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NY AG criticizes Southampton’s cannabis regulations following the town’s effort to prevent a state-sanctioned Brown Budda dispensary

NY AG criticizes Southampton's cannabis regulations following the town's effort to prevent a state-sanctioned Brown Budda dispensary

Legal Issues with Southampton’s Cannabis Regulations

The state attorney general’s office recently described the regulations surrounding Southampton’s pot shops as “unreasonably unenforceable” and illegal, as reported by the Post.

In a letter obtained by the Post, AG Letitia James’ office stated that the town lacks the authority to impose permit, fee, and zoning barriers that conflict with state cannabis laws.

This correspondence, sent on November 28 to U.S. District Judge Joanna Seibert, pertains to an ongoing lawsuit between the upscale town and the Brown Buddha cannabis dispensary that has opened despite local opposition.

Southampton is accused of adjusting local zoning codes to obstruct the establishment of the dispensary. Additionally, there are claims that the town attempted to charge Brown Buddha around $40,000 for a sidewalk deemed unnecessary by those familiar with the situation as well as the AG’s letter.

The letter also mentions that a specific section of Southampton City Code, §330-162.26, is “preempted and invalid.”

“The New York State Cannabis Control Commission has determined that this provision would make the operation of licensed retail cannabis dispensaries ‘unreasonably impracticable,'” it noted.

This part of the municipal code imposes 17 extra rules on already licensed dispensaries, which encompass costly special permits, restrictions on distances, design specifications, zoning limitations, and other requirements that do not apply to other businesses in the town.

Back in October, the Cannabis Control Board (CCB) had already revoked many of the town’s excessively strict measures aimed at discouraging the opening of legal dispensaries.

Furthermore, state regulators intervened regarding the town’s attempts to control weed deliveries within its limits, asserting that such authority was “completely outside the city’s realm.”

Despite the CCB’s ruling, the town still claimed that Brown Buddha was liable for constructing a $40,000 sidewalk in front of its location on the east end near the highway.

The AG’s office emphasized that the town’s ordinance contradicts both the Cannabis Act and its regulations, imposing restrictions beyond those mandated by state law. This ultimately hampers the state’s ability to maintain uniform regulations for cannabis licensing.

CEO of Brown Buddha, Marquis Hayes, opened the store on November 12 without securing city approval, challenging local authorities and opting not to construct the sidewalk. This bold move has now led to renewed court involvement, prompting the AG’s recent letter.

Representatives for Brown Buddha have argued for some time that the town’s requirements are merely a tactic to stall and potentially close the store, which has reportedly lost millions.

According to state regulators, the Brown Buddha location was approved and granted a full retail license in 2022, indicating that the site met all necessary requirements set by New York state law.

The town attorney, Jim Burke, did not respond to requests for comment.

A spokesperson for Brown Buddha pointed out, “At least two years have been taken away from Brown Buddha.”

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