In a significant move to protect the integrity of the legal cannabis market, New York Governor Kathy Hochul has announced the closure of hundreds of unlicensed and illegal cannabis stores. This action comes as part of her administration's efforts to enforce strict regulations following the overhaul at the Office of Cannabis Management (OCM) in May.

At a press conference on Tuesday, Governor Hochul emphasized the need for legal businesses to thrive by eliminating illegal competitors in the market. She revealed that the newly established Cannabis Enforcement Task Force has already shut down 114 unlicensed stores across the state, confirming that not all were located in New York City.

Governor Hochul highlighted the positive impact of removing these illicit dispensaries, noting a considerable surge in sales for licensed retailers. According to her, legal shops experienced a remarkable 27% month-over-month increase in sales from May to June. This growth rate was nearly seven times higher than the previous period. Additionally, the closure of the 114 illegal stores adds to the tally of almost 400 other unlicensed retailers that have been shut down.

The Cannabis Enforcement Task Force, composed of various government agencies including state police, OCM, the Department of Taxation and Finance, and local law enforcement, collaborates to target illegal suppliers. The task force strategically deploys investigators and analysts statewide to identify and take action against these illicit operations. Governor Hochul highlighted the use of legal measures, including working with landlords to evict unlicensed dispensaries and imposing penalties on those who knowingly facilitate their operations.

The efforts to combat illegal cannabis operations have also been successful in apprehending criminal traffickers supplying the unlicensed shops. State police are leading the charge in cracking down on these criminal networks. OCM disclosed that they have seized over $29 million worth of illegal products and substances from the hundreds of closed stores.

As of Tuesday, there are 135 legally operating dispensaries in New York. The Marijuana Regulation and Taxation Act, signed into law by former Governor Andrew Cuomo on March 31, 2021, lays the groundwork for the legal cannabis market in the state.

Governor Hochul's commitment to upholding regulations and eliminating the black market presence in the cannabis industry will not only ensure consumer safety but also drive the growth and success of licensed retailers. With illegal competitors being shut down, legal businesses can continue to thrive and contribute to the state's economy while operating within the framework of the law.