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§ 7-552 Local authority respecting unlicensed cannabis businesses.
   a.   The office of the city sheriff shall have the authority to conduct regulatory inspections of any place of business, including a vehicle used for such business, where cannabis, cannabis product, or any products marketed or labeled as such, are sold, or offered to be sold, where no registration, license, or permit has been issued pursuant to the cannabis law. For the purposes of this subdivision, "place of business" shall not include a residence or other real property not otherwise held out as open to the public or otherwise being utilized in a business or commercial manner or any private vehicle on or about the same such property, unless probable cause exists to believe that such residence, real property, or vehicle are being used in such business or commercial manner for the activity described herein. Any such regulatory inspection shall:
      1.   only occur during the operating hours of a place of business;
      2.   be conducted for purposes of civil administrative enforcement with respect to premises lacking applicable registrations, licenses or permits issued pursuant to the cannabis law, and in furtherance of the purposes of such law, provided that nothing herein shall limit any enforcement action under law when illegal activity is observed or occurs during such inspection; and
      3.   be in accordance with procedures sufficient to ensure that any regulatory inspections are conducted in a reasonable manner, and that such procedures are administrative in nature, designed to detect administrative violations, in furtherance of the regulatory scheme established pursuant to this section, and designed to guarantee certainty and regularity of application.
   b.   The office of the city sheriff shall have the authority to:
      1.   Order any person who is engaged in conduct prohibited by section 7-551 to cease such prohibited conduct, provided that any such order to cease may only be issued against the business that is conducting the unlicensed activity or an individual owner of the business;
      2.   Issue and execute an order to seal a building or premises where any person is engaged in conduct prohibited by section 7-551 and which either poses an imminent threat as described in subdivision four of section one hundred thirty-eight-b of the cannabis law or satisfies the conditions set forth in subdivision five of such section with respect to continuation of unlicensed activity upon a subsequent inspection. Such order to seal shall be served in the same manner as section one hundred thirty-eight-b of the cannabis law. Such order to seal shall be referenced in the civil summons issued pursuant to section 7-551. When such an order and civil summons have been issued, the office of the city sheriff shall have the same powers, authorities, and responsibilities as provided to the office of cannabis management pursuant to applicable provisions of section one hundred thirty-eight-b of the cannabis law not inconsistent with this chapter, provided that the return date of such civil summons, specifying the hearing date applicable to the civil summons and the sealing order, shall be within five business days of the issuance of such summons and order, or a later date requested by the respondent in accordance with the applicable rules of the office of administrative trials and hearings. The hearing officer of the office of administrative trials and hearings shall make a determination on such civil summons, which shall be deemed a final decision of such office, and shall also make a recommendation to the office of the city sheriff with respect to whether such order to seal was properly issued in accordance with the provisions of this section. The office of the city sheriff shall thereafter make a determination with respect to continuation of such order to seal upon review of such recommendation. Such recommendation of the office of administrative trials and hearings and the determination of the office of the city sheriff shall be rendered within four business days of the conclusion of such hearing; and
      3.   Seize and destroy, consistent with applicable law, any cannabis, cannabis product, or any product marketed or labeled as such, found in the possession of a person engaged in the conduct described in paragraph one of this subdivision in their place of business, including a vehicle used for such business, where an order as set forth in such paragraph one has been issued, providing the person is the business that is conducting the unlicensed activity or an individual owner of the business, and maintain documentation of the chain of custody of such seized products, and ensure that such products are properly stored, catalogued, and safeguarded until such time as they may properly be destroyed by the city.
   c.   Mutilation or removal of a posted order, posted notice, or secure padlock that is enforced or in place pursuant to this section shall be punishable in the manner specified by subdivision eight of section one hundred thirty-eight-b of the cannabis law.
   d.   The provisions of this section shall not apply to any premises or entity that is listed in the directory maintained by the office of cannabis management pursuant to subdivision thirteen of section eleven of the cannabis law. Further, the city sheriff, or the sheriff's designee within the office of the city sheriff or another city agency, shall serve as the liaison to the office of cannabis management to ensure that updates to such directory are immediately incorporated into the local inspection process, and shall coordinate with such office on efforts to inspect unlicensed businesses and related enforcement efforts. The city sheriff or other designee shall:
      1.   send bi-weekly reports to the office of cannabis management, in the manner and format prescribed by such office, detailing recent enforcement efforts undertaken pursuant to this section, including the number and location of inspections conducted, notices of violation issued, and orders to seal issued and executed, and the amount and nature of any cannabis, cannabis products, or products marketed or labeled as such that were seized pursuant to this section;
      2.   serve as the primary contact for the office of cannabis management in connection with the training program of such office and the sharing of materials made available to the city with respect to inspection and enforcement pursuant to this section and other applicable law; and
      3.   file with the office of cannabis management any regulations and procedures developed or adopted relating to the implementation of this section and section 7-551, as well as any subsequent local laws implementing section one hundred thirty-one of the cannabis law.
      4.   The office of the city sheriff may seek to enforce such order by seeking injunctive relief, including through an action pursuant to section sixteen-a of the cannabis law.
   e.   Notwithstanding any inconsistent provision of law, the office of the city sheriff may designate personnel of other agencies of the city of New York to implement powers granted to such office pursuant to this chapter if such office determines that additional resources are necessary for the effective implementation of such powers, provided that no such designation pursuant to this subdivision shall confer peace officer status on any such designated personnel who do not otherwise have such status.
   f.   The office of the city sheriff shall establish a system for receiving complaints of unlicensed activity by any business within the city of New York.
   g.   Any orders issued pursuant to this section shall be served by delivery of the order to the owner of the business or other person of suitable age or discretion in actual or apparent control of the premises at the time of the inspection and shall be posted at the building or premises that have been sealed, secured and closed. A copy of the order shall also be mailed to any address for the owner of the business at any address provided by the person to whom such order was delivered pursuant to this subdivision. 
(2024 N.Y. Laws Ch. 55, 4/20/2024, eff. 4/20/2024)