A group of twelve cannabis store owners in New York is taking the state to court over a sudden regulatory change that could put their businesses in jeopardy. According to the Times Union, state regulators recently reinterpreted the law governing how far dispensaries must be from schools. Instead of measuring 500 feet from a school’s front entrance, the new rule counts 500 feet from the property line. This shift could dramatically affect the landscape for cannabis shops across the state.
The change has alarmed operators, as it now places 152 existing or planned locations at risk of being non-compliant. While the Office of Cannabis Management (OCM) has assured operators that no immediate closures will take place, the looming threat is that license renewals may be denied in the future. For many cannabis shops, this uncertainty casts a shadow over their investments and long-term viability.
The owners argue that the reinterpretation is both unfair and inconsistent with how the law was originally applied. They have filed a lawsuit to block the rule and secure legal protection for their businesses. If successful, the court could prevent regulators from enforcing the property line interpretation and guarantee that current cannabis shops can remain in their established locations.
This dispute highlights the ongoing tension between New York’s ambitious rollout of its legal cannabis market and the realities of regulation. Cannabis shops have already faced numerous hurdles — from delays in licensing to challenges finding suitable real estate.
Community safety and public health are often cited as reasons for strict buffer zones around schools. However, shop owners argue that the revised interpretation does little to enhance safety and instead punishes businesses that acted in good faith under the previous understanding. For cannabis shops that have already invested heavily in their locations, the stakes couldn’t be higher.
As the case moves forward, the outcome will set an important precedent for how New York regulates its cannabis industry. If the courts side with the state, many cannabis shops could be forced to relocate or risk losing their licenses. On the other hand, a win for the owners would reinforce the need for regulatory clarity and stability in an already challenging marketplace.
For now, cannabis shops across New York are watching closely. The lawsuit not only affects the twelve plaintiffs but also signals the broader struggle for fairness, consistency, and sustainability in the state’s growing cannabis economy.
