New York’s Cannabis Control Board (“CCB”) amended its cannabis regulations to refine licensing criteria, adjust distance restrictions, and strengthen public convenience and advantage considerations. These amendments aim to promote economic development, ensure an orderly expansion of the market, and mitigate unintended consequences such as market oversaturation and inequitable access. The changes reflect New York’s commitment to fostering a balanced, competitive, and transparent cannabis industry while incorporating public and municipal input into the regulatory framework.
The amendments to Parts 118.1 and 119.4, introduced as part of Resolution No. 2025-09, were proposed on September 10, 2024, and published in the State Register on October 23, 2024, following Resolution No. 2024-96. After the public comment period closed on December 23, 2024, the New York Office of Cannabis Management (“OCM”) determined that further amendments were necessary, prompting the publication of a Notice of Revised Rulemaking in the State Register to allow for additional public comments before final adoption. Additional revisions include: a minimum set of distances within which a Public Convenience and Advantage (“PCA”) request is not available; prohibitions on PCA requests when more than one licensee is within restricted zone; limits on requests until existing dispensaries have had at least 9 months of operation; additional notification requirements to municipalities and affected licensees, and procedural requirements for the PCA request application.
Changes to Distance Requirements for Cannabis Dispensaries
A major focus of the amendments is the modification of distance restrictions between cannabis retail dispensaries, microbusinesses, and registered organizations. Previously, in municipalities with a population of 20,000 or more, dispensaries were required to be at least 1,000 feet apart, while in municipalities with fewer than 20,000 residents, the required distance was 2,000 feet. The amendments reduce these distances, making it easier for businesses to open dispensaries in high-demand areas. The new rules require a 500-foot minimum distance in municipalities with 20,000 or more residents and a 1,000-foot minimum distance in municipalities with fewer than 20,000 residents.
Dispensaries that fall within the 500 to 1,000-foot range in larger municipalities or the 1,000 to 2,000-foot range in smaller municipalities may still be approved under specific conditions. To qualify, applicants must demonstrate that the existing licensee in the area has been operational for at least nine months and that the new dispensary would promote public convenience and advantage. The goal of these distance modifications is to allow greater flexibility for cannabis businesses while ensuring controlled market growth that prevents excessive clustering of dispensaries in specific locations.
Stronger Criteria for Public Convenience and Advantage Waivers
The amendments introduce a more structured approach to evaluating waiver requests for distance restrictions under the PCA framework. Previously, PCA waivers were assessed on broad factors such as traffic impact and community need. The CCB now evaluates specific criteria to determine whether granting a waiver is justified.
Applications must demonstrate proximity to other dispensaries and whether there is a demonstrated economic demand for additional locations. The Board also considers geographic, infrastructural, or topographic barriers that could justify a waiver, such as highways, rivers, or other physical separations between locations. Other factors include consumer demand for more retail options, the presence of illicit cannabis dispensaries in the area, and whether granting a waiver would support economic and social equity goals. By focusing on these specific elements, the Board aims to ensure that new dispensary locations contribute positively to the local economy, consumer accessibility, and fair market competition.
Enhanced Notification and Public Input Requirements
To increase transparency and community involvement, the amendments establish a clearer notification and review process for PCA waiver requests. Before submitting an application, applicants must notify their local municipality or community board, which has 45 days to respond before the CCB considers the request. Additionally, applicants must inform existing licensees within the affected radius, allowing them to provide feedback on the proposed new location. Municipalities and affected licensees may submit responses directly to the CCB and have the opportunity to voice their concerns at public board meetings when PCA requests are reviewed.
This enhanced process ensures that local governments and current cannabis businesses have a stronger role in shaping the cannabis market. By requiring advance notification and a formal review period, the amendments help create a more balanced approach to dispensary approvals, giving municipalities and community boards a say in the development of the local cannabis industry.
Implications for Cannabis Businesses and Local Governments
For cannabis entrepreneurs, these regulatory changes create both new opportunities and additional challenges. The reduction of distance restrictions allows for greater flexibility in choosing locations, making it easier to enter competitive markets. However, the stricter PCA waiver requirements mean that applicants must provide comprehensive justifications for why a waiver should be granted. Businesses must present strong economic arguments, demonstrate community benefits, and account for potential objections from municipalities and other license holders.
For local governments, these amendments provide greater oversight and involvement in cannabis market expansion. By requiring advance notification and a 45-day response window, municipalities now have a stronger voice in deciding where dispensaries can be established. This increased regulatory involvement is expected to lead to a more strategic and thoughtful approach to cannabis business placement, avoiding oversaturation in some areas while ensuring that underserved regions receive adequate dispensary access.
Final Steps Before Implementation
These regulatory amendments take effect upon publication of a Notice of Adoption in the New York State Register, finalizing the changes and making them legally enforceable. Until then, cannabis businesses and stakeholders should closely monitor updates from the CCB and the OCM.
Prospective dispensary owners should review the updated regulations carefully to ensure compliance with new location and waiver rules. Engaging with local municipalities and community boards early in the application process can help assess potential concerns and build support for new dispensary locations. Additionally, preparing detailed justifications for PCA requests, including economic impact assessments and community benefit arguments, will be essential for navigating the new regulatory landscape.
Conclusion
The latest amendments to New York’s Public Convenience and Advantage regulations mark a significant shift in the state’s approach to cannabis licensing. By reducing distance restrictions, introducing stronger waiver criteria, and increasing municipal involvement, the CCB aims to create a more balanced and sustainable cannabis industry. These changes promote accessibility, economic growth, and fair competition while ensuring that local communities have a voice in the development of the cannabis market.
As the final adoption of these amendments approaches, business owners, municipalities, and community stakeholders should remain proactive in understanding how these new rules will shape the future of cannabis licensing in New York.
Mandelbaum Barrett PC’s Cannabis, Hemp & Psychedelics attorneys stand at the forefront of a dynamic and ever-evolving legal landscape. We possess a detailed understanding of laws associated with the production, sale, use, and regulation of a broad range of controlled substances — from cannabis and hemp to psychedelics.
Disclaimer:
The information provided in this post is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations frequently change, and the information may not reflect the most recent developments. If you require legal advice or assistance, please contact Joshua Bauchner or Natalie Diaz.