In a new effort to stop the proliferation of unlicensed cannabis dispensaries, city lawmakers went after the landlords, not the illegal operators themselves.
A new law now in effect prohibits landlords from knowingly renting to illegal dispensaries that sell cannabis or tobacco products.
“The landlord gets a letter from the city saying you’re renting to an entity that’s conducting illegal business and we want you to evict them,” Councilwoman Lynn Schulman, a Queens Democrat who was the prime sponsor of the law, said about the notification process.
Following the initial letter, there’s then a follow-up.
“When there’s a re-inspection of that premises, they’ll get another notice. After that, then they’ll get fined,” Schulman said.
That fine is to the tune of $5,000 dollars for the first violation and $10,000 for subsequent violations. The fines go through the Office of Administrative Trials and Hearings.
“The administrative mechanism that the legislation uses is really designed to get the landlord’s attention and to have a real shot at enforcement here,” Simon Malinowski, a partner at Harris Bricken and the firm’s lead New York cannabis attorney, said. “Addressing the underlying real estate issue is a smart way of addressing it and the legislation really provides landlords an opportunity to respond,” Malinowski said.
Landlords can defend themselves against alleged violations by proving that they started eviction proceedings against the illegal dispensary.
The law has had the support of the Real Estate Board of New York, which represents property owners.
Supporters of the legal marijuana market in New York say illegal dispensaries must be prevented from opening up out of concerns over crime and missed tax revenue from legal ones.
