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New York, NY Business Licensing & Operations: Tobacco Retail License (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified July 2026

Key Facts

Governing law
Admin Code §§ 7-551, 7-552
Enforced by
NYC Sheriff's Office
Daily civil penalty
$100 to $10,000 per day
Cap per summons
$25,000
Enacted
2024 N.Y. Laws Ch. 55

Summary

New York City's Sheriff can inspect, seal, and padlock any storefront selling cannabis without a state license, seize its products, and issue civil summonses. Administrative Code Chapter 5-A, enacted April 2024, powers the citywide 'Operation Padlock to Protect' crackdown.

a. The office of the city sheriff shall have the authority to conduct regulatory inspections of any place of business ... where cannabis, cannabis product, or any products marketed or labeled as such, are sold ... where no registration, license, or permit has been issued pursuant to the cannabis law. ... b. The office of the city sheriff shall have the authority to: ... 2. Issue and execute an order to seal a building or premises where any person is engaged in conduct prohibited by section 7-551 ...

Full Breakdown

Administrative Code § 7-551 sets a civil penalty of $100 to $10,000 for each day of unlicensed cannabis sales, capped at $25,000 per summons, rising to a flat $10,000 on default for a missed hearing. Section 7-552 lets the City Sheriff's Office inspect any place of business selling cannabis without a license, order the premises sealed, and seize and destroy the product; a padlock hearing before the Office of Administrative Trials and Hearings follows within five business days. Stores listed in the Office of Cannabis Management's licensed directory are exempt. Cutting a posted padlock is separately punishable under Cannabis Law § 138-b.

Violations & Fines

Selling cannabis without a state license draws civil penalties of $100 to $10,000 for each day it continues, up to $25,000 per summons, plus sealing of the premises and seizure and destruction of all product.

Frequently Asked Questions

Can the Sheriff padlock a smoke shop right away?
The Sheriff can seal a shop posing an imminent threat, or one still selling without a license after a prior inspection. A hearing before OATH follows within five business days.
Are state-licensed dispensaries affected?
No. Premises listed in the Office of Cannabis Management's directory of licensed retailers are exempt from § 7-552 inspection and sealing.
What if someone removes the padlock?
Mutilating or removing a posted order, notice, or secure padlock is punishable under subdivision eight of Cannabis Law § 138-b.

Sources & Official References

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