New York City Hall.
The New York City Council has approved legislation that would allow city regulators to suspend, revoke or refuse to renew tobacco and electronic cigarette retail licenses when businesses are found to have illegally sold cannabis.
The council approved Introduction 813-A on September 10, sending the measure to the mayor’s desk for signature. The proposal is sponsored by Councilmember Harvey Epstein and has 25 council sponsors.
Under the bill, the commissioner of the Department of Consumer and Worker Protection could take action against a tobacco retail dealer license if the license holder, or certain people associated with the business, is found to have violated state cannabis law by selling or distributing cannabis, cannabis products or medical cannabis without the required authorization.
The same authority would apply to electronic cigarette retail dealer licenses.
The legislation also specifically covers what New York law considers indirect retail sales of cannabis. Such violations could become grounds for tobacco or electronic cigarette licensing action regardless of whether the business has obtained a cannabis registration, license or permit.
Before a tobacco or electronic cigarette license could be suspended, revoked or denied renewal under the measure, the license holder would be entitled to notice and an opportunity to be heard.
The proposal was amended and approved by the Council’s Committee on Consumer and Worker Protection on September 9 before receiving approval from the full council the following day.
The legislation would also require the Department of Consumer and Worker Protection to conduct outreach informing affected businesses about the new grounds for licensing action. That outreach would be available in English and the city’s designated citywide languages.
If signed into law, the measure would take effect immediately.
