Council members questioned the effectiveness of the program as more stores open and fines go unpaid.
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New York City has been cracking down on unlicensed cannabis shops for months now, and while over 1,300 shops have been shut down, about 2,600 are still operating illegally. Meanwhile, the city only has 79 fully legal dispensaries. What’s more, most of the $104 million in fines handed out to these rogue shops haven’t been paid, leaving authorities in a bit of a bind.
Sheriff Anthony Miranda shared these updates at a recent New York City Council committee hearing. The council members were looking to understand the current situation better, and Miranda was there to give them the rundown.
"Operation Padlock to Protect," the initiative aimed at closing down these illegal cannabis shops, has been making some headway. According to Miranda, his team is shutting down unlicensed stores all over the city every week. "This is just the beginning," he said. "We’re adapting as the industry grows."
The operation started this past spring after the state amended its laws to help close down these illegal sellers. So far, it’s led to 1,078 store closures in New York City alone after conducting 5,059 inspections. But not everything has gone smoothly.
Councilwoman Gale Brewer raised concerns over why only around $200,000 of the fines—just 3% of the total—had actually been paid. Miranda explained that their main focus has been shutting down shops, not collecting fines. Plus, many of these businesses operate through LLCs that disappear once they’re closed, making it difficult to collect on the fines. To make matters more complicated, they can’t legally enforce the fines until 120 days have passed, and there are legal loopholes that allow shop owners to extend the deadline.
Brewer wasn’t entirely satisfied with that response. "You’ve closed over a thousand shops," she pointed out. "That could bring in $10 million in revenue. I know you said this isn’t about making money, but if people are breaking the law, they should pay up."
Miranda also said he supports a council proposal to allow residents to report illegal cannabis shops directly through the city’s 311 call center. However, he pushed back against the idea of increasing reporting requirements, calling it "overly burdensome."
Some council members expressed frustration with how some illegal shops have found creative ways to stay open. There were reports of retailers moving their operations to the sidewalks in front of their padlocked stores, opening only at night, or even cutting off the locks to restart their businesses. One shop was reported to be grilling hamburgers for customers while selling cannabis on the side.
Brewer voiced her concerns, saying, "There are shops that close during the day but reopen at night to avoid you because they think the sheriff only comes during the day."
Miranda clarified that street-level cannabis sellers are the responsibility of the New York Police Department, though his deputies have been working with NYPD on some cases. His office has also been keeping a close watch on previously shuttered locations to prevent illegal reopenings.
The sheriff’s office has been prioritizing reports of illegal cannabis sales near schools, churches, and youth centers, as well as cases where narcotics have been sold by these shops. However, when Brewer asked for a list of suspected shops, Miranda declined, saying the shops hadn’t been convicted yet.
Some council members also raised concerns about potential violations of due process. Recently, Empire Cannabis Club filed a lawsuit arguing that the crackdown is unconstitutional. Miranda acknowledged that some shop owners’ lawyers have gotten "creative" in defending their clients, and he noted that the law is still evolving.
Ingrid Simonovic, president of the New York City Deputy Sheriff’s Association labor union, argued that there’s a bigger issue within the sheriff’s office itself. She claimed that more deputies have quit under Miranda’s leadership than have been hired, making it harder to keep up with the crackdown. According to her, despite the effort, many illegal cannabis shops are reopening, sometimes within days of being closed.
Simonovic said, "We’ve lost about 43 deputies in the last two years, while only bringing on 26. Some left because of the unsafe conditions related to seizing marijuana."
Attorney Lance Lazzaro, representing many of the targeted shops, also criticized the new laws. He claimed that the sheriff has too much power, acting as "judge, jury, and executioner" in closing down businesses. Even when a shop’s civil summons for illegal cannabis sales is dismissed, Miranda can still keep the shop closed for up to a year, according to Lazzaro.
Another attorney at the hearing accused Miranda of being dishonest, claiming that the sheriff’s office has been seizing large sums of cash from these shops during raids, despite his denial.
David McPonski, who runs the licensed dispensary Freshly Baked NYC in the Bronx, also voiced his frustrations. He said the crackdown hasn’t been effective, with many unlicensed shops reopening just days after being closed. "There are actually more unlicensed operators near our legal dispensary now than when we started reporting them four months ago," he said.
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