Search
Search
Close this search box.

New York Raises Concerns Over Illicit Cannabis Shops

The New York State Office of Cannabis Management (OCM) took part in the first ever subcommittee hearing on cannabis where concerns were raised over the proliferation of illicit cannabis shops.

Executive Director of the New York State Office of Cannabis Management Chris Alexander testified in front of The New York State Senate Subcommittee on Cannabis, where he also responded to concerns over the support of distressed farmers, as well as delivering updates on ongoing priorities and concerns.

At the hearing, insights into the state’s budding legal cannabis industry were provided and the launched of New York’s distressed farmer transition programme was announced.

Alexander stated: “Since legalisation, New Yorkers have had to deal with a proliferation of illegal cannabis businesses.

“Our story is not unique, but our problem is expansive. These businesses are not selling product grown by our small farmers, they are not run by equity entrepreneurs, and they are not contributing to the betterment of the communities in which they operate.”

Alexander highlighted that the OCM Enforcement Team has prioritised the shut down of these illicit operations, conducting almost 300 regulatory investigations across the state and seizing an estimated 10,000 pounds of illicit cannabis valued at approximately $50 million.

“…those numbers are only a small segment of the enforcement activity that our Team has engaged in because they do not count the work that has been done educating and empowering local governments and law enforcement entities to act as a force multiplier in this effort,” state Alexander.

“In recent weeks, we have leaned into the education effort and have worked to expand the coalition of entities working to drive these illicit operations out of business including broader collaboration with the Department of Labor and the real estate community.

“We are thankful for the additional powers that the Legislature and the Governor provided OCM to expand our ability to enforce the Cannabis Law earlier this year. We have developed regulations to govern our administrative hearings through which fines are sought and levied against unlicensed cannabis businesses, and continued to fine tune the administrative hearing process over the last few months to reduce inefficiencies and increase efficacy which has proven to be challenging.”

On the subject of distressed farmers, Alexander emphasised that the State needs more retail shelves for farmers’ products, and that the OCM intends to work to expand New York’s Growers Showcases.

“Our farmers are also being transitioned currently to either micro or mixed light licenses allowing them to have more grow cycles and access to the retail business, should they choose to pursue the micro licenses,” Alexander commented.

“The Office will be launching the distressed farmer transition programme in the coming weeks to support our small farmers as they expand their businesses.”

🔒 Risk Management Report • Produced in partnership with RELM
Prohibition Partners RELM
📊 New Report Available Now

Relm Risk Briefing: Cannabis 2026

The global cannabis sector has moved from experiment to enterprise. This comprehensive risk briefing examines how regulation, insurance, and operational practices intersect across the international supply chain, drawing on insights from RELM—the only insurer entirely dedicated to the cannabis industry.

What's covered

  • 🌱 Cultivation risk management — biological contamination, environmental instability, and security protocols
  • ⚗️ Manufacturing & extraction — GMP standards, in-house testing, and quality control measures
  • 🔬 Testing & compliance — rigorous protocols ensuring product safety and regulatory adherence
  • 📦 Distribution & logistics — GDP-aligned transport, route monitoring, and cargo insurance
Key focus areas
Cultivation Manufacturing Testing & QC Packaging Distribution Retail & Pharmacy
100% free • Comprehensive risk analysis

Key insights

Industry Maturity Cannabis has evolved from patchwork markets to international enterprise, with risk management now the measure of long-term stability.
Cultivation Challenges Operators addressing biological contamination through controlled-environment agriculture, tissue culture, and IPM protocols.
Quality Control GMP adherence, in-house testing, and selective supplier relationships emerging as critical control points.
Supply Chain Security GDP-aligned transport, route monitoring, and comprehensive insurance remain essential safeguards.
Market Access Initiatives stabilizing domestic supply and expanding pharmacy training improving patient and consumer access.
Produced by Prohibition Partners in collaboration with RELM—the only insurer dedicated to emerging industries like cannabis.
Partnership
Produced by Prohibition Partners in collaboration with RELM

Related Posts

Related Posts

CONNECT

Related Posts

Related Posts

Recent Posts

Related Posts

Subscribe to our mailing list to receives daily updates!

We won’t spam you

Categories

Browse by Tags

CATEGORIES

EDITION

BUSINESS OF CANNABIS

© 2023 Prohibition Holdings Ltd. All Rights Reserved.

EDITION

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?