On Tuesday, September 10th, the New York Cannabis Control Board (CCB) approved 123 new licenses for marijuana businesses and proposed a waiver system to modify dispensary location restrictions. The meeting marked a significant move in expanding New York’s legal cannabis market, which has grown steadily following earlier setbacks due to regulatory and legal challenges.
Under current rules, dispensaries must be located at least 1,000 feet apart in urban areas and 2,000 feet in rural locations. However, after receiving complaints from retailers and local officials about these stringent regulations, the Office of Cannabis Management (OCM) introduced a waiver process to allow dispensaries to operate closer to one another on a case-by-case basis. OCM Director of Policy John Kagia said, “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.” The waiver is intended to create more flexibility and support business growth while maintaining strict controls over proximity to schools and religious establishments.
The CCB also announced the creation of a $5 million fund to support Conditional Adult-Use Retail Dispensary (CAURD) licensees. The fund will provide up to $30,000 to qualifying businesses for essential operational expenses like point-of-sale systems and security measures. This initiative is part of the state’s commitment to supporting social equity applicants, who represent 53% of the newly licensed businesses.
The proposal to change the distance requirement for dispensaries will go through a public comment period before being finalized. Meanwhile, the CCB emphasized its bullish outlook on the legal cannabis market, projecting retail sales to exceed $450 million in 2024. The rapid growth is attributed to the opening of new licensed dispensaries and the crackdown on illegal cannabis sales, with 349 unlicensed stores shut down this year alone.
