Southampton cannabis dispensary found to be too close to school in state error can open, new guidance says

A planned Southampton cannabis dispensary that was impacted by a state error after regulators said it’s too close to a school will be able to open, according to the latest guidance from the state.

The new guidance, according to a memo issued Wednesday by the state Office of Cannabis Management, stated the office is not directing licensees found to be in violation of the state law to close or relocate their business, or stop working toward opening.

The guidance also stated it will not recommend to the state Cannabis Control Board that licensees whose locations conflict with the school proximity rule have their licenses revoked.

The CCB is the approval and oversight body of the Office of Cannabis Management and issues and regulates cannabis licenses.

Birchwyn & Tess LLC, the Southampton dispensary at 471 County Road 39, which is still in development, was cited by the OCM on July 28 for being too close to the Tuckahoe School at 468 Magee St. The one-building district serves pre-K through eighth grade, with students attending high school in either Southampton or Westhampton Beach, according to the school.

The OCM said it had previously told dispensaries they could not be located within 500 feet of a school’s grounds — but the law requires the distance to be measured from a school’s property line.

David Holland, an attorney who works in the cannabis industry, said the change in guidance is a promising step forward but that legislative action is imperative.

Proposed dispensary by Samara Ahmed on Scribd

"Mistakes were made in good faith," said Holland, who works at the Manhattan-based Holland Schriever LLP. "But they need to keep moving forward with legislation."

The dispensary and OCM could not be reached for comment.

The Wednesday memo also states that the governor's office and OCM will pursue legislation to protect licensees whose businesses are impacted.

"The Governor’s Office and OCM will be proposing and aggressively pursuing legislation to address licensees whose businesses are at locations in conflict" with the law, the memo stated. "Importantly, although the Governor’s Office and OCM will actively advocate for legislative redress, passage of proposed legislation is the prerogative of the New York State Legislature and is not a guarantee."

Felicia A. B. Reid, acting executive director of the OCM, added in the memo that she "had conversations with dozens of legislators in the last few days" and was "heartened by their resounding support for legislative redress."

A spokesperson for Gov. Kathy Hochul's office wrote in an email to Newsday Friday that the governor "has made it clear that impacted licensees will be held harmless while she and OCM work with the state legislature to ensure that they can continue to operate while seeking a permanent fix through legislation.”

Birchwyn & Tess LLC holds a conditional adult-use retail, or recreational, license. 

It is one of more than 100 licensees impacted by the change, according to the OCM. 

Riverhead, Brookhaven, Babylon and Southampton voted to allow marijuana sales after the state legalized the drug in 2021. There are eight recreational dispensaries in operation on Long Island.