State Agencies Closed 114 Stores Since Launch of the Cannabis Enforcement Task Force; Localities, Including New York City, Report an Additional 400 Closures Due to New Legislation Signed By Governor Hochul
Legal Retailers in Enforcement Areas Reported a 27 Percent Increase in Sales From the First Week of May to the First Week of June, Nearly Seven Times Higher Than the Previous Month-Over-Month Data
State Enforcement Agencies Reported More than $29 Million Worth of Illegal Product Seized
Governor Kathy Hochul today announced that in just 3 weeks, more than 100 illicit storefronts across the state were shut down by the New York State Cannabis Enforcement Task Force. The State’s commitment to shutting down these unlicensed cannabis storefronts has directly contributed to a 27 percent increase in legal cannabis sales in areas impacted by the Task Force’s enforcement activities.
“We are committed to building the strongest, most equitable cannabis market in the nation,” Governor Hochul said. “In order to advance that goal, we promised to expedite the closure of unlicensed cannabis storefronts, and I’m here today to say: we’re getting it done.”
New York City Mayor Eric Adams said, “For too long, illegal cannabis shops have contributed to a feeling that anything goes on our streets, but not anymore. After working with Governor Hochul and our partners in Albany to give local municipalities the power we needed to weed out this illegal activity, we launched 'Operation Padlock to Protect,' which is already seeing stunning results. In a matter of weeks, we have shut down nearly 400 smoke shops, seized $13.3 million in illegal products, and imposed more than $30 million in fines and penalties. Our work will protect children, keep our streets safe, and contribute to the thriving legal market that New York deserves.”
In April, Governor Hochul unveiled new initiatives to shut down illicit cannabis operations and protect the legal marketplace as part of the FY25 Enacted Budget. The plan provides the Office of Cannabis Management (OCM) and local municipalities with new authority to act against illicit storefronts and those who enable them. The initiatives are the strongest set of policies enacted thus far to tackle the illicit cannabis marketplace.
On May 21, Governor Hochul launched the Cannabis Enforcement Task Force. The Task Force, led by the State Police First Deputy Superintendent, is a major statewide effort to coordinate staff from several agencies to combat the illicit cannabis market. Through collaboration between the State Police, OCM, and other State agencies, the Task Force is equipped to tackle the full scope of illegal cannabis activity. The Task Force has worked with landlords to evict illegal dispensaries, and works to penalize landlords who fail to take steps to evict tenants after they are informed they are operating illegally.
The State’s commitment to shutting down these unlicensed cannabis storefronts has had a direct impact on the legal cannabis industry. Since May 21, when the Task Force was launched, 114 illegal cannabis stores have been padlocked. In addition, the OCM reports that $29,306,247 worth of illegal substances was seized from these stores and legal cannabis sales are up 27 percent since May for stores close to the padlocked locations.
OCM is committed to the Governor’s vision of an equitable cannabis market and reports that the Social and Economic Equity (SEE) program continues to promote inclusivity and opportunity within the industry. Currently, 54 percent of new applicants are SEE candidates. The breakdown includes 39 percent minority-owned business, 39 percent women-owned business, 9 percent service-disabled veteran-owned businesses, 8 percent distressed farmers, and 6 percent communities disproportionately impacted, highlighting the diversity and inclusivity of New York's evolving cannabis landscape. This dynamic progress demonstrates the State’s unwavering dedication to creating a fair, equitable, and thriving cannabis industry in New York State.
To date OCM has opened 135 legal dispensaries throughout the state. View the list of licensed dispensaries selling cannabis products grown by NY farmers and tested, packaged, and labeled in accordance with New York State’s regulated system.
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