Inspections & Enforcement

9 NYCRR Part 125 establishes the core operating requirements for New York cannabis licensees. It governs environmental standards, site and security plans, employee training, inventory tracking, transport, waste destruction, inspections, audits, and recordkeeping obligations that OCM enforces during compliance reviews.

A Good Neighbor Agreement is a written commitment between a cannabis dispensary and the surrounding community. This page explains what it is, when to propose one, what to include, security commitments, community hotline structure, and when it reduces opposition versus when it is unnecessary.

A cannabis public hearing in NYC is an advisory meeting where Community Board members and the public comment on your dispensary. The board may issue a recommendation, but OCM makes the licensing decision. This page explains the format, timeline, and what happens next.

Cannabis dispensaries must comply with the Americans with Disabilities Act (ADA), including website accessibility under WCAG standards, physical storefront accessibility, employee accommodation obligations, and service animal rules. This page explains ADA compliance requirements and how DOJ enforcement or lawsuits can arise from inaccessible websites or retail spaces.

Billboard advertising is prohibited for adult-use cannabis licensees in New York. Outdoor signs over 55 square feet within 100 yards or over 16 square feet beyond 100 yards qualify as billboards and are not permitted. Billboards must be removed by February 24, 2026.

Even if cannabis is legal in New York, federal gun law still treats marijuana as illegal. This page explains how firearm rules apply to dispensary owners, investors, and marijuana users.

State-legal cannabis does not protect non-citizens under federal immigration law. Owning, investing in, or working for a dispensary can create serious immigration risk.

During an audit, the IRS can request bank statements directly from a cannabis business or its bank under federal authority. This page explains how the IRS compares deposits to reported revenue, reviews cash versus electronic sales, analyzes transfers between accounts, and treats unexplained deposits as income unless documented otherwise.

Cannabis businesses face elevated audit risk due to IRS 280E and high cash volume. This page explains common red flags, including revenue that does not match deposits, improper COGS allocations, missed quarterly payments, cash reporting gaps, and payroll tax violations that can trigger IRS review.