New York Bill Would Grandfather In Licensed Cannabis Retailers Whose Location Violates State Law 

A bill introduced on Monday would grandfather in New York cannabis dispensaries whose location was approved by regulators despite running afoul of location requirements laid out in the state’s adult-use law. 

The proposal, sponsored by state Sen. Luis R. Sepúlveda (D), provides that an adult-use retail dispensary licensee whose license was approved by the Office of Cannabis Management (OCM) before July 2025, and whose business location was found to be in compliance with standards used by the office at the time of the approval, regardless of the business location’s proximity to a school property line, would be considered compliant for purposes of license renewal and allow for continued operation at their current location.

The legislation comes one week after OCM sent a letter to nearly 200 dispensaries informing them that their location violates the state’s cannabis law, despite being approved by regulators. The letter states that while the business is “not presently required to change” location, it “will become an issue at the time of license renewal.”    

The letter, from (OCM) Acting Director Felicia A. B. Reid Esq., added that OCM and the Governor’s Office would “be proposing and aggressively pursuing legislation to address licensees whose businesses are at locations in conflict” with the state’s adult-use cannabis law and that the “legislation would permit licensees to remain at their present licensed location.”

The legislation is currently in the Senate Rules Committee.