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By: Mario Mancini
Hundreds of illegal cannabis shops in New York City have racked up millions of dollars in fines but have yet to pay up, according to an analysis by the City Council’s Committee on Oversight and Investigations.
As reported by the New York Post, since April, administrative judges have found 516 cases of illegal cannabis sales guilty, imposing a combined $5.21 million in fines. However, only $210,000 has been paid, leaving nearly $5 million in penalties still outstanding.
Councilwoman Gale Brewer, chair of the investigations committee, expressed frustration over the unpaid fines. “It’s an astounding amount of fines that are unpaid,” Brewer told the New York Post, highlighting the scope of the issue as part of the city’s broader efforts to clamp down on unlicensed weed shops.
The unpaid fines are part of the city’s ongoing Operation Padlock, an initiative led by the Adams administration that began this spring to combat unlicensed cannabis sales. According to data from the Sheriff’s Office and the Department of Finance, since the operation started, 1,178 violations have been issued against 1,107 unlicensed pot shop owners. Almost all of the stores were padlocked or temporarily shut down as part of the crackdown.
Out of 991 violations that went through the legal process, 516 cases were substantiated, resulting in over $5 million in fines. However, 288 of those cases ended with default judgments, accounting for $2.85 million in penalties. In addition, 188 violations were dismissed, and another 187 cases are still awaiting hearings before the city’s Office of Administrative Trials and Hearings.
Earlier this year, Gov. Kathy Hochul granted the Sheriff’s Office and the NYPD the authority to padlock unlicensed shops immediately while awaiting administrative hearings. Fines for illegal cannabis sales can reach up to $20,000 per day for repeat offenders. Landlords who lease to these illegal shops and fail to take eviction action could face fines of up to $50,000.
While praising the efforts to close down illegal operators, Councilwoman Brewer also acknowledged the challenge of collecting the fines. “The enforcement has put a dent in the illegal market. It’s helped the legal market. That’s good news,” Brewer said in the New York Post. Brewer, who represents the Upper West Side—a neighborhood particularly affected by unlicensed smoke shops—plans to hold a hearing on the city’s cannabis enforcement program to assess its overall effectiveness.
According to the council’s analysis, more than 20% of violations in one-third of the city’s 51 districts were dismissed, raising concerns about the consistency of enforcement. Brewer is also keen to investigate how many padlocked shops have since reopened, further complicating the city’s efforts to control the illicit market.
Before the crackdown, city officials estimated there were around 2,200 unlicensed smoke shops operating in New York City. By comparison, there are only 189 licensed cannabis dispensaries and delivery services across New York State, with 79 located in the city, according to the state Office of Cannabis Management.
City Hall has acknowledged that many fines remain unpaid due to a lack of enforcement authority but promises that collection efforts will begin soon. “We are hoping to start the collection process very soon,” City Hall said in a statement to the New York Post, adding that the city has already confiscated over $64 million in illegal cannabis products. The mayor’s office emphasized that the primary goal of these operations is to protect public safety.
