New York City Council Committee Approves Bill Holding Landlords Accountable for Unlicensed Cannabis and Tobacco Sales

NEW YORK– The New York City Council Committee on Public Safety has given its approval to a bill that will hold landlords responsible for knowingly renting commercial properties to tenants engaged in the sale of cannabis or tobacco products without a license, as reported by City Land. The legislation aims to address the proliferation of unlicensed cannabis dispensaries in the city, which has been exacerbated by the slow issuance of retail licenses by the state.

According to the bill, if an unlicensed retailer is discovered operating at a leased commercial site, the Sheriff’s Office under the NYC Department of Finance or another enforcement agency will issue a written warning to the landlord. This warning will inform the landlord about the tenant’s unlicensed activities and provide an opportunity to evict the tenant. In cases where an unlicensed retailer continues to operate at the same commercial premises after receiving a warning, the landlord will be subjected to a fine of $5,000 for the initial violation and $10,000 for each subsequent violation.

The legislation also covers the sale of flavored vape products, which are illegal in the state of New York.

Interestingly, on the same day, Governor Kathy Hochul (D) unveiled new enforcement measures to combat illegal smoke shops in New York City. These measures include criminalizing the sale of cannabis products without a license and granting the New York State Office of Cannabis Management the authority to impose fines ranging from $10,000 to $20,000 per day on unlicensed cannabis businesses engaged in illegal activities. Repeat offenders may also face business closures.

These simultaneous actions reflect the concerted efforts of the city and state authorities to address the persistent issue of unlicensed cannabis and tobacco sales, seeking to protect public health and safety while enforcing regulatory compliance.