Over 100 legal New York cannabis dispensaries could be forced to relocate following a monumental blunder from the state’s Office of Cannabis Management (OCM).
New York’s OCM and its bigger brother, the Cannabis Control Board (CCB), are no strangers to controversy or criticism.
Over the last two years, they have been continuously sued by operators, embroiled in scandals over the financing of their CUARD scheme, described as ‘disastrous’ by Governor Kathy Hochul, and endured a scathing ‘top-down’ internal review (among many other failures).
Now, in what has been described as a ‘catastrophic failure of governance’, the OCM announced this week that for over two years, it has been approving cannabis store locations based on the wrong zoning rule.
According to its statement, the OCM has been assessing whether dispensaries are too close to a school or place of worship using a door-to-door measurement, similar to how liquor stores are regulated.
However, New York’s cannabis law says dispensaries must be at least 500 feet away from a school’s entire property line, not just the front door.
Where is our help?
The suicide hotline number?
Quit gaslighting.
You’ve lost the trust of NY’ers & what little respect you had with your deceit & arrogance.
You are the joke of the industry.
We want our due reparations & retribution.— CannaLabs (@cannalabs420) July 31, 2025
In effect, this means that 105 licensed cannabis businesses (60 of which are operational) are now in violation of this zoning rule, alongside 47 applicants who are currently in various stages of being approved.
Governor Hochul described the situation as a ‘critical oversight’ by former OCM leadership, and is now seeking legislative changes to mitigate the issue for license holders already in operation.
A spokesperson for Hochul said: “At her direction, the State is taking immediate action to support cannabis store owners impacted by this issue. We are laser-focused on making sure these small business owners, who have poured their heart and soul into these shops, aren’t left paying the price for the previous leadership’s screw-up.”
Meanwhile, a new fund has been set up to support businesses affected, many of which have spent years and tens, sometimes hundreds of thousands of dollars, establishing their stores.
The state is launching a $15 million ‘Applicant Relief Program’, in which eligible applicants still in process may receive up to $250,000 to help cover relocation or compliance costs. Notably, this will only cover applicants, and not those already licensed.
Despite efforts to amend legislation and enable businesses to keep their premises, the OCM acknowledged there is no guarantee the legislature will approve the proposed fix, leaving some licensees in limbo.
Unsurprisingly, this latest blunder has drawn fierce criticism from all sides.
Boris Jordan, Curaleaf Chairman and CEO, went as far as suggesting that ‘the OCM blatantly and knowingly disregarded the MRTA’s (Marijuana Regulation and Taxation Act’s) proximity provisions, violating both state and federal law on multiple bases.’
“Dispensaries and their owners should not suffer due to the intentional disregard for the law by the OCM and the administration. The state must be held accountable.
“After the MRTA (passed, we believed that New York had a shot at building one of the country’s greatest cannabis markets. But instead, we’ve seen a pattern of reckless decisions, blatant disregard for business owners, patients and customers and more. These failures have driven consumers straight back into the illicit market, robbing the state of tax dollars and job opportunities.
“To every licensee impacted by the OCM’s zoning error: join us in fighting this lawlessness and ensuring the state solves this for New Yorkers. Contact us at NYFightsBack@Curaleaf.com to stand with us.”
