New York State’s Office of Cannabis Management (OCM) has revealed that its calculation of the distance between cannabis shops and schools or places of worship did not comply with state law. As a result, over 150 licensed businesses and applicants may need to relocate. The affected areas include 88 open shops in New York City and 17 in the rest of the state.
According to state law, cannabis shops must be at least 500 feet away from the property line of schools or houses of worship. However, since 2023, the OCM has been measuring the distance from the entrance of these institutions instead. This mistake has now been acknowledged, and the OCM is working to correct it.
Although open businesses do not need to shut down immediately, they will not be able to renew their licenses unless the state legislature passes a change to the current law. The OCM is actively pursuing legislative solutions to protect impacted businesses and is committed to ensuring a stable, transparent, and legally sound cannabis industry.
To help affected businesses, the state has established a $15 million fund, which will provide up to $250,000 in assistance to help them relocate and restart their business. However, some argue that this amount is insufficient to cover the expenses faced by these businesses.
“It’s heartbreaking to tell these entrepreneurs that they’ve been waiting years to open their doors, and after all that, they’re being told sorry, here’s a check for $250,000,” said Kaelan Castetter, a cannabis compliance expert. “They’ve invested their careers and livelihoods into these businesses, and it’s unfair to expect them to relocate without adequate support.”
