New York pot shops mistakenly allowed to open near schools ask Gov. Kathy Hochul to make exceptions
Dozens of legal marijuana dispensaries ordered to close because New York state officials mistakenly let them open too close to schools are asking for an exception to the law.
The state's troubled Office of Cannabis Management said it ordered more than 100 pot shops to shut down or relocate after it misinterpreted a law saying how far away from schools they must be.
New York's error could put cannabis shops out of business
In a letter, New York's marijuana authority told 152 stores they were allowed to open because officials calculated they were at least 500 feet from a school's front door, but the law actually states they must be that far from the school's property line.
The Housing Works Marijuana Dispensary was the first legal pot shop in New York City. The state now says it's too close to the Harvey Milk School in the East Village and cannot continue to operate there.
The distance from the school's door and the property line, about 32 feet, is the difference between being legal and not legal.
The owner of Housing Works Marijuana Dispensary said it's ironic the state is concerned about how close it is to the school down the block, but not the liquor store directly across the street from the school.
Council member wants businesses grandfathered in
Manhattan City Council Member Gale Brewer, who led the fight to close illegal pot shops, says the state should grandfather these shops into compliance instead of forcing them to close because of the mess up.
"These shops make our community safer," Brewer said. "They employ people and they believe in philanthropy."
Meanwhile, shop owners who borrowed money and invested their life savings said they're livid at the state for trying to shut them down now.
"In the blink of an eye ... 152 of us businesses are impacted. Thousands of employees are impacted. Our entire industry is impacted," Osbert Orduña, CEO of Cannabis Place Dispensary, said.
"This system is working. Let it work. Why break me right now? Why? Is this a political stunt? I don't know, this is crazy," Cass Marte, CEO of Conbud, said.
The shop owners also worry that if their legal marijuana businesses are forced to close, illegal ones will flourish.
State offers solutions, but owners say not enough
Gov. Kathy Hochul was said to be furious when the miscalculations were discovered. She said in a statement, in part, "We will correct this unacceptable oversight ... created by previous agency leadership," adding her office is "taking immediate action to support cannabis store owners impacted."
The governor also heavily criticized the agency for its rollout of business licenses in 2024, when she called it a "disaster."
The OCM said in a statement, in part, "OCM has been listening to impacted businesses and communities coming out of this proximity correction and understands their challenges. That engagement is driving the agency's collaboration with Governor Hochul and the Legislature to address the issue. We will keep working to support impacted businesses, strengthen market integrity, and safeguard the industry from future vulnerabilities."
The state is now trying to give the stores a temporary reprieve. When they apply for license renewals in the fall, the state simply won't rule on them so they can stay open. If they relocate, they can get $250,000 from the state to find a new space.
However, the owners worry they won't be able to borrow money without valid licenses. Instead, they want the governor to push legislation changing the law or grandfathering them in.
Bronx State Sen. Luis Sepúlveda introduced a bill that would do that earlier in the week, but it's unclear when the legislature would take it up.