Mistake by cannabis office in NY could lead to closure or relocation of 152 marijuana stores

Legal Troubles for New York Cannabis Shops

What’s going on here?

A significant number of legal cannabis stores in New York may be forced to shut down because of mistakes made by state officials overseeing marijuana regulations.

In a memo released on Monday, the Cannabis Control Department acknowledged that it had miscalculated the required distance between licensed dispensaries and schools. According to state law, these establishments must be at least 500 feet apart.

OCM Director Felicia Reid noted in the memo that “This will impact 152 businesses: 105 licensed stores (around 60 of which are currently open) and 47 pending applications.”

Out of those affected, 88 businesses are located within New York City.

The Cannabis Control Department previously measured compliance incorrectly, using the distance from the entrance door of a school to that of the cannabis shop, instead of measuring from the shop’s entrance to the start of the school’s property line.

Reid pointed out that the methods previously employed by cannabis regulators “do not match the cannabis law.”

In light of this, the OCM, along with Governor Kathy Hochul, plans to push for new legislation to clarify these rules. If changes aren’t made, licensed cannabis businesses could find themselves closing up shop.

Reid mentioned that “The law will allow licensees to remain where they are,” in the memo.

She also stated that her office reviewed previous decisions and recognized the oversight made before she took the helm at the agency.

“The law isn’t designed to penalize businesses for mistakes they didn’t cause, as the shops affected will essentially be grandfathered in under the earlier guidance,” Reid added.