NEW YORK (1010 WINS) — New York City will start cracking down on gray market cannabis dispensaries by pressuring landlords to evict unlicensed stores, Mayor Eric Adams and Manhattan District Attorney Alvin Bragg announced during a press conference on Tuesday.
New York State gave the first dispensary licenses to people with war-on-drugs era cannabis convictions and non-profits that support formerly incarcerated people.
If unlicensed dispensaries are allowed to proliferate, it could undercut the state's ambitious equity program, which aims to even the playing field for people who had their lives interrupted and prospects destroyed by prohibition.
Adams announced a task force to crackdown on illegal smoke shops in mid-December.
During the task force's trial period in November, agents inspected 53 locations — issuing 500 civil violations and 66 criminal summonses in the process.
The fines seemed to have little impact as unlicensed stores reopened soon after getting raided.
City Councilmember Gale Brewer accompanied officers on a raid of a smoke shop in her district, but said the store had reopened two days later.
NYC Sheriff Anthony Miranda testified at a City Council hearing in January that the task force is hesitant to pursue criminal charges against the illegal dispensary owners given the risk of harming the same groups the state’s equity policy is aiming to empower.
The eviction strategy could represent a path to enforcement that doesn’t resort to incarceration but is more disruptive to unlicensed operations than fines.
Bragg sent letters to more than 400 smoke shops in Manhattan warning of eviction proceedings.
The D.A.’s office will contact landlords and demand they initiate eviction proceedings. If the landlord does not apply for eviction within five days or does not “in good faith diligently prosecute it,” the D.A.’s office will sue for eviction as if it were the landlord.
This is an option available to the state for any store engaged in “illegal trade.”
“For nearly two years, we’ve seen a proliferation of storefronts across Manhattan selling unlicensed, unregulated, and untaxed cannabis products. It’s time for the operation of unlicensed cannabis dispensaries to end,” said Bragg. “Just as we don’t allow endless unlicensed bars and liquor stores to open on every corner, we cannot allow that for cannabis.”
In addition to Bragg’s eviction strategy, the NYPD filed lawsuits against four unlicensed dispensaries in the 9th precinct, which covers the East Village.
The complaints accuse the gray market shops of selling cannabis to underage undercover officers.
The lawsuits seek to shut down four East Village storefronts — Runtz Tobacco, Saint Marks Convenience & Smoke Shop, Broadway and Sogie Mart Rolls & Puff.
“Legalizing cannabis was a major step forward for equity and justice — but we’re not going to take two steps back by letting illegal smoke shops take over this emerging market,” said Adams. “We are laser-focused on protecting the health and well-being of New Yorkers and ensuring this emerging industry delivers equity to those who deserve it the most.”
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