Nine members of New York City’s “Common Sense” Caucus are taking a stand against the state’s Cannabis Control Board (CCB), urging Governor Kathy Hochul to block a proposal that could flood the city with more cannabis dispensaries.
This proposal, if approved, would allow waivers to the existing 1,000-foot buffer zone between legal cannabis shops, potentially permitting multiple dispensaries to operate on the same block, The New York Post reported.
In a letter sent to Governor Hochul and CCB chairwoman Tremaine Wright, the council members voiced their concerns about the potential negative impact on New York City communities.
“Flooding our city with more dispensaries not only degrades the quality of life in these communities but also decreases the value of these licenses and only encourages more illegal sales,” the letter stated.
Overcrowded Market Concerns: Why NYC Lawmakers Are Alarmed
The council members, including representatives from Queens, Brooklyn, Staten Island, and the Bronx, argue that the current buffer zones are essential to maintaining a balanced and sustainable cannabis market. They believe that reducing these zones would not only lead to an over saturation of the market but also complicate ongoing efforts to combat illegal cannabis sales.
“We are at a critical juncture, and any reduction in the buffer zone at this time would only exacerbate the situation,” added council members Robert Holden, Joann Ariola, and Vickie Paladino of Queens, alongside their colleagues from other boroughs.
The lawmakers also praised Mayor Eric Adams‘ administration for its “Operation Padlock to Protect” initiative, which has successfully closed down hundreds of illicit cannabis shops. They called this a “positive step” towards controlling the state’s legal-pot program but emphasized that the battle against illegal dispensaries is far from over.
The Buffer Zone Debate: A Controversial Proposal Divides New York
The CCB’s proposal has sparked a significant debate among New York’s political leaders. The plan to provide waivers that would allow dispensaries to open within 1,000 feet of each other has met with resistance from several quarters. Critics argue that the move could undermine the state’s fledgling legal cannabis industry by diluting the value of licenses and making it even harder to shut down illegal operations.
Manhattan state assemblyman Harvey Epstein, who participated in a press conference addressing the issue, expressed his doubts about the proposal.
“It doesn’t make sense right now,” Epstein said. “We want the legal cannabis market to succeed. Oversaturating the market would be a problem. We’re still burdened with illegal shops.”
Currently, New York has 161 licensed dispensaries, nearly half of which are located in New York City and Long Island. Some of these licensed cannabis stores have even threatened legal action if the state proceeds with loosening the buffer zone rule.
Cannabis Control Board Responds: What’s Next For New York’s Legal Market?
In response to the growing concerns, the Office of Cannabis Management (OCM) issued a statement defending the proposed waivers.
According to the OCM, New York’s cannabis law and regulations “establish a framework” that allows the CCB to consider waivers based on public convenience and advantage factors. The agency emphasized that the vote by the CCB is a necessary step in creating a process to implement these waivers.
“The current regulations were too broad and nonspecific, and would have prevented the Board from establishing the public convenience and advantage criteria needed to objectively analyze requests,” the OCM stated.
They assured that the proposed regulations will be open for public comment for 60 days, during which time feedback from stakeholders will be solicited.
Read Next:
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.