabis Control Board, or if the attorney general or an appointee serves on the board, the bill says an independent auditor would be selected to conduct the audit of that agency’s internal controls.
If approved, the measure would take effect immediately.