New York’s Licensing Blunder

NEW YORK – NY’s adult-use cannabis market, now boasting 436 licensed dispensaries [a 93-store increase since late 2024] has hit a snag. The Office of Cannabis Management (OCM) recently acknowledged a critical error in its compliance measurements and issued a proximity correction.

A state law prohibits dispensaries within 500 feet of schools or places of worship, but the OCM mistakenly measured from entrance to entrance rather than property line to property line. This miscalculation has put 105 granted licenses, including 60 operational stores, at risk of relocation before their next renewal. An additional 47 pending applicants are also affected.

To ease the burden, the state has allocated up to $250,000 per affected business for relocation or capital improvements. However, finding compliant locations in New York’s dense urban landscape is no small feat. The OCM is pushing for legislative relief, expected to be introduced in early 2026, but passage is uncertain. This setback threatens to stall the state’s hard-won progress in building a robust legal cannabis market, leaving operators caught up in uncertainty.

Sources: Viridian Capital Advisors, The Office of Cannabis Management (OCM)