New York accidentally let more than 100 cannabis retail locations open too close to schools. Now those businesses may have to move, and it could cost the city millions.
New York’s Office of Cannabis Management (OCM) said it recently identified that the process by which it has been assessing adult-use retail dispensary location distance requirements relative to schools, first established in 2022, is not consistent with current cannabis laws. The current rules mandate that no cannabis retail licensee is allowed to set up shop within 500 feet of a school grounds.
The OCM said the assessment error impacts 105 retail licensees who applied under the current criteria and were awarded licenses, and that more licensees could still be identified. Another 47 retail applicants who applied under current criteria and are still awaiting their licenses could also be impacted.
The majority of the impacted licensees are in New York City.
The New York Governor’s Office and OCM said they will be “proposing and aggressively pursuing legislation” that would allow impacted licensees to remain at their present licensed location, but warned that plan may fail.
“Importantly, passage of proposed legislation is the prerogative of the New York State Legislature and is not a guarantee,” the OCM wrote in a notice, noting that if the measure doesn’t pass, applicants will be required to find new locations before moving ahead in the application process.
For current applicants who may have to find a new retail location to complete the application process, the state is creating a $15 million Applicant Relief Program. Impacted applicants can seek coverage up to $250,000 to help cover expenses related to finding a new location, and/or location acquisition or capital improvements made to their original location.
