Previously, the OCM measured the mandatory 500-foot buffer zone from a school’s front entrance. In July, the agency abruptly revised this standard to instead require measuring from a school’s property line — a redefinition that now places 152 existing and proposed cannabis stores in potential violation of the law.
Though regulatory officials have permitted affected businesses to remain operating temporarily — even if licenses lapse while renewals are pending — owners fear this is merely a stopgap that fails to address long-term viability. In response, Albany lawmakers have proposed corrective legislation: one bill would align cannabis store distance requirements with those for liquor stores at a reduced 200-foot threshold, while another would “grandfather” in existing businesses under the prior interpretation.
The lawsuit seeks both an injunction preventing enforcement of the new measurement method and a court declaration affirming that the current locations remain legally compliant under the former standard. Plaintiffs argue that their investments—often exceeding one million dollars in tangible build-outs, staffing, and community development—were made in good faith and based on prior state approvals, and that retroactive enforcement violates principles of due process and equity.
OCM’s Acting Executive Director Felicia A. B. Reid and Governor Kathy Hochul have both indicated a willingness to pursue a legislative remedy when the state Legislature reconvenes in early 2026. Meanwhile, the state has launched a support program offering up to $250,000 per impacted business to assist with relocation or compliance adjustments.
As litigation proceeds, a court hearing is scheduled for August 29, which may determine whether the affected businesses may continue operating without being penalized under the altered rule.
Dabbin-Dad Newsroom
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