A New York court recently ruled on a significant case regarding cannabis retail zoning laws in Riverhead. The Appellate Division of the Supreme Court decided that local regulations concerning the distance of cannabis dispensaries from schools are preempted by state law. This ruling affects local businesses seeking to operate cannabis retail establishments and clarifies the legal landscape for cannabis zoning in New York.
The case, known as Matter of 1086 OCR, LLC v. Town of Riverhead Zoning Bd. of Appeals (Docket No. 2025-12945), was filed on July 29, 2026. It centers around the petitioners, 1086 OCR, LLC, and Brian Stark Enterprises, LLC, who sought to open a cannabis retail dispensary in Riverhead. The dispensary's proposed location is approximately 733 feet from Riverhead High School, which raised legal questions about compliance with local zoning laws.
The dispute began when the Town of Riverhead Planning Department denied the application for a building and use permit. The denial was based on the town's regulation that mandated a cannabis retail establishment must be located at least 1,000 feet from a school. The petitioners then applied for an area variance from the Town of Riverhead Zoning Board of Appeals (ZBA) to seek relief from this requirement. However, the ZBA denied their application after a hearing on June 12, 2025.
Following the ZBA's denial, the petitioners initiated a legal proceeding under CPLR article 78, which allows individuals to challenge the decisions of government agencies. They sought a court declaration that the town's zoning law was preempted by state law and that it violated the uniformity requirement of Town Law § 262. The case was heard by the Supreme Court in Suffolk County, which ruled in favor of the petitioners on September 16, 2025. The court annulled the ZBA's determination and declared the town's zoning code regarding cannabis dispensaries invalid.
The Appellate Division reviewed the case and issued its ruling on July 29, 2026. The court modified the Supreme Court's judgment by removing the declaration that certain sections of the Town Code were invalid and void. Instead, the court affirmed that the local zoning laws regarding the 1,000-foot requirement were preempted by state law. The judges on the panel included Valerie Brathwaite Nelson, Barry E. Warhit, Phillip Hom, and Lisa S. Ottley.
The court ruled, "So much of Town Code § 301-283.20(A)(1) as purports to set that distance as 1,000 feet as measured from the property line imposes additional restrictions on rights granted by state law, is inconsistent with the State's overriding interest, and is therefore preempted by the state law."
The ruling is significant because it clarifies the relationship between local and state laws regarding cannabis retail operations. The court emphasized that while local governments have the power to enact laws for the welfare of their citizens, they cannot create laws that conflict with state statutes. This ruling reinforces the idea that state law can preempt local regulations, especially in areas where the state has established comprehensive guidelines.
The decision impacts not only the petitioners but also other potential cannabis businesses in Riverhead and similar jurisdictions across New York. It sets a precedent that local zoning laws cannot impose stricter restrictions than those established by state law. This ruling could encourage more cannabis retail establishments to open in areas previously restricted by local regulations.
Going forward, this ruling may lead to changes in how local governments approach cannabis regulations. Towns and municipalities may need to reassess their zoning laws to ensure compliance with state law. This could result in a more uniform approach to cannabis retail operations across New York State.
As for what’s next, the Town of Riverhead has the option to appeal the decision. However, details regarding any potential appeal or related cases were not available in the court filing. The outcome of this case could influence future legal challenges regarding cannabis regulations in New York.