N.Y. state lawmakers propose fighting NYC illegal pot shops by revoking tobacco, liquor licenses
Grasping for tools to weed out illegal cannabis shops in New York City, state lawmakers have proposed a new plan: Revoking the tobacco, liquor and lottery licenses from rule-breaking stores that sell pot.
The novel concept, introduced in the New York State Legislature late last month, has quickly drawn support from legislators. More than 70 co-sponsors have signed on to the measure.
Most illegal cannabis stores in the city appear to be bodegas or smoke shops, which could be loath to risk losing licenses for some of their most popular products.
Under the bill, the state would be empowered to revoke the tobacco, liquor and lottery licenses, said Assemblyman John Zaccaro Jr., the lead sponsor in his chamber. The legislation would take effect immediately if authorized.
Zaccaro, a Bronx Democrat, expressed hope the bill could pass within weeks, saying the illegal marijuana market is “choking” the legal market. Many in New York are deeply frustrated over the state’s legal cannabis rollout, which began in 2022.
A sluggish permitting process for legal retailers has allowed a sprawling gray market of illicit shops to crop up in the city. Many of the unlicensed stores target children, according to officials.
“We need to be able to go back to our districts and be able to let our constituents and people know that we took this issue seriously,” Zaccaro said in an interview Wednesday, adding that he hopes his bill will either pass in ongoing budget negotiations or as a stand-alone measure.
At least for now, the bill joins a large stable of proposals in a largely losing battle against the cannabis sellers. And one cannabis lawyer suggested that the effect of the state-level plan could be blunted without a significant enforcement commitment.
“I imagine that it would require a lot of resources, a lot of time, a lot of energy — basically all the things that OCM has clearly not had for purposes of enforcement up until now,” said the lawyer, Fatima Afia, using an acronym for the state Office of Cannabis Management.
Other efforts to curb the spread of illegal shops have failed. Based on government data, there could be 60 illegal cannabis shops for every legal seller in the city.
About 2,500 illegal cannabis shops have cropped up in the five boroughs, Mayor Adams’ office has said. Just 40 legal cannabis dispensaries have opened citywide, according to the state Cannabis Management Office.
In the City Council, lawmakers have pushed to target the illicit stores with the city’s half-century-old nuisance abatement law, which allows the city to close certain businesses, including brothels. But the plan, which has 26 sponsors in the 51-seat Council, has not yet made it to a hearing.
The Council is waiting to see what the Legislature does on cannabis in the state budget, said Councilman Keith Powers, the Manhattan Democrat spearheading the nuisance abatement plan.
In Albany, Gov. Hochul has proposed giving city authorities broader explicit powers to close unlicensed cannabis shops. Her plan remains in limbo, as budget negotiations drag past an official April 1 deadline.
The governor, a Democrat, has acknowledged that the cannabis rollout has been disastrous. Last month, the state launched a 30-day review of the Cannabis Management Office’s sluggish system for licensing cannabis sellers.
A complex process for approving permits for sellers has limited the rollout.
“The biggest supporter of the illicit shops is the fact that we don’t have enough licensed entities out there to compete with them,” said Afia, the cannabis lawyer.
