NEW YORK (1010 WINS/WCBS 880) – The New York budget deal includes an array of new measures to crack down on hundreds of unlicensed cannabis shops in New York City and statewide, Gov. Kathy Hochul and Mayor Eric Adams announced Friday.
The black-market pot shops have become a thorn in the side of the state's nascent legal weed industry. While only dozens of licensed cannabis shops have opened in the state, hundreds—perhaps thousands—of unlicensed shops have popped up, leading to quality-of-life complaints.
Actions in the yet-passed budget deal aim to curb the influx of illicit shops in various ways. Most notably, the agreement empowers local governments, including New York City, to act under state enforcement provisions—expanding powers that had previously been limited to state officials.
"My friends, the insanity stops right now," Hochul said alongside Adams. "I'm using the power of the state budget to give us the tools we need at the state and local level to shutter these illegal shops once and for all."
The governor's office described the new measures as the "strongest" actions yet to curb the illicit cannabis shops, which Hochul said have "littered New York neighborhoods," flouting laws and selling possibly dangerous products.
"This is a great day," the governor said. "We've waited far too long for this reckoning with all the illegal shops—and your day has come."
Hochul and Adams symbolically held up a padlock as they announced the plan at the governor's Midtown office.
"This is a great moment for our city, as we identify the problem and effectively use government to put the tools in place to effectively address the problem," Adams said.
The mayor said his administration had heard from New Yorkers "fed up with illegal smoke shops" and passed their frustration on to Albany, where the Fiscal Year 2025 budget has been hashed out by lawmakers in recent weeks.
Under the deal, cities like New York will be able to adopt laws regulating unlicensed cannabis businesses, and local governments will be allowed to initiate "emergency proceedings" against unlicensed businesses and their landlords.
New York City will also be granted immediate enforcement powers through an amendment to the city's administrative code allowing city authorities to inspect, issue violations and seize cannabis, as well as to padlock stores.
State, county and local authorities can now padlock shops for a broad list of violations, including sales to minors; unlicensed processing of cannabis; violent conduct; the presence of unlawful firearms; proximity to schools, houses of worship or public youth facilities; products leading to illness or hospitalization; and products not tested or labeled according to state law.
Under the deal, anyone who damages or removes the padlocks will face a misdemeanor criminal penalty.
Additionally, landlords who turn a blind eye to illegal cannabis shops on their property face a $50,000 fine in the five boroughs. Outside of New York City, landlords will face a penalty five times the rent from the time they were notified of the violation, officials said.
The deal also aims to make it easier to evict pot shops by lowering the standard of proof required to evict a tenant in violation of cannabis law. Landlords now must only show tenants are "customarily or habitually" engaged in cannabis sales, instead of "solely or primally" involved in those sales.
Hochul said she's also creating a statewide task force to carry out civil enforcement to close illegal stores and target the supplier pipeline that moves unlicensed products to stores.
Officials will also warn bodega owners that the state can revoke tobacco, liquor and lottery licenses from businesses selling illegal cannabis products.