Annual Report Shows Major Enforcement Actions on NYS Illicit Cannabis Sales
Inspections in 2024 resulted in the seizure of cannabis products valued at over $67 million, including nearly 7,000 pounds of cannabis flower.
The New York State Office of Cannabis Management (OCM) has released its 2024 annual enforcement report, detailing actions taken to combat unlicensed cannabis sales across the state. According to the report, approximately 450 unlicensed cannabis storefronts have been shut down as part of a coordinated effort between OCM, the Department of Taxation and Finance (DTF), and local and state law enforcement agencies.
The enforcement push follows the passage of key legislation in May 2023, which granted OCM and DTF broader authority to penalize illegal cannabis operations. These measures include civil and tax penalties of up to $20,000 per day for violations. In May 2024, the state also launched the Governor’s Illicit Cannabis Enforcement Task Force, involving more than 20 state agencies. This initiative has focused on evicting illegal dispensaries, leading to the closure of about 350 storefronts.
State officials report that these efforts have had a positive impact on the legal cannabis market. Following enforcement actions, legal cannabis sales in New York City increased by 72% over a ten-week period, with retailers collectively reporting a $2.6 million rise in weekly revenue.
“Illicit markets know how to adapt to change and challenge, and OCM’s enforcement efforts will continue to bring the heat to unregulated operators,” said Felicia A.B. Reid, Acting Executive Director of OCM. “The integrity and opportunity of New York’s legal cannabis market is what’s at stake.”
Between December 1, 2023, and November 1, 2024, OCM’s enforcement team conducted over 1,200 inspections of suspected unlicensed cannabis dispensaries. These inspections resulted in the seizure of cannabis products valued at over $67 million, including nearly 7,000 pounds of cannabis flower, over 600 pounds of concentrates, and more than 9,100 pounds of cannabis edibles.
OCM has also worked closely with local police departments and the Office of the Attorney General to ensure compliance with state cannabis laws. Officials state that inspections and re-inspections have been conducted across all regions of New York.
In September 2024, OCM introduced new emergency regulations to expand its authority to padlock illegal cannabis businesses that pose a public safety risk. This regulation has been instrumental in shutting down unlicensed operations more efficiently, according to state officials.
Daniel Haughney, Director of Enforcement and Investigations for OCM says “By taking decisive action against unlicensed cannabis businesses, OCM holds illicit operators accountable. We are committed to closing all unregulated stores to protect public health, keep cannabis out of the hands of young people, and support the hard work of the legal cannabis industry.”
Looking ahead to 2025, OCM says they plan to continue their enforcement efforts to curb the illegal cannabis market.