New York Governor Kathy Hochul said cannabis dispensaries in her state won't be forced to shut down due to recent zoning changes from the Office of Cannabis Management (OCM).
The agency 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 and another 47 retail applicants who applied under current criteria and are still awaiting their licenses could also be impacted.
Now Hochul is pledging that the mix-up won't permanently put anyone out of business.
“The Governor has made it absolutely clear: existing dispensaries will not be punished for the failures of past OCM leadership,” a spokesperson for the Governor said in a statement obtained by AMNY. “At her direction, the State is taking immediate action to support cannabis store owners impacted by this issue. We are laser-focused on making sure these small business owners, who have poured their heart and soul into these shops, aren’t left paying the price for the previous leadership’s screw-up.”
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.
The majority of the impacted licensees are in New York City.
