New York Cannabis Regulators Tell Dispensaries to Move Further from Schools After Measurement Error

The Office of Cannabis Management (OCM) has informed 105 licensed dispensaries—and 47 pending applicants—that they must relocate or risk losing their license due to a miscalculation in measuring distance from schools.

Following an internal review, OCM discovered it had improperly measured compliance from school entrances instead of property lines, as required by the Marijuana Regulation and Taxation Act. This oversight affects roughly 60 open dispensaries and nearly 90 more in New York City alone. Governor Kathy Hochul has labeled the error “unacceptable.”

The law requires dispensaries to be at least 500 feet from school property and 200 feet from places of worship. OCM is now urging the legislature to pass corrective legislation that would grandfather the locations approved under prior, incorrect guidance.

Officials are also preparing a $15 million fund to assist affected businesses, offering relocation grants up to $250,000. However, license renewals could still be denied if the legislature fails to act by January.

Retailers slammed the error, with some calling it a continuation of regulatory chaos. Many fear closures, relocation costs, and market instability amid growing competition and administrative challenges.

This incident underscores ongoing proximity controversies in New York’s cannabis market. Operators have previously filed lawsuits over dispensaries being granted permits too close to each other and schools. The distance rule changes stem from earlier confusion over buffer zones and waiver policies.