Three years ago, police in a British city found that a pair of old buildings had been used as a massive cannabis growhouse. Now, those same facilities will be leveled to make way for housing for students. 

When life gives you lemons, right? 

BBC News reports that the “Southampton City Council approved plans for a 250-room student housing scheme at the site, which was raided by police in 2021.”

The two “derelict city centre buildings, which were once used as cannabis factories, will be destroyed to make way for student accommodation,” according to the BBC.

The BBC reported at the time of the raid that “1,782 plants were found…in two disused commercial properties on High Street and Castle Way,” and that two men who were “initially arrested on suspicion of producing Class B drugs, were now being treated as potential victims.”

“We know that a lot people will think, it’s just cannabis, but we want to stress that any production of drugs is linked to hidden harm. Large scale operations like this are often run by organised crime gang. Those gangs are likely to engage in very serious violence involving weapons, such as firearms. They may also take advantage of vulnerable people, exploiting them or making them work in servitude,” chief inspector Ricky Dhanda of the local constabulary said in a statement back then. 

“The electrical requirement to grow this many plants is also really dangerous and can be a huge fire risk, putting neighbouring properties, and lives in danger. It is not just cannabis, it’s linked to serious criminality. That’s why we are really keen to hear from people who suspect there is cannabis cultivation or drug related activity going on their neighbourhood. Every call you make to us is logged and helps us build up an intelligence picture about what might be happening in your community. This allows us to take action and prevent your neighbourhoods from harm.”

On Friday, the BBC reported that the vacant “three-storey and four-storey buildings fronting Southampton High Street and a former snooker hall on the Castle Way side will be bulldozed.”

More from the BBC: 

“The applicant, Big Sur, said the work ‘would introduce an active frontage back into the street scene on two city centre streets. It added it would ‘contribute a significant amount of student accommodation which has been demonstrated as an identified need within the city.’ Plans would see the creation of a five to six-storey main block with 249 student bedrooms in a mix of cluster flats, studios and accessible flats alongside a second smaller three-storey complex for eight student bedrooms. The Old Town Community Forum objected to the proposal, with particular issues over the density of the scheme, the long-term viability of student housing and the design of the buildings. One of the buildings to be replaced is the site of the former Castle Snooker Club, which first opened in 1970.”

The BBC added that one group, the Old Town Community Forum, “objected to the proposal, with particular issues over the density of the scheme, the long-term viability of student housing and the design of the buildings.”

2021 proved to be a big golden age for peculiar British busts. That same year, in London’s financial district, police there discovered a massive growhouse after responding to “reports of a strong smell of cannabis.”

“A significant ‘cannabis factory’ of 826 plants has been dismantled and destroyed by officers from the City of London Police,” the cops said at the time. “The initial discovery was made on the afternoon of Wednesday 13 January, following reports of a strong smell of cannabis, and a warrant was obtained to enter the premises on Thursday 14 January.”

Andy Spooner, the London detective who handled that investigation, said that the comparatively low amount of foot-traffic in the area at the time, a result of the COVID-19 pandemic, may have played a role in the operation.

“This is the first cannabis factory in the City, no doubt being set up in response to fewer people being out and about during the pandemic who might have noticed any unusual activity,” Spooner said. “However, this demonstrates that City of London Police continues to actively police the Square Mile, bearing down on any crime committed here.” 

Then there was the discovery of a massive illicit grow operation made later in 2021 at a 17th century castle in Somerset. 

The Regina Leader-Post reported at the time that the owner of the castle, a “controversial British aristocrat” named Sir Benjamin Slade, “rented out Woodlands Castle in Somerset earlier this year.” 

“The castle is known locally as a high-end wedding venue and is situated just a few miles away from Slade’s other castle — an ancestral home that dates back to the 13th century. Woodlands has been closed for events since the start of the COVID-19 pandemic,” the outlet reported then. “Slade had offered up the castle to the U.K. government to use as a medical facility at the height of the pandemic, but the proposal was evidently declined and he ended up renting out the property instead. So far, authorities believe he was unaware of any illegal activity being carried out on the property.”

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After officially legalizing cannabis for adult use in New York, the journey that followed has been fairly tumultuous as multiple roadblocks have delayed shop licensure and hindered the legal industry’s full potential.

A number of lawsuits and a change in gubernatorial leadership delayed dispensary licensure and openings, in turn allowing the illicit market to flourish with those shops drastically outnumbering the amount of legal dispensaries in the state.

As New York growers, business owners and myriad cannabis professionals continue to wait for their licenses to be approved, some New York lawmakers are embracing a different approach (that would likely extend the wait for industry hopefuls even longer).

Namely, Queens Community Board 9 Chairwoman Sherry Algredo argued that New York should refrain from adding any licensed cannabis shops to her district until authorities are able to shut down those operating illegally, according to a New York Post report. Community Board 9 covers the neighborhoods Key Gardens, Richmond Hill, Ozone Park and Woodhaven.

Ongoing Concerns About New York’s Bustling Illicit Weed Market

“The Board received numerous concerns from residents regarding the proliferation of illegal smoke shops already operating in our district and the negative impact these establishments have had on our community,” Algredo said in a recent letter. “Consequently, the Board will not support any new applications until these illegal operations are shut down.”

While Algredo’s statement reads as fairly definitive, the boards’ recommendations are advisory to state regulators, though they can still influence final policy decisions. The law that legalized cannabis in New York also mandates that applicants for cannabis licenses must notify the community board within the vicinity they plan to operate and appear before it prior to opening their businesses.

The conversation surrounding illicit cannabis shops in New York has been ongoing, though Gov. Kathy Hochul (D) and other lawmakers have consistently touted their efforts to mitigate theses problems.

In April, the governor unveiled new initiatives aimed to shut down illicit cannabis operations and protect the legal cannabis marketplace. The plan allows the Office of Cannabis Management and local municipalities new authority to take action against illicit shops. 

“Unlicensed dispensaries have littered New York neighborhoods, blatantly circumventing our laws and selling potentially dangerous products,” Hochul said in a statement. “Enough is enough. I promised to protect our communities and hard-working, legal cannabis licensees by expediting the closure of illicit storefronts. I’m proud to stand up and say we got it done.”

Nurturing the Legal Industry While Combating the Illicit One

Last month also marked the opening of the 100th adult-use store in the state. New York legalized adult-use cannabis on March 31, 2021. It also looks like that number should increase soon, as the New York State Cannabis Control Board (CCB) shared last month that it approved an additional 101 adult-use cannabis licenses with more than 400 total approved sites in 2024. 

Conversely, it’s estimated that New York City alone has about 2,000 illicit cannabis stores currently operating.

The state is still working to do what it can to fix the issues with the legal industry rollout. Lawmakers recently passed another resolution that gives the Office of Cannabis Management (OCM) the ability to issue provisional licenses, which the CCB hopes will speed up the licensing process. 

“This measure aims to provide provisional license holders with opportunities to begin operations swiftly while adhering to regulatory requirements, fostering a dynamic and competitive marketplace,” the CCB explained.

Still, it’s clear that closing illicit pot shops in the state will not be an easy task. Many illicit shops immediately reopened after raids and temporary shutdown orders under the prior rules, and it’s not yet clear how effective the newly announced laws to close illegal shops will be in practice.

Because of that, closing all illicit shops before allowing new ones to open, even in a single district, may be tougher in reality than in theory. Still, some lawmakers are standing by the need to close unlicensed shops before adding more licensed ones.

“We have 32 illegal cannabis shops. We are not going to entertain any applications for legal cannabis shops until the unlicensed stores are shut down,” CB 9 District Manager James McClelland told The Post.

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The California Department of Cannabis Control (DCC) recently published an announcement regarding recent cannabis taskforce seizures. As of April 11, the Unified Cannabis Enforcement Taskforce (UCETF) seized over $53,620,600 in illegal cannabis during the first quarter of 2024 (spanning between January 1, 2024-March 31, 2024).

Law enforcement seized 331,866 pounds of unlicensed cannabis product, destroyed 54,137 cannabis plants, and seized $34,858 in total cash, in addition to confiscating 11 firearms and arresting four people.

California Gov. Gavin Newsom released a press statement regarding the Q1 seizures. “California is home to the largest legal cannabis market in the world,” said Newsom. “As we continue to cultivate a legal marketplace, we’re taking aggressive action to crack down on those still operating in the shadows—shutting down illegal operations linked to organized crime, human trafficking, and the proliferation of illegal products that harm the environment and public health.”

UCETF acting chief, Nathaniel Arnold, praised the agency for continuing to provide results as it tackles the state’s illegal cannabis industry. “UCETF continues to strengthen its momentum by focusing on priority targets and strategically removing operations having a significant impact on the illegal cannabis supply chain,” Arnold said. “We are utilizing all the available resources from our partner agencies and are committed more than ever to providing public safety, protecting the environment, and helping the regulated market succeed and thrive.”

The DCC’s Law Enforcement Division Chief Bill Jones noted that UCETF’s success so far has been a group effort between numerous agencies. “A key to UCETF’s success is a collaborative approach relying on intelligence gathering, targeted investigations and leveraging the expertise of our members,” Jones said. “The Taskforce continues to play a crucial role in protecting the legal cannabis market while eliminating the often-dangerous activities associated with unlicensed cannabis operations.”

The UCETF works with the following agencies to investigate and act on illegal activity: “Department of Alcoholic Beverage Control, Department of Cannabis Control, Employment Development Department, Department of Fish and Wildlife, California National Guard Counter Drug Task Force, California Division of Occupational Safety and Health, California State Parks, and the Department of Tax and Fee Administration,” with the addition of other “federal and local partners.”

Eighteen search warrants were conducted in Q1 2024, including two in Alameda County, one in Fresno County, five in Kern County, one in Los Angeles County, two in Riverside County, one in San Joaquin County, and six in Orange County.

The UCETF was created by Newsom in October 2022, and since then it has seized $371,199,431 in unlicensed cannabis product from a total of 236 warrants.

Within the first month of operation, UCETF conducted 13 search warrants in Los Angeles. It eradicated 7,503 plants and 936 pounds of cannabis flower over the course of two days. After that initial announcement, UCETF released numbers by quarter, as seen below.

Q4 2022

Warrants Served: 30

Cannabis Seized: 19,401 pounds

Plants Eradicated: 29,687

Retail Value Seized: $32,012,854.50

Q1 2023

Warrants Served: 21

Cannabis Seized: 31,912 pounds

Plants Eradicated: 52,529

Retail Value Seized: $52,644,020.50

Q2 2023

Warrants Served: 92

Cannabis Seized: 66,315 pounds

Plants Eradicated: 120,970

Retail Value Seized: $109,277,688

Q3 2023

Warrants Served: 60

Cannabis Seized: 61,415 pounds

Plants Eradicated: 98,054

Retail Value Seized: $101,349,657

Q4 2023 

Warrants Served: 24

Cannabis Seized: 13,393 pounds

Plants Eradicated: 20,320

Retail Value Seized: $22,294,571

Q1 2024 

Warrants Served: 18

Cannabis Seized: 31,866 pounds

Plants Eradicated: 54,858

Retail Value Seized: $53,620,600

UCETF Totals So Far (Q4 2022-Q1 2024)

Warrants Served: 236

Cannabis Seized: ~234,588 pounds

Plants Eradicated: 401,458

Retail Value Seized: $371,199,431

So far, the UCETF’s seizures peaked in Q2 2023, and have since been reduced significantly. The DCC did not address what the reason might be for the reduction in warrants and plant/product seizures overall.

Regardless, the DCC is committed to its efforts to protect the legal cannabis industry. “California is effectively decreasing the illegal cannabis market by leveraging the strengths and knowledge of over 20 state agencies and departments alongside our local and federal partners. The UCETF’s progress in 2023 reflects California’s ongoing commitment to disrupting  and dismantling illegal cannabis activity,” said DCC director Nicole Elliott in January. “I look forward to working with all our partners in 2024 to build on this progress.”

Last year in September, there was a raid on a legal cannabis business called Se7venleaf in Costa Mesa, which at the time was thought to be conducting business illegally. Law enforcement seized 100 pounds of cannabis flower, various boxes of cartridges and vaporizers, among many other business-related items (security cameras, devices, and documents). In late March, the Costa Mesa police were forced to return all of the seized items. “They didn’t like that they had to return the stuff,” said Se7venleaf co-owner Matteo Tabib. “They didn’t like that they were wrong, and they didn’t like that they were embarrassed and that nobody was charged. They gave no consideration that me and Michael and our employees’ lives are not in a good place right now.”

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A 75-year-old man in New Zealand was recently discovered to have been growing 250 cannabis plants by local law enforcement.

The Central District Organised Crime Unit, which worked with the Royal New Zealand Air Force, received a warrant to investigate an isolated part of the Whanganui River. According to Whanganui Chronicle, the owner of the property had previously submitted an application to grow hemp in that region.

The investigation is part of an ongoing project called “Operation Emerald” that includes law enforcement targeting illegal large-scale cultivation of drugs in New Zealand. This particular location required traversing an isolated area near the small town of Raetihi and the Whanganui River, but not a destination where vehicles can be driven. Due to the remote location, the Air Force dropped officers in on March 26 to investigate.

Detective Inspector Paul Baskett told the news outlet that the targeted illegal cultivation site previously owned a license to grow hemp, but it had expired in 2021. “The team were able to establish good cause to suspect that cannabis was being grown up there in large tunnel houses,” Baskett said. 

Police found 250 cannabis plants growing in “tunnel houses,” or greenhouses, alongside a shed containing dried cannabis as well, although reports do not specify if it was only dried cannabis flower, or an assortment of dried cannabis plant material.

Currently, the unnamed 75-year-old man has been charged with illegal cannabis cultivation and was scheduled for a court hearing in the Whanganui District Court.

Operation Emerald also acted on search warrants recently in Bay of Plenty, located on the northeast side of the country. A total of 39 search warrants were conducted over the course of five days throughout the surrounding area, with 25 people arrested with a variety of charges. “Police have laid a number of drug and firearm-related charges, and further charges and arrests are expected as enquiries progress,” said District Commander Superintendent Tim Anderson about the warrants in Bay of Plenty. “Police, assisted by the Armed Offenders Squad in some cases, seized more than 80 grams of methamphetamine, $7,610, and recovered two stolen vehicles and a stolen motorbike. While executing the warrants, several loaded firearms were confiscated.”

The operation also led to the discovery of 11,000 cannabis plants that were either “sprayed, recovered, or pulled from the ground” according to a 1News report. “The plants ranged in size from seedlings to fully grown plants 2m high. Police recovered 729 plants at one Western Bay of Plenty address, 1.6kg of harvested cannabis at a Taupo property, and more than 4kg of edibles at an Eastern Bay of Plenty address,” Anderson continued. “The Greazy Dogs gang will be feeling particularly hard hit, with more than 2,500 plants removed from paddocks surrounding their gang pad and residential properties in Tauranga.”

Anderson added that the goal of these operations is to hinder the growth of illegal substances, and the warrants conducted in Bay of Plenty will have an “immediate effect” on gang activity. “Illicit drug operations on a commercial scale strengthen organised crime groups and harm our communities,” Anderson said. “The purpose of Operation Emerald isn’t to target recreational drug users—it’s to hit gangs and criminal entities, whose parasitic offending feeds off our communities. We’re thrilled to have hit their criminal networks and it’s pleasing to have results that have interrupted their offending. The large-scale production of illicit drugs is a high-risk activity and criminals arm themselves as protection. This increases the risk to innocent people and taking so many firearms out of the hands of criminals is only a good thing.”

Anderson estimated that New Zealand gangs likely receive about $406 million per year because of illegal cannabis sales. “We don’t want them here, we don’t need them here, and we will target their offending every chance we get,” Anderson concluded. “If you choose to cultivate a drug that remains illegal and if you use it to fund your criminal lifestyle and perpetuate misery in our communities, you can expect police to hold you to account and to seize illegal firearms, drugs and ill-gotten gains.”

In 2023, Operation Emerald seized or destroyed various illegal substances totaling a value of $128 million. Statistics about last year’s searches show that police found 35,097 cannabis plants (approximately 93.452 kg or 206 pounds of plant material in weight).

New Zealand’s cannabis eradication program was initially cancelled in January 2021 because it cost too much to send out helicopters and airplanes out to investigate illegal cannabis grow sites. However, the program was revived in January 2022.

Adult-use cannabis is currently illegal in New Zealand, but medical cannabis has been permitted since 2020. Meanwhile, the country’s first mushroom cultivation license was granted in October 2023. License holder Rua Bioscience is excited to offer legal psilocybin therapy options. “It is a privilege to be involved in this ground-breaking project and we are excited to be able to support this kaupapa,” said Rua Bioscience CEO Paul Naske. “It is exciting to see Australia and other jurisdictions embracing innovative and potentially life-changing medical research with psilocybin and exciting for Rua Bioscience to now be part of such a great national collaboration.”

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The residents of Freetown Christiania, located in Copenhagen, Denmark, recently began to physically dismantle a part of its community where hash has been sold illegally for decades. According to recent reports, residents began removing the cobblestones on “Pusher Street” on April 6 to deter violence and illegal cannabis and hash sales.

Prior to April 6, residents began to ask for help from volunteers to pull up the cobblestone street. Anyone was welcome to participate, and could take home one cobblestone as a souvenir.

Removing cobblestones on Pusher Street was performed as a demonstration of the residents taking back their community and promising to rebuild. In doing this, they will be granted 14.3 million kroner (approximately $1.3 million USD) from the government to fund street renovation. According to AP News, two Christiania children were the first to lift cobblestones from Pusher Street.

“For more than 40 years, Christiania and the illegal sale of drugs out here has been a huge thorn in the side of the established society,” said Danish Justice Minister Peter Hummelgaard. “But now we have reached the point where the Christianians have also had enough of the [criminal] gangs.”

Copenhagen Mayor Sophie Hæstorp Andersen spoke with Reuters about the historic decision. “Pusher Street has to die in order for Christiania to live,” Andersen said. “The crime scene we have seen here has been so violent… we cannot have a Christiania that is dying out because people don’t dare to be here and where we see the local Christianites being threatened by greedy pushers and dealers.”

The future of Pusher Street will include “a new Christiania without the criminal hashish market,” according to a statement from Christiania public housing coordinator Mette Prag, who has called Christiania his home for 37 years.

Another resident who has lived in the enclave for 40 years expressed their interest in removing hash from Christiania’s future. “We don’t want the gangsters anymore. There might be some people selling hashish afterward, but it’s not going to be in the open,” said Hulda Mader.

Most locals are looking forward to Christiania’s new slate. “To me, Pusher Street is actually the least unique, right? It is what I associate with violence, gangs, murder, threats, and everything which are actually antonyms to what Christiania is,” said resident Mathilde Brandstrup.

The government funds will help the community install new water pipes and pavement, while buildings near Pusher Street will also receive renovations. While the overall goal is to transform Christiania into what AP News calls “an integrated part of the Danish capital area,” but will still retail the “free state” spirit that it has long been known for.

Christiania was first established in 1971 by hippies who occupied in former army barracks, and Denmark officials have allowed the unique settlement to remain independent, even though illegal cannabis sales in the area became known worldwide to curious tourists. Originally, residents who founded Christiania didn’t obtain permits to build houses, didn’t pay utility bills, and others could only move into the area if they were related to someone who was a resident. Residents received rights to their land in 2011, when the land (about 84 acres) was sold by the state to a foundation owned by Christianians. Now it’s home to 800 adults (25% of whom are over 60 years old) and 200 children.

Christiania was the focus of Denmark law enforcement starting in 2004, which led to an increase in police raids. While many residents took down their hash sales booths for a time, they soon returned.

However, an increase in violence and gang activity has also concerned both Denmark leaders as well as Christiania residents. In 2021, one individual was shot and killed at the entrance of Pusher Street, followed by another death in 2022 involved a hash seller.

Most recently in August 2023, two masked gunmen open fired within a Christiania building, killing one individual and injuring four others. Mayor Andersen spoke out against the event, and asked tourists to avoid the area. “The spiral of violence at Christiania is deeply worrying,” Andersen said. “The hundreds of thousands of visiting tourists and the many new foreign students who have just moved to Copenhagen to stay away and refrain from buying weed or other drugs at Pusher Street.”

Adult-use cannabis is illegal in Denmark, although medical cannabis is permitted through a limited pilot program that launched in March 2018.

The Danish Parliament’s Health Committee announced in September 2023 that it had destroyed an estimated 320,862 pounds of dried cannabis, all of which came from the medical cannabis program. The government explained that the destroyed product was either “discarded” or “faulty.”

The Denmark medical cannabis program produced a total of 4,656 pounds of medical cannabis in 2019, followed by 14,521 pounds in 2020, and 71,502 pounds in 2021.

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A New York state lawmaker is proposing legislation that would give regulators the authority to revoke the liquor, lottery and tobacco retailer licenses from stores that sell weed without a license. If passed, the legislation would go into effect immediately, giving officials new tools to combat the illicit pot shops that have proliferated since the state legalized adult-use cannabis in 2021.

Democratic Assemblyman John Zaccaro Jr., a Democratic legislator from the Bronx, is the lead sponsor of the legislation in the New York State Assembly. The measure (A09520) has already attracted 70 co-sponsors in the chamber after being introduced late last month. A companion bill in the Senate (S08847), sponsored by Democratic Senator Jamaal T. Bailey, has 10 co-sponsors.

The legislation “Provides for the revocation of licenses to sell cigarettes, tobacco products, alcohol and lottery tickets for the possession or sale of illicit cannabis in violation of the cannabis law,” according to the text of the measure. Businesses caught selling cannabis without a license would be subject to losing their licenses for one year on the first offense. A second offense within three years would subject the businesses to license revocation for three years and a third violation would result in the loss of cigarette, liquor and lottery retailer licenses for five years.

Thousands of Unlicensed Pot Shops in New York City

The legislation was introduced as the state, particularly New York City, continues to deal with thousands of retailers selling cannabis without a license. The office of New York Mayor Eric Adams recently reported that approximately 2,500 unlicensed weed retailers were operating in the city. Meanwhile, a slow rollout of licensed cannabis retailers has seen only about 40 regulated pot shops open in the city since the first began serving customers in the closing days of 2022.

Zaccaro said that the unlicensed shops are “choking” the regulated cannabis market as it struggles to get on its feet. Most of the retailers selling weed without a license are smoke shops and bodegas, businesses that would be severely impacted by the loss of the revenue streams provided by cigarettes, alcohol and lottery tickets.

“We need to be able to go back to our districts and be able to let our constituents and people know that we took this issue seriously,” Zaccaro told the New York Daily News on Wednesday The lawmaker added that he hopes the legislation will pass quickly, either as a stand-alone bill or as part ongoing negotiations for the state budget, which have already exceeded a deadline of April 1.

State and city regulators have already made several attempts to combat the proliferation of unlicensed weed shops with little lasting success. In the New York City Council, local lawmakers are supporting a plan to shut down unlicensed pot shops under a decades-old nuisance abatement law that allows the city to close some businesses, such as brothels. Despite having 26 sponsors on the 51-seat council, however, the plan has not had a hearing.

While Zaccaro’s bill to revoke cigarette, liquor and lottery licenses from shops that sell marijuana without a license gives state and local officials new tools to combat the illicit operators, putting them to use is another matter. Cannabis attorney Fatima Afia said that state regulators at the state Office of Cannabis Management (OCM) will have to commit significant resources to enforcement for the legislation to be effective.

“I imagine that it would require a lot of resources, a lot of time, a lot of energy — basically all the things that OCM has clearly not had for purposes of enforcement up until now,”  Afia said, adding that the slow rollout of regulated cannabis retailers is exacerbating the problem.

“The biggest supporter of the illicit shops is the fact that we don’t have enough licensed entities out there to compete with them,” said Afia.

Zaccaro’s bill has been referred to the Assembly Economic Development Committee, while the Senate version is under consideration by the chamber’s Budget and Revenue Committee.

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Minnesota’s Office of Cannabis Management (OCM) announced Tuesday that it will begin to crack down on the illegal sales of cannabis flower across Minnesota as the state’s adult-use market takes form. The Star-Tribune reports that the OCM entered into an agreement with the Minnesota Department of Health (MDH) to add inspection capacity for illegal sales of cannabis flower.

Minnesota is the 23rd state in the nation to legalize adult-use cannabis for people 21 and older. In doing so, the state also legalized the sale of hemp-derived cannabinoid consumer products, a unique provision, but selling raw cannabis flower is currently illegal because OCM has not yet issued any cannabis business licenses, and hemp sellers must also be licensed. 

When Minnesota legalized adult-use cannabis, the Minnesota Legislature included statutory provisions, Minnesota Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM.

As seen in many other states, many retailers have taken advantage of the legal loopholes regarding hemp derivatives, but the state is pushing back against unlicensed businesses. Just a week ago, on March 7, the OCM issued an enforcement notice designed to warn retailers about selling full-strength hemp products. The OCM stated that it has received complaints of retailers selling full-strength cannabis flower under the guise of being hemp. Hemp is legal only within THC limits specified by state and federal law.

The OCM, in alignment with federal law regarding hemp under 7 CFR 990.1, will consider the total concentration of THC post-decarboxylation—the process that converts THCA to delta-9 THC to produce an intoxicating effect. The examination of raw flower products will include reviewing the certificate of analysis.

Minnesota Statutes, Chapter 342 defines Minnesota’s cannabis market, empowering the OCM to ensure compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis flower and cannabis products “without a license issued under this chapter that authorizes the sale.”

A Warning to Flower Sellers in Minnesota

The OCM reiterated its stance on flower that is being sold by retailers without a license.

“Our primary goal at the Office of Cannabis Management is to ensure a safe, legal cannabis industry that protects public health and provides accurate, reliable information to adult consumers,” said Charlene Briner, OCM interim director. “This interagency agreement gives us capacity to conduct inspections during this transitional implementation period, and more fully integrates the work of the MDH inspectors who will eventually transition their work to OCM.”

MDH inspectors who inspect retailers selling legal hemp-derived cannabinoid products will begin simultaneous examination of w flower products being offered for sale to ensure those products are hemp and not cannabis.

“While this is a temporary issue that will no longer exist once businesses are licensed to sell cannabis flower, OCM’s commitment to ensuring an industry that abides by all legal requirements is steadfast and ongoing,” said Briner. “We are confident that by providing clear expectations and guidance to businesses, the majority of operators will choose to follow the law.”

The crackdown of raw flower products will mean that inspectors will look for the product’s certificate of analysis for test results on total THC. Per federal law and under the 2018 Farm Bill, hemp flower must contain 0.3% or less of delta-9 THC on a dry weight basis. Products exceeding 0.3% delta-9 THC in dry weight are considered marijuana and are therefore illegal to sell.

Penalties for Selling Flower Illegally

So what are the penalties involved for sellers of illegal flower? Retailers caught selling flower and who are in violation of the law could be faced with embargo of product and fines of up to $1 million for violating state law. Additionally, a violation could impact a person’s ability to receive a license for a cannabis business in the future. 

Per Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of $1 million for violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in violation of this chapter or rules adopted under this chapter[.]”

The OCM encourages retailers to vet products that they are selling to ensure that the products are legal. The OCM has sent a letter to all retailers registered with MDH to alert them that inspections of raw flower will begin immediately.

In a December 2023 bulletin, Minnesota’s health department issued a similar warning, noting that the agency inspected 167 retailers offering hemp-derived cannabinoid products between August and November and found that more than one in three (39%) of the shops were selling illegal high-potency products. Under Minnesota law, hemp edibles and beverages sold in the state must not exceed 5 milligrams of THC per serving and no more than 50 milligrams per package.

Licensing for cannabis retailers is expected to roll out later this year, and state officials aim to launch cannabis sales in 2025.

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New York Governor Kathy Hochul on Wednesday called on social media companies and popular websites including Google and Yelp to stop running listings for unlicensed cannabis retailers. At a press conference, the governor appeared with licensed dispensary owners, who face stiff competition from the multitude of unlicensed weed retailers in New York City, to call attention to the situation.

“If you type in ‘cannabis dispensaries’ in Google Maps or Yelp, you’ll get a long list of unlicensed illegal vendors,” Hochul said at the press conference on Wednesday.

New York legalized recreational marijuana in 2021, with the state’s first licensed adult-use cannabis retailer opening in the waning days of 2022. But the pace of opening licensed pot retailers in New York has been slow, with regulators citing the complexity of the application and approval process and difficulties securing and renovating appropriate storefronts as some of the causes for the delay. To date, less than 70 licensed weed shops have opened statewide.

The pace of opening newly licensed shops was also hindered by several court cases challenging the state’s process for awarding the first licenses for pot retailers, which were reserved for individuals with prior convictions for marijuana-related offenses. Several injunctions have stalled the awarding of new licenses, although recent settlements have resulted in the opening of 50 additional licensed weed retailers since December, including at least 30 new shops this week.

Efforts To Shutter Unlicensed Weed Shops Unsuccessful

Meanwhile, the number of unlicensed retailers in New York, particularly the Big Apple, has exploded. Estimates by city officials place the number of unlicensed pot shops in New York City at at least 1,300, perhaps as many as 2,000. There are more than 400 such retailers in Manhattan alone, according to a report from The New York Times.

At the press conference on Wednesday, Hochul said that unlicensed shops are a public health risk and a threat to the state’s efforts to create opportunities in the regulated cannabis industry for those harmed by decades of marijuana prohibition. The governor also acknowledged that efforts to close down the unlicensed shops with raids and fines have been too limited and so far have been unsuccessful.

“More and more cash keeps going in their doors and not the doors of our legitimate operators — and that’s what needs to change,” Hochul said.

Hochul has a proposal pending before state lawmakers that would make it easier for the state Office of Cannabis Management to obtain orders to padlock unlicensed cannabis businesses. The orders would also be enforceable by local agencies with more personnel available to execute them. 

While the proliferation of unlicensed pot retailers in New York continues, Hochul on Wednesday asked social media and tech companies “to not be posting the sites that are illegal and ensure that they’re posting the legal shops.”

The sheer number of unlicensed cannabis shops appearing on websites and social media makes reaching new customers difficult for licensed operators, who face restrictions on how they can promote their businesses. Osbert Orduña has two licensed cannabis shops, one in the New York City borough of Queens and the other in New Jersey. 

Orduña said that Google Maps has repeatedly removed listings for his shops. He has not run into any trouble with Yelp, although he said he agrees with Hochul and would like to see the website delist unlicensed retailers.

“Four times, Google has taken us down off of their platform for ‘violating their terms of service.’ We’ve done nothing other than have our store hours and our basic business information listed,” he said.

Tech Companies React

In a statement, consumer reviews website Yelp said that “consumers have a First Amendment right to read and write about all businesses, even if unlicensed,” according to a report from the Associated Press.

“Allowing users to contribute and see information … about unlicensed businesses serves the public interest and provides a resource for regulators to determine whether any particular business has appropriate licenses,” the statement read.

Meta, the owner of Facebook and Instagram, has previously said in a statement that its social media sites “prohibit content in both ads and organic pages that promotes the buying and selling of drugs including marijuana,” ABC 7 New York reported on Wednesday.

Google also responded to Hochul’s call to eliminate listings for unlicensed cannabis retailers, saying the company bans weed ads in New York and would remove listings for unlicensed shops once they have been closed by regulators.

“If we can confirm that a business has closed for any reason – including license issues – we’ll reflect that it’s closed in the listing,” the statement reads. “We also prohibit cannabis ads in New York and remove them upon detection, often before they ever run.”

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One person was killed on Saturday morning and another is in critical condition after an explosion at a Los Angeles commercial building that housed what authorities say was a “clandestine” cannabis extraction operation. The fire and death, which occurred at a one-story commercial building in the Green Meadows neighborhood of L.A., is now being investigated by the Los Angeles Police Department and the Los Angeles Fire Department, according to multiple reports. 

The LAFD responded to the fire after a 911 call to report the blaze was made at 1:17 a.m. on Saturday. As first responders arrived at the scene, heavy fire was visible at the seemingly vacant commercial building, and several small explosions could be heard within the structure, the LAFD reported on Saturday.

The first firefighters to arrive on the scene forced entry onto the property and into a portion of the well-secured building to begin an offensive attack on the fire. The firefighters retreated, however, after facing “ever-increasing flames, a series of additional explosions, the presence of unknown chemicals and physical compromise of the structure, that rendered it untenable,” including a collapsed roof.

The firefighters then transitioned to a defensive posture, using multiple hose streams of water from aerial ladders. As firefighters battled the blaze, a woman approached the command post that had been set up and reported her belief that a man was still inside the building that was at that point “largely consumed by flames.”

“It took 113 LAFD responders under the command of Assistant Chief Douglas Lewis, 75 minutes to fully extinguish the inferno, confining fire damage to the structure of origin,” the LAFD noted.

Deceased Person Found In Aftermath of Fire

While searching the scene, fire department personnel discovered the body of what appeared to be an adult male deep within the smoldering remains of the building. Authorities also found a large volume of cannabis products, processing machinery, chemicals and pressurized gas cylinders. 

A positive identification of the deceased person and the time and the cause of death are to be determined by the Los Angeles County Medical Examiner. The cause of the fire and circumstances surrounding the incident are being investigated by the LAFD and the LAPD.

Although fired department officials originally reported no additional injuries as a result of the fire, LAPD Spokesperson Officer Jader Chaves said that a second person was transported to an area hospital in critical condition, according to a report from the Los Angeles Times. The nature and cause of the person’s injuries were not known, however.

‘Clandestine Lab’ Found 

Chavez added that the operation housed by the building is being investigated as an “illegal butane honey oil clandestine lab.” Many cannabis operators use butane, propane or other hydrocarbons held by containers like those found in the burned-out building to produce cannabis extractions commonly known as butane hash oil, butane honey oil or BHO. The process can be hazardous if not executed carefully, and explosions and fires at such cannabis labs have occurred many times.

Although cannabis is legal in California for both recreational and medicinal purposes, the state has a pervasive and thriving unlicensed marijuana production and processing economy. Authorities investigating Saturday’s fire believed the Green Meadows cannabis operation was part of this gray market.

“We can’t say for sure because we don’t know exactly what permits they had…but we did not see any placarding from the outside that would indicate that this was a cannabis operation, which they should have had,” said LAFD Captain Adam Van Gerpen, according to a report on local television news. “There are multiple different types of chemicals that they use to do this and some of them could be explosive…and have deadly results.”

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On Jan. 16, the California Unified Cannabis Enforcement Taskforce (UCETF) released its first annual report of money, illegal cannabis plants/products, and firearms obtained in its seizure operations last year.

In total for 2023, which was the UCETF’s first full year of operation, the task force stated that it has seized more than $312 million in illegal cannabis. Additionally, it reported that it also seized 189,854.02 pounds of cannabis, eradicated 317,834 cannabis plants, served 188 search warrants, seized 119 firearms, and seized $223,809 of money on-site.

According to the Department of Cannabis Control (DCC) Director Nicole Elliot, the UCETF has made some serious progress in eliminating illegal operations. “California is effectively decreasing the illegal cannabis market by leveraging the strengths and knowledge of over 20 state agencies and departments alongside our local and federal partners. The UCETF’s progress in 2023 reflects California’s ongoing commitment to disrupting and dismantling illegal cannabis activity,” said Elliott. “I look forward to working with all our partners in 2024 to build on this progress.”

California Department of Fish and Wildlife (CDFW) Director Charlton H. Bonham provided a statement detailing the importance of eliminating illegal cannabis cultivation and processing operations. “Since its inception in late 2022, California’s Unified Cannabis Enforcement Taskforce has hit the ground running with year-round operations that spanned from the Oregon state line all the way down to San Diego,” Bonham said. “We’ve sent a strong message that illegal operations that harm our natural resources, threaten the safety of workers, and put consumer health at risk have no place in California. While there is more work to be done, we made progress last year and I look forward to going further alongside our county, state, and federal partners.”

The UCETF was created when Gov. Gavin Newsom called for the creation of a task force in June 2022, through a combined effort of the DCC, CDFW, and Homeland Security Division of the Governor’s Office of Emergency Services. By October 2022, the UCETF immediately took action, and early totals showed that it destroyed 11,260 illegal cannabis plants and 5,237 pounds of flower, with a combined total of $15 million. “California is taking immediate and aggressive action to stop illegal cannabis and strengthen the burgeoning legal market throughout the state,” said Newsom. “By shutting down illegal grow sites and applying serious consequences to offenders, we are working to curtail the criminal organizations that are undercutting the regulated cannabis market in California.”

The task force’s Q4 numbers include $22,294,571 worth of cannabis products seized (with 13,393.65 pounds of product), 20,320 pounds of cannabis seized, served 24 search warrants, seized 26 firearms, and seized $35,195 in cash during on-site warrant investigations.

In a breakdown by county, the UCETF seized the most cannabis in Alameda County ($77,828,338.50), followed by Siskiyou County ($70,747,875), Mendocino County ($48,073,113), Los Angeles County ($28,317,139.69), and Kern County ($21,578,438).

Also in October 2022, California Attorney General Rob Bonta announced that the Campaign Against Marijuana Planting (CAMP), had seized and destroyed more than one million cannabis plants that year across 22 counties. “The illicit marketplace outweighs the legal marketplace,” Bonta said. “It’s upside down and our goal is complete eradication of the illegal market.”

He also announced that a campaign called the Eradication and Prevention of Illicit Cannabis (EPIC) would help target illegal cannabis labor and environmental violations as well. “The California Department of Justice’s CAMP task force works tirelessly each year to eradicate illegal grows and reclaim our public lands, but shutting down these grows is no longer enough,” Bonta explained. “With the transition to EPIC, we’re taking the next step and building out our efforts to address the environmental and economic harms and labor exploitation associated with this underground market.”

In 2023, the Endangered Species Act of 1973 turned 50 years old. As the effort continues to try to preserve the nation’s many native creatures, agencies such as the U.S. Fish and Wildlife Services (FWS) have begun to put the spotlight on how illegal cannabis operations are harming the lives and environments of endangered animals. The California Spotted Owl is one such creature. “Management or cleanup activities that remove toxicants and other chemicals from trespass cannabis cultivation sites in California spotted owl habitat,” FWS explained last year. “Cleanup of these sites may involve activities that may cause localized, short-term disturbance to California spotted owls, as well as require limited removal of some habitat structures valuable to California spotted owls (e.g., hazard trees that may be a suitable nest site).”

The California Department of Fish and Wildlife also announces annual data collected from discovering and eradicating illegal cannabis operations in an effort to preserve waterways and natural animal habitats. This includes the preservation of a wide variety of species, such as southern torrent salamanders, coastal tailed frogs, steelhead and coho salmon, which rely on access to clear, cold water that is often polluted or diverted to illegal cannabis cultivation sites.

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