A recent New York appellate court decision provides important clarity for licensed cannabis businesses navigating local zoning restrictions.
In a significant decision for New York’s cannabis industry, the Appellate Division, Second Department, ruled in 1086 OCR LLC v. Town of Riverhead Zoning Board of Appeals that a municipality cannot impose cannabis dispensary location restrictions that conflict with New York’s Cannabis Law.
The dispute arose after Riverhead sought to prevent a licensed cannabis retailer from opening approximately 735 feet from a school based on a local zoning provision requiring a 1,000-foot separation distance. New York’s Cannabis Law, however, establishes a 500-foot buffer and specifies how that distance must be measured.
The court unanimously held that the Legislature intended to occupy the field of regulating licensed adult-use cannabis retail dispensaries. While municipalities retain authority to regulate the “time, place and manner” of cannabis businesses, they cannot impose restrictions that conflict with state law or create additional barriers to operation.
In striking down Riverhead’s ordinance, the court found that the town’s 1,000-foot requirement imposed restrictions beyond those authorized by state law and was therefore preempted.
Why This Matters
This decision reinforces a principle that has been at the center of several recent disputes between cannabis businesses and local governments: municipalities cannot use zoning and land use regulations to effectively rewrite New York’s cannabis regulatory framework.
For licensed operators, the ruling provides greater certainty that state-approved dispensary locations cannot be blocked by local requirements that conflict with the Marihuana Regulation and Taxation Act (MRTA).
The decision also strengthens the position previously taken by the New York State Office of Cannabis Management and Cannabis Control Board, which have issued advisory opinions concluding that certain local cannabis restrictions are “unreasonably impracticable” and therefore unenforceable.
Key Takeaways for Cannabis Businesses
- New York courts continue to recognize broad state authority over licensed adult-use cannabis dispensaries.
- Municipalities retain some zoning authority, but that authority is not unlimited.
- Local laws that impose restrictions beyond those established by state cannabis law may face preemption challenges.
- Licensed operators evaluating potential dispensary locations should carefully assess both state requirements and local regulations, particularly where conflicts may exist.
As New York’s cannabis industry continues to mature, disputes over the balance of state and local authority are likely to remain a significant issue for operators, municipalities, and regulators alike.
Questions about cannabis licensing, zoning, compliance, or expansion opportunities in New York? Contact the Cannabis, Hemp & Psychedelics Practice Group at Mandelbaum Barrett PC.
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 S. Bauchner.