Thousands of illegal cannabis dispensaries are operating throughout New York State; the I-Team has learned that the Office of Cannabis Management employs just 14 investigators tasked with not only trying to flush out the illegal places but also ensuring those with proper licenses are operating by the book.
The OCM was established just shy of three years ago ahead of adult recreational use becoming legal in 2021. The proliferation of illegal shops when juxtaposed with the relatively few legal dispensaries shows the agency may have been ill-prepared to take on a massive industry that operates in a very new legal territory.
Assemblyman Al Stirpe, representing the North Syracuse area in Albany, said that the agency is an informational black hole.
“There is not enough, you know, workforce within the Office of Cannabis Management to really regulate all these illegal shops that have popped up all over the place.” the democrat said.
He’s not surprised that the OCM has not yet intervened at a self-described “social club” on Main Street in North Syracuse. In early January, village police said they were cracking down on the business near Sweetheart Corner. North Syracuse Police claim a joint detail with State Troopers resulted in 94 vehicle stops, 54 traffic tickets, 11 searches, a felony arrest, a warrant arrest, and three misdemeanor arrests. They worry about people driving while ability impaired by drugs and seized seven pounds of pot and a half-kilo of a possible narcotic that’s still being tested.
Cory Gillum, the owner and operator of The Haven Coalition, believes he is being unfairly targeted. He is firm that they do not operate as a dispensary, stating that no cannabis is sold. Instead, he said that they provide a safe space for vendors and people interested in cannabis to learn about what products might best suit them. He said that during that process, a small amount of cannabis is exchanged when people become paying members, given away for free.
While legal experts contend that The Haven Coalition is likely violating state law, given the OCM has not issued on-site consumption licenses to anyone yet, the OCM itself has yet to weigh in after North Syracuse Police reported the business. Gillum himself said that he reached out to the OCM and has heard nothing back.
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Lack of intervention is a problem statewide; with an estimated 36,000 illegal shops in operation, state senators and others grilled OCM representatives during a hearing in October. Chris Alexander, OCM’s Executive Director, said that they are making progress through partnerships with the State Department of Taxation and Finance and the State Attorney General’s Office. He is asking for legislation to increase fines, claiming the $20,000 per day limit is not enough to deter some owners.
“I know many of you have shops in your districts, you’ve called on our office for action and we’ve tried to be there,” Alexander said.
The agency sidestepped a question on how much is spent on enforcement; the I-Team confirms there are 14 investigators based in Albany, Buffalo, and New York City. A spokesperson said that they are planning to hire more in the coming weeks; a look at the history of the OCM’s job application site seems to indicate that most of these positions were created in the past year.
Localities have had to come up with workarounds to address the issue. In 2022, the Syracuse Common Council approved a law authorizing Code Enforcement to tackle illicit cannabis sales the way they would other building code violations at any other kind of business. Jake DiShaw, Deputy Director of Code Enforcement, said that he never expected cannabis to become part of their workflow, but said it was a smooth transition.
“It’s definitely part of our day-to-day work now,” DiShaw said.
At the time of the law’s creation in 2022, DiShaw was visibly frustrated with the problem that Albany had placed in the hands of localities; now, he said he is encouraged by the progress OCM is making. He said that their director of enforcement, Daniel Haughney, has traveled to Syracuse to meet with local officials on the issue.
“I do wish they had more people on staff right now,” DiShaw said, “the fact is they don’t, they’re still growing.”
Gov. Kathy Hochul is promising to strengthen the OCM, making it a central issue during her State of the State address. She is backing a law called the “Smokeout [sic] Act,” introduced by Queens assembly member Jenifer Rajkumar. Its designed to give local law enforcement the ability to shut down unlicensed cannabis shops.
Gov. Hochul said that through 2023, OCM inspectors seized over 11,800 pounds of illicit cannabis worth more than $57 million after they were dispatched to 381 locations.
The black market exploded as the state was slow to roll out legal licenses for legitimate dispensaries, a situation that frustrates cannabis lobbyist Joe Rossi.
“OCM has a line that they’re ‘building the plane as they fly it,’ Rossi said, “in hindsight, maybe you don’t fly planes that haven’t been fully built yet.”
Rossi the cannabis practice group leader at Park Strategies, said the state’s legalized cannabis rollout continues to hit roadblocks, seemingly of its own making. He claims the problem has ruined some would-be owners, left in limbo after renting or purchasing shop space when cannabis was first legalized nearly three years ago.
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