Over a hundred cannabis dispensaries in New York State have found themselves in a bind after a governmental miscalculation regarding their proximity to schools, as reported by CBS News New York. According to the Office of Cannabis Management (OCM), they incorrectly measured distances from dispensaries to school entrances instead of property lines, leading to potential closures or relocations for impacted businesses. Governor Kathy Hochul expressed her frustration with what she termed an "unacceptable oversight," vowing to take immediate action to assist store owners affected by the gaffe.
The OCM's error implicates 152 businesses in total, including 105 licensed shops and 47 applications that are still pending. Confirmed by a recently released memo from OCM director Felicia Reid, the state's failure to correctly apply the 500-foot distance requirement could force nearly 60 already operating stores to relocate or shutter entirely. This legislative blunder appears likely to particularly disrupt the cannabis infrastructure within New York City, where 88 of the affected shops reside. Gov. Hochul and the OCM have stated they will be advocating for new state legislation to address the issue, as conveyed in an article from the New York Post.
Critics of the OCM's oversight have not held back their disapproval. Assemblyman Ed Ra criticized the agency for what he characterized as a series of ongoing problems and took issue with the basic failure to appropriately measure the distance from pot shops to schools. "This was put into the law. Five hundred feet was supposed to protect students. And they didn't take it seriously. They didn't even measure it right," North Hempstead Town Supervisor Jennifer Desena told CBS News New York. Conversely, there is support from legislators such as Sen. Liz Krueger (D-Manhattan), a key author of the Marijuana Regulation and Taxation Act of 2021, who has committed to pushing amendments through to rectify the situation and safeguard the interests of the cannabis retailers.
The repercussions of the flawed decisions threaten the renewal of two-year licenses for affected operators, unless the proposed legislative changes are adopted. "Importantly, although the Governor’s Office and OCM will actively advocate for legislative redress, passage of proposed legislation is the prerogative of the New York State Legislature and is not a guarantee," Reid cautioned in her memo. To somewhat ease the financial strain, the OCM, in collaboration with Empire State Development, has put together a $15 million fund to aid businesses needing to cover expenses or relocate. Dispensaries can apply for up to $250,000, although Reid acknowledges this as only a "solid first step" in the memo obtained by the New York Post.
“Under Governor Hochul’s leadership, New York has strengthened its nation-leading cannabis market by addressing any problems created by previous agency leadership – and that work continues today as we correct this unacceptable oversight,” a spokesperson for Hochul's office stated. Meanwhile, cannabis store owners are left to adapt quickly to the changing regulations, as the state government works to ensure the billion-dollar industry remains equitable and complies with the intent of the law, as reported by the New York Post.
