ALBANY, N.Y. – More than 150 licensed dispensaries in New York state are no longer in danger of forced relocation or closure after the Supreme Court of New York granted a preliminary injunction against the state’s Office of Cannabis Management (OCM). The order came as part of a lawsuit filed against the OCM in August by a coalition of one dozen dispensaries in New York City.
Signed by Judge Keri E. Savona, the injunction prevents the OCM from taking action against dispensaries that are located too close to schools after the agency reinterpreted a state law. In July, the OCM admitted it previously erred in determining the distance between shops and schools by measuring door-to-door instead of from the school property line nearest the dispensary. The mistake left 152 shops’ licenses in jeopardy because they are situated within the mandated 500-foot exclusion zone.
The injunction covers both license renewal applications and new applications submitted by existing licensees, provisional licensees, and new applicants. It will remain in effect through February 15, 2026, while the legislature works to enact a solution and the lawsuit proceeds. Savona indicated the order may be renewed, if necessary.
“This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York,” said Jorge Luis Vasquez Jr., attorney for the group challenging the new measurement scheme. “The OCM’s directives would have forced businesses that followed every rule to suddenly uproot or close their doors, jeopardizing investments, leases, and community trust. By requiring the OCM to honor its own prior guidance, the court has ensured stability while the broader issues are litigated.
“Licensed operators deserve regulatory clarity, and we will continue to pursue a resolution that protects equity licensees and delivers on the state’s promise of a fair and sustainable cannabis market,” he added.
Nearly 90 percent of the affected dispensaries are owned by justice-impacted individuals and others licensed under New York’s Conditional Adult-Use Retail Dispensary (CAURD) equity program.
“The OCM’s recent declaration placed retailers in untenable positions, jeopardizing their access to banking, investment, and lease agreements while pushing compliant businesses into noncompliance through no fault of their own,” said Matthew Bernardo, president of Housing Works Inc., a CAURD licensee and lead plaintiff in the lawsuit against the OCM. “Disrupting operations at this scale not only harms law-abiding businesses but also drives consumers back to the illicit market, where untested products put public health at risk.”
Other petitioners in the case include Conbud, The Cannabis Place, Rezidue, Summit Canna, Hush, High Fade, Elise Pelka LLC (dba Flynnstoned), Common Courtesy Dispensary LLC, Toastree LLC, Monarch NYC LLC, and Luxe Leaf Boutique LLC.
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