BILL NUMBER: S8469

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the cannabis law, in relation to the proximity of an
adult-use retail dispensary licensee's business location to a school

 
PURPOSE:

To allow existing adult-use cannabis retail dispensary licensees, who
were approved under prior guidance from the Office of Cannabis Manage-
ment (OCM), to remain at their current business locations-even if those
locations are later determined to be within 500 feet of a school proper-
ty line, provided the licensee was in good standing and operating in
reliance on OCM's previous location assessments.

 
SUMMARY OF PROVISIONS:

Section 1: Amends Cannabis Law Section 72 by adding new subdivision 7,
which grandfathers in any licenses that were approved in error by the
Office of Cannabis Management prior to July 28, 2025.
              

Section 2: Sets forth the effective date.

 
JUSTIFICATION:

On July 28, 2025, the Office of Cannabis Management issued letters to
several cannabis licensees informing them that the agency's prior method
of assessing retail dispensary proximity to schools had not been compli-
ant with Cannabis Law § 72(6). As a result, some licensees, who were
approved based on OCM's earlier, incorrect interpretation, now face
potential denial of license renewal and forced relocation, despite
having invested substantial time, money, and labor into their current
locations with agency approval.

This bill recognizes that these businesses acted in good faith and
followed all procedures under the authority and direction of the state.
Penalizing them retroactively for the agency's past misinterpretation
would be unfair, destabilizing to the state's developing cannabis indus-
try, and contrary to the equity goals enshrined in the Marijuana Regu-
lation and Taxation Act (MRTA). Many of these impacted licensees are
Conditional Adult-Use Retail Dispensary (CAURD) license holders-indivi-
duals prioritized for licensure due to past cannabis-related convictions
or community reinvestment goals.  Revoking their ability to operate at
approved locations undermines the state's commitment to restorative
justice and economic opportunity for historically harmed communities.

This legislation strikes a balanced approach: it protects licensees who
relied on prior state guidance while maintaining the integrity of the
Cannabis Law moving forward. It also provides certainty to businesses,
investors, landlords, and communities who have supported the launch of
New York's regulated cannabis marketplace.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:
None to the state. May prevent unnecessary economic losses to licensees
and affected communities.

 
EFFECTIVE DATE:
This act shall take effect immediately.