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New York’s Cannabis Control Board pushed forward a measure that would relax distance requirements between dispensaries, and approved 123 more marijuana business licenses at a Tuesday meeting.
Current rules prohibit retail licensees from opening a store within 1,000 feet of each other (or 2,000 feet, in sparsely populated areas). On Tuesday, CCB members unanimously approved a measure that lets licensees apply for a waiver to open a store within that proximity.
Since regulators first proposed proximity rules, retailers and some municipal officials have complained the rules are too broad and stringent. The waiver system would allow for more latitude on a case-by-case basis, according to the Office of Cannabis Management.
“The waiver process is intended to be limited, and used in specific circumstances that could justify allowing a dispensary to be more closely located than the distance outlined in regulations,” OCM Director of Policy John Kagia said.
The measure only applies to the distance between cannabis retailers, Kagia said. Rules banning dispensaries from opening within a certain proximity to schools and houses of worship – which are included in the MRTA legislation – cannot be overruled via waivers.
After Tuesday’s vote, the proposal will go through a public comment period before the CCB has the opportunity to vote on final approval. As of now, rules for proximity between dispensaries have not changed.
Kagia also noted large revenue gains in New York’s legal cannabis market. The OCM’s data for August retail sales (which included sales from the final few days of July) reached nearly $100 million – including New York’s first-ever recorded $20-million week. Legal cannabis shops have sold more than $590 million worth of products since the end of 2022.
“Based on the expected revenue through the number of new stores that are opening … we’re very, very bullish for our outlook for the year,” said Kagia, who estimated 2024 sales will likely surpass $450 million. “We are cooking with gas.”
The bright turn for New York’s legal cannabis retail market – which was largely stagnant for months last year due to a court injunction preventing new shops from opening – is partly owed to new businesses opening, Kagia said. Another reason is the increased enforcement against unlicensed stores.
Since the OCM Enforcement Task Force began its work earlier this year, regulators and law enforcement have padlocked 349 illegal stores, and issued more than 600 violations. During that time, downstate stores have seen revenue increase by about 50%, according to OCM data.
OCM officials also reported success in the agency’s equity efforts. Among current cannabis business licensees, 53% are Social and Economic Equity applicants, 36% are minority-owned, 43% are women-owned and 8% are owned by service-disabled veterans.
Tabatha Robinson, OCM’s deputy director for economic development, policy and research, announced the agency is standing up a $5 million fund for retailers who began under the CAURD licensing program. Eligible businesses will be able to receive up to $30,000 for expenses like point-of-sale hardware, security systems and other operation costs.
Applications for the fund will be accepted on a rolling basis until funds run out, Robinson said. OCM is currently seeking proposals for a third-party grant administrator, and has not yet started accepting applications, she said.
“I’m grateful to the equity team for their work on our SEE certification, and our work to support small businesses as well,” Robinson said.