NYC Cannabis Dispensaries, Including the Family-Owned One in Tribeca, Facing Uncertainty after Legal Misstep; Hochul Pledges No Closures as Legislators Work on a Solution
In a recent turn of events, Governor Kathy Hochul has promised to support cannabis store owners impacted by a technicality in New York's proximity rules, ensuring that 89 licensed dispensaries in New York City, and many more statewide, will not be forced to shut down [1].
One of the affected businesses is Alto, a family-run dispensary in Tribeca, which has been notified that they are out of compliance due to a miscalculation of fewer than 20 feet [2]. Similarly, Budies, a CAURD licensee in Brooklyn, has initiated a lawsuit against the Office of Cannabis Management (OCM), claiming that the agency's rescission of its previously approved location was improper and illegal [3].
The OCM has admitted to using an incorrect method to assess the dispensary's distance from school grounds, measuring from entrance to entrance. Under the corrected approach and stricter interpretation of the 2021 Marijuana Regulation and Taxation Act, OCM is now measuring the distance as a straight line from the dispensary's main entrance to the nearest school property line [4].
Governor Hochul has expressed her anger about the impact on small businesses and has directed the OCM to find a resolution "with the least amount of harm possible." She has also stated that she would like to grandfather in current dispensaries through an exemption to the current proximity statute [1].
To alleviate the financial burden on affected applicants who have not yet opened, Governor Hochul has created a $15 million applicant relief program, offering up to $250,000 in assistance [1]. The State Administrative Produce Act allows current license holders to operate under the expired license if they submit their renewal application "timely and sufficient" [5].
The OCM is actively pursuing legislation that would allow affected licensees to remain at their current locations. However, the passage of the proposed legislation is at the discretion of the state Legislature and not a guarantee [1]. If the Legislature does not amend the law or amends the law in a fashion that does not remedy a license location's noncompliance with the Cannabis Law, the renewal application must be denied [6].
The OCM has also released an advisory assuring current license holders that no renewal decisions will be made until lawmakers can consider a fix, possibly at the beginning of next year [5]. As the legal disputes continue, it is clear that the cannabis industry in New York is facing significant uncertainty and financial implications.
References:
- Newsday
- Gothamist
- Marijuana Business Daily
- The City
- Office of Cannabis Management
- Marijuana Moment
In the midst of these legal battles, Governor Hochul has proposed a legislative amendment to exempt current dispensaries from the proximity rules, aiming to safeguard their operations [1]. Additionally, scientific research is crucial to understanding the potential health-and-wellness benefits of cannabis products, as well as addressing any medical-conditions that may be alleviated by their use. [Your sentences]
