On March 31, 2021, the Marijuana Regulation & Taxation Act (MRTA) was signed into law, legalizing cannabis in New York State. With the mission of creating a regulatory framework that supports equitable licensing, economic development and public health and safety, the Enforcement Division plays a critical role in making sure the rules apply to everybody. The current enforcement efforts protect the integrity and investment of entrepreneurs in the legal market, while holding accountable individuals selling illegal, untested and unsafe products to communities across the state.
Governor Kathy Hochul recently unveiled the strongest set of policies enacted thus far to tackle the illicit cannabis marketplace as part of the FY25 Budget. This initiative provides the Office of Cannabis Management and local counties and cities with enhanced authority to act against illicit cannabis storefronts and those who enable them.
The growth of unlicensed stores across New York State has exposed building owners to liability due to illicit cannabis product sales. Under the FY 2025 Budget to help OCM shut down more illicit shops, there are now enhanced penalties for landlords of illicit cannabis businesses.
If a property owner has a tenant illegally selling cannabis out of a storefront or space, they should use the incident reporting tool to ensure OCM can include the location on the complaint tracker for future investigations and disciplinary actions.
Real Property Actions and Proceedings Law allows the District Attorney, local government, or enforcement agency to put the landlord on notice to start an eviction proceeding against the tenant in violation of the Cannabis Law. If the landlord fails to begin proceedings to evict tenants within 5 days, these principals can assume authority and enact eviction proceedings.
Landlords who rent a business they know is at least customarily or habitually engaged in selling cannabis without a license will be subject to penalties determined by the population size of this community and increased to:
For property owners whom OCM has received notice of illicit cannabis sales on their premises: (Real Property Actions and Proceedings Law § 715-a):
As a landlord, you cannot refuse to rent to a tenant who consumes cannabis, but landlords, property owners, and rental companies can ban the smoking or vaporizing or growing of cannabis on their premises.
Tenants registered with the NYS Medical Cannabis Program have the right to consume medical cannabis in their home, including but not limited to smoking or vaping whole cannabis flower, cannabis concentrate, and/or ground plant products.
As a landlord, you can only prohibit the use of medical cannabis if it would put you at risk of losing a federal benefit.
Adult-use home cultivation of cannabis plants is currently not allowed, except for certified medical cannabis patients. Pursuant to the MRTA, the home cultivation of cannabis plants may only be permitted after the Office of Cannabis Management issues regulations governing home cultivation of cannabis.
Growing cannabis for medical purposes cannot be prohibited by a landlord, homeowner association, or co-op board, except if the landlord would lose a federal benefit.
Local municipalities may enact and enforce regulations relating to home cultivation of cannabis provided, no municipality may completely ban or prohibit home cultivation.
The Office of Cannabis Management (OCM) can padlock a business immediately following an inspection if they are selling illicit cannabis in a manner that poses an imminent threat to health, safety, and welfare Note: Upon the OCM’s request, any police officer/ peace officer with jurisdiction may assist with the execution of the padlock order. Cities and County governments may initiate their own padlocking programs provided they pass a local law that complies with New York’s padlocking statute and notify OCM.
Reasons for emergency padlocking upon first inspection include:
In addition to an “imminent threat” standard, OCM must consider these circumstances for emergency padlocking:
The emergency padlock will be in effect for one year. Removing or damaging a padlock is a Class A misdemeanor obstructing governmental administration.
Respondent must submit notice to the OCM with sufficient evidence by an affidavit or other proof that the unlicensed business has vacated the property or that the activity has been permanently abated. OCM is authorized to immediately padlock a business following a reinspection if the unlicensed activity is continuing, even absent an imminent threat.
Report any issues with a cannabis business, cannabis product, and adverse events at the link below. All incident reports of potential illicit shops are investigated by the Office’s Enforcement Division. Here’s what you need to know:
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