CANNABIS INDUSTRY
BREAKING NEWS
NYC Destroys 4 Tons of Cannabis in Mass Clampdown on Illegal Retailers
New York City authorities have launched a major crackdown on illegal cannabis retailers following the recent introduction of tax regulations. This has sparked a string of lawsuits - and protestations from hemp shops that they are being unfairly targeted. South African 'grey zone' retailers, take note!
Bezinga News
30 August 2024 at 10:00:00
This report from Bezinga, published on 28 August 2024
4 Tons of Cannabis Up In Smoke
New York City Mayor Eric Adams celebrated what he called his victory on illegal smoke shops in and around the Big Apple on Wednesday, by destroying more than 8,000 pounds of cannabis products seized in Operation Padlock."
“We’re going to destroy four tons of cannabis,” Adams said. “We have to stay on top of this because there are so many people who like to participate in this illegal endeavor. We’re going to destroy illegal cannabis in this city. It’s not going to go in our neighborhoods.”
The mayor used a crane to move the more than four tons of these weed products into an incinerator at a facility in just outside New York City where they were then burnt to a crisp.
And For Good Measure, The Ashes Are Turned Into Vapor
“We don’t want it recycled back into the communities. Placing it in a landfill, just really opens the door for them to salvage whatever they can. The goal is the destruction of the product,” Adams said.
Not To Worry, No One Got Stoned At Weed-Burning Party
“No one would be getting high off of what we’re burning today,” Adams said.
Bobby Green, who runs the facility housing the incinerator, explained that a filtration system would “scrub all those fumes,” leaving “about 99.9 percent water vapor.”
The heat from burning the cannabis and other garbage is converted into renewable energy used to power the facility and roughly 65,000 homes on Long Island.
“They have filtering system over 90 something percent is filtered, doesn’t get into the air. So this is a well-organized operation, you know, so if you live in the area, you’re not getting high,” Adams said.
According to a release from the mayor's office, in addition to Adams, New York City Sheriff Anthony Miranda, New York City Police Commissioner Edward Caban and New York City's Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga were at the cannabis campfire.
Since the joint law enforcement effort involving the NYPD, the New York City sheriff, and other city and state agencies, Operation Padlock has shut down a thousand operations.
New York City’s hemp shops are under fire as state regulators intensify efforts to combat illegal cannabis sales. Licensed hemp retailers report being unfairly targeted by Operation Padlock, a statewide initiative focused on shutting down unlicensed cannabis stores.
“They're shutting down unlicensed marijuana stores, but my hemp clients are collateral damage,” said Joshua Bauchner, a NYC-based attorney representing 12 hemp merchants affected by the crackdown, reported MJBiz.
Many licensed hemp retailers argue they operate legally under federal laws but find themselves caught in the crosshairs of state regulators combating illicit cannabis.
Operation Padlock Vs. The Big Apple’s Hemp Merchants
In early 2024, Governor Kathy Hochul and NYC Mayor Eric Adams launched Operation Padlock to address the widespread issue of illegal cannabis sales. The operation has led to the closure of over 1,000 stores and the seizure of millions of dollars’ worth of cannabinoid products.
However, the crackdown has also impacted licensed New York City hemp merchants who legally sell products under the loophole created by 2018 federal Farm Bill. In some cases, enforcement actions have wrongfully detained hemp shop employees. Arrests of workers during raids have became normal. Just recently a female employee at a New York City hemp store was arrested and held overnight for possessing mushrooms that were later confirmed not to contain psilocybin, according to Times Union.
Legal Battles
The Office of Cannabis Management (OCM) noted that nearly 40% of the state's legal cannabis sales occurred after the crackdown began, and that legal cannabis retailers have reported a 72% increase in sales over the past months.
Nevertheless, these aggressive tactics have not gone unchallenged by those negatively impacted. Unlicensed NYC cannabis sellers are filing lawsuits against the city, arguing that the crackdown violates their constitutional rights.
In a recent case, a New York judge ruled in favor of a closed cannabis shop, raising questions about the legality of the raids and the broader enforcement strategy.
The outcome of the dispute is huge, given that New York’s legal cannabis market recently recorded over $530 million in sales since December 2022, with $370 million reported in 2024. Despite these figures, regulatory delays and ongoing legal challenges are stifling the market's potential. The OCM remains understaffed, with only 180 employees and is facing over 20 active lawsuits, further slowing down the licensing process.
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