94% Of NY Cannabis Retailers Oppose Loosening 1,000-Foot Buffer Zone Between Legal Shops - Is The Market At Risk?

A recent survey by the New York Cannabis Retail Association (NYCRA) revealed that 94% of legal cannabis retailers oppose loosening the 1,000-foot buffer zone between marijuana dispensaries, which the Cannabis Control Board is considering. The proposed changes have sparked opposition from industry stakeholders and local lawmakers.

Survey Results

The NYCRA’s survey, representing 300 members, indicated that the vast majority of legal cannabis operators are against reducing the buffer zone, which rules that weed shops must be located at least 1,000 feet apart in cities and 2,000 feet apart in smaller towns. The proposed changes would reduce these distances by 250 feet, raising concerns about market saturation and the viability of existing businesses.

Industry Concerns

Jayson Tantalo, VP of Operations for NYCRA, emphasized the fragility of the legal cannabis market in its early stages, arguing that reducing the buffer zone could destabilize the market, especially given the prevalence of illegal dispensaries. Tantalo also noted that some licensed operators are prepared to sue the state if the buffer requirements are relaxed.

Political Opposition

Local lawmakers have echoed these concerns. A coalition of City Council members from New York City urged Governor Kathy Hochul to maintain the current regulations, arguing that an increase in dispensaries could degrade the community’s quality of life and encourage illegal sales. They highlighted the ongoing challenge of shutting down unlicensed shops, despite recent efforts by Mayor Eric Adams through “Operation Padlock to Protect.”

Regulatory Outlook

The Office of Cannabis Management (OCM) defended the proposed waivers, stating that the regulations were too broad and lacked specific criteria for evaluating proximity exemptions. The OCM says it plans to seek public feedback on the proposed changes over the next 60 days before finalizing the regulations. However, the strong opposition from both the industry and local lawmakers suggests that any regulatory changes will be closely scrutinized.

Read Next: NY Judge Rules In Favor Of Shuttered Illicit Cannabis Shop On Procedural Grounds, Calling Into Question Mayor Adams’ Enforcement Policy