News Summary
Dispensary owners in New York City have gathered at City Hall to urge Governor Kathy Hochul to call a special legislative session to address changes in cannabis proximity regulations. The new interpretation of the 500-foot rule from schools and places of worship threatens the operation of many dispensaries. Although assurances have been made for support, business owners are concerned about the potential closure or relocation of their establishments due to these changes. Proposed legislation aims to provide relief, but immediate action is deemed critical by those affected.
New York City – Dispensary owners gathered at City Hall on Friday, urgently calling for Governor Kathy Hochul to hold a special legislative session in October to address concerns stemming from a recent change in cannabis proximity regulations. The new interpretation by the state Office of Cannabis Management (OCM) adjusts the measurement of the 500-foot distance from schools and houses of worship from their entrances to their property lines, a shift that threatens the operations of numerous dispensaries across the state.
The alteration in the proximity rule could potentially force 108 licensed dispensaries, of which 89 are in New York City, to close or relocate, alongside affecting 44 other license applicants throughout the state. Dispensary owners at the rally expressed their alarm over the potential impacts on their businesses and the overall stability of the cannabis industry in New York.
Both Governor Hochul and the OCM have offered assurances of support for those businesses affected, stating that they will allow dispensaries with pending renewals to operate under the State Administrative Procedures Act (SAPA). However, both parties indicated that a legislative solution might not be put in place until the legislature reconvenes in January, raising concerns among dispensaries about the impending timeline.
Governor Hochul attributed the situation to previous mismanagement by earlier leadership at the OCM, emphasizing her commitment to ensuring that these businesses will not be penalized for past oversights. However, Chris Alexander, the former executive director of the OCM, contended that the change was a deliberate decision made after a comprehensive 18-month review involving multiple government agencies.
Dispensary owners voiced their skepticism regarding the forthcoming legislative session in January, stressing that immediate action is essential for many of them. One proposed solution is state Senator Luis Sepúlveda’s introduction of legislation aimed at grandfathering in licenses that were approved under the former proximity rule, potentially offering relief to affected dispensaries.
Concerns were shared regarding the financial implications of the proximity rule adjustment. Business owners like Jillian Dragutsky articulated that the recent changes may lead to severe financial burdens, labeling the situation as an ongoing challenge facing the cannabis industry. Brian Lane, a compliance officer and co-founder of a dispensary, cautioned that the rule change threatens to destabilize the entire cannabis supply chain, which may result in substantial financial losses.
Many business owners, including Fernando Pena and Suzanne Furbote, highlighted the distress caused by close proximity issues that could plunge them into generational debt. Other dispensary owners, such as Nicole and Chris Lucien, emphasized their commitment to community safety and youth programs through their business operations, questioning why their efforts are now being jeopardized.
Nubia Ashley, a license holder who has yet to open her dispensary, expressed her dismay at being placed in a zone that does not comply with the new regulations before beginning operations. Alex Otero from The Bronx Joint underscored the challenges posed by the new proximity limits, indicating that relocation would be unrealistic under current circumstances.
In response to the outcry from dispensaries, the OCM has communicated that there may be temporary relief available during license renewals, allowing them to postpone certain rulings. Nevertheless, many dispensary owners continue to contend that obtaining loans and securing their businesses without valid licenses remains a significant roadblock.
In addition to his proposed bill, Senator Sepúlveda’s legislative effort seeks to amend New York’s cannabis laws, offering exemptions based on the updated 500-foot rule for dispensaries that were opened prior to July 28, 2025. Furthermore, the OCM is actively working to establish a $15 million relief fund catering to the 44 applicants affected by the changes.
The recent adjustment in the measurement of cannabis proximity has created confusion, as the OCM had not properly measured the distance based on property lines in the past. Governor Hochul has publicly reiterated her support for dispensaries and her commitment to preventing their failure after the significant investments made by their owners.
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Additional Resources
- MJBIZ Daily
- CBS News
- New York Times
- Green State
- City & State NY
- Wikipedia: Cannabis in New York
- Google Search: New York cannabis dispensary proximity rule
- Google Scholar: New York cannabis laws
- Encyclopedia Britannica: Cannabis
- Google News: New York cannabis dispensaries
Author: STAFF HERE NEW YORK WRITER
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