New York’s cannabis oversight agency has identified 152 dispensary licensees and applicants who may be operating too close to schools, triggering a statewide effort to correct a key compliance issue in the growing legal marijuana market.
The Office of Cannabis Management (OCM) announced the findings Monday following a comprehensive review of retailer locations. Officials say the flagged dispensaries violate a 2022 law that prohibits them from operating within 500 feet of a school. The law’s 200-foot rule for religious institutions is unaffected.
Of the 152 impacted entities, 105 are licensed retailers and 47 are applicants awaiting approval. Not all of these businesses are currently open, and OCM says further reviews may identify additional violations.
“Several licensee locations do not comply with Cannabis Law § 72 (6),” the agency stated, adding that distance checks performed during earlier phases of licensing “failed to meet legal standards.”
In response, Governor Kathy Hochul’s office labeled the oversight “unacceptable” and pledged swift corrective action. The state is launching a $15 million Applicant Relief Program through Empire State Development to help cover relocation-related costs. Impacted applicants can apply for up to $250,000 in reimbursements.
OCM and the Governor’s Office also announced plans to pursue legislation that would allow some licensees to remain in their current locations. That proposal, however, must be approved by the New York State Legislature.
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