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NYS doesn't know how many illegal cannabis shops there are, but is optimistic about crackdown

A report that there are 1,500 illegal cannabis shops in the state isn't accurate. In fact, the office of cannabis management doesn't know how many there could be.

BUFFALO, N.Y. — After Governor Hochul announced a new crackdown on illicit cannabis shops in the state, the third such crackdown in a year, it was widely reported across that there were 1,500 illegal dispensaries in New York. 

There aren't. 

In fact, the Office of Cannabis Management doesn't know how many illegal dispensaries there are. 

"I haven't gotten a specific number on that," said Director of Enforcement at OCM Dan Haughney. "It's really a number that's in flux constantly, as some shops may open, we're shutting others down."

So where did that figure come from? According to a spokesperson, the New York City Sheriff's Office distributed that estimate. That figure includes illegal dispensaries in the five boroughs of NYC, but also illegal vape shops. 

Despite being reported by outlets across the state, there is no real estimate that OCM, State Police or other law enforcement agencies agree on. 

"We don't have the resources to go out and just constantly check what the current numbers are," Haughney said. 

According to OCM, the office has conducted roughly 450 inspections of illegal cannabis dispensaries in the state since spring of 2023. Those inspections have resulted in several thousand pounds of cannabis to be seized and over $1.3M in fines levied. 

OCM, however, does not know how many or how much of the fines issued have actually been paid. 

Haughney says the increased enforcement is having a ripple effect throughout the illicit market. 

"Others actually will close down once we're in an area conducting our enforcement efforts. "

When the Governor announced the latest crackdown on illegal dispensaries, she also proposed legislation that would allow OCM to have more leeway to padlock any illegal dispensary that the office inspects. 

"I think that's what everyone in the state really wants to see happen," Haughney said. 

Haughney admits that the tactic of issuing cease & desist letters to the illegal dispensaries hasn't worked. 

"Those really did not have any teeth to them," Haughney said. "It was really just a letter saying we're aware of your operation, your order to seize the activity immediately."

Haughney says whether or not the situation improves quickly is in the hands of the legislature. 

"I'm very hopeful that we'll be able to get that passed, so that we can get these stores shuttered at a much faster pace," he said.

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