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NYC Pushes Unlicensed Cannabis Enforcement to Landlords

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In April 2023, New York City Councilmember Lynn C. Schulman introduced a bill to the City Council which would prohibit landlords from leasing to a commercial tenant engaged in the unlicensed sale of cannabis. After being approved by the Committee on Public Safety, the bill was sent to, and also approved by, the full Council on Thursday, June 22nd. It will now be sent to the desk of Mayor Eric Adams, who has 30 days to either sign the bill and enact it into law, or veto it.  Meaning NYC is looking at pushing unlicensed cannabis enforcement to landlords.

If enacted, the bill would send city inspectors to suspected unlicensed cannabis stores, which currently number in the thousands. If the inspector finds that illegal cannabis is being sold on premises, the landlord would face a fine between $5,000 and $10,000. A second inspection would later take place, and if the landlord can provide proof that eviction proceedings have begun since the first inspection, the fines may be avoided. Along with the state agencies currently authorized to inspect for relevant violations, the bill would allow the mayor to designate any state agency to inspect for such. While the levying of fines against landlords could significantly reduce unlicensed cannabis stores, a certain provision of the bill may allow for a loophole to be exploited by these unlicensed stores, as further discussed below.

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Actions against the illicit businesses themselves have already begun in earnest, as Governor Kathy Hochul granted the Office of Cannabis Management (OCM) with enforcement powers newly backed by the state’s FY 2024 Budget. The timing of the bill’s approval coincides with the Governor’s report that nearly $11 million worth of illicit cannabis products have been seized throughout the state so far. The additional step of fining landlords who knowingly rent to unlicensed operators has long been proposed as a deterrent against the illicit market.

The Existing Markets

New York effectively has two cannabis industries: the legal one, born of the Marihuana Regulation and Taxation Act (MRTA) in March 2021, and bound by the OCM’s rigid regulatory framework, and the illegal one, which is vastly larger, older, and unfettered by the restrictions placed on legitimate licensees, including the payment of taxes, and public safety prohibitions on operating in sensitive locations or selling to minors.

Long before the first state-licensed dispensaries opened their doors, it was clear that the two industries could not truly coexist. The unlicensed marketplace (AKA the legacy market, the gray/black market) has opportunistically exploded since the MRTA legalized cannabis throughout the state, and has continued to proliferate at light speed when compared to the legal market, the rollout for which has crawled sluggishly forward under the weight of bureaucracy. Even one of the states with the longest running legal adult-use (recreational) cannabis program, California, sees up to $8 billion in illegal sales every year, generating significantly more revenue than the legal market.

RELATED: Unlicensed Shops in NYC Are Doing Better Than The Naked Cowboy

In response, politicians at every level of state government have proposed some sort of landlord accountability. The idea is that if landlords are discouraged from entering leases with these businesses or punished for having done so, operators will be unable to secure the necessary space or, in the event that they already signed a lease, will face eviction. In either event, these illicit operators will be forced to consider going entirely underground, closing their doors or, perhaps, will consider entering the legal marketplace and obtaining a dispensary license. For many legacy operators, the latter may not be realistic. New York was the first state in the nation to prioritize justice-involved license applicants through its Conditional Adult-Use Retail Dispensary (CAURD) program. But nearly two and a half years after MRTA passed, and with thousands of adult-use cannabis applications submitted, there are only a handful of legally compliant dispensaries open for business in New York.

Landlords who lease space to unlicensed operators cannot plead ignorance to avoid fines. It was initially believed that a landlord could not lease directly to a CAURD license holder, but rather would enter into a lease with the Dormitory Authority of the State New York (DASNY), which would then sublease the space to the license holder. The difficulty in locating and securing compliant premises has led to the OCM approving locations for non-DASNY controlled premises. Both DASNY leases and these stand-alone leases, which Falcon Rappaport & Berkman has extensive experience with, are explicit in their structure and purpose. For these unlicensed stores, landlords across the city enter into non-DASNY leases with tenants who conspicuously advertise THC products for sale. Under the proposed bill, these landlords would be at high risk of enforcement action, particularly after a city agency warning letter which could disallow any landlords’ claims of ignorance.  Falcon Rappaport & Berkman can assist Landlords in drafting leases with more robust use restrictions to discourage unlicensed cannabis sales and ease eviction actions in the event such illegal use has occurred.

RELATED: California or New York – Which Has The Biggest Marijuana Mess?

Unforeseen Consequences

Fining commercial landlords and/or encouraging them to evict illicit cannabis tenants is a predictable step in the implementation of New York’s legal cannabis market. Without it, legitimate license holders will continue to be at a disadvantage in the industry, and neither consumers nor the general public will reap the benefits of a well-regulated marketplace.

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However, the way in which we fine these commercial landlords, or enact other enforcement action, must be carefully examined. A provision of the proposed bill, section C.1., specifies that written notice following an inspection (and presumably any future fines) are only for a property that is used to sell illicit cannabis products and “is not occupied for any other licensed or lawful purpose.” While the bill may still result in fines against landlords of unlicensed cannabis stores, this provision means that if the premises is used for another lawful purpose, these fines against the landlords may not apply. The existing unlicensed market consists of not only stand-alone cannabis stores, but of bodegas and convenience stores selling cannabis products, the landlords of which will likely avoid penalties under this proposed bill.

The complexity and adaptability of the unregulated market should not be underestimated. If enacted, this bill will hinder some significant competitors to adult-use dispensary licensees, but will be far from addressing the entire unregulated market in NY. Frequent reassessment of enforcement action and well-crafted policies will be necessary to ensure a flourishing New York adult-use cannabis industry.

Michael A. Curatola, Esq. helped co-author this article along with contributions from Andrew P. Cooper, Esq., LL.M., and Ariel S. Holzer, Esq. 



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Can Marijuana Help Cholesterol – The Fresh Toast

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Alcohol has some negative side effects, but cannabis could have one positive health benefit – it might help your good cholesterol.

In the late 1980s cholesterol test became come as the impact of it on the body and heart was becoming more evident. Research shows good cholesterol (HDL) helps remove excess cholesterol from the body, while “bad” cholesterol (LDL) can build up in arteries, potentially leading to heart disease. Alcohol and tobacco are known to be rough on the body, but can marijuana help cholesterol?

RELATED: Could Medical Marijuana Help Pope Francis

Marijuana’s potential impact on cholesterol is an emerging area of research, offering both promising insights and areas for further exploration. While studies have yet to reach definitive conclusions, evidence suggests that cannabis may influence cholesterol levels in ways that could benefit cardiovascular health under certain conditions.

Cannabis contains cannabinoids like THC and CBD, which interact with the body’s endocannabinoid system. This system plays a role in regulating various physiological processes, including lipid metabolism. Some studies have indicated that marijuana use might improve cholesterol profiles by increasing high-density lipoprotein (HDL), commonly known as “good cholesterol.” For instance, research published in BMJ Open found that marijuana users had elevated levels of HDL cholesterol, which is associated with better cardiovascular health.

Moreover, cannabis has demonstrated anti-inflammatory properties and the ability to regulate blood glucose levels. These effects can indirectly support heart health by reducing risk factors associated with high cholesterol, such as diabetes and obesity. Additionally, cannabinoids like CBD may help protect the heart from oxidative stress and inflammation, further enhancing cardiovascular health.

RELATED: The Science Behind Why Music Sounds So Much Better When You’re High

Cannabis has also been linked to weight management benefits, which can positively impact cholesterol levels. Studies have shown that marijuana use may reduce abdominal fat and improve metabolic parameters. Since obesity is a major contributor to high LDL cholesterol levels, these findings suggest that cannabis could play a supportive role in maintaining healthy cholesterol levels.

While some studies highlight potential benefits of cannabis for cholesterol and heart health, others caution against its risks. Daily marijuana use has been associated with an increased risk of heart failure and other cardiovascular issues. However, research also indicates that cannabis may reduce the risk of atrial fibrillation and improve outcomes following heart attacks.



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Food Asphyxiation Is Way More Dangerous Than Cannabis

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Food asphyxiation is in the news today – and is WAY more dangerous than marijuana.

Food asphyxiation is in the news again. In the US alone, approximately 5,000 – 5,500 people die from choking on food or other objects annually. Factors like living alone, having dentures, difficulty swallowing, and certain foods (like bananas, marshmallows, or gelatinous candies) can increase the risk of choking. These numbers highlight the persistent danger of food asphyxiation and the need for increased awareness and prevention measures. And yet, it is really mention in the media or Congressional reviews. But food asphyxiation is way more dangerous than cannabis.

RELATED: Is GERD Helped By Cannabis

Food asphyxiation, commonly known as choking, claims a significant number of lives each year. The elderly population is most at risk, with 90% of food-related choking deaths in 2022 occurring in individuals over 50 years old. This statistic underscores the importance of proper care and attention for older adults during meal times. These numbers highlight the persistent danger of food asphyxiation and the need for increased awareness and prevention measures.

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In contrast, deaths directly attributed to marijuana overdose are extremely rare and there is no documented case of fatal overdose from natural marijuana alone. This stark difference in mortality rates between food asphyxiation and marijuana use is noteworthy.

The disparity between food asphyxiation and marijuana overdose deaths is striking. While hundreds die each year from choking on food, marijuana overdose fatalities are virtually non-existent when considering natural marijuana use.

These findings suggest public health efforts might be disproportionately focused on substances with lower mortality rates while overlooking more common dangers like food asphyxiation. Increased education on proper eating habits, especially for at-risk populations like the elderly, could potentially save more lives than efforts to prevent marijuana overdoses.

To prevent choking, listen to your mom’s advice – eat slowly and throughly, cut food into bite size pieces, and don’t talk with your mouth full. And be mindful of food which may have small pieces or tiny bones.



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Outdoor Marijuana Grows Are Better All The Way Around

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Despite the massive investment by some in the industry, outdoor grows are the healthier, cleaner option

Like fruits and vegetables, outdoor floors yield the richest flavor and the least expensive products. The same can be said about cannabis, outdoor marijuana grows are better all the way around. When the industry started becoming legal, hundreds of millions were invested in indoor grow with the assumption cost per pound would stay high. Companies like Tilray built massive indoor grows, but over time they have caused expensive upkeep, high consumer prices, and upset neighbors. And do they produce the best cannabis? By leveraging natural resources like sunlight and soil, this method reduces environmental impact, enhances product quality, and fosters community harmony.

RELATED: Music Is A Turn On Like Sex And Marijuana

Outdoor cannabis cultivation drastically lowers greenhouse gas emissions compared to indoor growing. Research shows outdoor farming can emit up to 50 times less carbon dioxide than indoor production, which relies heavily on artificial lighting, air conditioning, and dehumidifiers. Additionally, outdoor grows eliminate the need for energy-intensive equipment, reducing electricity consumption and promoting sustainability. Water conservation is another key advantage; outdoor farms often use natural rainwater or precision watering techniques, minimizing waste. Furthermore, the absence of chemical fertilizers in many outdoor setups helps protect local ecosystems from pollution.

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Outdoor growing is more cost-effective for both producers and consumers. It eliminates expenses associated with indoor cultivation—such as high electricity bills and specialized equipment—making cannabis more affordable. For home growers, cultivating outdoors fosters a connection with nature while empowering individuals to produce their own medicine sustainably.

Sun-grown cannabis benefits from exposure to full-spectrum natural light, enhancing its terpene profiles and cannabinoid production. This results in richer flavors, aromas, and potency that indoor setups struggle to replicate. Outdoor cultivation also allows plants to grow larger and healthier due to unrestricted space and access to diverse soil nutrients. This translates to higher yields and better-quality products for consumers. Additionally, outdoor-grown cannabis often develops unique characteristics influenced by the local terroir, offering a diverse range of experiences akin to wine production.

Outdoor marijuana farms are less disruptive to neighborhoods compared to indoor facilities. Indoor grows often require extensive infrastructure upgrades, leading to increased energy demand and noise pollution from machinery. There has been an uprising by some local governments about the grows.

RELATED: The Science Behind Why Music Sounds So Much Better When You’re High

In contrast, outdoor farms blend harmoniously with their surroundings, relying on natural processes rather than artificial systems. Moreover, outdoor cultivation supports local biodiversity by integrating companion plants that deter pests naturally and enrich the soil.

While outdoor cultivation is environmentally friendly, it poses challenges such as susceptibility to pests and weather fluctuations. However, solutions like greenhouses can provide controlled environments while retaining the benefits of natural sunlight. Choosing resilient strains adapted to local climates further ensures successful harvests.



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