NY State Senate Bill 2025-S8278

Senate Bill S8278

2025-2026 Legislative Session

Imposes limits on where licensed adult use dispensing facilities may be located and waivers from such proximity protection

download bill text pdf

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 29, 2025	referred to investigations and government operations

2025-S8278 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Cannabis Law
Laws Affected:: Amd §85, Cannabis L

2025-S8278 (ACTIVE) - Summary

Provides that licensed adult use dispensing facilities shall be no less than 1,000 feet apart in municipalities with a population of 20,000 people or more, and no less than 2,000 feet apart in municipalities with a population of less than 20,000 people; provides proximity protection waivers.

2025-S8278 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8278

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the cannabis law, in relation to proximity protection
and where licensed adult use dispensing facilities may be located

 
PURPOSE:

The purpose of this legislation is to establish a statutory framework
for considering requests to waive proximity protection for adult-use
cannabis retail dispensaries licensed pursuant to the Marijuana Regu-
lation and Taxation Act.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 85 of the Marijuana Regulation and Taxation
Act to establish guidelines for requests to the Office of Cannabis
Management and the Cannabis Control Board to waive the proximity
protection of an existing adult use retail licensee.

Section 2: Establishes the effective date.

 
JUSTIFICATION:

Under current Office of Cannabis Management (OCM) regulation, adult use
retail dispensary licensees are provided certain distance (proximity)
protections that shield them from the siting of new cannabis retail
dispensaries too close to their businesses. The reason for these regula-
tory protections is to help small businesses gain a foothold in the
cannabis marketplace. These protections also reflect the fact that New
York State remains far away from approaching saturation in the adult use
dispensary market, which means there is little need to establish dispen-
saries in close physical proximity to each other when so much of the
state remains unserved.

However, the protections provided in regulation can be-and have been-
waived by the OCM and the Cannabis Control Board (CCB) for almost any
reason. Indeed, recent actions by the OCM and the CCB have waived the
regulatory safeguards, allowing new dispensaries to open 70-80% closer
to an existing dispensary than the regulations provide.  In doing so,
the OCM and the CCB provided no substantive rationale for their deci-
sions, leading to the filing of a lawsuit in early 2025 challenging
their actions.

In addition to being unsupported by facts, these decisions place canna-
bis adult use dispensary owners at significant economic peril.  Approxi-
mately 80% of adult use dispensary owners are social equity licensees-
individuals who are largely under-capitalized and as such, in need of
outside investors to develop and operate their businesses.  Actions by
the OCM and the CCB to grant proximity waivers without justification has
had the effect of drying up the capital investor market for these social
equity licensees, as investors question the profitability of such
investments when the state makes seemingly arbitrary decisions to allow
a competing store to be placed so close to an existing dispensary.

To provide social equity licensees with a fighting chance to open and
operate a profitable adult use cannabis dispensary, this legislation
would establish a legal framework for the OCM and the CCB to follow in
making decisions to waive a dispensary's proximity protection, includ-
ing:

*requiring notice to a licensee that is the subject of a waiver request,
and an opportunity to comment on it;

*requiring notice to the municipality involved in such waiver requests,
and an opportunity to comment on it;

*requiring the compiling and release of a quantitative analysis of the
request by the CCB, and that such analysis be made available to the
public;

*requiring a public hearing on the waiver request;

*requiring that the existing licensee and the municipality have an
opportunity to speak at the CCB meeting where a waiver decision will be
rendered;

*requiring an appeal process in cases where a waiver is granted;

*prohibiting the approval of proximity waivers when: an existing store
has illegal adult use dispensaries within the legal proximity distance;
the waiver would reduce the distance between dispensaries by more than
five percent; an existing dispensary has been operational for less than
three years; the proposed dispensary is larger than the existing dispen-
sary; and when a proximity waiver involving the existing licensee has
already been issued.

This legislation would also establish in law the proximity protection
distances that are currently in statute.

Collectively, these protections would allow the OCM and the CCB to
consider and act on requests for proximity protection waivers, but in a
manner that is based on quantifiable facts, provides for public input,
and utilizes a balanced process that assures that both applicants and
licenses may be heard before a decision is rendered.  The provisions of
this legislation largely mirror the current process used by the Alcohol
Beverage and Control Board for certain proximity licensing decisions
under their jurisdiction.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8278 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8278
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 29, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the cannabis law, in relation  to  proximity  protection
   and where licensed adult use dispensing facilities may be located

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 12 of section 85 of the cannabis law is amended
 and three new subdivisions 13, 14 and 15 are added to read as follows:
   12. The board  is  authorized,  to  promulgate  regulations  governing
 licensed  adult-use dispensing facilities, including but not limited to,
 the hours of operation, size [and location] of  the  licensed  facility,
 types  and  concentration of product servings offered and establishing a
 minimum and maximum margin for retail  dispensary  markups  of  cannabis
 product  or  products before selling to a cannabis consumer. It shall be
 unlawful for any retail dispensary to sell any adult-use cannabis  prod-
 uct for less than the minimum markup allowed in regulation.
   13. LICENSED ADULT USE DISPENSING FACILITIES SHALL BE NO LESS THAN ONE
 THOUSAND  FEET APART IN MUNICIPALITIES WITH A POPULATION OF TWENTY THOU-
 SAND PEOPLE OR MORE, AND NO LESS THAN TWO THOUSAND FEET APART IN MUNICI-
 PALITIES WITH A POPULATION OF LESS THAN TWENTY THOUSAND PEOPLE.
   14. WAIVERS FROM PROXIMITY PROTECTION AS PROVIDED IN SUBDIVISION THIR-
 TEEN OF THIS SECTION MAY BE CONSIDERED BY THE CANNABIS CONTROL BOARD. IN
 MAKING SUCH DECISIONS, THE CANNABIS CONTROL BOARD SHALL:
   (A) HAVE A PRESUMPTION AGAINST PROVIDING A PROXIMITY PROTECTION WAIVER
 UNLESS QUANTITATIVE FACTS WARRANT IT;
   (B) ISSUE NOTICES OF A REQUEST TO SEEK A PROXIMITY  PROTECTION  WAIVER
 TO  THE  OWNER  OF  THE  DISPENSARY  WHOSE PROXIMITY PROTECTION IS TO BE
 WAIVED AND TO APPROPRIATE OFFICIALS IN  ANY  MUNICIPALITY  OR  COMMUNITY
 BOARD  SUBJECT  TO THE REQUEST WITHIN SEVEN DAYS OF THE FILING OF SUCH A
 REQUEST;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13036-01-5

 S. 8278                             2
 
   (C) CONDUCT AND PUBLICLY ISSUE A QUANTITATIVE ANALYSIS AT LEAST THIRTY
 DAYS PRIOR TO BOARD ACTION OF THE CANNABIS  DISPENSARY  WHOSE  PROXIMITY
 WILL  BE  WAIVED, INCLUDING THE PROFITABILITY AND FINANCIAL STABILITY OF
 SUCH DISPENSARY AND ANY OTHER  QUANTIFIABLE  FACTORS  THAT  REFLECT  THE
 ABILITY  OF  THE  DISPENSARY  TO  PROFITABLY  FUNCTION WITH ADDED MARKET
 COMPETITION. SUCH ANALYSIS SHALL REPRESENT THE BASIS FOR MAKING A  PROX-
 IMITY PROTECTION WAIVER DECISION;
   (D)  WITHIN  FORTY-FIVE DAYS, CONSULT WITH AND GET AN OFFICIAL WRITTEN
 OPINION FROM THE RELEVANT MUNICIPALITY  OR  COMMUNITY  BOARD  CONCERNING
 THEIR SUPPORT OR OPPOSITION TO A LOCAL PROXIMITY PROTECTION WAIVER;
   (E)  WITHIN  FORTY-FIVE  DAYS  PROVIDE AN OPPORTUNITY FOR THE CANNABIS
 DISPENSARY LICENSEE WHOSE PROXIMITY PROTECTION COULD BE WAIVED WITH  THE
 OPPORTUNITY  TO  SUBMIT  WRITTEN  COMMENTS TO THE CANNABIS CONTROL BOARD
 PRIOR TO ACTION BEING TAKEN ON THE WAIVER;
   (F) HOLD A PUBLIC HEARING ON THE PROPOSED WAIVER, AT WHICH THE CURRENT
 LICENSEE, THE WAIVER APPLICANT, ANY RELEVANT MUNICIPALITY  OR  COMMUNITY
 BOARD, AND THE PUBLIC SHALL BE HEARD;
   (G)   PROVIDE   THE   CANNABIS  DISPENSARY  LICENSEE  WHOSE  PROXIMITY
 PROTECTION COULD BE WAIVED AND RELEVANT MUNICIPALITIES OR THE  COMMUNITY
 BOARD  WITH  THE  OPPORTUNITY TO SPEAK BEFORE THE CANNABIS CONTROL BOARD
 PRIOR TO A DECISION BEING RENDERED; AND
   (H) ESTABLISH AN APPEAL PROCESS TO ALLOW CANNABIS DISPENSARY LICENSEES
 WHOSE BUSINESS IS THE SUBJECT OF A PROXIMITY PROTECTION WAIVER TO APPEAL
 THAT DECISION TO AN ADMINISTRATIVE LAW JUDGE. SUCH PROCESS SHALL PROVIDE
 THAT BOTH PARTIES MAY BE HEARD PRIOR TO A DECISION BEING  RENDERED.  THE
 DECISION OF SUCH JUDGE SHALL BE RATIFIED BY THE BOARD.
   15.  NOTWITHSTANDING  THE  PROVISIONS  OF SUBDIVISION FOURTEEN OF THIS
 SECTION, THE CANNABIS CONTROL BOARD MAY NOT:
   (A) APPROVE A PROXIMITY PROTECTION  WAIVER  IF  ONE  OR  MORE  ILLEGAL
 RETAIL  CANNABIS  STORES ARE OPERATING IN VIOLATION OF THE PROVISIONS OF
 SUBDIVISION THIRTEEN OF THIS SECTION;
   (B) APPROVE A PROXIMITY PROTECTION WAIVER THAT  REDUCES  THE  DISTANCE
 ESTABLISHED  IN  SUBDIVISION  THIRTEEN OF THIS SECTION BY MORE THAN FIVE
 PERCENT;
   (C) APPROVE A PROXIMITY PROTECTION WAIVER THAT WOULD IMPACT A CANNABIS
 RETAIL DISPENSARY THAT HAS BEEN OPERATIONAL FOR LESS THAN THREE YEARS;
   (D) APPROVE A  PROXIMITY  PROTECTION  WAIVER  FOR  A  CANNABIS  RETAIL
 DISPENSARY THAT HAS A RETAIL SALES DIMENSION LARGER THAN THE STORE WHOSE
 PROXIMITY PROTECTION HAS BEEN WAIVED; AND
   (E)  APPROVE NO MORE THAN ONE PROXIMITY PROTECTION WAIVER PER LICENSED
 CANNABIS RETAIL DISPENSARY.
   § 2. This act shall take effect immediately.

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