Read the complete article from AP News, New York Allowed Pot Shops to Open Too Close to Schools. Now They Might Have to Move.

According to the article, since New York began licensing recreational marijuana stores about three years ago, the state has been using a simple tactic to ensure pot shops are kept a legally-mandated distance from local schools: Measure from the door of the dispensary to the door of the school.

A Startling Admission

But officials recently made a startling admission: They had misread the law and had been measuring incorrectly the whole time. Now, about 100 cannabis shops are in limbo, crossing their fingers for a legislative fix while wondering whether they’ll have to relocate.

A “Grenade in the Laps” of Business Owners

The news was like dropping “a grenade in the laps” of business owners, said Osbert Orduña, who owns a New York City dispensary called The Cannabis Place that is now deemed to be too close to a nearby preschool.

“The way that they executed this was a complete and utter failure in leadership,” he said.

New York’s Beleaguered Legal Marijuana Program

The admission is just the latest bungle from New York’s beleaguered legal marijuana program, which has been hamstrung by legal challenges, a slow rollout and gaps in the law that allowed an illicit market to flourish.

Business owners found out about the issue from the Office of Cannabis Management last month, which admitted it should have been measuring from the edge of a school’s property line, rather than its entrance, to ensure weed stores were kept at least 500 feet (152 meters) away.

“I Am Incredibly Sorry”

“To give you this news, and for the weight of it, I am incredibly sorry,” said Felicia A.B. Reid, acting executive director of the cannabis agency, said in notices to the businesses.

The error impacts a sizable share of the state’s roughly 450 cannabis dispensaries.

About 60 of those were licensed using the erroneous measurement system, mostly in New York City, plus around another 40 that have licenses but are yet to open their doors. On top of that, there are almost 50 other businesses that have applied for licenses under the incorrect measurement system and are awaiting final approval from the agency. The state has set aside a pot of money where applicants can get up to $250,000 to help relocate.

The existing shops have been told they can remain open for now and even continue to operate with their expired licenses if the businesses file a renewal application.

A Permanent Fix?

Regulators say they are urging state lawmakers to create a permanent fix that will allow the shops to stay put. But they have also noted that such a solution is not guaranteed. The state legislature is not scheduled to sit again until January.

Meanwhile, business owners say they are being forced to operate in a gray area.

Jillian Dragutsky, who opened a dispensary called Yerba Buena in Brooklyn a few months ago, worries the issue still jeopardizes a dispensary’s ability to bank, get insurance, and purchase inventory, since they are supposed to have valid licenses in place.

“How Do You Grow Your Business?”

“How do you grow your business not knowing where you’re going to be a few months from now?” said Dragutsky.

In a statement, the cannabis office said businesses can obtain “proof of a valid license or a letter of good standing to operate” by contacting the agency.

An internal review of the cannabis office released last year detailed numerous problems at the agency, including inexperienced management and shifting licensure rules, while state leaders promised an administrative overhaul.

Governor Hochul Weighs In

Governor Kathy Hochul, who has previously said the program has been a “disaster,” called the school proximity problem “a major screw up” and vowed to find a legislative fix.

“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,” she said. “So, what I’m doing is first…reassuring them that you’re going to be OK. Secondly, we need to get the law changed to have a fix.”

Discussion Questions

  1. In your reasoned opinion, is the distance regulation described in this article a reasonable way to regulate a marijuana dispensary? Why or why not?

    This is an opinion-based question, so student responses may vary. In your author’s opinion, although the distance regulation may be sound in terms of purpose, it may not be sound in terms of its enforcement (as evidenced by the issue presented in this article).

  2. As the article indicates, the state of New York will pay applicants up to $250,000 to help them relocate their marijuana dispensaries. In your reasoned opinion, does this represent a reasonable use of state resources? Why or why not?

    This is an opinion-based question, so student responses may vary. In your author’s opinion, New York’s misreading of the law has resulted in harm to affected businesses, so it does make sense to reimburse those businesses for their harm. Obviously, the state should require that the applicant prove damages, as opposed to simply distributing checks.

  3. Is New York’s distance regulation subject to interpretation? More particularly, is it reasonable for the state to measure from the door of the dispensary to the door of the school in determining whether a marijuana dispensary is too close to a local school?

    The distance regulation looks patently clear on its face—As indicated in the article, New York’s Office of Cannabis Management has admitted it should have been measuring from the edge of a school’s property line, rather than its entrance, to ensure marijuana stores are kept at least 500 feet away. Although New York perhaps did not violate the spirit of the law, it certainly violated the letter of the law.