Approximately three years ago, New York State began licensing recreational marijuana stores, using a simple tactic to maintain a legally required distance between these dispensaries and local schools: measuring the distance from the door of the dispensary to the door of the school. However, a recent admission from officials reveals they have been measuring this distance incorrectly. Consequently, about 100 cannabis shops are currently in a state of uncertainty, potentially needing to relocate.
This revelation has been akin to dropping “a grenade in the laps” of business owners, as stated by Osbert Orduña, owner of a New York City dispensary, The Cannabis Place, which is now considered too close to a nearby preschool. This misinterpretation of the law is another setback for New York’s legal marijuana program, which has been beset by legal challenges, a slow initiation, and loopholes in the law that have allowed an illegal market to thrive.
The Office of Cannabis Management last month admitted it should have been measuring from the edge of a school’s property line, not its entrance, to ensure cannabis dispensaries were kept at least 500 feet (152 meters) away. This misstep impacts a significant proportion of the state’s nearly 450 cannabis dispensaries. Approximately 60 of these were licensed using the flawed measurement system, mostly in New York City, along with around 40 more that have licenses but are yet to open.
Nearly 50 other businesses that have applied for licenses under the mistaken measurement system are awaiting final approval from the agency. The state has set aside funds where applicants can receive up to $250,000 to aid in potential relocation.
The existing shops have been granted permission to remain open for now, and even continue to operate with their expired licenses as long as they file a renewal application. Regulators are urging state lawmakers to devise a permanent solution that will allow the shops to remain in their current locations. However, this is not guaranteed, as the state Legislature does not convene again until January.
Business owners are being compelled to operate in a gray area. Jillian Dragutsky, who recently opened a dispensary called Yerba Buena in Brooklyn, expresses concerns that the issue jeopardizes a dispensary’s ability to bank, get insurance, and purchase inventory, as they are supposed to have valid licenses in place.
An internal review of the cannabis office last year highlighted numerous problems within the agency, including inexperienced management and shifting licensure rules. Governor Kathy Hochul has called the school proximity problem a major misstep and pledged to find a legislative fix.
As we look towards future developments, a solution is awaited not only by the proprietors of these businesses but also by those who rely on their services. In a democratic society, the importance of accuracy in the interpretation and implementation of the law cannot be underestimated.
