The proliferation of unlicensed cannabis dispensaries has posed a significant challenge to the regulated cannabis market in New York in recent years, especially in the city. With an estimated 2,900 illicit storefronts, these unauthorized outlets not only undermine the efforts of the Marijuana Regulation and Taxation Act (MRTA) and the Office of Cannabis Management (OCM) but also jeopardize consumer safety by peddling unregulated products. On Tuesday, May 7, 2024, New York City Mayor Eric Adams announced he is finally planning to crack down on these unlicensed cannabis shops.
Existing legislation signed into law has already expanded the powers of the OCM and the Department of Taxation and Finance to take decisive action against illicit dispensaries. The OCM currently has the authority to seize illicit products and pursue injunctions to shut down unlicensed establishments. Simultaneously, the Department of Taxation and Finance can conduct inspections and impose hefty fines of up to $20,000 per day for illegal sales.
Last week, Mayor Adams authorized the Department of Consumer and Worker Protection to initiate “Operation Padlock to Protect,” which grants law enforcement the authority to inspect and shut down storefronts selling unregulated cannabis. More than 20 illicit shops were swept in the first day, and the five-borough operation is projected to accelerate in coming weeks.
Prior to Operation Padlock to Protect, Adams’ administration established the New York City Sheriff’s Office Joint Compliance Task Force. This collaboration between city and state authorities has wielded significant impact, amassing close to $108 million in penalties. This sum includes $33 million worth of illegal products confiscated and over $75 million in civil penalties levied. Additionally, the task force sent more than 600 letters to landlords across the city warning they could be held liable for the continued sale of unlicensed cannabis products.
Individuals can also play an active role in combating unlicensed cannabis activity by reporting any suspicious or illegal behavior. Reports can be submitted via email to [email protected] or through the NYC311 website. The NYC311 platform features an online form specifically designed for lodging complaints related to cannabis retail sales under the “Cannabis Retail Sales Complaint” page.
Regardless of your stance on the legality of cannabis, it’s important to safeguard public health and maintain the integrity of the regulated cannabis market. For consumers and stakeholders invested in a safe and transparent cannabis economy, distinguishing between licensed and unlicensed dispensaries is critical. The New York State Cannabis Control Board provides a comprehensive list of licensed dispensaries, offering a reliable reference point for legitimate purchases. (Link to the list: [https://cannabis.ny.gov/dispensary-location-verification])
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