The New York State Office of Cannabis Management (OCM) announced on September 26 that a court order will permit certain cannabis dispensary businesses to continue using the "door-to-door" method to measure the required distance from schools. This order will remain in effect until February 15, 2026, allowing time for Governor Kathy Hochul and the OCM to collaborate with the Legislature to potentially make the rule permanent.
In June 2025, after an internal practice review, the Office of Cannabis Management (OCM) identified a discrepancy between the Cannabis Law and its measurement practice, which had been first established in 2022. This inconsistency permitted licensed dispensaries to be located too close to schools, contrary to what the Cannabis Law stipulates. In response, OCM took actions to align the agency's practices with the legal requirements, while Governor Hochul directed OCM to develop solutions to protect small businesses and ensure that business owners are not adversely affected by these changes.
Felicia A. B. Reid, Acting Executive Director of OCM, expressed support for the directive, stating that it provides the necessary stability for cannabis entrepreneurs and communities. She highlighted Governor Hochul's commitment to safeguarding hardworking businesses so they can remain operational at their current locations, where they have already invested, as a more permanent solution is sought.
As a result of the order, affected applicants are now allowed to progress with license consideration using the door-to-door measurement method. Additionally, OCM has decided to pause the Applicant Relief Program, which was initially designed to assist applicants with costs related to relocation or expenses incurred at non-compliant locations.
Simone Washington, OCM's Chief Equity Officer, acknowledged that the new ruling protects the investments made by New York's cannabis businesses, ensuring they can continue to grow in communities that have been most impacted by prohibition. Washington emphasized OCM's ongoing commitment to working directly with affected applicants and licensees while collaborating with legislative partners to achieve a permanent solution.
On July 28, OCM notified a total of 152 impacted licensees and applicants, including 108 licensees and 44 applicants, about the proximity correction. The agency plans to issue updated guidance to stakeholders, aligning processes with the preliminary injunction period, and will provide ongoing updates as the legislative process progresses.
