Task Force Led to the Padlocking of 345 Unlicensed Cannabis Shops and the Seizure of Nearly $29 Million in Illegal Product
In Response to Enforcement Efforts, 136 Locations Selling Illicit Cannabis Closed on Their Own, Were Vacated, or Ceased Selling Product
Since May, Legal Sales Have Increased By 51 Percent, Contributing to Over $368 Million in YTD Sales, More Than Doubling 2023’s Total Sales
Governor Kathy Hochul today provided an update on the State’s efforts after a three-month blitz by the Illicit Cannabis Enforcement Task Force (ICET). Since launched, the task force – in collaboration with the State Police, the Office of Cannabis Management (OCM), Department of Tax and Finance (DTF), local law enforcement, and over a dozen other state agencies – deployed 150 investigators to inspect, reinspect, padlock, and seize products from illicit operators.
“Thousands of illegal cannabis storefronts across the State have plagued our communities and siphoned business from licensed retailers,” Governor Hochul said. “I launched the Illicit Cannabis Enforcement Task Force to quickly close these unlicensed shops, and today, more than 1,000 have been shuttered. I look forward to building upon that success to continue our enforcement efforts across New York.”
On May 21, Governor Hochul launched the first-of-its-kind Illicit Cannabis Enforcement Task Force to conduct statewide operations across every region, with a particular focus on supporting legal cannabis market retailers. Led by the State Police First Deputy Superintendent, the Task Force leveraged new enforcement powers enacted by Governor Hochul earlier this year, to padlock illicit storefronts and take action against landlords who failed to comply with the law.
Since its launch, the ICET reports:
More than 700 inspections, resulting in 7,485 pounds of illegal cannabis seized (estimated value of $28.9 million).
789 inspections leading to 345 padlocks and 596 Notices of Violation issued.
136 locations closed on their own or ceased illegal cannabis operations in response to enforcement action.
79 administrative hearings, resulting in 57 administrative decisions to date, 52 of which upheld the emergency padlocking.
OCM Director of Investigations and Enforcement Daniel Haughney said, “I am extremely proud of the Taskforce members, OCM’s agency partners and our collaboration with local law enforcement. It has been an incredible collective effort, from the long hours in sweltering heat, to travel crisscrossing the State. The Taskforce has made enormous strides in shifting the cannabis landscape in New York, although there remains much work ahead. I commend Governor Hochul for putting in place the structures to take swift and decisive administrative action.”
New York State Police Superintendent Steven G. James said, “Efforts to intercept illegal business practices are an integral part of protecting our communities and sends a clear message to business owners that there will be consequences. The New York State Police stands ready to assist the Office of Cannabis Management and our other state agency partners in halting illicit operations by unlicensed cannabis dispensaries and stopping the distribution of their products. I want to thank Governor Hochul for her leadership and for providing the resources needed to make this a successful, ongoing effort.”
Across the State, legal cannabis sales saw a surge following Governor Hochul’s enactment of expanded enforcement powers. As of August 23, New York’s sales year-to-date in 2024 reached $368.4 million, more than doubling the $160 million total sales amassed in 2023. Enforcement efforts have pushed the State’s total retail sales to over $520 million, sales since May 2024 making up over 43 percent of that total.
Licensed retailers report an average increase of 50 percent in sales statewide and 97 percent in New York City.
As part of OCM’s continued commitment to organizational transformation, the agency is prioritizing the hiring of investigators and attorneys to manage the ongoing work of enforcing a well-regulated cannabis market.
There are currently 166 adult-use retail dispensaries open for business across the Empire State.
