By: Hal C Clarke

In a recent announcement, Governor Kathy Hochul’s administration revealed the successful seizure of over 11,000 pounds of illicitly traded cannabis products valued at more than $54 million. This operation, part of the latest series of inspections targeting unlicensed storefronts, signals a significant crackdown on the underground marijuana market in New York, as the state finally prepares to license more legal marijuana dispensaries.

After almost 2 years of weed becoming legal in NY State, finally the state will grant more licenses to legit vendors; now that legal complications are resolved, state regulators are anticipated to expedite the approval and opening of new licensed cannabis shops in the coming months, signaling a potential turning point for the state’s cannabis market. “Woke laws”, placing black and Hispanic felons at the top of the licensing list , resulted in lawsuits and the phenomena of unlicensed weed stores.

The Office of Cannabis Management disclosed that a court victory on November 21 has paved the way for easier closure and permanent shutdowns of unlawfully operated marijuana establishments in the future.

The NY Post thoroughly reported on this development.

The inspections conducted in the past month resulted in the confiscation of 812 pounds of cannabis flower, 701 pounds of edibles, and 61 pounds of cannabis concentrate, collectively estimated at a value of $7.3 million. Over the course of this year, authorities inspected a total of 350 locations, including 88 establishments revisited within the past year. This extensive effort culminated in the retrieval of 11,000 pounds of marijuana, accounting for the staggering $54 million valuation.

Chris Alexander, the executive director of the Office of Cannabis Management, emphasized the state’s commitment to prioritizing safety by diligently dismantling illegal operators. Alexander underscored the importance of fostering legal businesses to address the issue of illicit shops, asserting that New Yorkers seek transparency and reliability in the sourcing of cannabis products from legal dispensaries.

Earlier in the spring, Governor Hochul and the legislature took decisive action by passing legislation that increased penalties for unlicensed operators proliferating across New York City. Mayor Eric Adams and Sheriff Anthony Miranda estimated the presence of as many as 1,500 such unlicensed operators. The legislation, a response to the failure of former Governor Andrew Cuomo and state lawmakers to adequately address the enforcement of illicit operators when legalizing adult-use marijuana in 2021, imposes fines starting at $10,000 per day for illegal cannabis sales. Persistent violations can escalate fines to $20,000 per day, with the provision for additional penalties.

Moreover, the law empowers regulators to seek court orders to padlock businesses found in repeated violation of the law. Unlicensed sale of cannabis and cannabis products is now deemed a criminal offense under the legislation.

New York State currently boasts 27 licensed adult-use cannabis dispensaries, with 12 situated in the city. Additionally, regulators have given approval for 44 Cannabis Growers Showcases, akin to farmers markets where marijuana products receive legal distribution.

However, the cannabis industry has faced hurdles and criticisms regarding a sluggish and tumultuous rollout, partly attributed to legal challenges. Lawsuits impacted 426 licensees, leaving farmers grappling with unsold and spoiled marijuana plants. Last week, the Hochul administration and the cannabis control board settled a discrimination lawsuit, alleging biased license awards favoring convicted marijuana felons over disabled veterans. A court injunction in August had temporarily halted new licensing and store openings, creating a legal impasse for the cannabis industry.