Thousands of unlicensed marijuana shops opened in New York City after the state legalized recreational use of the drug in 2021. New state regulations are allowing officials to crack down.
The city sheriff’s office said it has closed about 700 illegal stores since the new rules were enacted in April. The unsanctioned shops proliferated across the Big Apple when the city’s legal power had been limited and the legal market was mired in red tape.
There were nearly 3,000 unlicensed marijuana shops throughout New York City and about 60 licensed dispensaries, the sheriff’s office estimated.
Licensed operators say the city is bringing order to the cannabis industry.
Sasha Nutgent, retail director of Manhattan’s Housing Works Cannabis Co., which made the state’s first legal marijuana sale in December 2022, said enforcement had been “kind of a joke, and now it’s not.”
Although New York state legalized marijuana three years ago, regulations did not give local law enforcers much power to punish unlicensed distributors. That duty was assigned to the state Office of Cannabis Management.
Strict licensing requirements combined with bureaucratic delays and lawsuits slowed the opening of legal dispensaries. New York Gov. Kathy Hochul described the rollout as a “disaster.”
New York now has about 150 dispensaries statewide compared to approximately 1,200 in California, which also has struggled to shut down illegal shops.
New York City and state officials have promised tough enforcement in the past. Last year, lawmakers expanded the state’s powers for inspections, seizures, and fines, which led to some store closures. Manhattan’s district attorney sent hundreds of sternly-worded letters to landlords.
Still, many stores remained open during lengthy appeals despite the threat of eviction or fines.
The new state rules have allowed local authorities to padlock stores while administrative hearings play out. The sheriff’s office no longer requires a court order to inspect businesses. This allows it to raid illegal retail stores and seize products quickly.
A lawsuit filed in federal court by two dozen shuttered stores argues that the city is denying them due process. The law firm representing the stores declined to comment.
The sheriff’s office says it has issued more than $57 million in violations since April, but it’s not clear how much has been collected. The office declined to comment, referring questions to City Hall, which said 15 teams of deputies and New York Police Department officers are being sent out daily.
“If you are operating an illegal cannabis business, our administration is sending a clear message: You will be shut down,” the office of Mayor Eric Adams said in a statement.
City Council Member Gale Brewer, who tried for two years to shut down an unlicensed marijuana shop across the street from her office on Manhattan’s Upper West Side, says the latest effort is finally helping.
“There’s no question about it,” she said.
