What were they smoking?
Dozens of legal pot shops in New York could be forced to shut down — because of a dopey mistake by state cannabis officials, The Post has learned.
The Office of Cannabis Management, in a Monday memo, bluntly admitted it miscalculated the distance between the licensed weed sellers and schools, which must be 500-feet apart under state law.
“This impacts 152 businesses: 105 licensees (about 60 are open and operating stores) and 47 pending applications,” OCM director Felicia Reid said in the memo.
Of the affected pot businesses, 88 are in New York City.
OCM measured compliance as ranging from the entrance door of a school to the entrance of a marijuana shop, misapplying the 500-foot distance requirement.
But under the law, the distance should be measured from the entrance of a pot shop to the beginning of the “property line” of a school — not its door.
The measurement previously used by cannabis regulators “does not align with cannabis law,” Reid fessed up in the memo.
OCM and Gov. Kathy Hochul will request new state legislation to amend the marijuana law to fix the mess, or else the licensed pot sellers’ businesses could go up in smoke — conceivably having to shut down or relocate.
“This legislation would permit licensees to remain at their current location,” Reid said in the memo.
Reid said her office conducted a legal review of the decisions that took place before she headed the agency, and discovered the goof.
“The legislation would essentially grandfather in affected dispensaries that were approved under prior guidance, so they’re not punished for mistakes they didn’t make,” said Joe Rossi, a cannabis consultant with Modern Advocacy.
Critics slammed cannabis regulators for the latest mistake, arguing they must be glassy-eyed.
“This program has been a disaster from the start and despite changes in leadership at OCM, this is yet another black eye. Governor Hochul recently said she wishes she had more control over New York’s schools yet her administration can’t even follow a law properly to keep pot shops away from New York’s children,” said Assemblyman Ed Ra (R-Nassau).
Assemblyman Matt Slater (R-Putnam) said, “It is laughable for the governor to claim that she has righted the ship at OCM, when her own administration is breaking its own law so more drugs can be sold near our schools.”
There are 436 licensed cannabis stores throughout the state, nearly half in New York City.
Sen. Liz Krueger (D-Manhattan), a key author of the Marijuana Regulation and Taxation Act of 2021, said she will push for the amendment to correct the agency screw-up and protect pot merchants.
“They just brought it to me today. I will try to move legislative amendments in January,” Krueger said.
Cannabis operators impacted by the school distance requirement blunder will not have their two-year licenses renewed when they expire — unless the legislature approves the changes.
“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. Given this risk, and that OCM cannot renew licenses at locations that do not comply with Cannabis Law, licensees will need a new Cannabis Law-compliant location before OCM can finalize license renewal,” Reid said.
One New York City cannabis operator, who received the letter, said, “This is in Hochul’s lap. She hand-picked people to run the agency and potentially thousands of people could lose their jobs.”
“It’s a complete cluster-f–k. This is insane,” the pot merchant, who requested anonymity, fumed.
Reid said the governor’s office, OCM, and Empire State Development have coordinated to provide a $15 million fund to aid licensees whose approved locations are no longer considered legal.
Under the program, impacted licensees can apply for up to $250,000 to cover expenses or to relocate.
“While this may not fully alleviate all burdens that you may face due to this change, I hope that it is a solid first step in re-establishing trust between you and OCM. I recognize all that you have put into being a part of New York’s cannabis industry and assure you that OCM will continue to make every effort to make this industry more accessible and equity-driven, while following the letter of the MRTA,” Reid said.
For her part, Hochul’s office said the governor immediately addressed the “unacceptable oversight” involving the siting pot shops near schools.
“Under Governor Hochul’s leadership, New York has strengthened its nation-leading cannabis market by addressing any problems created by previous agency leadership – and that work continues today as we correct this unacceptable oversight,” a Hochul spokesperson said.
“The State is taking immediate action to support any cannabis store owners impacted by this issue, and the governor will continue to ensure that New York’s billion-dollar cannabis industry remains the most equitable adult-use cannabis market in the country.”
