New York’s Office of Cannabis Management (OCM) has ordered 152 licensed marijuana dispensaries to relocate after a review found the state agency had miscalculated the proximity of those businesses to schools and churches.
The abrupt shift impacts nearly 35% of all licensed dispensaries statewide and includes 60 that are already operational.
The directive was announced in an internal agency email from Felicia A.B. Reid, the acting director of the OCM, which was shared with The Marijuana Herald. In the e-mail, Reid described the decision as “difficult, but necessary”.
Of the 152 dispensaries affected, a majority are located in New York City. Nearly 90% of the impacted businesses were licensed under social equity and justice-involved programs.
State regulations require marijuana dispensaries to be at least 500 feet away from a school. Until now, the Office of Cannabis Management measured that distance from the school’s entrance on the same street. According to Acting Director Felicia A.B. Reid, the law instead mandates that the distance be measured from the edge of the school’s property line—prompting the agency’s abrupt policy shift.
To assist businesses that had not yet opened, the Hochul administration is offering up to $250,000 in relocation assistance. However, no guaranteed support has been confirmed for the 60 dispensaries that are already open.
There are currently 438 licensed dispensaries across New York, with 177 in New York City. The new directive affects more than 70% of the city’s stores.
“I recognize the impact this correction may have on licensees and communities, and I want to be clear: our success as a regulatory body is tied directly to the success of our licensees”, says Reid. “We are actively pursuing legislative solutions to protect impacted businesses, and we remain committed to learning from past missteps to ensure a more stable, transparent, and legally sound cannabis industry moving forward.”
When asked for a response to this article, OCM Press Secretary Taylor Randi pointed to a new webpage setup to address the issue, which can be found by clicking here. She also sent a statement from Reid, which can be found below:
This was a difficult but necessary decision to bring the Office’s practices into full alignment with Cannabis Law. I recognize the impact this correction may have on licensees and communities, and I want to be clear: our success as a regulatory body is tied directly to the success of our licensees. We are actively pursuing legislative solutions to protect impacted businesses, and we remain committed to learning from past missteps to ensure a more stable, transparent, and legally sound cannabis industry moving forward.
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