PUBLIC TESTIMONY
Testimony by David Nicponski, CEO of Freshly Baked NYC, on Enforcement of Cannabis Laws
2:52:29
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3 min
David Nicponski, CEO of Freshly Baked NYC and board member of the New York Cannabis Retail Association, testified about the ongoing issues with unlicensed cannabis retail sales and insufficient enforcement efforts. He provided recommendations to improve enforcement effectiveness, including better communication with licensees, swift follow-up on reopened shops, and strengthening penalties for illegal operations.
- Highlighted the problem of padlocked stores reopening within days and the increase in unlicensed operators near his legal dispensary
- Proposed six key recommendations, including improving communication with licensees, rapid follow-up on reopened stores, strengthening penalties, seizing profits of illegal businesses, restricting access to retail storefronts, and allowing private right of action for licensed businesses
- Emphasized the willingness of licensed businesses to assist with enforcement efforts and take direct legal action against unlicensed operators if allowed
David Nicponski
2:52:29
Good afternoon.
2:52:30
The chair and committee members.
2:52:31
My name is David Mefonsky, and I am the CEO of Freshew Bay NYC, a licensed dispensary located in Arthur Avenue in Bronx, Illinois, I also serve as a board member of the New York Cannabis Retail Association.
2:52:43
Thank you for the opportunity to provide this committee testimony.
2:52:46
Since we all know the problems with unlicensed cannabis retail sales, I'm not going to dwell on the problem itself other than to say it continues to be significant.
2:52:55
Enforcement efforts while certainly welcome are alarmingly insufficient in responsiveness to cannabis reports, to resources allocated to enforcement, and to the general scale of the enforcement operations.
2:53:07
For example, nearly all of the unlicensed stores near us that were previously padlocked, immediately reopened within 3 days.
2:53:14
And there are actually more unlicensed operators around our legal dispensary now than there were 4 months ago when we began reporting that.
2:53:21
Further details of this and of the problem myself can be found in my simulated written testimony.
2:53:27
Given my limited time, I'm going to focus on my recommendations to make enforcement meaningful and powerful.
2:53:32
1st, improve communication and cooperation with licensees.
2:53:36
We had a more direct 2 way communication channel with enforcement teams.
2:53:40
Dropping reports into a 311 black hole, well, useful to initiate reporting is gonna be okay to demoralize them.
2:53:47
We want to be able to track the status of reporting businesses, and we see updates on follow enforcement Further, licensees are eager to assist with enforcement.
2:53:55
We are willing to provide photo and video evidence, documentation, or even report purchases of illicit products if necessary to establish probable cause.
2:54:03
We want to work in partnership with enforce that rather than an arm's length, and we have obvious incentives to do so.
2:54:08
We just need a mechanism by which 2 simple gauge.
2:54:11
2nd, rapid follow-up on reopening.
2:54:13
So when unlicensed storage stores are shut down, there needs to be swift follow-up enforcement to ensure that they remain closed.
2:54:20
Businesses reopening days after being shutters should be a top priority for immediate action.
2:54:24
Licensees, again, are able to report these immediately if we can see follow-up action.
2:54:29
3rd, we need to strengthen the law of repended penalties regarding cat happy removal.
2:54:33
Current law regarding padlock removal from shutters, illegal cannabis retailers are clearly insufficient to deter reentry according to conversations with the Manhattan District Attorney's Office unless there's video evidence of someone physically moving the padlock, there's little that they can do to enforce against that.
2:54:49
Even when there is evidence that policies are minimal, and owners of the establishments can just treat this as the cost of doing business.
2:54:56
4th, we need to seize the profits of the illegal businesses.
2:55:00
And, again, in conversations with ManhattanDA's office to indicate that seizing profits is gonna be the only way to make a dent in the large operators, the more wealth finance ones.
2:55:08
You know, I'm not talking about the GoDaddy guys and and Chorus structure.
2:55:11
But the wealth finance ones have the resources and sophistication to avoid the rest.
2:55:15
And if they are, you know, not if their profits are not seized, they will just drive this up and get to the operating 5th, we need to restrict access to retail storefronts.
2:55:22
Access to these store fronts is the lifeblood of the larger legal operators, so denying them access to the retail space and essential.
2:55:28
Landlords have made the power to easily evict illegal operators and prosecutors who need the power.
Jeffrey Hoffman
2:55:32
Your time has expired?
David Nicponski
2:55:34
Who failed to do so.
2:55:36
And lastly, a 6, a a rate of private action.
2:55:39
Enforcement resources remain as as thin as they are considered ranking licensed businesses of private rate of action.
2:55:45
And we are willing to take legal measures and take the fight directly to the unlicensed businesses.
2:55:49
If we are allowed to do so.
2:55:50
Thank you again for the opportunity to testify, and I'm happy to answer follow-up questions with the right follow-up information as requested.
