$15M Fine Imposed On Unlicensed NY Weed Shop Is 'Comical' Says Owner, Gov. Hochul In The Hot Seat Over Cannabis Program Debacle

Governor Kathy Hochul announced a major overhaul of the Office of Cannabis Management (OCM) two weeks ago following a scathing internal report.

A web of inefficiencies and inexperience has left legal cannabis operators frustrated and financially strained for the past two years.

One of the outcomes of the shakeup was the sacking of the director of the Office of Cannabis Management (OCM) Chris Alexander.

Now, Hochul's decision has sparked debate among lawmakers who want to know what's next for the state's cannabis industry.

What Happened To Social Equity Plans?

Despite initial intentions to prioritize social equity by allocating licenses to nonprofits and individuals with prior cannabis convictions or those who suffered from the War on Drugs, the process has been marred by lawsuits, delays and regulatory inconsistencies.

State Assembly member Michaelle Solages (D-Long Island), chair of the legislature's Black, Puerto Rican, Hispanic & Asian Legislative Caucus, stressed the need to protect social equity. “The war on drugs is really the war on black and brown individuals in New York State and we need to make sure that we are protecting social equity."

On Wednesday, state lawmakers approved Robert Rodriguez as the new head of the Dormitory Authority of the State of New York (DASNY), which is meant to provide funding for the social equity program. DASNY and Hochul came under fire recently for their handling of a $200 million public-private effort, which turned out to have been bankrolled by the private equity firm Chicago Atlantic Group. Since then, social equity has barely been mentioned.

During a state Senate Finance Committee hearing this week, it was revealed that only $36 million of social equity funds had been used to establish 12 licensed cannabis stores, far below the target of 150.

Hence, the runaway illicit cannabis market in New York and recent padlocking of some 75 unlicensed NYC shops, of the Big Apple's 2,900.

Speaking of which, local law enforcement in western New York conducted an investigation into six unlicensed cannabis shops known as “I’m Stuck” and owned by David Tulley. Despite multiple cease-and-desist orders, Tulley continued operations. Then came a court-ordered closure all of the shops and a whopping $15.2 million fine.

Tulley plans to appeal.

“It's comical, it's dumb,” said Tulley. “No one has $15 million. What does it do for them? Other than let them go to every pot store and say ‘Oooh, if you don't shut down you’re going to be like Dave Tulley.'”

NY’s attorney general’s office alleges that I'm Stuck sold weed to minors, a claim Tulley vehemently denies.

“We have never, ever, ever — not any one of us, ever — sold to minors,” Tulley said. “That has not ever happened.”

Stay tuned as yet another lawsuit involving the OCM gets underway.

Now read: Bob Marley Family And Jeeter Unite To Launch ‘One Love’ Cannabis Collection Honoring The Jamaican Legend

Image generated using artificial intelligence via Midjourney.