New York Cannabis Dispensaries Challenge State Over Proximity Rule Revision

On Friday, a coalition of cannabis dispensary owners filed a lawsuit against New York State regulators, arguing that a recent reassessment of distance requirements threatens to shut down their businesses. The state acknowledged it had miscalculated the mandated distance between dispensaries and schools.

The lawsuit asserts that investors have committed millions to numerous cannabis outlets that may now be forced to either move or remain closed due to this regulatory error.

Approximately a dozen licensed dispensary operators petitioned the State Supreme Court in Albany to halt the proposed amendment to the proximity regulation, seeking to have their businesses deemed compliant under the prior interpretation.

According to the complaint, the plaintiffs aim to prevent the state from altering established rules mid-process, which they say would unjustly revoke their licenses and investments, undermining the state’s commitment to a fair cannabis industry.

Last month, the Office of Cannabis Management revealed that due to its own measurement mistake, over 150 licensed dispensaries were found to be situated too close to schools. Officials indicated these businesses might have to relocate unless legislative exceptions are enacted.

State regulations specify that cannabis dispensaries must maintain a minimum distance of 500 feet from schools, measured from the storefront entrance to the school property boundary, a standard recently clarified by regulators.