Cannabis · guide

New York OCM Enforcement: How Inspections, Seizures, Padlocks and License Actions Work

Updated September 1, 2026

New York's Office of Cannabis Management (OCM) runs two enforcement tracks: one against unlicensed sellers, and one against its own licensees. Both are governed by the Cannabis Law and by 9 NYCRR Part 133, and both end in an administrative hearing process if the target contests the action. This guide explains the mechanics as they stand at time of writing (September 2026).

The statutes behind enforcement

The 2024 state budget rewrote OCM's enforcement toolkit. Three sections do most of the work:

• Cannabis Law section 138-a lets OCM inspect suspected unlicensed operations without notice, review and copy records, order the person to cease, and seize cannabis, equipment and other property used in the conduct. Unpaid penalties become judgments, and a violator who does not satisfy a judgment within 30 days is barred from any OCM license for three years.
• Cannabis Law section 138-b authorizes the Board or OCM to issue an order to seal (padlock) a business premises engaged in unlicensed activity. An order can take immediate effect if OCM finds an imminent threat to public health, safety and welfare, or when unlicensed activity continues more than ten days after a cease order. Orders last one year and can be vacated if the activity stops.
• Cannabis Law section 132 sets civil penalties for unlicensed sales of up to 10,000 dollars per day, rising to up to 20,000 dollars per day once an order to cease has issued.

Localities have parallel powers. Section 16-a lets OCM, the Attorney General at OCM's request, county attorneys, corporation counsel and local governments bring civil proceedings to enjoin unlicensed activity, including against landlords, with closure orders of up to one year and penalties up to 10,000 dollars per day. Local governments must give OCM seven days' notice before filing. OCM's June 2024 enforcement briefing to local officials explains that counties and cities may adopt their own inspection and padlock laws if their procedures mirror OCM's, and it lists an 8,000 dollar penalty for refusing entry to an inspection.

The unlicensed-shop process, step by step

9 NYCRR 133.25 implements the statute. After an unannounced inspection, OCM issues a Notice of Violation (NOV) and Order to Cease Unlicensed Activity, which must be posted at the entrance; removing it is a separate violation. Seized product must be documented with a written notice, signed receipt and chain of custody. If OCM finds an imminent threat (for example sales to minors, untested products, firearms or proximity to a school), it may issue an immediate order to seal. The respondent has seven calendar days to request a hearing on an emergency seal, and the hearing must occur within three business days of the request; the statute requires a determination within four business days after the hearing. A respondent who does not appear defaults, and the seal stays in place for up to a year. OCM's published decisions also show that two inspections more than ten days apart finding violations can support an order to seal without an imminent-threat finding.

Licensee enforcement under Part 133

For licensed businesses, Part 133 sets out the sequence. Section 133.3 covers compliance inspections and enforcement investigations; 133.4 defines violations and available sanctions, which include civil penalties, fines, suspension, cancellation, revocation, debarment and non-renewal; 133.5 allows a corrective action plan; and 133.6 lets OCM issue a summary suspension or stop work order before a hearing when public health or safety is at risk, with an expedited hearing available. A licensee who does not accept a proposed resolution can request a hearing before an administrative law judge, and under 133.8 the notice of hearing and statement of charges must be served at least 30 days before the hearing date. The ALJ issues a determination, parties may file exceptions, and the Cannabis Control Board renders the final decision, which can then be appealed. OCM's regulations page shows Part 133 was most recently adopted as an emergency rule effective December 31, 2024, so check that page for the current version.

OCM added a specialist unit in February 2025. The Trade Practices Bureau, housed in the Office of General Counsel, investigates hidden ownership, true-party-of-interest violations, undue influence, fraud and illicit sourcing (inversion). Unlike routine compliance staff, it can issue subpoenas and bring cases to the Board. Complaints go to a hotline or online form.

Where OCM publishes enforcement activity

• The Enforcement page explains NOVs, cease orders, orders to seal and hearing requests, with a link to request a hearing.
• The Law Enforcement page carries running totals of inspections and seizures and the annual enforcement reports.
• Hearing decisions and Board resolutions on appeals are posted as PDFs on cannabis.ny.gov, and the Pressroom announces operations and major fines.
• Email alerts are available through OCM's GovDelivery signup.

RegPing's cannabis bot relays new OCM enforcement releases and decisions into Discord.

Where to verify

• Cannabis Law 138-a
• Cannabis Law 138-b (orders to seal)
• Cannabis Law 132 (penalties)
• 9 NYCRR 133.25
• OCM regulations page
• OCM Enforcement page
• Trade Practices Bureau overview

This guide is general information, not legal advice. Verify against the primary source and consult counsel before acting.