The local cannabis regulations in Southampton have effectively been rendered obsolete after state authorities condemned the town’s harsh laws as unlawful and aimed at preventing the establishment of licensed dispensaries.
A unanimous ruling from the state’s Cannabis Control Board on Monday dismantled Southampton’s local permitting framework, which was under scrutiny from state-licensed cannabis entrepreneurs Marquis Hayes and Kim Stetz of Brown Budda dispensary, who had filed a lawsuit against the town.
Hayes and Stetz had accused local officials of manipulating zoning codes and permit demands to obstruct their legally sanctioned business and retain the prohibition of cannabis operations in the affluent coastal region.
“This ruling is a strong reminder to local authorities who have said, ‘We live here; the state does not live here,’” stated Christian Killoran, attorney for Brown Budda.
“The state has made its position unequivocal — Southampton is a part of New York. You inhabit this space just as we do. This decision upholds that it is state law — rather than local interests — that dictates cannabis governance, and municipalities cannot alter regulations for personal agendas.”
The ruling deemed Southampton’s local regulations as “unreasonably impracticable” in accordance with state law, nullifying numerous sections of their zoning regulations, including the special-use permit requirement and distance parameters.
Moreover, state regulators invalidated the town’s attempts to control cannabis deliveries within its area, asserting that such measures are “completely beyond municipal authority.”
This ruling represents a severe blow to Southampton, which has devoted three years to intensifying its cannabis regulations and delaying approvals, all while never opting out of the state’s 2021 legalization framework that merely required a local government vote.
For Brown Budda, the decision signifies a long-awaited victory after enduring prolonged and costly legal battles with the town while awaiting the opportunity to finally commence operations.
“I thought I was on the verge of achieving the American Dream. Instead, the Town of Southampton transformed it into a nightmare,” remarked Hayes, the founder of Brown Budda.
The Southampton dispensary was one of the first to receive a license in the state and the first approved on Long Island in 2022. It has incurred millions in potential losses and wasted cannabis products while spending hundreds of thousands more on rent, fees, and legal expenses.
“Brown Budda New York has been prepared to operate since day one,” added Hayes. “The ordeal is nearly over.”
This ruling might lead to significant statewide ramifications, establishing a precedent that towns cannot utilize local zoning laws to hinder state-licensed enterprises after neglecting the opt-out window.
Additionally, it reinforces that the state retains full authority over marijuana regulations and confirms that local governments cannot micromanage cannabis sales and deliveries within their jurisdictions.
Southampton Town Attorney James Burke did not provide comments when approached for a response.
