
A Good Neighbor Agreement is a written commitment between a cannabis dispensary and the surrounding community. This guide explains what it is, when to propose one, what to include, security commitments, community hotline structure, and when it reduces opposition versus when it is unnecessary.
• What a Good Neighbor Agreement is
• Whether it is legally required
• When to propose one
• What to include
• Security commitments that make sense
• How to structure a community hotline
• Why it can reduce opposition
• When it is strategic and when it is unnecessary
A Good Neighbor Agreement is a voluntary written document outlining operational commitments a cannabis dispensary makes to the surrounding community.
It is not required under MRTA.
It is not required under 9 NYCRR.
It is not a condition automatically imposed by OCM.
It is a strategy tool.
The purpose is to show:
• Operational discipline
• Security readiness
• Responsiveness to neighborhood concerns
• Willingness to engage constructively
It is not a legal license requirement.
It depends on how it is drafted.
Some agreements are:
• Informal public commitments
• Letters of intent
• Non binding community statements
Others may be:
• Incorporated into lease provisions
• Referenced in board recommendations
• Signed by local organizations
You should not draft it in a way that creates unintended enforceable obligations.
It should reinforce compliance with existing law, not expand beyond it unnecessarily.
It is strategic when:
• There is visible community concern
• The board signals hesitation
• Organized opposition exists
• The location is politically sensitive
• The district has high retail density
It may be unnecessary when:
• Community response is neutral or supportive
• There is minimal turnout
• The board indicates comfort with the application
• The store is in a commercial corridor with similar uses
Proposing one too early can invite negotiation pressure.
Proposing one strategically can reduce resistance.
A strong Good Neighbor Agreement is short and operational.
It typically includes:
• Commitment to comply with all OCM regulations
• Security presence during operating hours
• ID verification policy
• Controlled entry procedures
• No loitering policy
• Storefront compliance with visibility rules
• Odor mitigation measures
• Hours of operation
• Community contact information
It should not include:
• Guarantees of zero crime
• Unlimited operational concessions
• Open ended commitments without measurable standards
• Language exceeding regulatory requirements unless intentional
If security is a concern, commitments can include:
• Licensed security personnel onsite
• Surveillance systems meeting state retention standards
• Controlled access entry
• Secure product storage
• Cash management protocols
• Coordination with local precinct
Do not overpromise armed guards if not required.
Do not create obligations that exceed OCM standards unless strategically justified.
Align commitments with 9 NYCRR security requirements.
A community contact line is often well received.
It can include:
• A dedicated email address
• A monitored phone line
• Clear response time commitments
Structure it clearly:
Concerns should be directed to the store management.
Response within a defined timeframe.
Escalation if necessary.
This shows accessibility without creating unlimited liability.
Community resistance often comes from uncertainty.
A written agreement:
• Clarifies operational rules
• Demonstrates preparedness
• Reduces fear of unknown impact
• Shows accountability
Boards often respond positively to structure.
It shifts the conversation from ideology to operations.
It is smart when:
• Opposition is organized
• Media attention exists
• Elected officials are involved
• The board requests additional assurances
• You want to demonstrate proactive engagement
It is less necessary when:
• There is minimal resistance
• The board signals procedural comfort
• The hearing is routine and low conflict
Overcommitting in a calm district can create unnecessary complexity.
• Drafting an overly long agreement
• Agreeing to restrictions not required by law
• Making vague promises without structure
• Using it as political messaging instead of operational clarity
• Signing legally binding concessions without review
Keep it disciplined.
No.
OCM evaluates applications based on statutory and regulatory compliance.
A Good Neighbor Agreement is a political and reputational tool, not a licensing requirement.
It can influence tone.
It does not replace compliance.
Will OCM deny me if I refuse to sign one?
No. Licensing authority is based on compliance with Cannabis Law Article 4 and applicable regulations.
Can a Community Board require one?
They may request one, but they do not have independent licensing authority.
Should my lawyer review it?
If the agreement includes enforceable commitments, legal review is prudent.
Is it better to offer one proactively?
Only if the political environment suggests it will reduce opposition.
A Good Neighbor Agreement is leverage.
Use it strategically.
Keep it short.
Keep it operational.
Align it with state compliance.
Avoid creating obligations that exceed regulatory requirements unless intentional.
It is a tool to manage perception.
Compliance determines licensure.
Professional engagement reduces friction.