New York City Approves Fines for Landlords Who Allow Unlicensed Cannabis Sales

The New York City Council Committee on Public Safety has approved a bill that will hold landlords accountable for knowingly leasing a commercial premises to a tenant who sells cannabis or tobacco products without a license, City Land reports. The bill aims to cut down on unlicensed cannabis dispensaries which have proliferated in the city as the state has been slow to issue retail licenses.   

Under the measure, the first time an unlicensed retailer is found operating at a leased commercial site, either the Sheriff’s Office under the NYC Department of Finance or another enforcement agency will issue a written warning to the landlord, which will provide the landlord with knowledge of the tenant’s unlicensed activity and allow the landlord to evict the tenant, the report says. If an unlicensed retailer is found operating in the same commercial premises after a warning has been issued, the landlord will be fined $5,000 for the first violation, and $10,000 for each subsequent violation. 

The measure also covers the sale of flavored vape products which are illegal in the state.  

The law was passed the same day Gov. Kathy Hochul (D) announced new enforcement legislation to further combat New York City’s illegal smoke shops. The enforcement measures include making it a crime to sell cannabis products without a license, and authorizing the New York State Office of Cannabis Management to fine unlicensed cannabis businesses between $10,000 to $20,000 per day for conducting unlicensed activities and padlock businesses found to be in repeated violation of the law.