Twelve New York State dispensary owners sued the state’s cannabis industry regulators on Friday over allowing them to set up their shops in what has now been deemed unsuitable proximity to schools.
They formally filed their complaint against the Office of Cannabis Management (OCM) and Cannabis Control Board on Aug 15. at the New York Supreme Court in Albany County. A preliminary hearing will occur on Aug. 29.
They also rallied on the front steps of New York City Hall on Aug. 8 to make their bitterness regarding the matter known. They are seeking a reversal of the newly updated distancing policy that came into effect on Jul. 28 to enable continued operations.
It stems from a mistake of measuring the 500-metre minimum distance from the shops to the school entrances instead of their property line as it should have been originally. Now, the error and new interpretation of adequate distance may force 152 state stores to relocate or shut down.
They have collectively invested millions into their locations under the assumption that their past approvals were concrete.
“This lawsuit seeks to prevent the State from rewriting the rules midstream and stripping licensees of their rights and investments,” the lawsuit explained.
Despite assurances from Governor Kathy Hochul that permit holders will not be required to close or relocate in the immediate future and that amendments will be made to allow them to remain where they are, uncertainty about the future of their businesses has inspired legal action.
The 108 license holders in the state have been told that they can continue to operate for the time-being, but a permanent solution is yet to be achieved. The state has also been offering up to US$250,000 to each of the 44 dispensary license applicants who started setting up shop in locations pre-approval that are now deemed unsuitable due to the proximity amendment.
Hochul has described the situation as a “major screw-up” and said she was not happy to hear the news. The governor has stated that she will be “aggressively pursuing” a solution in partnership with the OCM.
“When I found out about it, I was very angry, to say the least,” the state official said at a press conference this month. “Because these people have worked hard, they’ve waited a long time, they put their life savings into something that they thought was going to help them support their families.”
The potential closures could cause New York customers to turn to the illicit market for their products. There is an abundance of illegal stores throughout NYC and throughout the state.
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