The New York State Office of Cannabis Management (OCM) published a second update on Monday, Dec. 4, on enforcement actions taken against unlicensed cannabis shops across the State.

 

In November, OCM officials said its investigators and NYS Department of Taxation and Finance (DTF) inspected 71 shops, including 13 re-inspections, suspected of selling unlicensed cannabis. They said these resulted in the seizure of 812 pounds of flower, 701 pounds of edibles, and 61 pounds of concentrate, with an estimated value of $7,284,986.

 

Chris Alexander, executive director of OCM, said, in part, “As we look ahead to this next chapter in New York’s cannabis market, we continue to prioritize safety across the state by working diligently to shut down illegal operators.” Norwood News reported on a number of these raids, as well as residents’ thoughts on the matter.

 

OCM officials said their actions bring the total number of inspections to 350 locations, 88 of which they said have been re-inspected, to yield over 11,000 pounds of seized, illicit cannabis worth more than $54 million. They said OCM and DTF investigators will continue inspections every week across the State.

 

Officials also said that on Nov. 21, OCM, along with the Office of the Attorney General (OAG), won its first petition for emergency relief under Section 16-a of the Cannabis Law, a new section of the law that went into effect this year. They said this established an important precedent allowing the State to seek longer term closures for businesses found to be illegally selling cannabis.

 

They also said that OCM and OAG will host a public webinar for municipalities across the state on Thursday, Dec. 7, to provide education and resources around best practices and opportunities to shut down illicit cannabis operators.

 

Alexander said, “The number one remedy for the problem of these illicit shops is getting more legal businesses open.” He continued, “New Yorkers want to know where their products are coming from, and they know they can rely on safe, trusted, and locally grown cannabis when they walk into one of our legal dispensaries.”

 

According to the website, American Addiction Centers (AAC), cannabis can be laced with other psychoactive drugs to produce varied psychoactive effects. Some of these other drugs may include lead or other heavy metals, glass, fungus and bacteria, PCP, heroin, embalming fluid, laundry detergent, LSD, methamphetamine, ketamine, and cocaine.

 

According to AAC, although cannabis is less likely to be intentionally laced with other psychoactive substances than many other illicit drugs, it does occur, and is more likely to occur in cases where individuals who are selling a drug illicitly attempt to bulk up the product and get more profits, or when very low-quality cannabis is laced with some other drug to enhance its psychoactive effects.

 

Additionally, according to the City’s Administration for Children’s Services, the availability of tempting treats such as gummy candies, lollipops, cookies, brownies, and sweetened beverages, like sodas and lemonade, that contain tetrahydrocannabinol (THC), the psychoactive ingredient in cannabis, are on the rise as are pediatric cannabis poisonings.

 

“Cannabis edible products are often made to closely resemble popular brand name candy and snacks with nearly identical packaging with the name slightly changed,” an extract from the website reads. “Despite their ordinary appearance, just one cannabis-infused candy or cookie can contain several times the recommended adult dose of THC.

 

Health officials say when these are eaten by children, they result in overdose effects such as intoxication, excessive sleepiness, stupor, mild tremors, uncoordinated movements, seizures and, in rare cases, coma.”

 

It continues, “In 2020, the American Association of Poison Control Centers reported more than 3,000 exposures to edible cannabis products involving children in the U.S. Most of the exposures were in children aged 5 or younger.”

 

Meanwhile, OCM officials said fines for the illegal sale of cannabis start at $10,000 per day and can increase to $20,000 per day for the most egregious conduct. They said the inspected businesses may also be subject to additional violations and penalties under tax law.

 

They said additional fines may be assessed and the enforcement legislation passed in May 2023 also authorizes OCM to seek a State court order to ultimately padlock businesses found to be in repeated violation of the law. In addition, they said the law makes it a crime to sell cannabis and cannabis products without a license.

 

Additionally, they said Gov. Kathy Hochul announced partnerships between OCM and the OAG through which municipalities across the state can receive training on how to utilize a particular provision of the new enforcement law, Section16-A, signed by Hochul in May 2023, to pursue padlocking orders in State Court.

 

They said 16-A authorizes local governments, including county attorneys, with OCM’s approval, to pursue padlocking orders from a court against any unlicensed cannabis business found to be engaged in egregious conduct. They said this authority significantly augments the ability of different levels of government to work together to shut down illegal cannabis operators.

 

In addition, they said the governor announced that more State agencies will now be bringing the weight of their business enforcement powers to bear as part of what was described as the State’s creative and aggressive approach to combating the illicit cannabis market.

 

They said NYS Department of Labor and the Workers Compensation Board are joining these efforts to ensure businesses selling cannabis without a license are compliant with New York State labor and workers compensation laws.

 

They said this approach, which combines the enforcement powers of labor law, tax law, and cannabis law, can result in non-compliant business owners potentially facing tens of thousands of dollars in penalties as a result of a single inspection, significantly enhancing the State’s ability to crack down on those who engage in illicit sales.

 

In late October and early November, Norwood News walked around Bronx Community District 7 (CD7), which covers the neighborhoods of Norwood, Bedford Park, Jerome Park, Kingsbridge Heights, Fordham, and University Heights, and counted around 26 smoke shops operating in the district.

 

During the October Bronx Community Board 7 (CB7) health committee meeting, Michelle Avila, the committee chair, explained, “People or businesses who applied for retail [cannabis] dispensary or onsite consumption license need to submit a notification that their proposed location is within the boundary of the municipalities, prior to filing their application [to the Cannabis Control Board].”

 

She added, “The community board opinion will become part of the record [on the basis of] which the Cannabis Control Board shall grant or deny an application for a cannabis license.”

 

As reported, four new license applicants who were due to present to Bronx Community Board 7 later rescinded their notifications sent to the board ahead of a Nov. 14 scheduled public hearing, which was later cancelled as a result.

 

Meanwhile, OCM officials said New York State currently has 27 licensed, adult-use cannabis dispensaries. These include two in the Bronx, Half Island Flavors LLC, and Royal Leaf NY LLC, the latter with an address at 817 E Tremont Avenue, Bronx, NY 10460.

 

According to OCM, Half Island Flavor LLC is a temporary, “delivery only” location, and no in-person or pre-order sales are allowed on site. Its website is https://myseshnyc.com/, while Royal Leaf’s website is https://statiscannabis.com/.

 

OCM officials said the agency has also approved 44 cannabis grower showcases. None are in The Bronx. They said all regulated, licensed dispensaries must post the Dispensary Verification Tool sticker (image attached) near their main entrance of their store, and any store selling cannabis that does not display this sticker is operating without a license.

 

In reference to monitoring the safety of products being sold, Alexander concluded, “We will continue to seize illegal products, and we know that the collaborative work continues across all levels of government to address this public health crisis.”

 

For more stories on this topic, click here, and here, and to read our story on the Bronx Cannabis Forum held in the borough last year, click here.

 

As reported, NYS Cannabis Control Board held a board meeting, section of which was devoted to comments from the public, on Friday, Dec. 8. The board also confirmed that the a court recently ruled that applications for new licenses can continue.

 

Online submissions formed part of the official record of the meeting and were documented in the meeting minutes. Any further online comments have to be submitted by 5 p.m. on Tuesday, Dec. 12. Videos, transcripts, and minutes of the meeting will be posted on the board’s website following the meeting. Additional information can be found here.