Transcript: Mayor Adams, Governor Hochul Announce Hundreds of Illicit Cannabis and Smoke Shops Shut Down

June 18, 2024

Governor Kathy Hochul: Good morning, good morning. All across New York, there's a change in the air. I'm not talking about the heat wave. The mayor and I have spoken enough about the heat wave. We hope it goes away quickly. Everybody stay cool.  

New York state is rapidly building the most expansive, equitable cannabis market in the nation. One that uplifts Black and Brown New Yorkers who have been victimized by the war on drugs. It delivers opportunities to underserved communities and cracks down on the unlicensed retailers who have taken over our neighborhoods.  

Ultimately, our law enforcement efforts are about more than seizing power. They're about restoring power to the people who deserved it and still do. Let's give that a round of applause. I want to thank so many partners, the true believers, the ones who never gave up. As we walk through and start today, talk about tangible results, as we're delivering for the legal cannabis owners throughout our state.  

I first of all, I want to recognize our great mayor. You'll be hearing from him in a moment. Mayor Adams, thank you for standing side by side together to say no more, no more. It is unfair that our new businesses starting out, people suffered and struggled and staved and scrimped and finally had that chance, were being flooded by the illegal operators who made it almost impossible for them to earn what they thought they would and to keep their doors open. That era is over and I thank you for your incredible partnership, Mayor Eric Adams. Thank you so much again.  

Felicia Reid, executive deputy director and the acting executive director of OCM. Felicia Reid is up for this job. I want to thank her. You need to get to know her. She's an extraordinary leader and I'm so grateful for her partnership. You're going to hear from Christopher West, the First Deputy Superintendent of the New York State Police. We'll tell you what we're doing at the state level as well. We stood up a task force to go after the illegal cannabis shops all over New York to compliment what the mayor is doing in the city.  

You'll also be hearing from Leeann Mata, the CEO of Matawana. She has not stopped smiling since we started enforcing the laws, the new laws that we'll talk about, because she has seen her business grow by, was it 100 percent you said, since the enforcement started, the illegals were taken out of her neighborhood. That's what we're talking about.  

It doesn't happen just by us alone. It's partners in our legislature. I want to thank all of them. They are recognized, but our senators and our assembly members who also brought the message from their districts back to Albany and said, we need to stand together. We need stronger enforcement tools. This status quo can be no longer. To the City Council members as well, thank you for having united force against the illegal cannabis shops and standing up for our young entrepreneurs who have just been waiting for that chance to live the American Dream. Thank you to our legislators. Thank you.  

All the advocates. There's one word I hear over and over, and it is excitement. People are, consumers are excited. You're going to hear about some of the customers of Leeann. Growers are overjoyed that they can finally have a market for their harvest. I was just in some of the big growing areas upstate in New York. They're excited about this.  

Civic leaders and community leaders are talking about the economic transformation that has been long overdue as these businesses deliver and bring resources that we can now as a state also reinvest in these neighborhoods. These small business owners, my God, they're resilient. You're the ones who make New York so fascinating. Thank you for holding on because new day has arrived. It's a new era for the cannabis industry right here in the state of New York. This is a pivotal moment without a doubt.  

Now we know the rollout has not gone as smoothly as we would have hoped. We've talked about that before, but that's the past, we look forward. Many people struggle. The struggles need to be over. I want to say it's up to all of us to get it right. I'm so glad to be joined, as I mentioned, by Felicia Reid, the executive director.  

She just took over this role on Monday. Guess what? She's still with it. Thank you very much. She is uniquely qualified to excel. She has a wealth of experience in government and a deep background in overseeing complex operations. No one is better suited to meet this moment than right now. She's the perfect leader to assist us as we transition and work with Tremaine Wright, who's also been working so hard to get this right. I want to thank Tremaine for all her leadership. Thank you, Tremaine. We worked together back when she was in the elected office, and I know how much she cares about her neighborhoods. I want to thank you for your leadership as well.  

We're on a cusp of a better tomorrow. OCM is making the necessary reforms, the way they do business, better results for our small businesses, unclogging the licensing bottleneck, streamlining the application process, improving communications, right? Just telling people your status, where it's at, likely to be approved or not, should I invest any more money, any more time, any more energy. Just let me know, right? Just give people answers. Hiring new staff to empower OCM to do what they wanted to do all along, and to make sure that our compliance is working.  

Now let's talk about enforcement, because this was the barrier to a lot of the success. How do the legal businesses thrive if the illegal ones are dominating the market? They got a head start. They jumped out of the box. There they were, renting the spaces, dotting every street corner and all the spaces in between, sometimes it feels like. Guess what they're also doing? They're marketing to our kids, okay?  

Children should not be going into a store buying Hostess Cupcakes Puff Mallow or Sugar Cookie Pebbles Sweeties. this is designed for one purpose. That is to get our young people hooked early on, and get them wanting this and craving this. That's not allowed in the state of New York. Not under the age of 21. This is for little kids. That's what we're going after as well. I'm sick and tired of the abuses that have gone on up until this point. Leave our kids alone. Let the legal industry prosper.  

What we're doing is going after the bad actors. At my direction, the state police has launched a Cannabis Enforcement Task Force, giving OCM the resources it needs. We've been striving to reach our goal of shutting down the majority of these illegal stores in 90 days. They've been at it about a month now. Again, thank you to our incredible legislature for giving the tools we need to be able to do this in our last budget. Just got that done, the regulations. Yes, give another round of applause to our legislators. Thank you.  

This multi-agency effort, bolstered by our tax and finance criminal investigators, tackled cannabis trafficking, illegal dispensaries, and made it more difficult. It's a great model of collaboration among government levels as well. I want to thank all the people who have worked on that. So far, our state level, again, you'll hear from the mayor about the city level, okay? Together, we're having a real impact.  

Over 187 inspections, seizing 3,200 pounds of cannabis products worth nearly $30 million. My friend, that is one month's worth of effort, $30 million seized. Padlocked 114 unlicensed shops already. We're going after the landlords, too. The landlords who knowingly rent to illegal shops, okay?  

It's just common sense. To all the advocates, God bless you. You've been coming to our events, we've been standing together, you've been having meetings with us. I'm so proud that we stood together, fought together for these powers, that it was expanded. Expanded authority was enacted in our state budget. We're making a real difference. We've seen legal sales rise dramatically in the enforcement, she likes that, there she is, in the enforcement areas, the progress is clear.  

From the first week of May to the first week in June, legal sales are up 27 percent. Let me break that down for you. For 24 stores in the enforcement areas, that means over a million dollars in additional revenue, or 35,000 per store in just one month. That makes a difference between staying open and closing. That means you can continue paying good wages to your workers. It means that your supply coming up from the farmers can have a resource, a place to sell it. It means you're going to be prosperous, you're going to be able to finally live the dreams that you've been delayed for too long.  

Last year, legal sales totaled $160 million for the entire year. Already, we've surpassed 200 million, we're on pace to pass 13 million a week. It's more than the dollars, right? It's more than the dollars. It's about small business owners being able to take care of their families, right? That's all they want, they just want a shot. I want to thank people like Leeann who you'll hear from, but Alfredo Angueira.  

He was one of our [inaudible] remember he couldn't make it here, he's got a new baby, we gave him a pass. I saw, I was in the Bronx a week ago and I saw him, he came to visit me. I never saw anybody as happy as Alfredo. It might have been the new baby, I'm not sure, but he said, he says, they literally shut down, I think he said four or seven illegals in his neighborhood, there's many more. He said his sales went up 70 percent since they shut down those ones in his neighborhood. Think about that, that's what I'm talking about. That's why we're going to continue pursuing our enforcement measures.  

Every small business owner, Black, Latino, women, immigrant, veteran business owners, all of them are prioritized. This is what equity looks like, not just on paper when we pass legislation. Again, the legislators knew what they were doing, they knew their priorities. It's up to us to implement that and make it become a reality, because they stake their futures on this industry. This industry is a testament to a fairer future, one that rights the wrongs of the past.  

Two-thirds of our legal dispensaries are minority and women-owned businesses. Just last year, because of New York, we've doubled the number of legal, Black-owned dispensaries that exist nationwide, when you factor our numbers in as well. We're proud of this, we're going to continue our efforts, and we're going to stop those illegal sellers from operating the way they were.  

New sheriff's in town, and I want to thank the New York Sheriff for all the work he has done as well with his teams and working so closely with the mayor. We're just getting off the ground. This really means something to me. It means that if we believe in something strongly enough, that we have to fight for it. We need to make changes to get it right, we'll go back and change whatever needs to change in the law, and that's exactly what our legislature and I did this last session.  

Change is in the air, as I said. Sometimes you have to change the laws, sometimes you have to change your direction, sometimes you have to change your focus, but ultimately, change is going to make New York State the state it always should have been, more equitable, fairer, and more just for the people who call it home. Thank you very much, everyone. Thank you.  

Mayor Eric Adams, let's hear what you're doing at the city level, because I know you're very proud of the enforcement levels here, the great work that you and your teams are doing. Ladies and gentlemen, Mayor Eric Adams. Okay, you're going big. You're going big, okay? 

Mayor Eric Adams: We're shutting down. That's right. If we could just have our state lawmakers stand up that's here, just acknowledge them. Acknowledge them. Give a hand to them. I thank you so much. Thank you.  

I served in Albany, and, one of the most difficult things for us to do is, when you pass a piece of legislation, is to go back and say, do we have to tweak it? Do we have to modify it? Sometimes we dig in and say the bill was passed. I don't want to change anything on it. It just takes a real commitment and dedication to serve. When you see a bill pass, like the cannabis bill, so much work went into it, Crystal Stokes, so many.  

You were very careful. You made it clear to us you don't want to recriminalize. You don't want to go through the days that I advocated for with 100 Blacks in Law Enforcement where we were stopping young people for small quantities of marijuana. You said we have to get it right, and you did that. I cannot thank you enough for what you did because we heard it on the ground.  

You heard it in your communities. You were blowing my phone up saying, what are you doing with these illegal cannabis shops? You responded, and the response is a clear one. Just a really special shout out to you, Assemblywoman Jenifer Rajkumar. You really moved around the city pushing this issue to the forefront, and this is just a great day, as the governor stated.  

We could not have done it without the governor. She was clear at the beginning of the session. We spoke on the phone, and we talked about it over and over again. We brought your team together, and we sat down and said, how can we pinpoint dealing with these illegal cannabis shops?  

Yes, the economic benefits are there. Yes, we're allowing those legacy businesses to open. Yes, we're seeing a quality, more tested product. There's another narrative that many people are missing. I get those calls early in the morning. We were turning these illegal cannabis shops into magnets of criminality. We were seeing an increase in robberies, shootings. It was targeting our young people. These illegal shops were starting to really tear down the quality of life in our city.  

Governor, I don't know if you are a basketball player, but the points you put on the board is only part of the game. The game is also the assist. This 114 number is not a true representation of what you did with this legislation with the legislators. When you add that number to the assist of 400 locations we closed in New York City alone, we're talking about over 500 in the state of New York. This is one state, and that is a real progress in the right direction.  

That's the commitment that we witnessed and the success that came with it. When we instituted Operation Padlock to Protect, we closed, shut down, 400 illegal smoke shops in just a few weeks, making a huge difference in our streetscape and improving the quality of life for all New Yorkers in record time. Operation Padlock to Protect is a multi-agency city task force. I don't know if he's here, Sheriff Miranda, who was amazing with his team going out, getting the job done.  

Look at the numbers. The number speaks for themselves. We have witnessed and seized $13.3 million in illegal products such as this. This was specifically targeting our young people. Those of us who are connected to our educators, listen to what they're saying. Our children are coming to school, starting their day high all the time. Reeking with cannabis smell, these little gummy bears and candies. It is targeting our children.  

Any neurologist or any expert would tell you at a young age what cannabis can do with the development of a child's brain. It's hard enough sitting in the classroom learning. Imagine doing it while you're under the influence of some of these products. Look at the colors of these products. These products are specifically going after our young people.  

It gets to be even better for us. We've imposed more than $30 million in fines. Too long these shops have undermined the legitimate businesses as we see what you are accomplishing. I just learned today our older adults, they're getting their joints, man. We said 300 a day? Almost 300 a day. Because there's so many benefits to cannabis when it's used correctly. That's what legalization is about. It's about following the law. It is not about breaking the law. The legal cannabis industry offers a once in a generation going back and correcting the wrongs of yesteryears.  

I remember clearly what it did to Black and Brown communities and how it decimated so many and destroyed so many lives. I believe strongly that this is just one step. We need to go back and make people whole. We need to erase those credit reports that people and young people have terrible blemishes on their credit reports because of their incarceration. There are things that we must do to make people whole for the over-aggressiveness of our cannabis laws in the past.  

Since we launched, more than 200 New Yorkers have participated in the city's first ever series of FastTrac for Cannabis Entrepreneurs sessions. Connecting legal cannabis business owners and entrepreneurs with free training and advice. Cannabis New York City has also provided 5,000 New Yorkers with education and community training through its five borough lift off of Cannabis NYC.  

We're moving in the right direction. We're doing the right things. This is such an important initiative. Would not have been done if we didn't have a very committed, dedicated group of lawmakers and a governor that was very clear from the beginning. We knew we could get this right. We went back and looked over again to make sure we got it right. We're seeing the benefits on our streets every day.  

We hear it continuously from the people of the City of New York. We're hearing it from the state. We should get a black magic marker. Cross out that number. Give you your true number. Not only the points you scored, but your assists. You made it happen, Governor. I cannot thank you enough for making it happen. Thank you. 

Felicia Reid, Executive Deputy Director, Acting Executive Director, New York State Office of Cannabis Management: Thank you. Good morning, everyone. This is my first time on this side of the podium. I'm usually ops, so this is unusual for me. I want to thank you all for being here. My name is Felicia A.B. Reid. I am thrilled to continue OCM's work to make New York's cannabis industry the nation's most singular and successful approach. I appreciate so much the warm welcome that folks have given me so far and the dedication that I've already witnessed from the incredible staff at OCM.  

Up front, before anything else, I'm used to working in a place where I'm working with line staff every day. I want to thank each member of the Cannabis Enforcement Task Force. You all certainly give new meaning to service in public service. You underscore the dedication it takes to protect the equity, integrity, and accessibility of New York's licensed cannabis market.  

Now, much of my career has been about centering communities and their needs, mostly with youth in the juvenile justice system. About making engagement meaningful, something much more than lip service and hollow promises. I know well how impacted communities are denied opportunities so easily given to others, and how systems and institutions with power purport to listen but fail to make meaningful change with the things that they hear.  

The next chapter in New York's cannabis story is one of incredible potential. Already we're bearing witness to the gains that results from focused intention and focused effort. At the last in my first Cannabis Control Board meeting, and under the great stewardship of Chair Tremaine Wright, 55 percent of the awarded licenses were issued to social and economic equity applicants. Just a clap for all of those folks. It's wonderful.  

Each of these New Yorkers is a new light in their community, illuminating the way forward for even more applicants and entrepreneurs to take their place in our state's expanding cannabis market. The future of cannabis in New York is blindingly bright. Kind of like that light there. Licensure, enforcement, and compliance are my top priorities in the next few months. OCM will continue to evolve and adapt its approach to meet both operational best practices and the MRTA social equity goals.  

Cannabis is a dynamic industry that presents New York with an incredible opportunity to be a model for the nation and a leader by example. With all that's on the horizon for the industry, from potential changes at the federal level, research discoveries, and new economic forays that center the ingenuity of small cannabis business, I'm incredibly excited to be part of this work. Thank you all so much, and it's my pleasure to introduce Christopher West, first deputy superintendent. 

Christopher West, First Deputy Superintendent, New York State Police: Good morning. As you just heard, I am Chris West, the first deputy superintendent of New York State Police. I want to start out by thanking Governor Hochul for the continued support and confidence in New York State Police, and for giving us the tools we need to fully enforce the law and go after the bad actors.  

As you mentioned, governor, the Cannabis Enforcement Task Force is a major statewide effort, and it will be operating in every illicit market across the state, from Buffalo to Suffolk, North Country to New York City. The Enforcement Task Force will coordinate staff from several state and local agencies to combat the illicit cannabis market wherever those markets are. Alongside our partners at the Office of Cannabis Management and other agencies, we continue with the goal of shutting down those throughout the state who are selling cannabis illegally.  

Anyone who is selling illegally should expect to be inspected by the Office of Cannabis Management, and the investigators will have the authority to padlock and close those locations under certain circumstances. It's important to point out that many of these unregulated shops are marketing and selling cannabis illegally to buyers under the age of 21, as you've heard earlier today.  

The state police is also investigating and targeting drug trafficking rings that are providing the supply of untested cannabis to the illegal shops. They pose a significant danger to the users. This supply is not tested for substances that could cause health problems, and those that are purchasing and using cannabis products purchased at unlicensed shops are putting their own health at risk. We continue to utilize our intelligence assets, and while also collaborating with our local and federal enforcement partners to choke off this illegal supply.  

Let me be clear. New York, led by the state police and a number of partners, is heightening our efforts to combat illicit cannabis activity and safeguard New Yorkers and our communities. Thank you again, Governor Hochul, for your unwavering commitment to the state police and our agency partners as we continue to fight the scourge of illicit and unregulated cannabis. Thank you very much. I would now like to bring up to the stage Ms. Leeann Mata, CEO of Matawana. 

Leeann Mata, CEO, Matawana: Hello, everyone. Today I stand in front of you, an educator, but a re-educator. I have to re-educate my community on what legal and clean cannabis looks like. Legal cannabis dispensary owners pay four different taxes. State taxes, sale taxes, adult use taxes, and payroll taxes. This money is directly injected back into our community. This is what New York intended when they legalized cannabis in New York.  

Cannabis is not just a blunt. Let me tell you about Ms. Debbie. Ms. Debbie walked into my dispensary nervous and scared. She stated, “I am 79 years old and I never done drugs in my life, but I cannot sleep.” She said, “I was scared to come into your shop because the illicit shops across the street from my home sell to children.” She said, “I walked past your shop several times and saw you required ID, which the illicit shops are not doing. That's what made me come inside.”  

My manager was so moved by Ms. Debbie's story, he said, here go attention. Take two drops under your tongue every night and this will help you sleep. I stated my governor, Kathy Hochul, promised to close illegal shops. Since she made that promise, over 70 illegal shops were closed in Brooklyn and over the last week.  

I'm not telling you this because of hearsay. I'm literally getting pictures and videos from my constituents showing me these stores being shut down. I would like to thank Governor Kathy Hochul for your hard work. You didn't sign up for this, but you are the person for this fight. I know you look at the legal cannabis like this is just it. No, this is just the beginning. New York had nothing but great things in store for the future of cannabis.  

I have hired over 21 staff members who receive over $20 to $40 an hour, livable wages. I'm also calling on OCM to let the cardholders in limbo in. If there are so many illegal shops, the need is there and we must supply the demand. I'm calling on my legal dispensary owners to make August 24th a day of action where we ask the kids to give it to us and we give them a gift card or something in return.  

It takes a community. We got these licenses not just about equity. We got these licenses to hire our community. We got these licenses to educate our community. We got these licenses so we can build our community up. Let's make our community stronger. Thank you so much to all officials. Thank you everyone for coming out.