When Can OCM Take Action?

OCM may take enforcement action if a licensee:

• Violates New York Cannabis Law
• Violates 9 NYCRR regulations
• Fails to comply with license conditions
• Makes false statements in filings
• Fails to disclose required ownership changes
• Engages in unauthorized transfers of ownership or control
• Fails to maintain required security systems
• Diverts product or falsifies inventory records
• Sells to underage individuals
• Operates outside approved premises

Serious or repeated violations increase enforcement risk.

Common Compliance Triggers

Most enforcement actions begin with one of these:

1. Inspection Failures

• Missing camera footage
• Incomplete training logs
• Inventory discrepancies
• Security plan violations

2. Ownership or Control Issues

• Undisclosed investors
• Unauthorized management agreements
• Unapproved ownership amendments

3. Sales Violations

• Selling to underage customers
• Off-premises sales
• Unapproved product transfers

4. Recordkeeping Failures

• Missing required records
• METRC inconsistencies
• Failure to maintain transaction history

Suspension vs Revocation

Suspension

• Temporary halt of operations
• May include conditions for reinstatement
• Often used while investigation is ongoing

Revocation

• Permanent loss of license
• Business must cease operations
• Reapplication may be restricted

OCM may also impose fines or corrective action plans instead of immediate revocation.

Does OCM Have to Give Notice?

Yes.

Before revoking or suspending a license (except in emergencies), OCM must:

• Provide written notice of alleged violations
• Allow the licensee an opportunity to respond
• Provide administrative hearing rights

In emergency situations involving public health or safety, OCM may order immediate suspension.

What Is an Emergency Suspension?

OCM may suspend a license immediately if it determines the business presents:

• An imminent threat to public health
• A significant safety risk
• Serious regulatory noncompliance

Emergency suspensions are rare but possible.

What Happens During an Investigation?

1. Inspection or complaint triggers review
2. OCM requests records
3. OCM issues Notice of Violation (if applicable)
4. Licensee may respond or request hearing
5. Board determination issued

Failure to respond worsens the outcome.

Can You Keep Operating During an Investigation?

Usually yes unless:

• An emergency suspension is issued
• A formal suspension order is enacted

Do not assume you can continue operating once an official suspension is issued.

Can a Revoked License Be Reinstated?

Reinstatement is not automatic.

It may require:

• Formal appeal
• Administrative hearing
• Compliance plan
• Board approval

In some cases, revocation ends the license permanently.

How to Reduce Revocation Risk

• Maintain daily compliance logs
• Reconcile METRC regularly
• Disclose ownership changes immediately
• Respond promptly to OCM inquiries
• Document all corrective actions

Most enforcement actions escalate from ignored small violations.

Frequently Asked Questions

Can OCM revoke a license for paperwork errors?

Minor errors typically result in corrective actions or fines. Repeated or intentional noncompliance increases risk.

Can OCM revoke without warning?

Only in emergency public safety situations.

Can customers trigger investigations?

Yes. Complaints can initiate inspection or review.

Bottom Line

OCM has clear authority to suspend or revoke a dispensary license for legal or regulatory violations.

Most shutdowns follow repeated compliance failures or undisclosed control issues, not random enforcement.

If you receive a Notice of Violation, respond immediately and consult regulatory counsel.