REPORT TO THE CITY COUNCIL
October 31, 2024
FROM: ANDREW JANZ, City Attorney
City Attorney
BY: ERICA CAMARENA, Chief Assistant City Attorney
City Attorney’s Office, Code Enforcement
SUBJECT
Title
WORKSHOP - Annual Report of the Cannabis Administrative Prosecutor Program (CAPP)
Body
RECOMMENDATION
The Memorandum of Understanding with the Office of the Attorney General requires an annual report to Council regarding the status of the program.
EXECUTIVE SUMMARY
On August 29, 2023, the City entered a Memorandum of Understanding (MOU) with the Office of the Attorney General (OAG) to join forces in developing CAPP. This MOU integrates the resources of the OAG with the powers the City has to undertake efficient enforcement actions against illegal land uses that constitute public nuisances. Working in conjunction with one another, this partnership allows CAPP to enforce all laws related to illegal commercial cannabis activity, including retail, cultivation, and manufacturing.
BACKGROUND
Since October 2023, CAPP inspectors, alongside various enforcement agencies, have conducted 100 inspections. A focal issue for the City of Fresno has been the unlicensed smoke shops acting as dispensaries. For this reason, smoke shops were CAPP’s primary focus throughout this first year. The 100 inspections include 67 smoke shops, 18 markets, 11 cultivations, and 1 illegal dispensary within city limits, and three miscellaneous investigations.
At the commencement of the program, three inspectors canvased the City to document all smoke shop locations. Approximately 140 shops were logged. CAPP inspectors then worked closely with Fresno Police Department (FPD) Problem Oriented Policing Detectives to address nuisance locations throughout the city. Inspections were conducted alongside agencies including the following: FPD, Fresno Fire Department (FFD), California Department of Tax and Fee Administration (CDTFA), California Department of Alcoholic Beverage Control (ABC), and California Department of Justice (DOJ).
Throughout this first year, the team successfully inspected a total of 67 smoke shops, including follow-ups and re-inspections on open cases. CAPP inspectors addressed violations relating to the Fresno Municipal Code, California Building Code, California Electrical Code, and other codes relevant to zoning, public nuisance, and building standards. Each initial inspection resulted in the issuance of a violation notice. CDTFA seized all cannabis and untaxed tobacco, and FPD dealt with any criminal aspect the team encountered during inspections. 15 of these retailers have closed since the start of this program.
To summarize, a total of 15 guns were revealed during these inspections, both legally and illegally possessed. Unregulated cannabis was located at 53 of the 67 businesses (79%). Inspectors found illegal tobacco at 63 of the 67 shops (94%). Congruently, gambling was present at several smoke shops with some locations having gaming apparatuses within the business. Other shops facilitated online gambling, displaying the different games and rules on the shop’s walls and/or counters. Inspectors also noted large amounts of cash stashed within many of the shops. Numerous business-related individuals were arrested on felony warrants and/or charges.
Marketplaces were factored into the program when enforcement officers received complaints of locations possibly selling narcotics. Markets throughout the city tend to be subject to multiple calls for service for FPD with many of those complaints relating to narcotic sales. A total of 18 markets were inspected throughout this first year. It was found that six of those 18 markets were located within 400 feet of a school/daycare facility; these businesses are being addressed accordingly. All locations were found with violations and issued a notice to correct.
Regarding illegal cultivations, the team confirmed 11 cultivation sites throughout the city. Inspections were conducted alongside agencies including the following: California Department of Cannabis Control (DCC), California Department of Fish and Wildlife (DFW), Fresno Sherriff’s Office (FSO), Bureau of Alcohol, Tobacco, and Firearms (ATF), CDTFA, and FPD. These inspections resulted in the removal and destruction of over 5,300 unregulated cannabis plants from these sites, totaling $5,230,000 in citations. In addition, the inspections leading to these citations revealed additional code enforcement violations, including electrical hazards, unpermitted structural work and plumbing, among other violations. Per PG&E, electrical bypasses were observed at most cultivation sites, adding up to millions of dollars in stolen electricity. Violation notices were issued to each property owner.
In January 2024, a joint investigation amongst CAPP and DCC resulted in a DCC authored warrant of a business operating as an illegal dispensary in a commercial district within city limits. The search warrant revealed AOA Private Golf Club was operating without licenses and/or permits from the following entities: City of Fresno, Fresno County Public Health, Alcoholic Beverage Control, Department of Cannabis Control and California Department of Tax and Fee. The business was fully equipped with a food-serving kitchen, fully loaded bar, golf simulating rooms, and an illegal cannabis dispensary. DCC seized approximately 65.4 lbs. of dry cannabis flower along with several cannabis products. AOA Private Golf Club is no longer in business.