New York Governor Announces Results of State’s First Enforcement Actions Against Illicit Cannabis Retailers

New York Gov. Kathy Hochul announced June 22 the results of the state’s first enforcement actions against illicit cannabis retailers after the governor signed legislation into law last month to allow regulators to take harsher action against unlicensed operators.

That bill, part of the state budget for fiscal year 2024, allows the New York Office of Cannabis Management (OCM) to seize product and seek injunctions to close unlicensed cannabis retailers, as well as grants the Department of Taxation and Finance (DTF) the authority to issue fines and penalties for unpaid taxes.

Hochul’s office announced in early June that under the new law, plans were in motion to launch an interagency initiative to quash the sale of untested cannabis products from unlicensed shops.

On June 15, Hochul announced enforcement actions taken against unlicensed cannabis businesses in Ithaca and Binghamton. OCM and DTF officials inspected unlicensed shops in the area June 13, seizing illicit products and initiating the process of shutting down cannabis sales in five of the unlicensed storefronts.

The three shops penalized in Ithaca were Black Leaf, Zaza Convenience and The Rez. The two shops penalized in Binghamton were Green Magic and Takeoff 2.

In Hochul’s latest announcement on Thursday, she said that since June 7, the OCM and DTF have jointly conducted inspections of 33 total storefronts in New York City, Ithaca and Binghamton, and the two agencies have subsequently issued notices of violation to 31 of those businesses. State officials have seized and catalogued a minimum of 1,000 pounds of illicit cannabis products worth an estimated $11 million, according to the announcement.

“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,” Hochul said in a public statement. “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.”

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State officials plan to continue enforcement efforts weekly throughout the state, according to Hochul’s announcement, and the OCM is actively recruiting additional officers with the goal of halting illicit cannabis sales in New York.

“Today, Gov. Hochul put out a sharp warning to every business selling cannabis without a license: New York State is coming to shut you down,” OCM Executive Director Chris Alexander said in a public statement. “Thanks to the governor’s efforts, our enforcement teams are out every day putting an end to the proliferation of unlicensed cannabis sales across New York State. Supporting local entrepreneurs launching legal cannabis businesses with safe and tested licensed products is paramount. OCM is committed to protecting public health and ensuring consumer safety.”

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