NY lawmaker proposes legislation to ‘grandfather’ dispensary locations 🗽

NY, NY
NY lawmaker proposes legislation to ‘grandfather’ dispensary locations 🗽

Driving the news: New York’s Office of Cannabis Management threw a wrench in the state’s cannabis market last week when it told over a hundred dispensaries — many of which are already operating — that their locations aren’t compliant, despite those locations having been approved.

What happened: A legislative fix may be coming.

A bill filed by State Sen. Luis Sepúlveda would grandfather in cannabis dispensaries licensed before July 28, 2025 even if they're within 500 ft of a school.

These dispensaries would be able to renew their licenses, if they’re in good standing, once the two-year term expires. 

It’s essentially a push to ‘grandfather’ those cannabis shops who had their locations already approved. 

Read the full bill text.

Back up for a second: At the core of the issue is how close these dispensaries are to schools. 

Under the previous interpretation of the law, the 500-foot buffer started from the school’s front door. 

The new interpretation, issued last week, says that it applies to any point on the property line — which drastically narrows the pool of possible locations in densely-packed New York City. 

What they’re saying: “These are entrepreneurs, they're small business owners — many from communities of color — and this is their shot to have a chance to be successful,” Gov. Kathy Hochul said in an interview last week. 

“So, we're not going to let anything happen to them. We'll make them whole.”

What’s next: New York’s legislature doesn’t meet until January. 

There may be a special session to pass this bill, but that much is still unknown. We expect there to be lawsuits as well — we’ll keep you updated. 

-JB

On Tuesday’s Cultivated Live, Jay and Jeremy spoke with New York Times reporter Ashley Southall about the New York Office of Cannabis Management (OCM) announcement that over a hundred dispensaries violate school proximity rules, dozens of which are already operating. We discussed Ashley’s recent story where she spoke with dispensary operators who will be forced to find new locations — some of whom are still paying rent on stores that aren’t open yet.

“The OCM likes to use the metaphor that they were building the plane as they were flying it,” she said. “...There’s a lot of uncertainty, and this was a fresh injection of that”

“I think it would be very influential. I think it would be helpful to a number of Republican legislators who would feel there’s some political cover,” Pennsylvania Senator Sharif Street said about the bipartisan legalization bill he co-sponsored with Republican Sen. Dan Laughlin, in an interview on Trade to Black on Aug. 5.

“Because if the federal government, which is controlled by Republicans, were to reschedule, that would certainly signal that there’s no need for Republican apprehension in the Commonwealth.”

California authorities say they have seized almost $480 Million in illicit cannabis 👮

Governor Gavin Newsom said that his office's effort to crack down on illicit weed this year has resulted in the seizure of almost 270,000 pounds of cannabis. Since January, the state has shut down an estimated 111 illicit grow operations. 

Minnesota cities consider municipal-owned pot shops 🏢

As Minnesota moves quickly towards market launch, at least 13 municipalities are considering taking advantage of an odd quirk in the state law that allowed for city-operated cannabis dispensaries. Other states operate similar models for liquor stores. MinnPost has more about these cities.

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Metrc and BioTrack announce strategic partnership 🤝

The two largest companies competing for state seed-to-sale tracking services have joined forces. In recent years, BioTrack has expanded its POS and commercial side services. The company is spinning off its tracking services into BT Government which will continue serving the states with BioTrack contracts, such as New York. Metrc and BT Government will work together on their respective government clients. New York delayed its August 1 BioTrack implementation deadline on the news. 

AYR Wellness leaves Massachusetts 🔒

The Florida-based cannabis company announced plans to lay off 157 employees in its soon-to-be defunct Milford, Massachusetts cultivation site. The news came after the company filed a mandatory Massachusetts Workers Adjustment Restraining notice due to the scope of the layoffs. The company is currently in the middle of a massive restructuring including the sale of assets and closures in multiple states. Boston.com has more.

Canopy Growth expands to Australia 🦘

Canopy Growth announced the introduction of its 7ACRES brand to Australia. The arrangement is only for medical marijuana with the company’s top strains Ultra Jack, and Jack Frost leading the way. Canopy Growth CEO Luc Mongeau said global medical use is a massive commercial opportunity during the announcement.

Jushi kicks off earnings week🦶

The company reported a $12.3 million net loss on $65 million of revenue. The company is continuing its retail expansion, opening its fifth store in Ohio last quarter with a sixth one planned by the end of the year. The company is also moving into New Jersey with its first dispensary expected to open by the end of 2025, with a second one in early 2026. Jushi continues to bank on anticipated legalization in Pennsylvania and Virginia.  

We’ve got you covered with the rest of the schedule:

August 6
Aurora Cannabis - 8AM
Trulieve - 8:30AM
Green Thumb Industries - 5PM
Curaleaf - 5PM

August 7
Marimed - 8AM
Cannabist - 8AM
Cresco Labs - 8:30AM
Verano - 8:30AM
Cronos Group - 8:30AM
Ascend Wellness - 5PM
Terrascend - 5PM

August 8
Canopy Growth - 10AM

August 11
Village Farms - 8:30AM

August 12
Grown Rogue - 4:30PM

August 13
Organigram - 8AM
Planet 13 - 5PM

Two months ago, Virginia surpassed Maine's record of 47 months between legalization and market launch. In both cases, the markets were opposed by a sitting Republican governor who undermined enacting legislation after a majority of voters approved the change. In other states the presence of a strong medical market often preceded short turnaround times for recreational market launch. 

The Rockefeller Institute of Government has more in its report on implementation speed of legal weed.

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