New York Crackdown On Illicit Cannabis Continues, Enforcement Hearing And Message From Gov. Hochul

In a significant move against illegal cannabis operations, New York's Office of Cannabis Management (OCM) conducted its first enforcement hearing.

This hearing marked the beginning of a crackdown on illicit shops following legislation granting the OCM and the Department of Taxation and Finance new powers to combat unlicensed cannabis businesses.

"Under new powers that I fought for in this year's State budget, we can now conduct enforcement against businesses illegally selling cannabis, and I'm proud to report that in just the first three weeks of our efforts, we've seized nearly $11 million worth of illicit products off the streets," Gov. Kathy Hochul said.

See also: NY Gov. Hochul Shuts Down Illicit Cannabis Shops, Pace Of New Stores Is 'Frustrating'

About The Enforcement Hearing

During the hearing, Roll Up Nation, a Manhattan-based business, defended itself against charges of illegal cannabis sales. Roll Up Nation's manager, Veronica Guerrero, and business owner, Omar Eid, appeared with their attorney, Paula Collins. Both sides presented evidence, including photos and witness testimonies, per New York Upstate.

Roll Up Nation defended its position as a social club where members donate and receive cannabis as part of their membership fee, claiming that the sale of cannabis is not their primary purpose.

During the proceedings, OCM's Deputy General Counsel Christopher DeLuca stated that they found and seized cannabis products, including flowers and edibles, as well as a point-of-sale system found on the premises. The defense, led by Attorney Collins, challenged the OCM's paperwork errors and raised concerns about a potential Fourth Amendment violation.

Collins pointed out that the OCM's Notice of Violation incorrectly listed the address, and the inspection report had the wrong business name, confusing Roll Up Nation with Roll 2 Nation. This raised questions about the accuracy and knowledge of the OCM during the raids.

The defense also questioned whether a Fourth Amendment violation occurred when an OCM inspector allegedly searched Guerrero's personal bag without providing a Miranda warning. However, the judge ruled that this issue was not relevant to the hearing, focusing instead on the matters pertaining to the sale of cannabis.

See also: NY's Relief For Retail Cannabis, Delaware Appoints Ex-Trooper As Marijuana Commish, And More Updates

The hearing showcased the state's commitment to consumer safety and a thriving legal market, with Gov. Hochul emphasizing the consequences of selling illegal cannabis.

"These unlicensed businesses violate our laws, put public health at risk, and undermine the legal cannabis market, and with the powerful new tools in our toolbelt we're sending a clear and strong message: if you sell illegal cannabis in New York, you will be caught and you will be stopped," Hochul said.

While ongoing litigation may impact the industry's pace of growth, New York remains determined to expand its cannabis industry, projecting substantial revenue from recreational sales in the coming years: “(...) recreational cannabis sales will generate over $4 billion over the next five years,” per NY Daily Record.

Read more: New York Regulators Should Allow Dispensary Licensees To Change Their Designated Regions, Says Cannabis Attorney

Photo: Courtesy Of Mark Boss On Unsplash