New York’s rollout of legal cannabis dispensaries has faced yet another setback. The Office of Cannabis Management (OCM) recently announced that over 100 licensed cannabis dispensaries may be forced to close or relocate due to an internal error regarding proximity regulations. This revelation has shaken both investors and entrepreneurs who believed they were operating well within the bounds of New York cannabis law.
According to current state regulations, cannabis dispensaries must be at least 500 feet from schools and 200 feet from houses of worship. These distance rules were designed to protect youth and maintain public safety in the rapidly growing adult-use cannabis market. However, a recent OCM review discovered that the initial site assessments and approvals were based on flawed calculations. Many dispensaries, previously approved and fully operational, are now in violation—through no fault of their own.
One affected owner, Sid Patel of Green Flower Dispensary near the Nassau-Queens border, expressed his concern: “The news actually broke for me last night.” Like many other business owners, Patel invested significant capital and time into launching a compliant business.
The Office of Cannabis Management has received sharp criticism from lawmakers and industry stakeholders alike. Nassau County Assemblyman Ed Ra was especially vocal, calling it a “basic failure.” He noted, “We put a provision in to make sure dispensaries weren’t located too close to schools. That’s a very basic thing, and the fact they couldn’t do that properly is unacceptable.”
In response, Governor Kathy Hochul’s office acknowledged the oversight and promised immediate corrective action. The Governor attributed the error to prior leadership within the OCM and emphasized her administration’s commitment to supporting affected cannabis businesses.
Lawmakers are currently drafting a proposed amendment to New York cannabis law that would “grandfather in” dispensaries impacted by the miscalculation. If passed, this legislation would allow compliant dispensaries to continue operations without penalty—helping to prevent unnecessary financial losses and disruptions.
As New York’s legal cannabis industry evolves, accurate and transparent cannabis regulation is more important than ever. The situation serves as a critical reminder that the success of the industry depends not only on legislation but also on effective and error-free implementation by regulatory bodies like the Office of Cannabis Management.
