NY Supreme Court Blocks OCM from Closing Licensed Dispensaries

*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.