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Court Ruling Could Jeopardize NYC’s Crackdown on Unlicensed Cannabis Stores

New York’s ‘operation padlock’ initiative, aimed at tacking the state’s illicit cannabis store crisis, could be undermined by a flurry of legal cases following a recent ruling.

A New York state judge has ruled that a Queens convenience store, which was padlocked for allegedly selling cannabis without a license, must be allowed to reopen due to a legal error in the delivery of a summons.

This decision could have significant implications for New York City’s broader effort to shut down unlicensed cannabis sellers, setting a precedent for other stores to follow suit.

Judge Kevin Kerrigan determined that the city had no legal authority to keep the store closed because the summons issued by the office of New York Sheriff Anthony Miranda was not properly delivered.

State law requires that such summonses be served directly to the business owner or an authorized agent, but in this case, the summons was not delivered correctly, leading to its dismissal.

The case should have ended once the summons was dismissed, Kerrigan ruled, but a hearing officer had recommended keeping the store closed based on suspicions of illegal cannabis sales. The judge found this insufficient to justify the closure, calling it ‘a clear violation of due process.’

The city has appealed the ruling, with a spokeswoman for Mayor Eric Adams stating confidence that their actions are lawful and aimed at protecting public safety.

Attorney Lance Lazzaro, who represents the Queens store, suggested that similar cases could follow. Lazzaro noted that he has several pending cases that may be dismissed on similar grounds.

This decision comes as part of the ongoing crackdown on illegal cannabis sales in New York, with city officials estimating around 3,000 unlicensed sellers.

The operation commenced following the granting of enhanced enforcement powers to the city by Governor Hochul and state legislators last month. These new powers allow the city to shut down illegal shops without prior state approval.

As of late July, Operation Padlock had shut down 779 shops, while another 230 were closed by the Illicit Cannabis Enforcement Task Force. Despite these efforts, the legal ruling introduces new challenges for the city’s enforcement strategy.

The case also echoes broader concerns about the legality of the crackdown, including a whistleblower lawsuit filed by a former New York undersheriff, which claims that many of the enforcement tactics are unconstitutional.

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