Attorneys expect litigation to move forward this week over New York’s sudden change to how it measures the required 500-foot buffer between dispensaries and schools or houses of worship. The new “cannabis school distance” policy has thrown hundreds of small businesses into chaos, and many owners say their survival now depends on the courts.
Attorney Jorge Luis Vasquez represents a dozen New York City dispensary owners who sued the state last month. He expects a judge to be assigned to the case soon. Their lawsuit, filed in state Supreme Court, demands that affected licensees have their permits renewed and that their original cannabis school distance protections be honored.
According to Vasquez, negotiations with the state Attorney General’s office are ongoing. “Nothing is written in stone,” he said. “Everyone is negotiating from a positive standpoint and we’re working to reach some sort of agreement.” Members of the Cannabis Control Board briefly discussed the litigation during an executive session of its monthly meeting in Albany but declined public comment.
OCM Acting and Deputy Executive Director Felicia A.B. Reid said her agency has notified more than 200 cannabis businesses and applicants that their licenses cannot be renewed or processed because of miscalculations in how the cannabis school distance was measured — 48 more than initially reported. Although that represents only 13 percent of licensees, Reid called it a significant portion of the agency’s social and economic equity efforts.
Reid added that she learned at the end of June the department was not complying with state law. The agency is working with Gov. Kathy Hochul and lawmakers on a legislative fix to be considered in January, which would ensure affected storefronts would not have to relocate because of the cannabis school distance change.
But many license holders dispute OCM’s assurances. They argue that under current state law, processors and cultivators cannot sell products to a dispensary whose license has expired, regardless of any interim directive. Plaintiff Osbert Orduna, CEO of The Cannabis Place in Queens, said his license expires in six weeks and the uncertainty around cannabis school distance rules is jeopardizing his business.
Impacted applicants have been told they can apply for up to $250,000 in state aid to relocate if needed, but the fund is not yet open. As New York rolls out low-interest loan programs and equity initiatives, many operators say the top priority should be fixing the cannabis school distance policy to provide clear, consistent rules. Until then, hundreds of dispensaries remain in legal and financial limbo.
