Four licensed cannabis stores in the city have sued the state, claiming cannabis regulators violated the law by not protecting their turf.
The law states that licensed stores cannot be located within 1,000 feet of each other in the Big Apple, a regulation aimed at limiting competition.
Buffer zone exemptions are based on strict criteria and granted only on the basis of “public convenience and interest”, and regulators appear to rely on this exception when granting other licenses.
The civil suit was filed Thursday in Manhattan State Supreme Court by Actualize Dispensary, Astro Management, Rhodes LLL, and R&R Remedies, all licensed marijuana dispensaries operating in Manhattan and Brooklyn.
Legitimate sellers say Albany bureaucrats blow smoke on them with empty promises and give them the dough by approving waivers for competitors in the zone “without notice, analysis, public discussion, or due process.” , and perhaps at the expense of their livelihoods.
The exemption allowing other cannabis dispensaries to locate within the 1,000 buffer would “detract customers, reduce sales, and jeopardize appellants' ability to pay exorbitant rents and other financial obligations.” and expose you,” the lawsuit states.
The state Office of Cannabis Control and the Cannabis Control Commission, overseen by Gov. Kathy Hochul, are named as defendants.
“The CCB’s recent public accommodation exemption for applicants seeking to open a dispensary less than 1,000 feet from Astro Management’s already closely protected locations places us in an untenable position. “We are just weeks away from launch,” said Jillian Dragutsky, CEO of Astro Management, located at 292 Atlantic Avenue. Brooklyn.
“It’s like the rug was pulled out from under us without any notice or reason.”
According to the complaint, the Cannabis Control Commission approved another cannabis sales company, Buzzy's, to operate 956 feet from Astro's dispensary.
There are currently 283 licensed cannabis stores in the state, and regulators expect that number to more than double to 625 by the end of 2025.
Backlogs and other litigation have slowed the rollout, but cannabis industry insiders are now bullish that New York's legal cannabis market is in full swing.
However, many current cannabis licensees are concerned that allowing too many exemptions to the 1,000-foot buffer zone will overwhelm cannabis stores and cause them to close.
Thirty-eight other licensees have signed affirmations in support of the lawsuit. Combado, Housing Works Cannabis Company, Terp Brothers, Flowery Soho, Trend, Five Boroughs Cannabis, Travel Agency Union Square, and Alta Dispensary.
“The CCB continues to act capriciously and in violation of its own proximity regulations,” said the CEO of Cannabis Place dispensary in Middle Village, Queens, and retired president of the Cannabis Association and National Hispanic Association. said Osbert Orduña, co-president of the Military Association. Tri-State Chapter of the Cannabis Council.
“By issuing arbitrary exemptions, these agencies are undermining the very communities they claim to support. We urge CCB and OCM to provide opportunities to different classes of licensees. We want it to stay true to its original intent of delivering.”
Before New York's first legal marijuana dispensary opened, lawmakers recognized the need to avoid crowding and excessive competition among dispensaries, which led to the 300-foot separation requirement.
Cannabis industry advocates say it's important to keep distance between cannabis stores because despite a major crackdown on the black market last year, there are still many illegal stores selling cannabis.
Exemptions from the 1,000-person buffer zone should be rare, they argue.
“The recent decision by the CCB to violate proximity protections for some cannabis retailers could jeopardize the viability of those stores,” said Britni Tantallo, president of the New York State Cannabis Retail Association.
He said a more rigorous process is needed to justify exemptions, and the state Liquor Board's rules for bars and liquor stores are a good model to follow.
OCM said Friday that it does not comment on pending litigation.
