Illegal cannabis shops and their landlords are set to face harsher enforcement and steeper fines under measures included in the state budget, Gov. Kathy Hochul said Friday.

A five-point plan Hochul unveiled alongside Mayor Eric Adams in Manhattan will give the state’s Office of Cannabis Management and local authorities the power to padlock illegal shops.


What You Need To Know

  • Illegal cannabis shops and their landlords are set to face harsher enforcement and steeper fines under measures included in the state budget, Gov. Kathy Hochul said

  • A five-point plan Hochul unveiled Friday will give the state’s Office of Cannabis Management and local authorities the power to padlock illegal shops

  • New York City landlords who knowingly rent to illegal cannabis shops without beginning eviction proceedings will face a $50,000 fine, the governor said

If a business damages or removes a padlock, it will face a misdemeanor penalty, the governor said. In New York City, the Sheriff’s Office will be allowed to ramp up enforcement — and deputize the NYPD to help, she said.

“Shockingly, the way this was designed, localities were stuck on the sideline in this fight. That ends right now,” she said. “Now they have the power to enforce.”

“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,” she added.

New York City landlords who knowingly rent to illegal cannabis shops without beginning eviction proceedings will face a $50,000 fine, the governor said. Outside the five boroughs, landlords will see a fine of five times their monthly rent, her office said in a news release.

The plan included in the budget will lower the standard of proof necessary for a landlord to evict a tenant who is violating the state’s cannabis law, the release added.

Landlords will only have to prove that a business “customarily or habitually” sells cannabis without a license. Currently, landlords must show that a business illegally sells cannabis “solely or primarily.”

In addition to expanding local authority, Hochul said she is launching a statewide task force dedicated to monitoring and closing illegal stores. New York State Police will play a “key role” in the effort, which will also target illegal cannabis suppliers, she said.

Bodegas that sell illegal cannabis products will see increased enforcement as well.

“Now let me be clear: We’re not out to close down bodegas,” Hochul said. “But under our new law, we’ll notify bodega owners if they continue to sell illegal products, we’ll take away their liquor, tobacco and lottery licenses, and if they still don’t comply, then we can put a padlock on their doors.”

Hochul also pushed back on critics she said claimed the crackdown could negatively impact people of color and criminalize cannabis use once again.  

“Nothing could be further from the truth,” she said.

"New York has more legal shops owned by people directly harmed by disproportioned drug enforcement than any other state combined," she added. "These are the people we're fighting for, because they are harmed the most by these illicit operators. They're the ones losing money."

The governor said the state budget will “hopefully” be finalized “any day now.” Earlier this week, she said she and New York legislative leaders had come to a preliminary agreement.

Adams on Friday praised Hochul and her administration for including City Hall in the process.

“[Hochul] heard us. Her team came and sat down at the table and really was extremely thoughtful, engaging, collaborative, made sure that we all came together, and I cannot thank you enough,” the mayor said.