The New York Supreme Court has delivered a pivotal ruling for the state’s cannabis industry, granting a preliminary injunction that halts enforcement of a controversial relocation directive issued by the Office of Cannabis Management (OCM). The decision shields more than 150 licensed dispensaries from being forced to move or shut down while legal challenges continue.
Court Reinstates Prior Distance Rule
Judge Savona, AJSC, ordered the OCM to return to its previous standard for measuring the legal distance between dispensaries and schools, rejecting the revised calculation method introduced in March 2024. The injunction is set to remain in place through February 15, 2026, covering new applications, provisional licensees, and renewals expiring within that time frame.
Relief for Equity Operators and Small Businesses
Attorneys for the petitioners described the ruling as a critical safeguard for businesses that had complied with existing regulations and invested heavily in their locations. Many of the protected dispensaries are part of the state’s Conditional Adult-Use Retail Dispensary program, operated by justice-involved entrepreneurs, with a significant share owned by Black and Latino business leaders.
Advocates argued that the OCM’s revised rules would have destabilized operations, undermining access to capital, jeopardizing leases, and eroding trust in the regulated market. The injunction ensures these businesses can continue serving customers and communities without immediate threat of closure.
Next Steps in Ongoing Litigation
The lawsuit, filed in mid-August, includes a coalition of dispensaries such as Housing Works Cannabis Co, Conbud, and The Cannabis Place, among others. While the injunction does not end the case, it provides breathing room for operators as the court considers broader arguments about fairness, regulatory stability, and equity within New York’s cannabis rollout.
Industry leaders are now urging state officials to pursue long-term solutions that protect compliant licensees, support equity goals, and maintain consumer confidence in the regulated cannabis system.
Dabbin-Dad Newsroom
