(The Center Square) – More than 100 New York pot shops may have to relocate or shut down because the state made an error calculating their allowable distance from local schools.
The state Office of Cannabis Management notified 152 dispensaries on Tuesday that they are in violation of a state law requiring at least 500 feet from the property lines of schools or houses of worship.
That, however, differs from the distance measurements regulators took when they were first approved their licenses to open for business, which was taken from the entrances of the buildings. The state now admits that was an error with major “repercussions” for their business operations.
“I am keenly aware that this information will have repercussions for you, your business, and your community,” Felicia Reid, the agency’s deputy executive director and acting executive director, wrote to cannabis operators. “You have poured your energy, time, savings, dedication, and heart into the promise of New York’s cannabis industry. To give you this news, and for the weight of it, I am incredibly sorry.”
State regulators said while the businesses don’t need to shut down immediately, they likely won’t have their licenses renewed unless the state Legislature makes changes to the law or approves a waiver from the regulations for operators who were previously approved.
“Importantly, although the Governor’s Office and OCM will actively advocate for legislative redress, passage of proposed legislation is the prerogative of the New York State Legislature and is not a guarantee,” Reid wrote. “Given this risk, and that OCM cannot renew licenses at locations that do not comply.”
Gov. Kathy Hochul’s office has set up a $15 million fund allowing impacted pot businesses to file claims up to $250,000 to help them relocate and restart their business.
New York legalized recreational cannabis in 2021 under legislation signed by then-Gov. Andrew Cuomo, allowing cultivation and retail sales and setting up a system of taxation and regulation for the new industry. To date, about 436 retail pot shops have opened, state regulators say.
The rollout was slowed by legal challenges, including a ruling by a New York judge that halted new licenses under a program that favors people with previous drug conviction charges.
Meanwhile, illegal storefront operations proliferated amid the delays in licensing legal pot shops, prompting Hohcul and New York City Mayor Eric Adams to crack down on unlicensed sales.
To date, at least 24 states, the District of Columbia and the U.S. territory of Guam have legalized recreational marijuana, to the National Conference of State Legislatures. Thirty-eight states have medical marijuana programs.
