New York Dispensaries Win Injunction Over School Buffer-Zone Rule
In a major legal win, more than 150 licensed cannabis dispensaries across New York State are breathing easier after securing a preliminary injunction against a sudden regulatory interpretation from the Office of Cannabis Management (OCM) that could have forced them to shut down or relocate.
At issue is the 500-foot buffer zone required between dispensaries and schools. For years, the OCM had interpreted this distance to be measured “door to door”—from the entrance of a dispensary to the entrance of a school. But in 2025, the agency unexpectedly changed that to “property line to property line,” making dozens of already-approved businesses suddenly out of compliance.
Why It Mattered So Much
The change triggered chaos. 152 dispensaries, including many that had already opened and invested heavily in retail space, were told they could be too close to schools under the new interpretation. And most critically, many of these affected shops are run by justice-impacted entrepreneurs participating in New York’s Social and Economic Equity (SEE) program.
Faced with the potential of losing their licenses, leases, or entire businesses, the dispensaries formed a legal coalition and filed suit—arguing that they followed the rules in place when they applied and were now being punished retroactively.
Court Ruling Restores Stability — For Now
The court agreed. In late October 2025, the Supreme Court of New York issued a preliminary injunction that blocks the new buffer rule and allows licensees to keep using the “door-to-door” measurement. This injunction will remain in effect until February 15, 2026, while OCM and state lawmakers work toward a long-term legislative fix.
Felicia A. B. Reid, Acting Executive Director of OCM, acknowledged that the order gives “cannabis entrepreneurs and communities the stability they need” while a broader solution is pursued.
For now:
Dispensaries impacted by the rule can keep operating under the old standard.
OCM is pausing its “Applicant Relief Program”, which was created to help cover relocation costs for affected shops.
Equity and Fairness at the Center
“This ruling recognizes the investments made by New York cannabis businesses and ensures they can keep building in the communities most harmed by prohibition,” said Simone Washington, OCM’s Chief Equity Officer.
For many operators, this wasn’t just a zoning technicality—it was an existential crisis. Stores were already operating, paying taxes, hiring local staff, and contributing to their communities. A sudden rule change risked wiping that out.
The decision restores some trust in the system and provides a window of relief—but also highlights how fragile regulatory environments can be, especially in newly legalized markets.
What Comes Next?
With February 2026 as the deadline, the clock is ticking. New York’s Legislature will now need to decide how to codify a clear, permanent standard for measuring the school buffer zone—ideally one that’s consistent, transparent, and doesn’t pull the rug out from under licensed, legal businesses.
Dispensary owners, advocates, and real estate investors will be watching closely. Because while the legal market in New York continues to grow, stability and clarity remain the foundation for success.
Sources:
MG Magazine – “New York Supreme Court Blocks OCM from Closing Licensed Dispensaries”
MJBizDaily – “Buffer Zone Rule Sparks Legal Battle in NY Cannabis Market”
New York Post – “Dispute Over School Proximity Puts Dispensary Licenses at Risk”