Mayor Eric Adams has launched “Operation Padlock to Protect,” a new initiative empowering the sheriff’s office, NYPD, and the Department of Consumer and Worker Protection to closely inspect and potentially seal any businesses selling cannabis without a valid license. This move aims to address the growing number of unlicensed cannabis shops, which have continued to operate despite existing regulations.
Despite efforts to regulate the burgeoning illegal market, the first empty storefront survey by W42ST in the spring of 2023 revealed 41 unlicensed smoke shops in Hell’s Kitchen alone, a number that rose to 50 by the fall. The mayor had hoped that this initiative would rapidly reduce the number of unlicensed shops. However, the actual timeline has proven more challenging than expected, with the city managing to seal 75 shops to date.
The crackdown has faced significant pushback from affected business owners, who claim that the padlocking process violates their constitutional rights by lacking sufficient judicial oversight. In response, 27 businesses have filed a class-action lawsuit against the city, arguing that the enforcement measures deny them due process and demand both an injunction against these practices and compensation for losses incurred.
Legal experts and the businesses involved criticize the licensing process as overly restrictive, leading to unsold legal products and allowing unregulated stores to dominate the market. Following a task force report led by Jeanette Moy from the Office of General Services, it was revealed that there is a significant backlog in license approvals, with more than 5,600 applications still pending since August 2022. This has prompted recommendations for increased staffing and a streamlined denial system to expedite the licensing process.
Further complicating matters, Attorney Lance Lazzaro, representing the plaintiffs, argues that hearings on these closures should be held in a court of law rather than through administrative offices, which he claims are influenced by city politics. There have also been criticisms regarding the NYPD’s enforcement methods, particularly concerning searches and seizures conducted without warrants.
In an effort to bolster the legal cannabis market and protect public safety, Governor Kathy Hochul has announced new initiatives under the FY25 Enacted Budget, giving local municipalities and the Office of Cannabis Management (OCM) enhanced authority to act against illicit operations. This includes the ability to padlock businesses immediately following an inspection if they pose an imminent threat, such as selling to minors or operating too close to schools.
The city maintains that these stringent measures are essential for closing down illegal operations and supporting legal cannabis business owners who comply with state regulations. Despite the ongoing legal challenges and debates, city officials and the state government are determined to establish a controlled, safe, and thriving legal cannabis market in New York City.
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