In New York, the Office of Cannabis Management's recent reinterpretation of a school-proximity regulation has catalyzed a legal battle with twelve cannabis dispensaries filing a lawsuit against the state, a change that has been described as carrying potential "catastrophic" consequences for those businesses. As reported by the Gothamist, dispensaries currently violating the new guideline, which expands the buffer zone from a school’s entrance to its property line, are now under urgent pressure to relocate in order to obtain license approval or renewal.
The litigants contend that the sudden change has compromised their significant investments and the trust they placed in the state’s initial approval of their business locations. Having complied with the previous regulation, the shift from measuring distance from school entrances to property lines felt like an unexpected reversal for many businesses, most of which had already invested heavily, with some spending over a million dollars on renovations and having begun operations, according to a related article from AM New York.
Jorge Vasquez, attorney for the plaintiffs, told the Gothamist, "This is way more than just financial harm to small businesses. This goes beyond money. This is time. This is resources. This is energy. This is building relationships with communities." Plaintiffs maintain that the change was not only financially detrimental but also legally indefensible, asserting that it violates the State Administrative Procedure Act by skipping the required "notice-and-comment" period and infringes on due process and equal protection rights.
While the state has recognized the challenges faced by affected applicants with a $15 million relief program to help secure new locations, Gov. Kathy Hochul’s spokeswoman, Kristin Devoe, stated, "the governor has been clear that she will work with the Legislature to ensure these hardworking businesses are able to continue to operate without interruption." The statement indicates the state’s plan to collaborate with lawmakers regarding the dispensaries affected by the regulatory changes, as Gothamist reported.
