New York Governor Hochu announced a series of new measures on April 19 to crack down on illegal marijuana stores, including authorizing the Office of Cannabis Management (OCM) and local governments to directly lock and seal illegal storefronts, and imposing heavier penalties on landlords. These new measures will be included in the 2025 fiscal year budget.
Despite the legalization of marijuana in New York State and the issuance of licenses, illegal operations have been rampant, making it difficult for legitimate businesses to operate. Hochu had already declared in late February her intention to crack down on illegal marijuana stores to protect legal businesses. Therefore, on April 19, she held a press conference with New York City Mayor Adams to announce the new marijuana enforcement measures reached in the new fiscal year budget agreement. She stated that local governments will no longer be powerless against illegal businesses, and the new fiscal year budget will provide state agencies and local governments with the enforcement tools needed to permanently shut down these illegal storefronts.
According to the agreement in the new fiscal year budget, the powers of the Office of Cannabis Management (OCM) in New York State to lock and seal illegal storefronts will be expanded. If illegal marijuana sales activities pose an urgent threat to public health and safety, OCM has the authority to immediately lock the storefront after inspection. Even if there is no urgent threat, upon re-inspection by OCM and finding that illegal activities have not ceased, the storefront can be locked immediately. Business owners who damage or remove the lock will face misdemeanor charges.
Reasons for an immediate lock of a storefront due to posing an urgent threat include selling marijuana to minors, engaging in marijuana processing without permission, locating the store near schools, churches, or youth facilities, products causing customers to become ill or hospitalized, failure to test or label products according to state laws, and the presence of violence or the discovery of illegal firearms in the store.
Local governments in all counties and cities across the state will also be authorized to pass laws to crack down on illegal marijuana activities, conduct inspections, hearings, and emergency lock-ups of businesses. New York City, which has the most rampant illegal marijuana stores, will have the authority to immediately inspect, crackdown, seize illegal marijuana, and lock up storefronts without the need for self-legislation.
Landlords who rent storefronts to illegal operators and turn a blind eye, fail to initiate eviction proceedings against tenants will also face heavy penalties: landlords in New York City will be fined $50,000, while those outside the city will face fines five times the monthly rent. In addition, the standard of evidence required for landlords to evict tenants violating marijuana laws will be lowered. Landlords only need to prove that the tenant “habitually” engages in illegal marijuana sales, without the need to demonstrate that selling marijuana is the primary or sole business of the tenant, in order to initiate eviction proceedings.
Furthermore, Hochu will establish a special task force dedicated to monitoring marijuana suppliers to cut off the supply chain for illegal marijuana stores and address the issue at its root.