[co-author: Terran Cooper]
Recently, the Committee on Finance of the New York City Council held a hearing to discuss the City’s ongoing enforcement efforts targeting unlicensed retailers selling cannabis and other similarly regulated products through its “Operation Padlock” and the proposed bills (Int 0557-2024 and Int 0981-2024) relating to unlicensed retailers, which remain pending. If enacted into law, Int 0557-2024 would add a complaint category in the city’s “311” system for complaints specifically related to unlicensed cannabis retailers, which would be routed directly to the New York City Sheriff’s Office. Int 0981-2024 would update existing reporting processes relating to the City’s inspection and enforcement of unlicensed sellers of cigarettes, electronic cigarettes, tobacco products, and illicit cannabis products. If signed into law, Int 0981-2024, would incorporate new reporting relating to the expanded local authority to conduct inspections and enforcement of state cannabis law, and would provide increased details on the outcomes of each inspection conducted by City agencies.
The hearing included testimony by New York City Sheriff Anthony Miranda regarding the status of the City’s ongoing enforcement efforts, addressing product seizures resulting from “Operation Padlock” (including one instance where 29 pallets of offending material were seized), padlocking of stores, and the lack of collected fines to date. With respect to the lack of collected fines, Sheriff Miranda explained that the Sheriff’s Office must receive a judgment before the actual collection of fines can begin, which is a process that requires the involvement of personnel outside of the Sheriff’s Office, as well as a 120-day minimum processing period. This, he noted, has led to delays in the actual collection of fines imposed through “Operation Padlock”. Sheriff Miranda also discussed bill Int 0557-2024, and indicated his belief that this bill was introduced prior to when certain expanded processes with the “311” system had been implemented. Sheriff Miranda stated that over 1000 complaints had been received through the “311” system to date, and clarified that “311” reports are currently being transmitted to the Sheriff’s Office. Sheriff Miranda declined to extend his support for bill Int 0981-2024, as he expressed that the mandating of another reporting requirement would be overly burdensome at this time.
Members of the New York City Council offered comments during the hearing on a variety of different aspects of the enforcement process and pending bills. Council Member Gale Brewer asked Sheriff Miranda a number of questions throughout the hearing, ranging from questions about the processing of fines, Local Law 107, tobacco enforcement, adverse action against landlords, and other issues. Public Advocate Jumaane Williams offered questions regarding the transition of unlicensed operators to the legal program, while Council Member Justin Brennan introduced questions about budgeting and financial considerations. Council Member Chi Ossé offered questions on reoccurring illicit activity involving cannabis products, and Council Member Dr. Nantasha Willams asked about the prioritization of enforcement efforts. Additionally, numerous other topics were discussed by other Council Members, agency personnel, and community members throughout the hearing.
“Operation Padlock” is a controversial initiative that has been a welcome response to the thriving illegal cannabis market by many licensed entrepreneurs legally operating cannabis retail shops, and a matter of great concern to others, since its inception. It remains to be seen whether there will be changes to the policy, going forward, and it is clear that many questions remain as to the impact of “Operation Padlock” and how the pending legislation surrounding cannabis enforcement will take shape.
For further information on this hearing, and a link to the meeting video, please see: https://legistar.council.nyc.gov/MeetingDetail.aspx?ID=1203537&GUID=9FC230A0-AC28-4DCB-A1CF-1CC83586F551&Options=info|&Search=.
