Earlier this month, Governor Kathy Hochul announced that in just 3 weeks, more than 100 illicit storefronts across the state would be 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.”
Office of Cannabis Management Acting Executive Director Felicia A.B. Reid said, “The risks and dangers that unlicensed cannabis poses to our communities and licensed cannabusiness is no small thing. They threaten to undo the incredible work New York has done to center equity, create jobs, and ensure the integrity of products as the cannabis market expands. It is thanks to the dedication of the Task Force members that New York is making pointed progress in shutting down unlawful stores. The Governor’s energy and focus on getting this work done has been critical to its success, and I applaud all the hard-working folks on the enforcement team for their incredible commitment to this effort.”
New York State Police Superintendent Steven G. James said, “The New York State Cannabis Enforcement Task Force is a significant statewide effort and we continue to work closely with the Office of Cannabis Management and our other state agency partners with the goal of shutting down sales of cannabis in illegal shops and disrupting their supply. I want to thank Governor Hochul for her leadership and for providing the resources needed to make this a successful effort.”
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.
State Senator Nathalia Fernandez said, “As a strong advocate for legal and regulated cannabis sales, I commend Governor Hochul and the New York State Cannabis Enforcement Task Force for their diligent efforts in shutting down illicit storefronts. As we advance this initiative, I am committed to seeing these enforcement efforts expand into major cities like New Rochelle, and throughout the entire state. These stores are selling unregulated, unvetted products that pose a significant risk to the community. This action not only safeguards our communities but also bolsters the legal market. We are committed to ensuring a fair and safe cannabis industry in New York, and these enforcement measures are a crucial step in that direction.”
State Senator Jamaal Bailey said, “In this year’s budget, we took major steps in establishing a fair and equitable cannabis market in New York state. Businesses engaging in illegal cannabis sales not only undermine the legal cannabis market but also put the health and safety of our communities at risk. We took important steps in holding these unethical businesses accountable and protecting the well-being of our communities. By allowing for the revocation of licenses for businesses involved in illegal cannabis sales, and creating greater ability for localities to close establishments that are flouting the law, this will strengthen the enforcement of New York’s cannabis laws and ensure a level playing field for all businesses,” said Senator Jamaal T. Bailey, “I thank Gov. Kathy Hochul for her leadership on this important topic , and our legislative leaders Leader Andrea Stewart-Cousins and Speaker Carl Heastie, as well as my colleagues in the legislature for their support.
State Senator Jessica Scarcella-Spanton said, “The proliferation of illegal shops in our community has been completely unacceptable, posing a public health and safety issue. This year we gave greater authority to localities and the Office of Cannabis Management to padlock illegal shops, with a series of fines for initial offenses. This change was long overdue and I am happy that as of a result local law enforcement has been able to close them efficiently.”
State Senator Brad Hoylman-Sigal said, “Today marks a crucial victory for New York State as we take decisive action against illegal cannabis operations. Shutting down these illegal shops is essential for safeguarding public health, supporting legitimate businesses, and maintaining the trust of our citizens in the legal framework we have established. I am proud to have worked with Governor Kathy Hochul, Senate Majority Leader Stewart-Cousins and Senate colleagues to close these illegal operators.”
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.
