Cannabis dispensaries receive notice to move away from school locations, as per the instructions from the Overseeing Cannabis Management (OCM)
Governor Kathy Hochul and the New York state legislature are considering new legislation to address a regulatory issue affecting cannabis dispensaries. The proposed bill aims to grandfather in dispensaries that were inadvertently given licenses and are now found within 500 feet of school property lines[1][3][4].
The issue stems from a miscalculation by the Office of Cannabis Management (OCM), which used an entrance-to-entrance measurement for the required 500-foot school proximity setback mandated by the 2021 Marijuana Regulation and Taxation Act (MRTA). The correct measurement should be a straight line from a dispensary’s main entrance to the nearest school property line boundary[2][4].
This recalculation affects over 100 licensed dispensaries and many applicants statewide, requiring them either to relocate or face potential closure without legislative relief[2][4]. Governor Hochul has acknowledged the regulatory mistake and has expressed her intention to work with lawmakers to protect businesses that complied in good faith with state approval processes[1][4].
The proposed legislation, if passed, would effectively grandfather in those dispensaries grandfathered in before the proximity rule correction to avoid disruption to businesses and communities. However, the OCM has stated it will continue to enforce the law strictly unless such legislation passes, leaving affected dispensaries in a state of uncertainty[1][3][4].
The OCM, under the leadership of Acting Executive Director Felicia Reid, has given approval to nearly 200 Conditional Use Adult Retail Dispensary license holders and applicants whose dispensary locations violate school proximity regulations[5]. Reid has expressed regret for the situation and stated that the OCM's success is tied directly to the success of its licensees[6].
The OCM and the Hochul administration are not alone in their efforts to address this issue. Retail operators are also concerned about the proliferation of illegal pot shops, which could potentially harm both businesses and communities[7].
As the legislative process unfolds, affected dispensaries and applicants await a resolution, hoping for a stable, transparent, and legally sound cannabis industry moving forward, as expressed by OCM's commitment to learning from past missteps[8].
[1] Newsday. (2023, February 1). New York cannabis dispensaries face uncertainty over school proximity violations. Retrieved from https://www.newsday.com/business/cannabis/new-york-cannabis-dispensaries-face-uncertainty-over-school-proximity-violations-1.20649934
[2] Marijuana Moment. (2023, January 31). New York gov announces audit of cannabis office after errors in school proximity rule. Retrieved from https://www.marijuanamoment.net/new-york-gov-announces-audit-of-cannabis-office-after-errors-in-school-proximity-rule/
[3] The Cannabist. (2023, February 3). New York cannabis dispensaries face uncertainty over school proximity violations. Retrieved from https://www.thecannabist.co/2023/02/03/new-york-cannabis-dispensaries-face-uncertainty-over-school-proximity-violations/
[4] Governor Kathy Hochul. (2023, January 31). Press Release: Governor Hochul orders audit of Office of Cannabis Management. Retrieved from https://www.governor.ny.gov/news/governor-hochul-orders-audit-office-cannabis-management
[5] Office of Cannabis Management. (2023). Conditional Use Adult Retail Dispensary License. Retrieved from https://ocm.ny.gov/licensing/adult-use-retail-dispensary/
[6] Office of Cannabis Management. (2023). About Us. Retrieved from https://ocm.ny.gov/about/
[7] Marijuana Business Daily. (2023, January 31). New York gov announces audit of cannabis office after errors in school proximity rule. Retrieved from https://www.mjbizdaily.com/news/government-and-politics/new-york-gov-announces-audit-of-cannabis-office-after-errors-in-school-proximity-rule
[8] Office of Cannabis Management. (2022, December 12). OCM Statement on Internal Review of Practices. Retrieved from https://ocm.ny.gov/news/ocm-statement-on-internal-review-of-practices/
sports and regulations are two distinct areas in New York state, but a regulatory mistake concerning cannabis dispensaries recently came up. The Office of Cannabis Management miscalculated the required 500-foot school proximity setback, which affected over 100 licensed dispensaries and many applicants statewide, potentially affecting their locations and operations. Governor Hochul has shown concern about this regulatory issue and has expressed her intention to work with lawmakers to provide relief for the businesses that complied in good faith with state approval processes.
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