A recent ruling by the Appellate Division of the Supreme Court of the State of New York has significant implications for cannabis retail businesses in Riverhead, New York. The court decided that local zoning laws restricting cannabis dispensaries from being within 1,000 feet of schools are invalid. This decision affects 1086 OCR, LLC, and Brian Stark Enterprises, LLC, who sought to establish a cannabis retail dispensary at a location approximately 733 feet from Riverhead High School.
The court's ruling is important because it clarifies the relationship between state cannabis laws and local regulations. It indicates that local governments cannot impose stricter rules than those set by state law, particularly regarding the operation of cannabis businesses.
In this case, the petitioners, 1086 OCR, LLC, and Brian Stark Enterprises, LLC, applied for an area variance to operate a cannabis retail dispensary. Their application was denied by the Town of Riverhead Zoning Board of Appeals (ZBA) because the proposed location was within the 1,000-foot limit set by the Town Code. The petitioners then challenged this decision in court.
The dispute arose from a conflict between the local zoning law and state cannabis regulations. New York's Cannabis Law § 72 allows cannabis retail dispensaries to operate within 500 feet of a school, while the Town Code set a stricter limit of 1,000 feet. The petitioners argued that the local law was preempted by state law, which led to the court case.
The case reached the Appellate Division after the Supreme Court of Suffolk County ruled in favor of the petitioners on September 16, 2025. The lower court annulled the ZBA's determination and declared the Town Code provisions regarding the distance from schools invalid. The municipal respondents, including the Town of Riverhead and its officials, appealed this decision.
On July 29, 2026, the Appellate Division issued its ruling. The court stated, "Although a local government is constitutionally empowered to enact local laws relating to the welfare of its citizens through its police power, it is prohibited from exercising that power through the adoption of local laws that are inconsistent with the New York State Constitution or any general law of the state." This ruling emphasizes the limitations of local governments in enacting laws that conflict with state legislation.
The court modified the lower court's judgment by removing the declaration that certain sections of the Town Code were invalid. Instead, the court affirmed that the local law regarding the 1,000-foot restriction was preempted by state law. The ruling confirmed that the petitioners did not need a variance to operate their cannabis establishment at the proposed location.
This ruling has broader implications for cannabis businesses in New York. It sets a precedent that local laws cannot impose additional restrictions beyond what state law allows. As more municipalities navigate the legalization of cannabis, this decision may influence how local governments draft their regulations.
Moving forward, this ruling means that cannabis retail establishments may be able to operate closer to schools than previously thought in Riverhead and potentially in other areas of New York. This could lead to an increase in the number of cannabis dispensaries in locations that were previously restricted due to local laws.
The case also highlights the ongoing tension between state and local regulations regarding cannabis. As more states legalize cannabis, similar legal challenges may arise as local governments attempt to impose their own rules. This ruling could serve as a reference point for future cases involving cannabis regulations.
As for the next steps, it remains to be seen whether the municipal respondents will seek further appeals. Details were not available in the court filing regarding any related cases pending. However, the ruling has established a clear framework for how local laws must align with state regulations in the context of cannabis business operations.