New York is facing ongoing challenges in the cannabis sector.
This week, licensed cannabis store operators are feeling the heat after the Hochul administration imposed new restrictions.
Frustration has increased as nearly 100 dispensaries, including 60 currently in operation, learned on Monday from the state’s cannabis authority that they can’t continue at their existing locations. The reason? A miscalculation regarding the distance from schools and churches.
“It’s just terrible,” expressed Brittany Tantaro, the president of the Cannabis Retail Association in New York.
“People are really asking how this could surprise us. Without a proper fix, it’s just going to get worse.”
The Office of Cannabis Management mentioned in a letter that they are actively seeking legislation to effectively grandfather these businesses into compliance. However, sources indicated to the Post that Hochul has dropped genuine efforts to address the issue until next year’s legislative sessions.
“We can’t wait until January,” Ozbert Orduna, owner of Cannabis Place in Middle Village, Queens, told the Post.
Orduna’s license is due for renewal, which means if he can’t remain at his current site, he may have to let go of his employees without any immediate alternative.
“We could be forced to close and put 30 people out of work,” he lamented.
Aaron Alexis also received an email from OCM stating he needs to locate a different site due to the updated distance requirements.
“I’m right next to an alcohol store, and I think that’s an acceptable distance from the school, but am I too close?” Alexis questioned, clearly feeling overwhelmed.
Officials from Hochul’s office are reportedly exploring options under existing laws to manage store renewals that will expire before the next legislative session in January.
Tantalo noted that relocating cannabis operations isn’t a trivial matter; some operators have invested over a million dollars to start their businesses.
“Everyone’s puzzled by how this came out of nowhere. If there’s no solution, it’s just going to hurt us,” she added.
This recent turmoil comes in the wake of New York State’s sluggish rollout of legal marijuana. Licensing has been gradually granted to numerous grey market and unlicensed shops, which have faced ongoing openings and closures.
Legalization has led to disputes from individuals arguing that past criminal histories and licensing preferences for veterans have been mishandled.
“They’re creating issues from thin air. This seems like a solution looking for a problem,” remarked former OCM spokesman Aaron Gitelman about the recent upheaval.
He expressed disbelief at how the cannabis industry could face such upheaval without a direct push from lawsuits or the court system.
“It’s a complete embarrassment,” stated Congressional minority leader Will Barclay (R-Oswego) in a statement.
“Just think about a new business owner trying to navigate the state’s troubled rollout and licensing, only to be forced to shut down because the Hochul administration can’t get its act together.”
