On June 22, the New York City Council passed legislation that will prohibit commercial property owners from knowingly leasing commercial premises to, or otherwise allow the use of such premises by, unlicensed sellers of cigarettes, electronic cigarettes, tobacco products, or illicit cannabis. If, after receiving written notice of a violation, the owner fails cure, the owner could be fined $5,000 for a first violation and $10,000 for each subsequent violation. The legislation also requires that a quarterly report be submitted to the mayor and the speaker of the council detailing enforcement efforts relating to unlicensed sellers.

The City Council action follows the enactment of legislation by New York State to curb the illicit cannabis market. The state law, signed by the governor on May 3, “provides additional enforcement power to the Office of Cannabis Management and the Department of Taxation and Finance to enforce the new regulatory requirements and close stores engaged in the illegal sale of cannabis”, according to a state press release.

Last Updated on July 8, 2023 by Ramin Seddiq