NY Cannabis Officials to Revise Enforcement on Illegal Weed Shops
- Gov. Kathy Hochul revised state law to increase potential fines for unlicensed cannabis sales and enhance enforcement against violating shops. However, efforts to shut down these stores have been slow, as acknowledged by state cannabis officials. The state has experienced challenges in getting judges to issue the maximum fines of $20,000 per day for law violations.
- State cannabis regulators have halted administrative law hearings where appointed judges can issue fines or other penalties for law-breaking shops. The Office of Cannabis Management usually issues a violation after the first inspection, then pursues a hearing if there’s evidence of continued illegal activity after a second inspection. The state is looking to modify the process to obtain the largest fines possible, although it’s believed that the current penalties may not be sufficient deterrents.
- The Office of Cannabis Management continues to investigate and raid shops, having conducted over 300 inspections and seized nearly 10,000 pounds of illicit cannabis worth an estimated $50 million. The state shut down six shops through enforcement efforts between the Office of Cannabis Management and the Department of Taxation and Finance. However, efforts to close illegal cannabis stores require greater collaboration among state agencies, local law enforcement officials, landlords, and others.
NY Gov. Kathy Hochul’s cannabis regulation efforts under scrutiny
Gov. Kathy Hochul earlier adjusted state laws to increase fines for unlicensed cannabis sales and intensify law enforcement efforts against illicit retailers. However, these attempts are still being refined and have not given substantive results, state cannabis officials conceded on Monday at an Albany adult-use market hearing.
State officials questioned about measures to enhance the regulation process. State Sen. Brad Hoylman-Sigal highlighted the issue as a public health concern, especially for the youth. He cited instances of New York City smoke shops selling cannabis to high school students and those caught in armed robberies.
State cannabis regulators temporarily halted administrative law hearings where an appointed judge can levy fines or penalties for law-breaking shops, reported The City. This decision was made due to difficulties in getting judges to implement the maximum fine limit of $20,000 per day, said Chris Alexander, the executive director of the state Office of Cannabis Management.
After an initial inspection revealing unlawful cannabis products, enforcement agents issue a violation and follow up with a hearing if a second inspection still finds evidence of misconduct. However, judges have been reluctant to assume that those accused had engaged in continuous sales, said Alexander.
Alexander stated the hearings would recommence “shortly”, without specifying a date. Despite the halt in hearings, enforcement agents continue their investigations and raids on illegal shops. The Office of Cannabis Management has conducted over 300 inspections so far and seized almost 10,000 pounds of illegal cannabis valued at approximately $50 million.
This month, the governor’s office announced that six shops were shut down through combined enforcement efforts of the Office of Cannabis Management and the Department of Taxation and Finance. Jason Gough, a spokesman for the governor, emphasized Hochul’s dedication to clamping down on illicit cannabis shops.
When questioned about the possibility of removing the illegal cannabis shops that have appeared since the legalization in 2021, Alexander acknowledged the need for enhanced collaboration among state agencies, local law enforcement, landlords, and others.
First deputy director for the Office of Cannabis Management, Patrick McKeage, urged patience, stating that it took several years for Washington state to have most sales come from the legal market after its 2014 legalization. Thus far, fewer than 30 dispensaries have opened statewide since the first one started operations in late 2022, with more licenses currently in the issuing process.
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