New York’s Office of Cannabis Management’s (OCM) stricter interpretation of Cannabis Law § 72 (6) will impact 152 currently licensed cannabis businesses and license applicants, possibly forcing them to find new locations or make significant capital improvements to their current structures. Up to $250,000 in applicant relief is available to assist in this process. Applicants will be required to make these required changes before moving ahead in their application process.
Cannabis Law § 72 (6) limits the location of a dispensary to no closer than 500 feet from school grounds. However, Education Law § 409 (2) defines school grounds as any structure within the school’s property boundaries. The OCM now requires that all dispensaries measure the 500-foot distance from the dispensary’s main entrance to the school’s property line. This change is what has disallowed the 152 businesses.
Support for Applicants in Violation:
In order to lessen the burden of this new rule interpretation, the Governor’s Office, OCM and Empire State Development have created an Applicant Relief Program, funded at $15 million. Up to $250,000 will be made available to each of the license applicants for certain expenses related to finding a new location or making capital improvements to their existing location. Verdant Strategies suggests moving as quickly as possible, since such funds are often exhausted before all eligible businesses receive their needed assistance.
Support for Licensees in Violation:
The OCM has also identified existing licensees in violation of the new rule interpretation. The Governor’s Office and OCM say they are “aggressively pursuing” legislation which would permit licensees to remain in their present location, i.e. to be “grandfathered in”. The OCM further notes that “legislation to allow licensees to remain at their current location may not pass” and that those affected would need to find a new location in order to renew their license. No mention has yet been made of any assistance funds being made available should an existing business need to relocate.
Further information is available by emailing the OCM at Locations@ocm.ny.gov.
