New York Court Blocks State From Forcing Dispensary Relocations
October 7, 2025
More than 150 licensed cannabis dispensaries across New York are protected from forced relocation or closure following a preliminary injunction issued by the state’s Supreme Court against the Office of Cannabis Management (OCM).
The ruling, signed by Judge Savona on September 29, requires the OCM to revert to its previous method for measuring the distance between dispensaries and schools, as outlined in its 11 March 2024 Guidance for Adult-Use Retail Dispensaries.
The injunction, effective through 15 February 2026, applies to both renewal and new licence applications submitted during this period by existing licensees and applicants.
“This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York,” attorney Jorge Luis Vasquez Jr., representing the petitioners, said in a press release.
“By requiring the OCM to honour its own prior guidance, the court has ensured stability while the broader issues are litigated.”
The case, filed on 15 August by a coalition of licensed retailers including Housing Works Cannabis Co., Conbud, The Cannabis Place and others, challenges the OCM’s reinterpretation of zoning rules concerning proximity to schools and places of worship. The court order, issued without prejudice, can be renewed after six months while proceedings continue.
Join 300+ industry leaders at Business of Cannabis: New York — an exclusive one-day event presented by Prohibition Partners at The Wythe Hotel, Williamsburg, on November 6, 2025.
This VIP gathering will bring together investors, operators and policy-makers to explore strategies for driving investment and accelerating retail growth across the New York cannabis market.
Be part of the conversation shaping the future of legal cannabis in New York.
Origins of the Dispute
The legal challenge follows revelations in early August that the OCM had been approving dispensary sites using an incorrect ‘door-to-door’ measurement, similar to liquor store regulations, rather than the property-line standard required under New York’s cannabis law.
As Business of Cannabis reported at the time, the miscalculation left 105 licensed dispensaries, 60 of which were already operating, and 47 pending applicants in technical violation of zoning rules.
Governor Kathy Hochul described the error as a ‘critical oversight’ by former OCM leadership and directed the state to support affected businesses through a new US$15 million Applicant Relief Programme, offering grants of up to US$250,000 to help eligible applicants cover relocation or compliance costs. However, the programme does not extend to already licensed operators.
Industry figures have sharply criticised the agency’s handling of the issue. Matthew Bernardo, president of Housing Works Inc., said the OCM’s directive placed retailers “in untenable positions, jeopardising their access to banking, investment and lease agreements while pushing compliant businesses into noncompliance through no fault of their own.”
Curaleaf chair Boris Jordan also accused regulators of ‘blatantly disregarding’ the Marijuana Regulation and Taxation Act’s zoning provisions, calling it a “pattern of reckless decisions” that continues to drive consumers toward the illicit market.
Broader Implications
Nearly 90% of the dispensaries affected by the OCM’s reinterpretation are owned by Conditional Adult-Use Retail Dispensary (CAURD) licensees, individuals from communities disproportionately impacted by prior cannabis enforcement. Advocates warn that regulatory instability threatens to undermine the state’s social equity commitments.
“The injunction presents a unique opportunity for Governor Hochul to lead a legislative solution that will save thousands of legal cannabis jobs while ensuring access to tested, regulated products,” said Osbert Orduna, CEO of The Cannabis Place.
The petitioners say they remain committed to working with the state to reach a fair and permanent resolution. Meanwhile, the injunction offers temporary relief to dozens of small business owners who had faced the prospect of shuttering stores they built under state supervision.
Search
RECENT PRESS RELEASES
Related Post
