The state’s embattled Office of Cannabis Management notified over 150 business owners Monday that they might have to relocate exisiting or planned stores because of an error in the way the state has been measuring how far away a legal weed shop could be from a school or church.
A combined 152 licensed businesses and applicants statewide are in those affected areas – including 88 open shops in New York City and 17 in the rest of the state.
This was first reported by the New York Times.
Although OCM says open businesses don’t need to shut down immediately, they likely won’t have their licenses renewed — a process that needs to be done every two years — unless the state Legislature passes a change to current law.
State law says cannabis shops must be at least 500 feet away from the property line of schools or houses of worship, but since 2023 OCM admitted they instead have been measuring from the entrance, particularly with schools.
“This was a difficult but necessary decision to bring the office’s practices into full alignment with cannabis law. I recognize the impact this correction may have on licensees and communities, and I want to be clear: our success as a regulatory body is tied directly to the success of our licensees. We are actively pursuing legislative solutions to protect impacted businesses, and we remain committed to learning from past missteps to ensure a more stable, transparent, and legally sound cannabis industry moving forward,” said Felicia A.B. Reid, acting executive director of the New York State Office of Cannabis Management, in a statement.
Although Gov. Kathy Hochul’s office is setting up a $15 million fund allowing affected businesses to claim up to $250,000 to help them relocate and restart their business, some argue that number doesn’t scratch the surface of expenses faced.
“A lot of these folks have been waiting years to open their doors. Delayed because of lawsuits, injunctions and bureaucratic delays. And after all that, after they put their careers on hold, after they’ve invested into these places,” said cannabis compliance expert Kaelan Castetter, co-founder of The Growv and managing director at Castetter.
“They’re being told sorry, here’s a check for $250,000? It’s heartbreaking,” he added.
Clarification: This article has been updated to distinguish between impacted businesses that are open and applicants. It has also been clarfied as to the reason the shops will have to move.
