Fresno code enforcement has issued $5 million in citations, found hundreds of pounds of illegal marijuana, and uncovered gambling operations, weapons, and evidence of human trafficking after a year of inspecting city smoke shops.

Also discovered: 11 illegal cannabis cultivation sites and dangerous chemicals seeping into water systems.

Staff with the Fresno City Attorney’s Office presented the program’s results at a Fresno City Council meeting on Thursday.

With support from the state Attorney General’s Office, Fresno code enforcement teamed with city police and fire to inspect 100 smoke shops throughout the city, according to the presentation.

Related Story: Number of Smoke Shops up by 400%, Fresno Council Wants to Reverse That

Of the smoke shops inspected, 79% had illegal cannabis, 94% had illegal tobacco, and all of them had code violations such as illegal modifications or dangerous electrical upgrades. Fourteen of the inspected smoke shops have closed down.

City Attorney Andrew Janz said the program has made the city safer.

“The big reason why we’re doing this is to eliminate the underground black market for cannabis use in the city,” said Janz during the meeting. “We know that if we eliminate the black market, it will have a direct positive impact on legitimate cannabis operators to generate revenue and by extension, the city of Fresno generating sales tax revenue.”

Illegal Marijuana, Gambling, Hidden Walls at Smoke Shops

The administrative program was the first of its kind in the state. At the smoke shops, inspectors found numerous violations. At Full Moon Smoke Shop in central Fresno, a hidden wall disguised illegal marijuana.

Police arrested one business owner who was wanted for homicide.

At D’s Smoke Shop, inspectors found not only marijuana but a gambling operation that the owner told inspectors made more than $6,000 a month.

The police department addresses gambling violations, said Erica Camarena, chief assistant city attorney. Code enforcement gave him notices to correct the violations. Illegal gambling is considered a misdemeanor under California law.

Related Story: Illegal Cannabis Brings Authorities to Private Golf Club in Fresno

But officers need to see gambling occurring firsthand, said police Sgt. Justin Hardy, who spoke during the meeting.

Gambling equipment has been seized and police will sometimes cite property owners, Hardy said.

What Tools Are Needed to Shut Down Problem Shops?

Fresno City Councilmember Miguel Arias — who in 2023 sponsored a bill to drastically eliminate most smoke shops in the city — said city fines weren’t sufficient enough to deter operations high-profit illegal operations.

“In that case, I would run a casino every month then,” Arias said. “That’s not a deterrent.”

He said he’s spoken to homeless people who regularly go to secret gambling operations behind hidden walls.

Camarena said seizing illegal goods takes away their money-making operation. Under the program, property owners can also be cited for what business owners are doing.

Citations to business owners and property owners are limited to $250 per violation for illegal marijuana.

Janz said some property owners have been pressuring businesses to conform. Two businesses shut down after property owners got involved, he said.

Arias asked if the city needs a smoke shop ordinance like the one he proposed to shut down businesses out of compliance. He said smoke shops in the Tower District have all been cited, but they continue to operate.

“How many times does somebody get to misbehave before we shut down their business?” Arias asked.

While his ordinance is still being worked on, the original would have limited the number of smoke shops to only 14 — two per district.

Businesses Appealing Citations. Hearings More Than a Year Out

Inspectors also found 11 illegal cultivation sites and destroyed a total of 5,300 marijuana plants worth nearly $16 million.

Camarena said many businesses had dangerous chemicals that had been leaking into water systems.

One cultivator was fined more than $2.2 million.

Businesses are appealing those fines, Camarena confirmed, and the appeals officer with the city has many hearings scheduled more than a year out.

Camarena said the department still does inspections and enforcement during that time, but Arias feared that with hearings scheduled so far out, punishments may not be a deterrent.

He asked if the department needs more resources.

“I either want a new appeals officer or more appeals officers,” Arias said.

Investigators Having to Adapt as Businesses Do the Same

At least one business changed into a food market after being cited for illegal activity. Inspections showed the business coming into compliance, one code enforcement officer said during the meeting.

But Camarena noted others are turning into clothing stores while still keeping illicit operations, making it harder to enforce regulations. She said the attorney’s office is working on how to enforce rules.